What is Form 16?
Form 16 is a TDS certificate issued by employers to their employees, certifying the amount of salary paid and the tax deducted at source (TDS) on that salary during the financial year. It is issued under Section 203 of the Income Tax Act by employers who have deducted TDS on employee salaries under Section 192.
Form 16 is the most important document for a salaried employee filing an ITR. It contains your complete salary breakup, deductions, TDS deducted, and tax deposited with the government — all required to file an accurate income tax return.
Employers must issue Form 16 by 15 June of the assessment year. For FY 2025-26, Form 16 must be issued by 15 June 2026.
Form 16 Key Facts:
- Issued by: Employer (to employees with TDS deducted on salary)
- Issued under: Section 203 of Income Tax Act
- Due date for issue: 15 June of the AY (15 June 2026 for FY 2025-26)
- Two parts: Part A (TDS details) and Part B (salary breakup)
- Verified on TRACES (TDS Reconciliation Analysis and Correction Enabling System)
Form 16 Part A vs Part B
Form 16 Part A — TDS Certificate
Part A is generated by TRACES and downloaded by the employer. It contains:
- Employer's Name, Address, TAN (Tax Deduction Account Number), PAN
- Employee's Name, PAN, and designation (period of employment)
- Assessment Year and financial year
- Quarter-wise summary of TDS deducted and deposited
- BSR code, challan serial number, date of deposit for each TDS payment
- TRACES unique verification number — for authenticating the certificate
Form 16 Part B — Salary Breakup
Part B is prepared by the employer (not TRACES). It contains:
- Gross salary
- Allowances exempt under Section 10 (HRA, LTA, etc.)
- Income under head Salaries after exemptions
- Deductions under Chapter VI-A (80C, 80D, 80G, etc.)
- Tax on total income and tax relief under Section 89
- Total TDS deducted (should match Part A)
- Net tax payable / refundable
What Does Form 16 Look Like? (Key Sections Explained)
Part B Salary Breakdown — Typical Structure
| Item | Amount |
|---|---|
| Basic Salary | Ôé╣X |
| House Rent Allowance (HRA) | Ôé╣X |
| Special Allowance / Other Allowances | Ôé╣X |
| Bonus / Incentive | Ôé╣X |
| Gross Salary (A) | Ôé╣X |
| Less: Allowances exempt u/s 10 (HRA exempt, LTA exempt) | (Ôé╣X) |
| Net Salary after exemptions (B) | Ôé╣X |
| Less: Standard Deduction (Ôé╣75,000 for FY 2025-26) | (Ôé╣75,000) |
| Less: Deductions u/s 16 (entertainment allowance, professional tax) | (Ôé╣X) |
| Income under head Salaries (C) | Ôé╣X |
| Less: Chapter VI-A deductions (80C, 80D, 80G, etc.) | (Ôé╣X) |
| Total Taxable Income | Ôé╣X |
| Tax on total income | Ôé╣X |
| Add: Surcharge + Education cess | Ôé╣X |
| Less: Rebate u/s 87A (if applicable) | (Ôé╣X) |
| Total Tax Payable | Ôé╣X |
| Less: TDS deducted by employer | (Ôé╣X) |
| Net Tax Payable / (Refundable) | Ôé╣X |
How to Download Form 16 from TRACES
Employees cannot directly download Form 16 from TRACES — only employers can. However, you can verify your Form 16 on TRACES:
- Go to tdscpc.gov.in (TRACES)
- Click "Register as Taxpayer" (if not registered) or login with PAN
- Go to Downloads  Form 16 Verification
- Enter your PAN and the verification number on Part A of your Form 16 to verify authenticity
If Employer Hasn't Given Form 16
Your employer is legally required to issue Form 16 by 15 June. If they haven't:
- Formally request HR / payroll department
- Escalate to your manager if ignored
- Check Form 26AS / AIS on incometax.gov.in — TDS deducted by employer appears there
- You can file ITR using Form 26AS data even without Form 16
- Employer failing to issue Form 16 can face penalty of Ôé╣100 per day under Section 272A(2)(g)
How to Use Form 16 to File ITR
For salaried employees filing ITR-1 (no capital gains, income Ôëñ Ôé╣50 lakh):
- Login to incometax.gov.in
- Go to e-File  Income Tax Returns  File Income Tax Return
- Select AY 2026-27  ITR-1
- The portal auto-populates salary, TDS, and deduction data from employer filings
- Cross-check auto-populated data against your Form 16 — correct any discrepancies
- If employer's GSTR/TDS filings haven't been done, enter data manually from Form 16
- Add any additional income not in Form 16 (savings interest, dividends, rental income)
- Review, submit, and e-verify
Form 16 vs Form 16A vs Form 16B
| Form | Issued By | For | TDS Section |
|---|---|---|---|
| Form 16 | Employer | TDS on salary | Section 192 |
| Form 16A | Deductor (bank, client, etc.) | TDS on non-salary payments (interest, commission, rent, etc.) | Sections 194A, 194H, 194I, etc. |
| Form 16B | Property buyer | TDS on sale of immovable property | Section 194-IA |
Form 16 for Multiple Employers in One Year
If you changed jobs during FY 2025-26:
- Collect Form 16 from both (or all) employers
- You must disclose previous employer's salary to the new employer — so new employer can calculate TDS correctly considering the combined salary
- If you didn't disclose, there may be a TDS shortfall — pay the balance as self-assessment tax while filing ITR
- In ITR, add salary from all employers in the salary schedule
- TDS from all Form 16s should match Form 26AS
Common Form 16 Issues and How to Resolve
| Issue | Solution |
|---|---|
| Name in Form 16 does not match PAN | Ask employer to correct; minor mismatches usually accepted by ITR portal |
| TDS in Form 16 (Part A) does not match Form 26AS | Contact employer — they may not have deposited TDS correctly; raise grievance if unresolved |
| Form 16 Part A and Part B amounts differ | Contact HR — Part A is from TRACES (authoritative); Part B should match |
| Employer refuses to issue Form 16 | File ITR using Form 26AS data; report employer to income tax helpdesk |
| Form 16 shows wrong tax regime (old vs new) | You can override the regime choice at the time of ITR filing |
Key Points to Check in Your Form 16
- Ô£ô Your name and PAN are correct
- Ô£ô Employer TAN is correct (verify on TRACES)
- Ô£ô Total TDS matches Form 26AS
- Ô£ô HRA exemption and other Section 10 exemptions are correctly reflected
- Ô£ô All deductions you declared (80C, 80D, HRA) appear in Part B
- Ô£ô Tax regime chosen matches your preference
- Ô£ô Gross salary matches your salary slips for the year