Definition
Form 16 (Parts A & B)
Form 16 is the TDS certificate your employer issues for salary, with Part A showing tax deducted and deposited, and Part B detailing the salary breakup and deductions.
Form 16 is the cornerstone document for salaried tax filing. Part A, generated from the TRACES portal, summarises your PAN, the employer's TAN, and the tax deducted and deposited with the government quarter by quarter.
Part B is an annexure showing the detailed computation: gross salary, exempt allowances, deductions claimed (80C, 80D, etc.), and the final taxable income and tax. Together they let you file your income tax return accurately.
Employers must issue Form 16 annually. Cross-checking it against your Form 26AS / AIS ensures the TDS reflected matches what was actually deposited before you file.
Related terms
- Form 12BBForm 12BB is the declaration an employee submits to their employer detailing investments and expenses claimed for tax, so the employer can deduct the correct TDS from salary.
- Professional TaxProfessional tax is a small tax levied by some state governments on salaried employees and professionals, deducted from salary and capped at a low annual maximum.
- Advance Tax for FreelancersAdvance tax is income tax paid in instalments through the year rather than as a lump sum at filing; freelancers must pay it once their annual tax liability crosses a threshold.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.