What is Form 16 and why is it necessary? All About Form 16


If you get salary then Form 16 is required when filling the Income Tax Return. Often new taxpayers are not familiar with this term. Sometimes they have some general information about this, so many of the practical and useful aspects are not known. In this article, we have tried to give the meaning of Form 16, its importance and all the necessary information related to it. So, let’s first know what is Form 16.



What is Form 16?



If you have a job somewhere and your salary is more than the income tax limit, then your employer or company deducts tax every month and deposits it to the government. This is called TDS (Tax on Source). Detail of the deduction of this TDS and details of depositing it in advance with the government is recorded in Form 16.



Proof of tax accumulation

Generally speaking, Form 16 is a type of certificate, in which the detail of tax deducted at source is deducted on your income. Form 16 Proof of this is that your income has been deducted from tax (TDS) and deposited with the government. Hence it is also known as the Salary / TDS certificate.



Compulsory for companies to be issued

Under section 203 of the Income Tax Act, it is mandatory to issue it on a TDS deduction. Generally, this is issued to those who have a tax liability on Salary. But, now there are arrangements for issuing Form 16 in big companies in case of non-deduction of TDS


What details are included in Form 16



Form 16 consists of two parts- Part A and Part B


  • In Part-A, you have all the details related to your TDS. This is proof of your tax deduction.
  • In Part-B, all other details related to your income are in addition to tax deductions. Such as total income, tax deductions, taxpayers, outstanding tax and refunds etc.

Here we are also giving the list of details recorded in Part-A and Part-B of Form 16. They are also giving photocopies of Form 16-Part A and Part PDF Format right below them.




Details in Part A of Form 16



  • Employer’s Personal details: The name and address of the institution where TDS is being deducted.
  • Employee’s Personal details: The name and address of the person whose sales tax is being deducted from the sale.
  • Employee’s PAN number (Permanent account number): This is a 10 digit alphanumeric code number, which is issued by the Income Tax Department as the personal identification number of every taxpayer.
  • Employer’s PAN number and TAN number: Like the PAN number, there is also the Tax Deduction Account Number which is issued by the Income Tax Department to the person or institution for every TDS deduction.
  • Assessment year: This is the year immediately following your financial year. For example, if your earning financial year is 2017-18 then the assessment year 2018-19 will be there. Even if your TDS is being cut during the financial year 2017-18, its assessment year 2018-19 will be filed only.
  • Cellular related details: such as total salary. Incentive amount or allowances .incentives or perks. Tax-deductible investment deductions and pure pay ie hand coming salary net salary etc.
  • Summary of your total income and tax deduction If the job has started in the middle of the financial year then the present employer has the duration of the job


What is Form 16What is Form 16

Details in Part A of Form 16



Part B of Form -16 is a type of attachment (Annexure), in which you have details of salary paid, income from other sources, tax due, and tax paid. Actually, this is your complete record of salary and tax deductions and exemptions. All these things are shown in a step-by-step manner. We are giving information to these below point-blank.



  • Taxable salary of the employee: The part of an employee’s income on which tax is to be calculated.
  • Deductions and Exemption tax deductions and exemptions: All tax deductions and tax exemptions applicable to the parts of your income such as tax-saving investments under Section 80C, 80CCC, 80 CCD, 80D under health insurance premium, 80E education loan interest. Tax exemptions, charities have given under 80G, etc.
  • The aggregate of all the deduction: The sum of those tax deductions, which are derived from your taxable income. Have been done.
  • Cess and Surcharge: On the basis of your tax liability, as an extra tax, as cess and surcharge are made, details of them.
  • Total payable tax and the number of TDS deducted from the employer.
  • Gross total income: On which your tax liability is finalized.
  • Tax Payable or Refund Due: Any outstanding dues or refund of tax liability, details of the meeting



What is Form 16

What is Form 16



How do you get Form-16?



Form -16 meets you, your employer or company. You will need to contact your HR department for this. Now the companies are now also issuing digital signature, which they send to the respective employee’s email. Even if you have left the job, you can get Form -16 from your employer.

Note: People often misconception that they can download Form-16 directly from the Income Tax Department‘s TDS related website, TRACES. But, in fact, it is not so.  In fact, you can get only from your employer or from the cupboard.




Where is Form 16 Used For?




You can get the need for.


While filling income tax return

For Filing Income Tax Return


Form- 16 is used primarily when filling the income tax return. Since it is mentioned in your salary, tax deduction and tax exemptions, different parts of the salary eligible. While filling the Income Tax return, many of this information is required to be entered in it.


For matching or verification of paid taxes

Updation or Verification of Tax Paid


With the help of Form-16, you get information about the deduction of TDS from your Salary and submission to the Government on behalf of the employer. Lending, Form 26AS, all types of tax deductions and tax deposits are recorded. You can also match the information received in Form 26AS of information received through Form- 16.

Note: When filling the Income Tax Return, keep in mind that in relation to any information you are entering into it, information about Form-16 and Form- 26AS information should be fully matched.



The Loan process Of Bank



Form-16 is also often required in the process of taking loans (buying a house, for higher education etc). Banks or other financial institutions seek help from Form -16 to assassinate your financial capacity.



A condition of Multiple Form-16



If you change jobs in the middle of a financial year, then you will be issued separate Form-16 from both the old and new institutions. For the time being of that year you were on the job of the first organization (Organization), for that time he will get Form-16. Similarly, in the remaining time of the same year, if you were employed in another company, the form-16 of the same time would be received by another company.

In such a situation, if you want to get the same Form-16 collected for a financial year, then the documents of Salary documents from your old institution will be submitted to the new employer. However, when filling the Income Tax return, you will have to specify the TDS deducted from the old employer and the TDS deducted from the new employer



When do you receive Form 16?



Normally, Form-16 is issued by the companies on completion of every financial year till 31st May. However, in the case of different companies, this may be different. A company some time ago, a company releases Form-16 even after some time.


If the employer can not get Form 16, then …



Regularly, it is compulsory for an employer to provide Form-16 when asked for his employee. However, it may be that your employer or company never collaborate and do not give Form-16. Or you may not be in a position to go to the employer and take form-16 on your own. In such a situation, there is no need to worry about Form 16. Online Form 26AS can be viewed and downloaded from the Income Tax website. All details entered in Form 16 are part of Form 26AS.


In fact, Form 26AS is an overall description of your income and all types of tax liabilities, whereas Form 16 is only for TDS related details. The details of Form 16 filed in the TDS deduction process are recorded in Form 26AS also. You can use this when filing an income tax return. Wherever some form of proof or match is needed, you can use Form 26AS only.





What is Form 16A?



Form-16A is also a certificate related to your TDS Record, just like Form 16. The only difference is that form 16 is in relation to the sale and it is issued by your employer or the company. Whereas TDS has been deducted on any income other than Form-16A, Salary, it is a certificate.

In fact, Bank, Post Office, other such institutions where you get income (interest, professional payment etc.) more than a certain limit, there also a provision for cutting of TDS. In such cases, a certificate of TDS deduction is issued as Form 16A.

Form 16A, you also get the details of personal identification, PAN / TAN, your income and tax paid on it, just like Form-16. It is also important to mention the information recorded in Form 16A when filing an Income Tax Return.

Friends, in this article, we have given you all the necessary information about Form 16 and Form 16A. In addition to understanding Income Tax better, you can take full help from our article Income Tax Information. And of course, 45 ways to save income tax can also be of great help to you.


I hope you would have liked this post. You can comment to ask related questions. Please share this post on social media.


Read Also Our Other Article:







2 thoughts on “What is Form 16 and why is it necessary? All About Form 16”

Leave a Comment