TDS is deducted on your salary income and deposited with the Income Tax Department (IT Department) every month. Form 16 is a certificate issued by employers to their employees which gives a detailed summary of the salary paid to the employee and the TDS deducted on the same. 

What Is Form 16?

Using Form 16 you can prepare and file your income tax return. It shows the breakup of salary income and the TDS amount deducted by the employer. It has two components – Part A and Part B (discussed in detail below). 

When Will Form 16 Be Available For FY 2023-24?

The due date to issue Form 16 is 15th June 2024. If your employer deducted TDS from April ‘23 – March ’24, then Form 16 must be issued latest by 15th June ’24. If you lose your Form 16, you can request a duplicate from your employer.

Why is Form 16 required?

Form 16 is a very important document as:

  • It serves as proof that the government has received the tax deducted by your employer.
  • Assists in the process of filing your income tax return with the Income Tax Department.
  • Proof of Salary Income
  • Many banks and financial institutions demand Form 16 to verify the person’s credentials while applying for loans.

Each salaried employee can obtain Form 16 from the employer on or before the 15th of June of the following year, immediately after the financial year in which the tax is deducted. If any employer delays or fails to issue Form 16 by the specified date, the employer is liable to pay a penalty of Rs.100 per day until the default continues.

Form 16 Download?

Part A of Form 16

Part A of Form 16 provides details of TDS deducted and deposited quarterly details of PAN and TAN of the employer and other information.
An employer can generate and download this part of Form 16 through the TRACES ( portal. Before issuing the certificate, the employer should authenticate its contents.
It is important to note that if you change your job in one financial year, each employer will issue a separate Part A of Form 16 for the period of employment. Some of the components of Part A are:

  • Name and address of the employer
  • TAN and PAN of employer
  • PAN of the employee
  • Quarterly summary of total salary payments for the concerned financial year
  • Summary of tax deducted and deposited quarterly, which is certified by the employer

Part B of Form 16

Part B of Form 16 is an Annexure to Part A. Part B is to be prepared by the employer for its employees and contains details of the breakup of salary and deductions approved under Chapter VI-A.
If you change your job in one financial year, you should take Form 16 from both employers. Some of the components of Part B notified newly are:

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  • Detailed breakup of salary
  • Detailed breakup of exempted allowances under Section 10
  • Deductions allowed under the Income Tax Act (under chapter VIA): 
    The list of deductions mentioned are as below:
    • Deduction for life insurance premium paid, contribution to PPF etc., under Section 80C
    • Deduction for contribution to pension funds under Section 80CCC
    • Deduction for employee’s contribution to a pension scheme under Section 80CCD(1)
    • Deduction for taxpayer’s self contribution to a notified pension scheme under Section 80CCD(1B)
    • Deduction for employer’s contribution to a pension scheme under Section 80CCD(2)
    • Deduction for health insurance premium paid under Section 80D
    • Deduction for interest paid on loan taken for higher education under Section 80E
    • Deduction for donations made under Section 80G
    • Deduction for interest income on savings account under Section 80TTA

Details required from Form 16 while filing your return

With reference to the image below, here is where you can locate certain information for filing your income tax return for FY 2023-24 (AY 2024-25).

  • Allowances exempt under Section 10
  • Break up of deductions under Section 16
  • Taxable salary
  • Income (or admissible loss) from house property reported by an employee and offered for TDS
  • Income under the head ‘Other Sources’ offered for TDS
  • Break up of Section 80C deductions
  • The aggregate of Section 80C deductions (gross and deductible amount)
  • Tax payable or refund due

Form 16 – Part B

It shows your name (taxpayer’s), address and PAN. You can also find additional information of your employer in your Form 16 while filing your annual return, such as:

  • TDS deducted by the employer
  • TAN of employer
  • PAN of employer
  • Name and address of employer
  • Current assessment year
  • Your PAN

What is the eligibility criteria for Form 16?

According to the regulations issued by the Finance Ministry of the Indian Government, every salaried individual whose income falls under the taxable bracket is eligible for Form 16.

If an employee’s income does not fall within the tax brackets set, they will not need to have Tax Deducted at Source (TDS). Hence, in these cases, the company is not obligated to provide Form 16 to the employee.

However, these days, as a good work practice, many organisations issue this certificate to the employee as it contains a consolidated picture of the individual’s earnings and has other additional uses.

Points to be noted while checking Form 16

  • Once an individual receives Form 16 from the employer, it is their responsibility to ensure that all the details are correct.
  • One should verify the details mentioned in Form 16, for example, details of the amount of income, TDS deducted, etc.
  • If any of the detail is mentioned incorrectly, one should immediately reach out to the organisation’s HR/Payroll/Finance department and get the same corrected.
  • The employer would then correct their end by filing a revised TDS return to credit the TDS amount against the correct PAN. Once the revised TDS return is processed, the employer will issue an updated Form 16 to their employee.

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Upload Form 16 and file income tax return

Our software automatically picks up all the relevant information from your Form 16 and prepares your tax return. There is no need to enter anything manually.

Frequently Asked Questions

You can get your Form 16 from your employer. Even if you have left your job, your employer will provide you with Form 16. Unfortunately, this income tax Form 16 cannot be downloaded from anywhere.

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I don’t have Form 16. How do I file my return?

Though this is one of the most important income tax forms, don’t worry if you do not have it. You can still file your income tax return. Click here to learn more.

If there is no TDS deducted, is the employer required to issue a Form 16?

TDS certificate in Form 16 is issued when TDS has been deducted. If the employer has deducted no TDS, he may not give you Form 16. Please take a look at our Guide on how to e-file without form 16

When does the employer deduct TDS and does not issue a certificate?

Any person responsible for paying a salary must deduct TDS before making payment. The Income Tax Act lays down that every person who deducts TDS from a payment must furnish a certificate with TDS deducted & deposited details. An employer in specific is compulsorily required to furnish a certificate in the format of Form 16.

If no Form 16 has been issued to me, does it mean I don’t have to pay tax or file a return?

While the onus of deducting tax on salaries and providing Form 16 is on the employer, the onus of paying income tax and filing an income tax return is on you. If your aggregate income from all sources goes above the minimum tax slab, you must pay tax, whether or not your employer has deducted TDS. Even when he fails to issue you a Form 16, you must file an income tax return and pay off the due taxes.

Can you use TRACES to get Form 16 from your employers?

Employees cannot use TRACES to get Form 16. They do not have information of the TDS receipt number and the total tax deducted. They have to get it from their employers directly.

How employer can download Form 16 from TRACES?

TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online website by the Income Tax Department of India. It is used to manage TDS-related activities and provides services to employers, taxpayers, and other stakeholders. This platform allows employers to download Form 16 Part A & B. To download Form 16 from TRACES, follow these steps:

Step 1: Visit the official TRACES website.

Step 2: Enter PAN card number (User ID) and Password to login, if already registered. For new users, complete the registration process and create a new account.

Step 3: Navigate to the ‘Downloads’ tab and select ‘Form 16.’

Step 4: Choose the Form type and select the financial year for which Form 16 is required.

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Step 5: Verify PAN and other details.

Step 6: Enter the TDS receipt number and select the date of TDS.

Step 7: Add the total tax deducted and collected.

Step 8: Click on submit to request for download.

Step 9: Download the files under the ‘Downloads’ tab once the Form is available for download.

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