Form 16

What is Form 16?

Form 16 is a TDS certificate issued by an employer to a salaried employee when tax is deducted from salary. It serves as proof that the employer has deducted tax from the employee’s salary and deposited it with the government.

Form 16 includes salary details, TDS details, employee PAN, employer TAN, exemptions, deductions, taxable income, and tax calculation details. It has two parts: Part A, which covers TDS and employer-employee details, and Part B, which shows salary breakup, deductions, exemptions, and tax calculation.

Form 16 Format

Form 16 is divided into two main parts: Part A and Part B. Part A contains employer, employee, PAN, TAN, and TDS deposit details. Part B contains salary breakup, allowances, exemptions, deductions, taxable income, and tax calculation details.

Section	Details included
Part A	Employer name, employer TAN, employee PAN, assessment year, period of employment, salary paid, and TDS deposited
Part B	Salary breakup, exemptions, deductions under Chapter VI-A, taxable income, tax payable, rebate, surcharge, cess, and tax deducted
Signature	The employer should authenticate form 16 through manual or digital signature

Part A of Form 16

Part A usually includes:

• employer name and address
• employer TAN
• employee name and PAN
• assessment year
• period of employment
• salary paid
• TDS deducted and deposited
• challan details
• TDS certificate number

Part B of Form 16

Part B usually includes:

• gross salary
• exempt allowances
• standard deduction
• income chargeable under salaries
• deductions under Chapter VI-A
• taxable income
• tax payable
• rebate, surcharge, and cess, if applicable
• total TDS deducted

Who Gets Form 16?

A salaried employee receives Form 16 if the employer has deducted TDS from salary during the financial year. The employer issues Form 16 as a certificate of tax deducted from salary and deposited with the government.

If no TDS was deducted, the employer may still provide salary slips, tax computation, or salary statement, but Form 16 is mainly issued when salary TDS has been deducted.

When is Form 16 Issued?

Form 16 is generally issued after the end of the financial year. Employers usually issue it before salaried employees file their income tax return for the relevant assessment year.

If your employer has deducted TDS from your salary but you have not received Form 16, you should contact your HR, payroll, or finance team.

How to Get or Download Form 16?

Form 16 is usually provided by the employer after the end of the financial year. Employees generally receive it through the company HR portal, payroll portal, employee self-service portal, official email, or finance team.

If you have not received Form 16, contact your HR, payroll, or finance department. You can also check Form 26AS or AIS on the Income Tax portal to verify whether TDS deducted from your salary has been reported against your PAN.

Is There an Eligibility Criterion for Form 16?

Yes. Any salaried person with a tax deduction by the employer at the source is eligible to get Form 16. Irrespective of whether your income falls under the tax exemption limit, the employer must issue a Form 16 if they have deducted tax at the source.

How to Check or Verify the Form 16

1. Navigate to the official website of the income tax portal.
2. Login using a username (your PAN) & password
3. Browse to the ‘e-file’ tab and click on ‘View 26AS’ under the ‘Income Tax Returns’ option
4. Once you get redirected to the TRACES website, click on the ‘View Tax Credit’ tab.
5. Then, click on ‘Verify TDS Certificate.’ Fill in the required details in Form 16 (Part A) except for the source of income.
6. Select your source of income from the drop-down menu on the page
7. Click on ‘Validate’ to check the authenticity of your Form 16.
8. Verify whether the details on the form and those shown on the website will be the same.
9. Contact your employer immediately to correct the Form 16 in case the website displays that your Form 16 is invalid.

Form 16 vs Form 16A vs Form 16B

Form	Meaning	Issued for
Form 16	TDS certificate issued by employer to salaried employee	Salary income
Form 16A	TDS certificate for non-salary payments	Interest, commission, rent, professional fees, etc.
Form 16B	TDS certificate related to property transactions	TDS on sale of immovable property

For the verification of the digital signature of your Form 16 

1. Open Form 16 in an Adobe reader.
2. Right-click on the digital signature on the last page of form 16.
3. Then, click on ‘Validate Signature.’
4. If it displays valid, then the sign is valid.

Other Things to Know About Form 16

1. Your employer cannot deduct any TDS and issue a form 16 if your income is below the basic exemption limit.
2. You might have more than one form 16 document if you worked with more than one employer during the tax year.