Form 16
Form 16 is a TDS certificate issued by an employer to an employee each financial year, summarising salary paid, tax deductions, and exemptions, used to file the employee's income tax return.
What is Form 16?
Form 16 is issued under Section 203 of the Income Tax Act. It has two parts: Part A (TDS deposit summary, generated from TRACES portal) and Part B (salary breakup, exemptions, deductions, and tax computation, prepared by the employer). It serves as proof of TDS and is the primary input for filing ITR-1 or ITR-2.
How Form 16 is used
Employers must issue Form 16 by 15 June following the end of the financial year (i.e. for FY 2025-26, by 15 June 2026). Employees use it to file their income tax return.
Form 16 FAQs
Who issues Form 16?
The employer issues Form 16 to every employee whose salary attracted TDS during the financial year.
When is Form 16 issued?
By 15 June after the financial year ends. For FY 2025-26, by 15 June 2026.
What if no TDS was deducted?
If no TDS was deducted (income below taxable limit), the employer is not strictly required to issue Form 16, but many issue it anyway as a salary certificate.