Form 16

Form 16 is the TDS certificate an employer issues to a salaried employee, certifying the tax deducted at source from salary under Section 392 (the old Section 192) and deposited with the government during a financial year. It is issued under Section 395 of the Income-tax Act, 2025 (the old Section 203 of the 1961 Act) read with Rule 31 of the Income-tax Rules, and serves as the employee's proof of tax paid as well as a ready reckoner for filing the income tax return (ITR).

Part A and Part B

• Part A is generated and downloaded by the employer from the TRACES portal (the CPC-TDS system of the Income Tax Department). It carries the employer's TAN and the employee's PAN, and shows the tax deducted and deposited quarter by quarter.
• Part B is prepared by the employer as an annexure. It gives the detailed salary breakup, exemptions under Section 11 (the old Section 10), deductions claimed under Chapter VIII (the old Chapter VI-A) such as Section 123 (old 80C) and Section 126 (old 80D), and the final tax computation, including whether the old or new regime was applied.

Legal basis and due date

Both parts must be issued by 15 June of the financial year immediately following the year in which tax was deducted. Part A should be authenticated through TRACES, and employers commonly digitally sign the certificate.

Who needs it and how it is used

Any employee whose salary had TDS deducted receives Form 16. The figures feed directly into the ITR and should be cross-checked against Form 168 (the old Form 26AS) and the Annual Information Statement (AIS) before filing. If no tax was deducted, an employer is not obliged to issue Form 16, though many still provide a salary statement.