Indian Tax & Schemes2 min read

Form 16: Salary TDS Certificate

Form 16 is the TDS (Tax Deducted at Source) certificate issued annually by employers to salaried employees, summarising salary paid, deductions claimed, and tax deducted/deposited with the government during the financial year.

Structure: Form 16 has Part A (TDS summary downloaded from TRACES portal — gross salary, TDS deducted quarter-wise, employer's TAN, employee's PAN) and Part B (detailed salary breakup, exemptions u/s 10, deductions u/s 16, other income reported, deductions under Chapter VI-A like 80C, 80D, 80CCD). Both parts together constitute the complete certificate.

Issuance: employers must issue Form 16 by June 15 of the assessment year (i.e., for FY 2024-25 ending March 31 2025, Form 16 due by June 15 2025). Employer is required to issue Form 16 if any TDS was deducted; if no TDS due to income below threshold or full exemptions, employer may still issue Form 16 voluntarily as proof of employment income.

Use for ITR filing: Form 16 directly maps to the salary, deduction, and TDS sections of ITR-1 (Sahaj) for most salaried filers. For multiple employers in one FY, Form 16 must be obtained from each. Non-salary income (interest, capital gains, rent, business) requires Form 26AS / AIS reconciliation. Form 16 differs from Form 16A (TDS on non-salary payments) and Form 16B (TDS on property sale).

Richify Tip

Always reconcile Form 16 numbers with Form 26AS and AIS (Annual Information Statement) on the income tax e-filing portal. Discrepancies (missing TDS credit, wrong PAN) must be flagged with the employer for revised filing. Pre-filled ITR data on the portal pulls from Form 16 / Form 26AS — review before submitting.

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