Form 16 Explained: Complete Guide to TDS Certificate
Everything about Form 16, how to read it, and use it for ITR filing
What is Form 16?
Form 16 is a TDS certificate issued by employers showing salary paid and tax deducted during the financial year. It's essential for filing Income Tax Return.
Parts of Form 16
Form 16 has two distinct parts with different information
- Employer details - TAN, PAN, name, address
- Employee details - PAN, name
- Summary of tax deducted - Total TDS amount
- Quarterly TDS deposits - Challan details with dates
- Detailed salary breakup - Basic, HRA, allowances
- Allowances & exemptions - HRA, LTA, etc.
- Deductions Chapter VIA - 80C, 80D, etc.
- Tax calculation - Taxable income & TDS
Key Information in Form 16
Critical details you must verify in your Form 16
Gross Salary
Total salary including all allowances (basic + HRA + special allowance + bonus)
Exemptions Claimed
HRA, LTA, standard deduction, and other exempt allowances reducing gross salary
Deductions (80C, 80D, etc.)
Tax-saving investments declared to employer (PPF, ELSS, insurance, NPS)
Tax Deducted (TDS)
Total TDS deducted and deposited by employer throughout the year
When is Form 16 Issued?
Deadline: June 15, 2025
Employers must issue Form 16 by June 15 for the previous financial year (FY 2024-25).
If you don't receive Form 16 by this date, follow up with your employer or HR department immediately.
How to Use Form 16 for ITR Filing
Step-by-step process to file your Income Tax Return using Form 16
Verify Details
Check PAN, salary amounts, deductions claimed, and total TDS deducted
Cross-check with Form 26AS/AIS
Ensure TDS shown in Form 16 is credited to your PAN in Form 26AS or AIS
Add Other Income
Include income from bank interest, capital gains, house property, or other sources not in Form 16
Claim Additional Deductions
Add investments made after declaration to employer or deductions not submitted earlier
File ITR & E-Verify
Use Form 16 data to fill salary income section, file ITR, and e-verify within 30 days
Common Mistakes to Avoid
Critical errors that can lead to incorrect tax filing or notices from IT Department
Filing ITR Before Receiving Form 16
Wait for Form 16 to ensure accurate TDS and salary details. Early filing may lead to mismatches.
Not Verifying TDS Credit in Form 26AS
Always cross-check TDS shown in Form 16 with Form 26AS/AIS. Mismatches can trigger notices.
Forgetting Income from Previous Employers
If you changed jobs, add income from previous employer(s) manually. Form 16 shows only current employer data.
Not Claiming Post-Form 16 Deductions
Form 16 issued in June won't have deductions made after March. Claim them separately in ITR.
What if Employer Doesn't Issue Form 16?
Emergency steps to file ITR without Form 16
Request Form 16 in Writing
Send formal email/letter to HR demanding Form 16 by legal deadline
Check Form 26AS/AIS
Download TDS details from Income Tax portal - Form 26AS shows all TDS deposited against your PAN
Gather Alternative Proof
Collect salary slips, bank statements, and offer letter as supporting documents
File ITR Using Available Data
Use Form 26AS + salary slips to file ITR. Don't miss the ITR deadline waiting for Form 16
Report to Income Tax Department
File complaint on IT grievance portal if employer still doesn't comply