Form 16

Definition

Form 16 is the TDS certificate an employer issues under Section 203 of the Income-tax Act to every salaried employee whose tax was deducted at source. For FY 2025-26 (AY 2026-27), employers must issue it by 15 June 2026, as fixed by Rule 31(3) of the Income-tax Rules; late issue attracts a penalty of Rs 100 per day. It is the primary document salaried taxpayers use to file their return.

It has two parts. Part A is generated from the TRACES portal after the employer's quarterly TDS returns (Form 24Q) are processed, and shows the employer's TAN and PAN, the employee's PAN, and quarter-wise details of tax deducted and deposited. Part B is prepared by the employer and gives the detailed break-up of salary, exempt allowances, deductions claimed (under the chosen tax regime) and the final tax computation.

You do not download Form 16 yourself from the e-filing portal — your employer gives it to you (usually by email or the HR portal). Before filing, cross-check the TDS figures in Form 16 against Form 26AS and the AIS on the e-filing portal; if the amounts do not match (for example, the employer deposited TDS late or misquoted your PAN), the Income Tax Department allows credit only for tax reflected in 26AS, so get the employer to correct its TDS return first. Note that under the new Income-tax Act, 2025 (effective from FY 2026-27 onwards), Form 16 is being renamed Form 130 — but for the AY 2026-27 filing season the familiar Form 16 applies.

Example

Priya received her Form 16 from her employer on 10 June 2026 and matched its TDS figure with her Form 26AS before filing ITR-1 for AY 2026-27.

Calculators that use this

Related terms

• Form 26AS
• AIS (Annual Information Statement)
• TDS
• e-Verification of ITR

More Tax terms

• Self-Assessment Tax
• Challan 280 (ITNS 280)
• Capital Gains Account Scheme (CGAS)
• Presumptive Taxation (44AD / 44ADA)

Sources

• ClearTax — What is Form 16
• Tax2win — Form 16 guide
• India Briefing — Form 16/16A June 15, 2026 deadline for FY 2025-26