Form 16 explained: the salary TDS certificate
Form 16 is the certificate your employer gives you showing the salary paid and the tax deducted from it during the year. Here is what each part contains, when it is due, how to use it when filing your return and what to do when it is wrong or missing.
Key points
- "Form 16" is the name of the salary TDS certificate under the Income-tax Act, 1961. The Income-tax Act, 2025, in force from 1 April 2026, renumbers forms.
- Part A shows the employer's TAN and PAN, your PAN and a quarter-by-quarter summary of tax deducted and deposited.
- Part B shows how your tax was worked out: salary breakup, exemptions, deductions, regime and tax computation.
- Under the 1961 Act, employers had to issue it by 15 June after the financial year.
- Always cross-check it with your annual tax statement before filing, and get each employer's certificate if you changed jobs.
What Form 16 is
When an employer deducts tax from your salary, it must give you a certificate of the amount deducted and paid to the government. Under the Income-tax Act, 1961 that certificate was Form 16. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbers sections and forms, so the certificate may carry a different number for recent years. This guide uses "Form 16" because that is the name employees and employers know, but check the current form on the Income Tax Department's website.
The certificate does two jobs. It proves that tax was deducted on your behalf, so you get credit for it. And it shows the employer's calculation, which is your starting point for the income tax return.
The figures come from the employer's monthly TDS work, explained in our guide to TDS on salary.
Part A: tax deducted and deposited
Part A is about the money trail. Under the 1961-Act system it was generated through the Income Tax Department's TDS portal (TRACES) from the employer's filed quarterly statements, which is why its figures should match what the department has on record. It contains:
- Name and address of the employer and the employee.
- The employer's TAN and PAN, and the employee's PAN.
- The period of employment with that employer during the year.
- A quarterly summary: salary paid or credited, tax deducted and tax deposited, with the receipt numbers of the quarterly TDS statements.
- Details of the deposits made to the government.
If your PAN in Part A is wrong, the tax will not show against your PAN at all. Check it first.
Part B: salary and tax computation
Part B is the employer's annual working. It is prepared by the employer and typically shows:
| Section of Part B | What to look for |
|---|---|
| Gross salary | Salary, taxable perquisites and any profits in lieu of salary for the period |
| Exempt allowances | HRA, LTA and similar exemptions (old regime only) |
| Deductions from salary | Standard deduction; professional tax in the old regime |
| Other income reported | Any house property or other income you declared to the employer |
| Chapter VI-A deductions | 80C, 80D and others in the old regime; employer NPS contribution in either |
| Regime | Whether tax was computed under the new regime or you opted for the old one |
| Tax computation | Tax on total income, rebate, surcharge, 4% cess, relief if any, net tax payable |
Section and chapter references here are 1961-Act terms; the 2025 Act renumbers them.
Part B for a ₹15 lakh salary (new regime)
Using the Budget 2025 new-regime slabs (confirm current-year rates):
| Gross salary | ₹15,00,000 |
| Less standard deduction | ₹75,000 |
| Total taxable income | ₹14,25,000 |
| Tax on total income (₹20,000 + ₹40,000 + ₹33,750) | ₹93,750 |
| Rebate | ₹0 |
| Health and education cess at 4% | ₹3,750 |
| Tax payable | ₹97,500 |
| Tax deducted (₹8,125 × 12, as in Part A) | ₹97,500 |
| Balance | ₹0 |
The tax deducted in Part B should match the total of the quarterly figures in Part A.
Who issues it and by when
The employer that deducted tax from your salary issues the certificate. Under the 1961 Act and its rules:
- It was due by 15 June after the end of the financial year. For example, the certificate for April 2025 to March 2026 was due by 15 June 2026.
- It could be issued digitally, signed with a digital signature, and emailed or made available on an employee portal.
- The obligation arises where tax has been deducted. If your salary was below the taxable limit and no TDS was deducted, your employer may not be required to issue one, though many still give a salary statement.
Because the 2025 Act renumbers forms and its rules set the current format and timelines, confirm the certificate name and due date that apply to the year you are filing for.
Using it to file your return
- Check the basics. Your name, PAN, the employer's TAN and the employment period.
