The income tax return (ITR) filing season for the financial year 2025-26 has begun, and taxpayers are racing against the July 31, 2026 deadline to compile all necessary documents. Among the most critical documents for salaried individuals is Form 16, a certificate issued by employers that details salary paid and tax deducted at source (TDS). Alongside Form 16, taxpayers should keep Form 26AS, the Annual Information Statement (AIS), bank interest statements, and investment-related documents handy.
What is Form 16 and How to Obtain It?
Form 16 serves as a TDS certificate for salaried employees, summarizing the salary disbursed during the financial year and the tax deducted and deposited with the government on the employee's behalf. It comprises two parts:
- Part A: Contains core details such as the employee's Permanent Account Number (PAN), the employer's Tax Deduction and Collection Account Number (TAN), and a quarterly summary of total amounts paid and TDS deposited.
- Part B: Provides a detailed salary breakup, including exemptions, deductions, and the final tax computation.
For instance, if an employee earns Rs 20 lakh annually, eligible exemptions and deductions may reduce the taxable income below the gross salary. Part B explains this computation, while Part A shows the tax already credited. Together, they simplify accurate return filing.
Employees cannot directly download Form 16 from the income tax portal or TRACES. Instead, employers generate it through the TRACES system after processing salary TDS returns and share it via HR portals, payroll systems, or official email, explains Siddharth Deb, Tax Partner at EY India.
What if You Changed Jobs?
If you switched employers during the year, you may need to collect Form 16 from each employer, unless your current employer accounted for previous salary and TDS details. A common pitfall is that both employers may compute TDS independently, ignoring salary paid by the other, leading to lower tax deduction and an additional tax liability at filing time, warns Deb.
Before filing, cross-check Form 16 with Form 26AS or AIS to ensure salary income and tax credits match. This ensures a smooth and accurate filing process.
