Form 16 is more than just a document—it’s your passport to filing income tax returns correctly. Whether you’re a salaried professional or a new taxpayer, understanding Form 16 can help you avoid errors, reconcile tax data, and claim the right deductions.
In this guide, we’ll walk you through the latest updates to Form 16, its deadline, how it’s different from Form 26AS and AIS, and what critical details you should verify before filing your ITR.
What is Form 16?
Form 16 is an official certificate issued by your employer under Section 203 of the Income Tax Act. It certifies that TDS (Tax Deducted at Source) on your salary has been deducted and deposited with the Income Tax Department.
Think of Form 16 as your yearly salary tax summary—containing income earned, exemptions, deductions claimed, and taxes paid on your behalf.
Deadline: When is Form 16 Issued?
For FY 2024–25 (AY 2025–26), employers must issue Form 16 to employees on or before June 15, 2025.
📌 Tip: If your employer delays issuing Form 16, you have the right to ask for it. Delayed issuance may attract a penalty under Section 272A(2)(g).
Why is Form 16 Important?
Form 16 is crucial for multiple reasons:
✅ Mandatory for ITR Filing: It simplifies the process for salaried individuals filing ITR-1 or ITR-2.
📑 Proof of Income & Tax Paid: Useful when applying for loans, visas, or financial planning.
🔄 Helps Match with 26AS & AIS: Ensures no mismatch between what employer reports and what ITD records.
📉 Deductions Summary: Lists exemptions under Section 10 (like HRA) and deductions under Chapter VI-A (like 80C, 80D).
Key Things to Check in Form 16 Before Filing ITR
Before you use Form 16 to file your Income Tax Return, ensure the following details are accurate:
🔹 Part A – TDS Certificate
✅ Employer’s TAN & PAN
✅ Your PAN (match with your ITR)
✅ Period of employment
✅ Total TDS deducted and deposited
🔹 Part B – Salary Breakdown & Tax Computation
💼 Gross Salary and Break-up (Basic, HRA, Bonus, etc.)
🏠 Exemptions (HRA, LTA, etc. under Section 10)
📉 Chapter VI-A Deductions (80C, 80D, 80G, etc.)
📊 Net Taxable Income
🧾 Total tax liability vs. tax paid