Form 16 is the annual TDS certificate every employer must give every salaried employee from whose pay tax was deducted during the financial year. It is the document your income-tax return is largely built from — and the one attachment everyone hunts for in June. Here is what's inside it and what to check before you file.
The deadline that governs everything
Employers must issue Form 16 by June 15 following the financial year — 15 days after their fourth-quarter TDS return (Form 24Q) deadline of May 31. Late or non-issuance carries a penalty of ₹100 per day per employee, so a company that hasn't issued by late June is not being casual; it is accruing penalties.
Part A — the government-verified half
Part A is generated from the Income Tax Department's TRACES portal after the employer's quarterly TDS returns are processed. It shows:
- Employer's PAN and TAN, and your PAN,
- your period of employment during the year,
- quarter-wise tax deducted and deposited against your PAN.
Because it comes from TRACES, Part A is the authoritative record that the tax cut from your salary actually reached the government.
Part B — the salary story
Part B is prepared by the employer from payroll data: gross salary and its components, exempt allowances, the standard deduction (₹75,000 under the new regime), Chapter VI-A deductions you declared (80C, 80D and so on), and the final tax computation that justified the TDS. If Part A is the receipt, Part B is the working.
Six checks before you file ITR
- PAN is yours and correct — a wrong PAN means the TDS credit went to the wrong ledger.
- Part A totals match Form 26AS / AIS — the department's own statement of tax against your PAN should agree with Part A.
- Every employer of the year is covered — switched jobs? You need a Form 16 from each employer, and the incomes must be combined when filing.
- Declared deductions actually appear — investments you submitted proofs for should be in Part B.
- Salary figures match your payslips — Part B's gross should reconcile with your monthly payslips; unexplained gaps mean questions now or notices later.
- Regime shown is the one you chose — old vs new regime changes the whole computation.
The payroll machinery behind a clean Form 16
A Form 16 that sails through these checks is downstream of payroll run correctly all year: TDS projected and deducted month by month, deposited on time, quarterly returns filed, declarations captured with proofs. That is mechanical when payroll runs on software — PeopleDeck computes TDS within the monthly run and generates the statutory filings from the same records — and error-prone when it runs on spreadsheets and memory.
A note on accuracy: deduction limits, regimes and deadlines change with Finance Acts. Verify current-year figures on incometax.gov.in or with a tax professional before filing. This is general information, not tax advice.
Frequently Asked Questions
What is the deadline for employers to issue Form 16?
June 15 following the financial year — 15 days after the employer's Q4 TDS return deadline of May 31. Late issuance attracts a penalty of ₹100 per day per employee.
What is the difference between Form 16 Part A and Part B?
Part A is generated from the TRACES portal and certifies the tax deducted and deposited against your PAN, quarter by quarter. Part B is the employer-prepared annexure showing your salary breakup, exemptions, deductions and the tax computation.
I changed jobs during the year. How many Form 16s do I need?
One from each employer that deducted TDS during the year. When filing, combine the salary incomes from all of them — filing on one employer's Form 16 alone understates income and typically triggers a notice.
What if my employer deducted TDS but hasn't issued Form 16?
Check Form 26AS/AIS on the income-tax portal — if the deposits appear there, your credit is safe and you can file using those figures. If deposits are missing, the tax was cut but not deposited; raise it with the employer in writing.
Can I file my ITR without Form 16?
Yes — using payslips plus Form 26AS/AIS to reconstruct income and TDS. Form 16 makes filing easier and is the employer's legal obligation, but its absence does not remove your filing duty.