If you’re a salaried employee in India, chances are you’ve heard about Form 16. But what exactly is it, why is it so important, and how does it impact your tax filing? This comprehensive guide explains everything you need to know in simple way.
Table of Contents
What is Form 16?
Form 16 is a certificate issued by your employer that shows how much salary you earned and how much TDS (Tax Deducted at Source) was deducted during the financial year. It is issued under Section 203 of the Income Tax Act, 1961 and serves as official proof of tax deducted on your income.
If you’ve worked and paid tax through your employer in any Financial Year, you’ll need Form 16 to file your Income Tax Return Filing for that year.
Why is Form 16 So Important?
Here’s why Form 16 is a must-have:
- Proof of income & TDS deducted
- Helps with accurate Income Tax Return (ITR) filing
- Useful when applying for home loans or visas
- Needed to claim a tax refund, if eligible
- Ensures transparency between you, your employer, and the Income Tax Department
Parts of Form 16: Understanding Part A and Part B
Form 16 is divided into two major sections:
Part A – TDS Summary & Employer Info
Includes:
- Employer & employee PAN and TAN
- Summary of salary paid and TDS deducted (quarter-wise)
- Period of employment
- Certificate number (from TRACES portal)
This part is downloaded by the employer from the TRACES portal.
Part B – Salary Breakup & Tax Computation
Includes:
- Salary structure: basic, HRA, allowances, etc.
- Deductions claimed under Chapter VI-A (like 80C, 80D)
- Net taxable income & tax calculation
- Option chosen: Old Regime or New Regime
- Section 89 Relief (if applicable)
Who Issues Form 16 and When?
Your employer is responsible for issuing Form 16. If TDS was deducted from your salary, you must receive Form 16.
Form 16 Due :
June 15 of Assessment Year
If your employer fails to issue it, they may be liable for a penalty of ₹100 per day of delay.
Who is Eligible for Form 16?
You will receive Form 16 only if your employer deducted TDS from your salary. If your annual income was below the taxable limit, your employer is not obligated to issue Form 16 — though some may do it voluntarily.
How to Get Your Form 16?
Your HR or Payroll department will typically:
- Email it as a PDF file
- Or provide a physical copy
Note: Employees cannot download Form 16 directly from the TRACES portal. It must come from the employer.
If you’ve changed jobs during the year, collect Form 16 from each employer.
Form 16 Password Format
Sometimes Form 16 is password-protected. The usual password format is:
First 5 letters of PAN (in lowercase) + DOB in DDMMYYYY format
Example: abcde01011990
Always check the accompanying email for password instructions.
Using Form 16 for ITR Filing
Your Form 16 is your best friend during ITR filing. It provides:
- Total salary received
- Exemptions (HRA, LTA)
- Deductions (80C, 80D, etc.)
- TDS deducted and deposited
Use this data to file your ITR accurately — especially if you’re using platforms like TAXEAZ, which simplify this process for you.
Form 16 vs Form 16A vs Form 16B vs Form 26AS
| Form | Purpose |
|---|---|
| Form 16 | TDS on salary (issued by employer) |
| Form 16A | TDS on non-salary income (interest, rent, professional fees) |
| Form 16B | TDS on property sale (issued by buyer) |
| Form 26AS | Consolidated annual tax statement from Income Tax Dept. |
Common Issues with Form 16
Didn’t Receive Form 16?
- Contact HR or payroll
- If still pending, you can still file ITR using Form 26AS + AIS & TIS + Salary Slips
Errors in PAN or TDS Amount?
- Notify your employer immediately
- They must file a revised TDS return
Changed Jobs?
- Collect Form 16 from each employer
- Consolidate all incomes in your ITR
Lost Your Form 16?
-
Ask your employer for a duplicate copy
How to Verify Form 16 Authenticity
To verify your Form 16:
- Check for TRACES logo and 7-digit certificate number
- Cross-verify TDS with Form 26AS on the income tax portal
- Ensure employer PAN & TAN match official records
Can You File ITR Without Form 16?
Yes, but it’s trickier.
You’ll need:
- Salary slips for income details
- Form 26AS for TDS
- Investment proofs for 80C/80D claims
- Bank statements for interest income
Taxeaz tip: If you’re missing Form 16, our team can still help you file accurately!
Form 16 Checklist for AY 2025-26
- Received by June 15, 2025
- Correct PAN, Name, Address
- Employer’s PAN & TAN verified
- TDS matches Form 26AS
- Salary breakup aligns with pay slips
- Deductions (80C, 80D, etc.) included
- Chosen tax regime mentioned (Old/New)
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