Anisha Kumari | Jun 1, 2025 |
Easy Guide to Form 16 for Salaried Employees
As the Income Tax Return (ITR) season is coming closer, employers start issuing Form 16 to their employees. This document is an important certificate for salaried individuals as it includes details about the salary earned and the tax deducted at source (TDS) by the employer during the financial year. It works as a proof that the employer has deposited the deducted tax with the government.
For people, who are seeing this form for the first time, it can be a bit confusing for them. But it is important to understand Form 16 properly because it helps in filing your ITR with correction by avoiding any errors or mismatches. Even a small mistake in your ITR filing can result in delay in refunds or notices. In this article, we have explained Form 16 in a simple and easy way so that you can understand it better.
It is a certificate which an employer gives to their employee. In this form, the salary paid to the employee and the amount of tax deducted from their salary during the financial year is mentioned. This tax deduction is called TDS (Tax Deducted at Source). This form should be provided to the employees by June 15 of the next financial year.
Form 16 acts as a proof that the tax has been deducted. It is important for the filing of an ITR, mainly for salaried individuals. If an individual has worked for more than one company during the year, he/she will get separate Form 16s from each employer.
Form 16 has two parts:
1. Part A:
This shows the amount of tax which has been deducted and deposited. In this part, important identification details are given such as PAN and TAN of the employer and PAN of the employee. If an employee changes his job, a separate Part A will be given to him by each employer.
2. Part B:
This part is an annexure of Part A, prepared by the employer. It shows the breakdown of employee’s salary, including details such as tax-saving deductions claimed by the employee under Chapter VI-A of the Income Tax Act.
Some common deductions listed in Part B include:
Part B also mentions the surcharge, tax calculation, cess and any relief under Sec 89 which applies.
This is a common confusion among everyone whether Form 16 is the same as filing an Income Tax Return. The answer is no.
Form 16 is just a certain which shows the salary and tax deductions. While, the filing of an ITR means reporting all sources of income, claiming deductions and calculating the final tax amount or refund. Form 16 is very helpful in the filling of ITR form, but it is not a tax return itself.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
