📄 Tax Guide · Salaried Employees

What is Form 16? Complete Guide for Salaried Employees

Updated August 2026 · Everything you need to know before filing your ITR

Form 16 shows the TDS deducted — read What is TDS for how TDS is calculated. Use the Tax Regime Calculator to estimate your tax before Form 16 arrives. Check FY 2025-26 tax slabs to understand your bracket.

Form 16 is a TDS certificate issued by your employer that shows how much income tax has been deducted from your salary and deposited with the government during the financial year. It is your most important document for filing Income Tax Returns (ITR) and is mandatory for all employers who deduct TDS from salary.

Deadline: Employers must issue Form 16 by 15th June every year for the previous financial year. If your employer has not issued Form 16 by June 15, you can still file ITR using your salary slips, Form 26AS, and AIS (Annual Information Statement).

Form 16 — Part A vs Part B

Form 16 has two distinct parts. Both are needed together for complete tax filing.

Feature	Part A	Part B
What it shows	TDS deducted quarter by quarter	Complete salary and deduction breakdown
Generated by	TRACES portal (govt system)	Employer's payroll system
Contains TRACES watermark	✅ Yes — mandatory	May or may not have
Key data	Employer TAN, PAN, TDS amounts by quarter	Gross salary, HRA, 80C, other deductions
Verify at	TRACES portal (tdscpc.gov.in)	Cross-check with Form 26AS

What is in Form 16 Part A?

Employer's name, address, TAN (Tax Deduction Account Number)
Employee's name, address, PAN
Assessment Year (e.g., AY 2026-27 for FY 2025-26)
Quarter-wise TDS deducted and deposited: Q1 (Apr-Jun), Q2 (Jul-Sep), Q3 (Oct-Dec), Q4 (Jan-Mar)
Total TDS deposited with the government

What is in Form 16 Part B?

Gross salary paid during the year
Exemptions: HRA, LTA, other Section 10 exemptions
Standard deduction (₹75,000 under New Regime / ₹50,000 under Old Regime)
Deductions under Chapter VI-A: 80C, 80D, 80CCD, home loan interest (24b), etc.
Net taxable income
Tax computed on taxable income
Tax regime opted: New or Old
Rebate under Section 87A (if applicable)
Net tax payable / refundable

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How to Use Form 16 to File ITR

Form 16 makes ITR filing straightforward for salaried employees:

Get Form 16 from your employer (by June 15). If you changed jobs mid-year, collect Form 16 from each employer.
Verify on Form 26AS — log in to the income tax portal (incometax.gov.in), go to Services → Form 26AS. Cross-check that TDS shown in Form 16 Part A matches Form 26AS.
Also check AIS — Annual Information Statement (AIS) on the IT portal shows all income sources reported against your PAN: salary, interest, dividends, MF redemptions. Add any income not in Form 16.
Choose ITR form — Salaried employees with only salary and interest income use ITR-1 (Sahaj). If you have capital gains, rental income, or more than one house, use ITR-2.
Pre-fill and verify — The IT portal pre-fills ITR from Form 16 and AIS data. Review each section, add any missed income, verify deductions, and submit.

What to Do If Your Employer Hasn't Given Form 16

⚠️ If your employer has not issued Form 16 by June 15, they are in violation of Section 203 of the Income Tax Act and can be penalised ₹100/day of delay. However, this doesn't stop you from filing your ITR on time.

You can file ITR without Form 16 using:

Salary slips — calculate total annual gross salary and components
Form 26AS — shows TDS deducted by your employer (verifiable on IT portal)
AIS (Annual Information Statement) — comprehensive income summary from the IT portal
Bank statements — to compute interest income and verify salary credits

Form 16 vs Form 16A vs Form 16B

Form	Issued by	For
Form 16	Employer	TDS on salary income
Form 16A	Banks / deductors	TDS on non-salary income (FD interest, professional fees, rent received)
Form 16B	Property buyer	TDS deducted on property purchase above ₹50 lakh (Section 194-IA)

Frequently Asked Questions

What is Form 16 and why is it important?

Form 16 is a TDS certificate issued by your employer confirming how much income tax was deducted from your salary and deposited with the government during the financial year. It is the primary document for salaried employees to file their Income Tax Return (ITR). Without it, you need to rely on salary slips, Form 26AS, and AIS.

What is the difference between Form 16 Part A and Part B?

Part A is generated from the TRACES government portal and shows quarter-wise TDS deducted and deposited. It must have a TRACES watermark. Part B is generated by your employer's payroll system and shows your complete salary breakdown, exemptions claimed (HRA, LTA), deductions (80C, 80D), and net taxable income.

What is the last date for employer to issue Form 16?

Employers are legally required to issue Form 16 by June 15 of the assessment year. For FY 2025-26, Form 16 must be issued by June 15, 2026. If they fail to issue it on time, they are liable to pay a penalty of ₹100 per day of delay under Section 203 of the Income Tax Act.

Can I file ITR without Form 16?

Yes. Even without Form 16, you can file ITR using your monthly salary slips to calculate annual salary, Form 26AS to verify TDS deducted (available on the IT portal), AIS (Annual Information Statement) which shows all income reported against your PAN, and bank statements for interest income. The IT portal also pre-fills much of this data.

What if I changed jobs during the year — do I get two Form 16s?

Yes. If you worked for two employers in the same financial year, each employer will issue a separate Form 16 for the period you worked with them. You must combine the income from both Form 16s while filing your ITR. Note that each employer deducts TDS based only on the salary you earned with them — they may not account for your other employer's income, which can result in a tax shortfall.