Form 16 is the certificate issued by an employer in India providing a summary of the salary paid to an employee during the year and the taxes withheld on such salary.

It is also popularly known as TDS certificate on Salary where TDS implies tax deducted at source.  

The Income tax Act, 1961 (the Act) prescribes the employer’s obligation with respect to issue of the Form 16, including the timelines for issue, format in which the details are to be disclosed, etc. 

Form 16 is an important document required for filing the personal income tax return. 

Employer’s Obligation to Issue Form 16

As per provisions under the Act, an employer is required to withhold tax i.e. deduct tax at source(TDS) at the time of payment of salary to employees. 

Details To Be Furnished in Form 16

 Part A: provides a summary of salary paid/credited and TDS thereon during the financial year in respect of the employee

 Part B: provides details of salary paid and any other income disclosed by the employee to the employer, eligible tax deductions, total tax liability and TDS during the year

Employees should review their Form 16 as soon as it is issued to ensure that the salary and TDS appearing in the Form 16 is accurate.  

In case of any discrepancy, the same should be notified to the employer immediately so that the employer can make the corrections.  

The employer reports details of salary and TDS to the tax department on a quarterly basis and the same is captured in the Form 26 which can be viewed by logging into the individual’s income-tax e-filing portal. 

The due date for filing the tax returns for FY 2021-22 is July 31, 2022