Form 16 is the annual certificate your employer gives you for the tax it deducted from your salary. It is the single document that summarises what you earned, what was exempt or deducted, how much tax was due, and how much TDS was actually deposited against your PAN. If you file an income tax return, Form 16 is where most of the numbers come from.

Part A and Part B

Part A is generated from the TRACES portal and carries the employer’s TAN, your PAN, the period of employment, and a quarter-by-quarter summary of tax deducted and deposited. Because it is system-generated, the figures here should match your Form 26AS exactly.

Part B is the detailed computation prepared by the employer: gross salary broken into components, exempt allowances like HRA and LTA, the standard deduction, Chapter VI-A deductions such as 80C and 80D, the tax on total income, the 87A rebate if any, and cess.

When you get it

Employers must issue Form 16 by 15 June following the financial year. If you changed jobs during the year, you get a separate Form 16 from each employer and combine them when filing. A perquisite-heavy package may also come with Form 12BA attached.

Frequently asked questions

Will I get Form 16 if no tax was deducted?

Employers are strictly required to issue Part A only where TDS was deducted. Many still issue a full Form 16 as a matter of practice, but you can file your return from payslips and Form 26AS if you do not receive one.

What if my Form 16 does not match Form 26AS?

Raise it with your employer before filing. The deposited tax in Form 26AS or AIS is what the department credits you with, so a mismatch must be fixed at the employer’s end through a corrected TDS return.

Is Form 16 proof of income for a loan?

Yes, lenders commonly accept it as income proof, along with payslips and bank statements.

Reconcile the tax in your Form 16 with the Income Tax Calculator, and check the monthly deduction that produced it with the TDS on Salary Calculator.