- Match Part A with your annual tax statement. Log in to the income tax e-filing portal and compare the TDS in your annual tax statement (Form 26AS under the 1961 Act) and the Annual Information Statement with Part A, quarter by quarter. Credit is given on what the department's records show.
- Use Part B for the salary schedule. Gross salary, exempt allowances and the standard deduction come straight from it. Returns are often pre-filled with these figures; verify rather than accept them.
- Add what the employer didn't know. Savings interest, fixed deposit interest, capital gains, rent received and income from a previous job all go in the return even though Form 16 may not show them.
- Choose your regime. A salaried employee without business income can choose either regime in the return, whatever was used for TDS. Our old vs new regime comparison shows the break-even.
- Claim missed deductions. In the old regime, eligible deductions you did not submit proof for in time can generally still be claimed in the return. Keep the proofs.
- Pay any balance or claim the refund. If total tax is higher than TDS, pay the difference before filing.
To check the employer's arithmetic, put the gross salary from Part B into the salary TDS calculator and compare the annual tax.
If you had more than one employer in the year
Each employer issues its own certificate covering its own period. The risk is that each employer computed tax as if it were your only income, giving the standard deduction and the rebate twice.
Two jobs in one year
An employee earned ₹1,00,000 a month from Employer A for April to September (₹6,00,000). A estimated a full year at ₹12,00,000, taxable ₹11,25,000, which is nil after rebate, so it deducted no TDS.
From October to March they earned ₹1,50,000 a month at Employer B (₹9,00,000) and did not declare the earlier salary. B's taxable figure was ₹8,25,000, also nil after rebate.
Both certificates show nil tax. But total salary was ₹15,00,000. With one ₹75,000 standard deduction, taxable income is ₹14,25,000 and tax including cess is ₹97,500, all of it payable before filing the return, possibly with interest.
To avoid this, give your new employer details of salary and TDS from the earlier job when you join (Form 12B was the 1961-Act form for this). In the return, combine the salary from both certificates and claim the standard deduction only once.
What to do if it's wrong or not issued
If the certificate is wrong
- Wrong PAN or TDS missing from your annual tax statement: ask the employer to file a correction to the quarterly TDS statement. Your statement updates only after the correction is processed, which can take time.
- Part B computation differs from your own: for example, a deduction not considered or the wrong regime. You don't need a new certificate; report the correct figures in your return. Keep the working and proofs.
- Salary figure wrong: compare with your payslips and ask HR for a revised certificate before you file.
If the certificate is not issued
- Request it from HR or payroll in writing, mentioning the year.
- File using your payslips and the annual tax statement. The certificate is not attached to the return, so you can file without it.
- If tax was deducted from your salary but does not appear in your statement, raise it with the employer first, then with the Income Tax Department through its grievance channels. Under the 1961 Act (Section 205), an employee could not be asked to pay again tax that had been deducted from salary, but you may need payslips or bank records as evidence.
Where Swastik Payroll fits
Swastik Payroll does not generate Form 16 or any TDS certificate, and it does not file TDS statements or compute income tax. It records the TDS you deduct as a deduction component on each monthly payslip, and the payroll report includes a TDS column that exports to Excel or CSV.
That monthly record, with approved salary months locked so they cannot change later, is a clean base for your CA to reconcile deposits, prepare quarterly statements and prepare the certificates. Employees can also sign in to view and print their own payslips, which helps them check Part B.
Frequently asked questions
Is Form 16 mandatory to file an income tax return?
No. It is not attached to the return. It makes filing easier, but you can file using payslips and your annual tax statement if you don't have it.
What is the difference between Form 16 and Form 26AS?
Form 16 is issued by your employer and shows its salary and tax calculation. Form 26AS (a 1961-Act name) is the department's statement of tax credited against your PAN from all sources. Part A of Form 16 should agree with it.
I left my job in November. Will I still get Form 16?
If tax was deducted, yes. The former employer issues it for the months you worked there after the year ends, on the same timeline as current employees.
Can Swastik Payroll issue Form 16 to employees?
No. It records TDS on payslips and in the exportable payroll report. The certificate itself is prepared by the employer or its CA using the Income Tax Department's systems.
This guide is general information for employers and employees in India, not legal or tax advice. Statutory rates, limits and forms change; confirm the current position with EPFO, ESIC, the Income Tax Department or your CA before acting on it.