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Form 16 is essentially a certificate issued by employers to their employees. It provides a validation that TDS has been deducted and deposited with the government authorities on the behalf of the employee. It gives a detailed summary of the salary paid to the employee and the TDS amount deducted on the same.

Basics of Form 16

Form 16 contains the information needed to prepare and file your income tax return. It shows the breakup of salary income and the TDS amount deducted by the employer. It has two components– Part A and Part B (discussed in detail below).

Part A of Form 16

Part A of Form 16 provides details of TDS deducted and deposited quarterly details of PAN and TAN of the employer and other information. It contains the basic details of the employer and the employee, such as-

  • Name of the Employee
  • Address of the employee
  • PAN of the employee
  • Name of the Employer
  • Address of the Employer
  • PAN of the Employer 

It also contains details of how much tax was deducted, dates when the amount was deposited with the central government account and details of challan issued by the government.

Part B of Form 16

Part B of Form 16 contains a detailed breakdown of how your taxes was computed. The details includes-

  • Your gross salary
  • Allowances exempt u/s 10
  • Tax on employment
  • Deductions u/s 80C
  • Deductions under other sections
  • Tax on total income
  • Any cess levied
  • Any rebate on tax
  • Any surcharges

Elegibility criteria of Form 16

As per the rules and regulations, every salaried individual who comes under the taxable bracket is eligible for the Form 16 which means that if your gross total income exceeds 2.5 lacs, you need to pay tax and you are the eligible for the Form 16. Hence, in these cases, the company/employer is under an obligation to issue Form 16 to the employee.

Due date of Form 16

As per the Income Tax Act, employers should issue Form 16 to the employee before 31ST July every year after the end of financial year


Form 16 acts as a proof of tax paid on time. It also verifies the authenticity of the income earned by an employee, validated and recorded with the Indian government. If you have any doubt regarding this, you can contact at companysuggestion.com

CS Shweta Sharma

CS Shweta Sharma having experience of three years under CS firm and also having degree of B. Com and M. Com. Having expert knowledge of ROC related work and other company related compliances with MCA.

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