Form 16 is a TDS (Tax Deducted at Source) certificate issued by your employer — it's mandatory for all employers who deduct TDS on salary under Section 192. It's your primary document for filing ITR and getting a TDS refund. Here's everything you need to know about Form 16.
Form 16 — Part A vs Part B
| Component | Part A | Part B |
|---|---|---|
| Content | TDS deducted and deposited quarter-wise | Salary breakup and deductions claimed |
| Issued by | Employer (downloaded from TRACES) | Employer (prepared internally) |
| Government authentication | Yes (TRACES verified) | No (employer generates) |
| Contains | Employee PAN, employer TAN, TDS amounts, challan details | Gross salary, exemptions (HRA, LTA), deductions (80C, 80D), net taxable salary, tax payable |
| When issued | By June 15 after year-end | By June 15 after year-end |
Is Form 16 Mandatory to File ITR?
No — Form 16 is NOT mandatory to file ITR. The income tax portal pre-fills your salary and TDS data from Form 26AS and AIS, which are uploaded by your employer to the TDS return. However, Form 16 Part B gives you the detailed salary breakup including HRA exemption, LTA, and exact deductions — which you need to manually enter if different from pre-filled data.
How to Verify Form 16 Authenticity on TRACES
- Visit tdscpc.gov.in (TRACES portal)
- Go to 'Verify TDS Certificate'
- Enter Certificate Number (on Form 16 Part A), PAN of employee, PAN/TAN of employer, Assessment Year
- The portal will confirm if the certificate is genuine and matches TDS deposited
What to Do if Salary Changed in Same Year
If you changed jobs during FY 2025–26, you will receive TWO Form 16s — one from each employer. Important: You must combine the income from both Form 16s when filing ITR. Your new employer may not know about previous salary and may not have accounted for it in TDS. This often results in a tax shortfall — compute correctly and pay self-assessment tax if needed.
How to Use Form 16 for ITR Filing
- Download and verify Form 16 Part A from TRACES
- Collect Form 16 Part B from your HR/payroll
- Log in to income tax portal; go to e-File ITR
- Select ITR-1 (if salary only, one property, income < ₹50L) or ITR-2
- Under 'Salary Schedule': cross-check pre-filled figures with Form 16 Part B
- Add HRA exemption (Form 16 Part B breakup needed), LTA, gratuity (if applicable)
- Verify TDS credits under 'Tax Details' — must match Form 16 Part A
- Claim deductions (80C, 80D etc.) as per Form 16 Part B
- Compute tax, pay balance if any, submit
What if You Didn't Get Form 16?
Your employer MUST issue Form 16 if TDS was deducted on your salary — it's a legal obligation under Section 203. If they haven't: request it formally in writing. You can still file ITR using Form 26AS (which shows TDS credits) and AIS (which shows salary income reported by employer). If TDS was deducted but not shown in Form 26AS, file ITR claiming the credit and raise a grievance — your employer may not have deposited TDS.