Form 16

Form 16 – Form 16 is a certificate issued by an employer to an employee that provides details of salary paid and Tax Deducted at Source (TDS) during a particular Financial Year. It serves as proof that the employer has deducted and deposited income tax on behalf of the employee with the government. Form 16 consists of two parts: Part A: Contains details of the employer and employee (like PAN, TAN), summary of tax deducted, and deposited with the government. Part B: Contains a detailed breakup of salary, deductions claimed under Chapter VI-A (like Section 80C, 80D), and computation of taxable income. The Assessment Year (AY) is the year in which the income earned in the previous Financial Year (FY) is assessed and taxed.

Example: Form 16 issued for FY 2022–23 reflects the employee’s income and TDS for that period, which is assessed in AY 2023–24..