Form 16 Explained: Every Section Decoded
Form 16 is the TDS certificate your employer issues each year — proof of the salary paid to you and the tax deducted (TDS) from it. For salaried ITR filing, it is the single most important document: it tells you (and the tax department) exactly what was earned, what was deducted, and what tax was already deposited on your behalf.
Part A — the TDS certificate
Part A is generated from the employer's TDS return and certifies the tax deposited with the government. It contains:
- Your PAN and the employer's TAN (Tax Deduction Account Number)
- Your name and address; employer's name and address
- Quarter-wise breakup of salary paid and TDS deducted/deposited
- Assessment/Tax Year and the certificate number
- A unique TDS certificate number — the department can verify it, so a genuine Part A is tamper-evident
Part B — salary computation
Part B is the detailed salary breakup your employer prepares. It shows:
- Gross salary: basic, HRA, allowances, perquisites, leave encashment, bonuses
- Less: exemptions — e.g. HRA exemption, LTA (as applicable to your regime/claims)
- Less: standard deduction (₹75,000 new regime / ₹50,000 old regime for FY 2026–27)
- Deductions under Chapter VI-A: 80C, 80D, 80TTA, NPS, etc. (old regime)
- Total taxable income, tax computed, rebate, cess — and the net TDS deducted
How to use Form 16 for ITR filing
Match it with Form 26AS/AIS
Every rupee of TDS in Form 16 should appear in your Form 26AS and AIS on the portal. Mismatches are the top cause of processing delays — flag them to your employer early.
Copy salary figures into your ITR
Use Part B's gross salary, exemptions, and deduction figures when filling ITR-1. The portal pre-fills much of this — verify, don't blindly accept.
Check the regime
Form 16 reflects the regime your employer applied for TDS. You can still choose the other regime when filing if it saves tax — the final choice is yours at filing time.
Keep it for records
Keep Form 16 for at least 6 years. It is also needed for visa applications, loan processing, and responding to tax notices.
Form 16 vs Form 16A — don't confuse them
Form 16 is only for salary TDS (Section 192). Form 16A is the TDS certificate for non-salary income — bank FD interest, professional fees, rent, etc. You may receive several 16As from different deductors; collect them all before filing.
Frequently asked questions
The annual TDS certificate your employer issues for salary: Part A certifies the tax deducted and deposited (with PAN/TAN and quarterly breakups); Part B details your salary computation, exemptions, and deductions.
By 15 June following the end of the Tax Year — e.g. by 15 June 2027 for Tax Year 2026–27.
One from each employer. Combine the salary and TDS figures from all of them when filing — the portal's AIS/26AS should reflect the total.
Form 16 covers salary TDS only (Section 192). Form 16A covers TDS on non-salary income such as FD interest, professional fees, and rent.
Ask your employer to correct their TDS return — only the deductor can fix 26AS entries. Do not file until they match, or you may face a demand notice.