Form 16: Definition, Meaning & Guide for Indian Businesses

Form 16 is the TDS certificate that employers issue to salaried employees, certifying the income paid and tax deducted during the financial year.

What is Form 16?

Form 16 is the TDS certificate that every employer must issue to salaried employees by 15 June after the financial year ends. It has two parts. Part A shows the summary of TDS deducted and deposited with the government, including challan details. Part B is a detailed breakup of salary income, allowances, exemptions, deductions claimed, and tax computed. Employees use Form 16 to file their ITR. Without Form 16, you can still file using your salary slips and Form 26AS data, but it is much harder. If your employer has not issued Form 16, ask them; it is mandatory.