All you need to know about your Form 16!


(Last Updated On: June 1, 2017)

With the last date of Income tax return filing (31st July) approaching soon, it’s time to get the hang of Form 16 which you receive every year from your employer. Why Form 16 is issued? Do I have to check the details in it? What is its relation with Income Tax Return? Is Form 16 different from Income Tax Return? Is it mandatory to file income tax return when Form 16 issued? My employer is not giving me any Form 16, now how can I file my return? Let’s get the answers to all such ringing questions by decoding Form 16.

What exactly is Form 16?

Form 16 is a document or certificate that is issued to the salaried employees by their employers if their TDS is deducted during the financial year. It encloses the details of TDS deducted on salary by the employer in a financial year and details of salary breakup. As per the Income Tax Law, It’s mandatory to issue Form 16 by an employer if TDS of the employee has been deducted in a financial year and it must be issued before 31st May from the end of the financial year. For example, for the F.Y. 2015-16, the due date for issue of form 16 is 31st May, 2016.

Division of Form 16

Form 16 is divided into following 2 parts:
• Part A: Quarter-wise details of Tax deducted and deposited with the government.
• Part B: Computation of Income i.e. Income earned from Salary etc.

Understanding Form 16 Part A

Form 16 Part A is the TDS Certificate which contains details of TDS deducted by the employer on the salary paid to the employee and deposited with the government, It encloses the following details:

• Name and address of Employer
• Name and address of Employee
• PAN (Permanent Account Number) and TAN (Tax deduction Account Number) of deductor
• PAN of employee
• Period served with the employer during a financial year
• Quarter wise details of TDS deducted and deposited with the government.

Understanding Form 16 Part B

Part B of Form 16 contains the breakup of the salary, deductions, exemption and tax computation of the same. It encloses the following details:

• Amount of Gross Salary
• Exemptions considered
• Deductions availed
• Tax computed and TDS deducted

Income Tax Return and Form 16

Form 16 is not equivalent to Income Tax Return but it’s the source document for your salary income. While filing your income tax return, your salary income shall be based upon the details of Form 16 as it includes both your salary income and the tax deducted on it (TDS).

How to calculate Salary Income while filing the return if Form 16 is not received?

Even if you do not receive Form 16, you can still file the return by computing your salary income from the payslips and, the TDS deducted can be computed from Form 26AS. Some more important points:

• TDS details reflected in Form 16 can be cross verified with tax details in Form 26AS. Form 26AS can be viewed/downloaded from the Income Tax Department’s online portal. (http://incometaxindiaefiling.gov.in/). • In case the employee has switched jobs during the financial year, then such employees need to collect Form 16 from the both the previous and current employer. • If Form 16 is lost, then the employee can request his employer to issue a copy of Form 16 or they can issue a certificate stating the gross salary and Tax details. • If there is any miscalculation in Form 16, then the employer can be requested to rectify the same and issue revised Form 16. • Form 16 is also an important income proof and can be used to present before Income Tax Department. Also, some banks ask for it for the processing of loans.

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