Definition
Form 16
Form 16 is the certificate your employer gives you summarising your salary and the tax deducted at source during the year.
Form 16 is issued annually by employers to salaried employees. Part A shows the TDS deducted and deposited against your PAN, while Part B breaks down your salary, exemptions like HRA and LTA, deductions claimed, and the final tax computation.
It is the primary document for filing your income tax return if you are salaried, and the figures should match your Form 26AS and AIS. If you changed jobs during the year, you will receive a Form 16 from each employer.
Form 16 is only for salary TDS; equivalent certificates for other income (like interest) are issued as Form 16A.
Related terms
- Form 26ASForm 26AS is a consolidated annual tax statement showing all tax deducted, collected and paid against your PAN.
- ITR (Income Tax Return) TypesITR forms are different return formats (ITR-1 to ITR-7) prescribed for different categories of taxpayers and income sources.
- TDSTax Deducted at Source is tax withheld by the payer and deposited with the government on your behalf.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.