Form 16: Complete Guide for Salaried Employees — AY 2025-26
Form 16 is your TDS certificate from your employer. This guide explains Part A, Part B, what to verify, and how to use it for accurate ITR filing.
Harun Raaj
Chartered Accountant · Harun Raaj & Associates
What Is Form 16?
Form 16 is a TDS (Tax Deducted at Source) certificate issued by your employer under Section 203 of the Income Tax Act, 1961. It is the primary document for salaried employees filing their Income Tax Return (ITR-1 or ITR-2).
The due date for employers to issue Form 16 is 15 June of the assessment year (i.e., 15 June 2025 for AY 2025-26). If your employer has not issued Form 16 by this date, you can escalate to the TDS Centralised Processing Centre.
Form 16: Part A vs Part B
Part A — TDS Summary (Downloaded from TRACES)
- Generated by the employer from the TRACES portal (Tax Reconciliation Analysis and Correction Enabling System)
- Contains: Employer TAN, Employee PAN, quarterly TDS deposited, assessment year, employer name and address
- Always verify Part A against your Form 26AS to ensure all TDS is reflected. Mismatches mean some TDS may not be credited to your account.
Part B — Salary Breakup (Employer-prepared)
- Shows: Gross salary, allowances, exempt allowances (HRA, LTA, etc.), perquisites, deductions under Chapter VIA (80C, 80D, etc.), net taxable salary, and tax computation
- Prepared by the employer — accuracy depends on the declarations you submitted at the beginning of the year
Critical Checks on Your Form 16
- PAN accuracy: Your PAN on Form 16 must match exactly. Even one character wrong can cause credit mismatch.
- HRA exemption: Verify the HRA exempt amount matches actual rent paid and landlord PAN (mandatory if annual rent exceeds ₹1 lakh).
- Section 80C investments: Ensure all declared investments (ELSS, PPF, insurance premium, home loan principal) are correctly captured in Part B.
- AIS reconciliation: Cross-check salary in Form 16 with the salary reported in your Annual Information Statement (AIS). Discrepancies signal employer filing errors that you must address before filing.
- Previous employer: If you changed jobs, you need Form 16 from all employers during FY 2024-25.
Form 16 vs Form 16A vs Form 16B
What If Your Employer Did Not Deduct Correct TDS?
If TDS was under-deducted, you are still liable for the tax. The shortfall must be paid as self-assessment tax before filing. Interest under Section 234B/234C will apply on the shortfall from the due dates of advance tax instalments.
If TDS was over-deducted, claim a refund in your ITR. Typically processed within 30–90 days after filing.
Our team at Harun Raaj & Associates reconciles your Form 16 with AIS before filing to ensure there are no surprises from the tax department.
Frequently Asked Questions
What is Form 16 and who issues it?
Form 16 is a TDS certificate issued by your employer under Section 203 of the Income Tax Act, 1961. It certifies the tax deducted at source from your salary and is the primary document needed for filing ITR-1 or ITR-2 by salaried employees.
What is the deadline for employers to issue Form 16?
Employers must issue Form 16 by 15 June of the assessment year — i.e., 15 June 2025 for AY 2025-26. If your employer misses this deadline, you can escalate to the TDS Centralised Processing Centre (CPC) for resolution.
What is the difference between Part A and Part B of Form 16?
Part A is the TDS summary downloaded from the TRACES portal, showing quarterly TDS deposited, employer TAN, and employee PAN. Part B is prepared by the employer and shows the detailed salary breakup, exempt allowances, Chapter VIA deductions, and the tax computation.
What should I do if Form 16 details don't match my AIS or Form 26AS?
Discrepancies between Form 16 and your Annual Information Statement (AIS) or Form 26AS signal employer filing errors. You must reconcile these differences before filing your ITR — unresolved mismatches can result in TDS credit not being reflected in your tax account.
Do I need Form 16 from all employers if I changed jobs during the year?
Yes. If you changed jobs during FY 2024-25, you need Form 16 from every employer you worked with during the financial year. Each employer will issue Form 16 only for the period you were employed with them, and all must be consolidated when filing your ITR.
I'm CA Harun Raaj, Visakhapatnam. If any of this affects you or your business, reach out — I'd be glad to help.
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See Also
Frequently Asked Questions
What is the deadline for employers to issue Form 16 for assessment year 2025-26?+
The due date for employers to issue Form 16 is 15 June of the assessment year. For AY 2025-26, this means 15 June 2025. If your employer has not issued Form 16 by this date, you can escalate to the TDS Centralised Processing Centre, as stated in the 'What Is Form 16?' section.
How do I verify my Form 16 part A against Form 26AS for TDS mismatch?+
According to the 'Form 16: Part A vs Part B' section, Part A is generated from the TRACES portal and contains employer TAN, employee PAN, quarterly TDS deposited, assessment year, and employer details. You should always verify Part A against your Form 26AS to ensure all TDS is reflected correctly. Mismatches mean some TDS may not be credited to your account.
What should I check regarding HRA exemption in my Form 16?+
Under the 'Critical Checks on Your Form 16' section, you must verify that the HRA exempt amount on Form 16 matches the actual rent you paid. Additionally, if annual rent exceeds ₹1 lakh, the landlord's PAN is mandatory and must be verified for correct HRA exemption.
Do I need Form 16 from multiple employers if I changed jobs during the financial year?+
Yes, according to the 'Critical Checks on Your Form 16' section, if you changed jobs, you need Form 16 from all employers during FY 2024-25 to file your complete income tax return.
What is the difference between Form 16 Form 16A and Form 16B?+
As explained in the 'Form 16 vs Form 16A vs Form 16B' section, Form 16 is issued by employers for TDS on salary under Section 192. Form 16A is issued by any TDS deductor for TDS on non-salary income like bank interest, professional fees, and rent. Form 16B is issued by property buyers for TDS on property purchases under Section 194-IA.
How do I check if Section 80C investments are correctly shown in Form 16 part B?+
Under the 'Critical Checks on Your Form 16' section, you must ensure all declared investments under Section 80C—including ELSS, PPF, insurance premiums, and home loan principal repayments—are correctly captured in Part B of your Form 16.
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