## 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](https://www.harunraaj.com/services/itr-filing) (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

1. **PAN accuracy**: Your PAN on Form 16 must match exactly. Even one character wrong can cause credit mismatch.
2. **HRA exemption**: Verify the HRA exempt amount matches actual rent paid and landlord PAN (mandatory if annual rent exceeds ₹1 lakh).
3. **Section 80C investments**: Ensure all declared investments (ELSS, PPF, insurance premium, home loan principal) are correctly captured in Part B.
4. **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.
5. **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

| Form | Issued by | For |
|---|---|---|
| Form 16 | Employer | TDS on salary (Section 192) |
| Form 16A | Any TDS deductor | TDS on non-salary (bank interest, professional fees, rent) |
| Form 16B | Property buyer | TDS on property purchase (Section 194-IA) |

## 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

- [Can I File ITR Without Form 16? — Complete Guide for AY 2026-27](https://www.harunraaj.com/blog/itr-without-form-16)
- [How to File Income Tax Return Online — AY 2026-27 Complete Guide](https://www.harunraaj.com/blog/how-to-file-itr-online-ay-2026-27)
- [Which ITR Form Should You File? Complete Guide for AY 2025-26](https://www.harunraaj.com/blog/itr-form-selection-guide-2025-26)

Canonical: https://www.harunraaj.com/blog/form-16-guide-2025