What is Form 16?
Form 16 is a TDS (Tax Deducted at Source) certificate issued by employers to salaried employees under Section 203 of the Income Tax Act, 1961. It serves as proof of tax deduction and contains details of:
- Salary paid
- TDS deducted
- Tax deposited with the government
Key Features of Form 16
✔ Mandatory Document – Required for filing ITR
✔ Validity – Generated for each financial year (April-March)
✔ Two Parts – Consists of Part A (TDS details) & Part B (Salary breakup)
✔ Digital Availability – Can be downloaded from TRACES portal
Key Components of Form 16
Form 16 Part A (Issued by Employer)
| Field | Description |
|---|---|
| Name & Address of Employer | Company details |
| Name & Address of Employee | Employee details |
| PAN of Deductor | Employer’s PAN |
| PAN of Employee | Employee’s PAN |
| TAN of Employer | Tax deduction account number |
| Assessment Year | Relevant financial year |
| Summary of Tax Deposited | Quarterly TDS breakdown |
Form 16 Part B (Salary Details)
| Field | Description |
|---|---|
| Gross Salary | Basic + DA + HRA + Allowances |
| Deductions | Under Section 80C, 80D, etc. |
| Taxable Income | After all deductions |
| TDS Deducted | Monthly/Yearly breakdown |
| Tax Payable/Refundable | Final tax liability |
Difference Between Form 16 Part A and Part B
| Feature | Form 16 Part A | Form 16 Part B |
|---|---|---|
| Issued by | Employer via TRACES | Employer (optional) |
| Content | TDS details | Salary breakup |
| Mandatory | Yes | No (but recommended) |
| Used for | ITR filing | Tax calculations |
Who Issues Form 16?
- Employers (if TDS is deducted from salary)
- Available on TRACES (govt. portal for taxpayers)
- Deadline – By June 15 of the assessment year
Note: If your salary is below taxable limits, you won’t receive Form 16.
How to Download Form 16?
For Employees:
- Ask HR/Finance Team – Companies often provide it directly
- Download from TRACES – Steps:
- Register/login at TRACES Portal
- Go to “Downloads” > “Form 16”
- Select financial year & download
For Employers:
- Generate via Payroll Software (e.g., Tally, Zoho Payroll)
- Upload to TRACES for employee access
How to Read and Verify Form 16?
Checklist for Verification
✅ PAN & Personal Details – Ensure no spelling errors
✅ TDS Amount – Cross-check with salary slips
✅ Tax Deposited – Match with Form 26AS (via Income Tax Portal)
✅ Deductions Claimed – Verify HRA, LTA, 80C investments
Free Form 16 Generator Tool
🛠️ Create & Download Form 16 Instantly (Sample Format)
Form 16 Generator (Sample)
Sample Form 16 (Real-Person Example)
Form 16 For the Financial Year 2024-25
Part A (TDS Certificate)
| Field | Details |
|---|---|
| Employer Name | TechSolutions Pvt. Ltd. |
| Employee Name | Rahul Sharma |
| PAN of Employee | ABCPS1234D |
| TAN of Employer | BLRP12345Q |
| Total TDS Deducted | ₹64,800 |
Part B (Annexure)
| Salary Component | Amount (₹) |
|---|---|
| Basic Salary | 6,00,000 |
| HRA | 1,20,000 |
| Special Allowance | 60,000 |
| Gross Salary | 7,80,000 |
| Less: Deductions | |
| Section 80C (PPF) | 1,50,000 |
| Section 80D (Health Insurance) | 25,000 |
| Taxable Income | 6,05,000 |
| TDS Deducted | 64,800 |
FAQs on Form 16
Is Form 16 mandatory for ITR filing?
A: No, but it simplifies the process. You can use Form 26AS + Salary slips instead.
What if my employer doesn’t issue Form 16?
A: You can:
- Request HR to generate it
- File ITR using Form 26AS + payslips
Can I get Form 16 after leaving a job?
A: Yes, employers must provide it for all past years.
How to correct errors in Form 16?
A: Contact your employer to revise it via TRACES.
Is Form 16 required for freelancers?
A: No, it’s only for salaried employees. Freelancers get Form 16A.
Conclusion
Form 16 is a critical tax document that ensures smooth ITR filing.
Key Takeaways:
✔ Always verify details with Form 26AS
✔ Keep digital & physical copies safe
✔ Use our free generator for reference (official Form 16 comes from TRACES)
📥 For official Form 16, visit TRACES Portal