Form 16 is the TDS certificate issued by your employer showing how much salary was paid and how much tax was deducted. Every salaried employee needs it to file their ITR. Here's everything you need to know about reading and using it.
Form 16: Part A vs Part B
| Component | Part A | Part B |
|---|
| What it contains | TDS deducted and deposited with government — employer-wise quarterly summary | Salary breakup: Basic, HRA, allowances, perquisites, deductions claimed |
| Source | Generated by TRACES (government system) | Prepared by employer |
| TRACES verification | Yes — has unique certificate number, verify at tdscpc.gov.in | No — employer-prepared document |
| Key data for ITR | TDS amount deposited, PAN of employer, TAN | Gross salary, taxable salary, deductions under Chapter VI-A |
Step-by-Step: Reading Part A
- Check your PAN — should match exactly (even a single digit error means TDS won't reflect in 26AS)
- Employer TAN — used to cross-check TDS entries in Form 26AS
- Quarter-wise TDS — should match the total TDS in your 26AS for this employer
- Assessment Year — must say 2026-27 for FY 2025-26 salary
- Total TDS — sum of all quarters; this is what you claim as credit in ITR
Step-by-Step: Reading Part B
- Gross Salary — total salary before any exemptions
- Allowances exempt u/s 10 — HRA, LTA, children education allowance (if claimed)
- Balance Taxable Salary — Gross minus exempt allowances
- Standard Deduction — ₹75,000 for FY 2025-26
- Professional Tax — deductible if paid
- Net Taxable Income from Salary — feeds into ITR
- Chapter VI-A Deductions — 80C, 80D, 80E, NPS etc. declared to employer
- Tax Payable / Refund — computed by employer (may differ from your actual ITR computation)
Form 16 vs 26AS vs AIS: Which to Trust?
| Discrepancy Type | Root Cause | What to Do |
|---|
| TDS in Form 16 ≠ 26AS | Employer didn't deposit TDS or quoted wrong PAN | Contact HR/payroll immediately — employer must file correction |
| Salary in Form 16 ≠ AIS | AIS picks up gross salary; Form 16 may show taxable salary | Cross-check — AIS salary should match Form 16 gross salary |
| Multiple Form 16s | Changed jobs in the year | Enter both in ITR — combine income from both employers |
| No Form 16 received | Employer didn't issue (mandatory for TDS deducted) | File complaint or estimate from payslips and 26AS |
Frequently Asked Questions
- Can I file ITR without Form 16? Yes — use payslips + 26AS + AIS data to reconstruct
- What if my TDS in Form 16 is wrong? Ask employer to revise — they can file correction statement
- Is Form 16 the same as Form 16A? No — Form 16A is TDS certificate for non-salary income (bank FD, rent, professional fees)
- By when should employer issue Form 16? By June 15 of the assessment year (so by June 15, 2026 for FY 2025-26)
