GlossaryPayroll & People
Form 16
Also called: Form16, TDS certificate
What is Form 16?
Form 16 is the annual certificate an employer issues to an employee showing salary paid and tax deducted at source during the financial year. It is the primary document for filing a salaried income tax return.
Why Form 16 matters
Employees cannot easily file returns without it, and issuing it late creates avoidable pressure on staff at filing time. It also evidences that deducted tax was actually deposited.
How Form 16 works in practice
Issue after the quarterly TDS statements for the year are filed, and make sure the details match the employee's tax credit statement. Mismatches are usually PAN errors made months earlier.
Frequently asked questions
Where no TDS was deducted, Form 16 may not be issued, though a salary certificate can still be provided.