Tax Glossary Definition
A formal statement provided by the deductor—such as an employer, bank, or other payer—to the deductee, detailing the tax deducted at source (TDS) and remitted to the government. Commonly used forms are Form 16 for salary income and Form 16A for other payments like rent, interest, or professional fees. These certificates act as evidence of tax payment and are crucial when filing the Income Tax Return (ITR).
Example: An employee receiving Form 16 showing ₹50,000 TDS deducted from salary during the year can use it while filing their ITR.
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