Form 16 is a tax deducted at source (TDS) certificate issued by an employer. It shows the salary paid during the financial year and the tax deducted and deposited against the employee’s PAN.
What is Form 16?
Section 203 of the Income Tax Act, 1961 requires an employer that deducts TDS from salary to issue Form 16 to the employee.
For FY 2025-26:
- Form 16 covers the period from 1 April 2025 to 31 March 2026.
- Employers must issue Form 16 by 15 June 2026.
- If no TDS was deducted from salary, the employer is not required to issue Form 16.
- Form 16 is generated through the TRACES system and includes a certificate number.
Form 16 has two parts
Part A
Part A contains:
- Employer’s name, address, PAN, and TAN.
- Employee’s name, address, and PAN.
- Period of employment during the financial year.
- Quarter-wise salary, TDS deducted, TDS deposited, and challan details.
Compare the TDS shown in Part A with Form 26AS and the Annual Information Statement (AIS). If the figures do not match, ask your employer to correct its TDS return before filing your income tax return.
Part B
Part B contains the salary and tax calculation prepared by the employer.
It includes:
- Salary under Sections 17(1), 17(2), and 17(3).
- Exempt allowances under Section 10, including HRA, leave travel allowance, and gratuity where applicable.
- Standard deduction of ₹75,000 under the new tax regime or ₹50,000 under the old tax regime for FY 2025-26.
- Chapter VI-A deductions claimed through the employer, including Sections 80C, 80D, and 80CCD, where applicable.
- Taxable income, income tax, rebate under Section 87A where applicable, health and education cess, and TDS.
Part B also shows the tax regime used by the employer to calculate TDS. You may choose a different tax regime when filing your return if the Income Tax Act permits that choice.
Using Form 16 to file your income tax return
If you worked for more than one employer during FY 2025-26, collect Form 16 from each employer.
Check that your PAN and personal details are correct.
Compare the salary and TDS figures with Form 26AS and the Annual Information Statement.
Open the applicable income tax return form on the e-filing portal. Most salaried taxpayers use ITR-1. Compare the pre-filled salary and TDS with Form 16 and correct any differences.
Report income that does not appear in Form 16, including savings account interest, fixed deposit interest, capital gains, rental income, and other taxable income.
Choose the tax regime that applies to you.
Pay any remaining tax, submit the return, and complete e-verification within the prescribed time.
If you changed jobs during the year
If you received salary from more than one employer during FY 2025-26:
- Add the salary reported in each Form 16.
- Claim the standard deduction once.
- Reconcile TDS from all employers with Form 26AS.
- If the total TDS is less than your tax liability, pay the balance as self-assessment tax before filing. Interest under Sections 234B or 234C may apply where the Income Tax Act requires it.
Form 16, Form 16A, Form 16B, and Form 16C
| Form | Purpose | Issued by |
| Form 16 | TDS on salary | Employer |
| Form 16A | TDS on payments other than salary, such as bank interest or professional fees | Deductor |
| Form 16B | TDS on purchase of immovable property under Section 194-IA | Property buyer |
| Form 16C | TDS on rent under Section 194-IB | Tenant |
Common mistakes
- Reporting only the salary shown in Form 16 and omitting other taxable income.
- Claiming TDS that does not appear in Form 26AS.
- Claiming the standard deduction more than once after changing jobs.
- Assuming that receiving Form 16 means the income tax return has already been filed.
Frequently asked questions
Can I file an income tax return without Form 16?
Yes. You can prepare your return from salary slips, bank statements, Form 26AS, the Annual Information Statement, and other supporting records.
What if my employer does not issue Form 16?
If the employer deducted TDS from salary, Section 203 of the Income Tax Act requires the employer to issue Form 16. Section 272A(2)(g) provides for a penalty of ₹100 per day for failure to issue the certificate, subject to the limits prescribed under the Act. You can still file your return using Form 26AS, the Annual Information Statement, salary records, and bank statements.
Is Form 16 password protected?
Many employers issue Form 16 as a password-protected PDF. The password format varies. Check the email or instructions provided by your employer.
