Income Tax
Form 16
TDS certificate issued by employer to employee showing salary paid and TDS deducted annually.
Full Definition
Form 16 is a TDS certificate issued by employers to employees under Section 203 of the Income Tax Act. It has two parts: Part A (TRACES-generated, shows TDS deducted quarter-wise and deposited) and Part B (employer-generated, shows detailed salary breakup, perquisites, allowances and deductions). Form 16 must be issued by 15 June of the assessment year. Employees use Form 16 to file their ITR — the salary details in Form 16 should match the pre-filled data in AIS and Form 26AS.
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).