Form 16: TDS Certificate of Salary Income

Form 16/16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employee. These certificates provide details of TDS/TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Taxpayers. Here are the complete details of Form 16- TDS Certificate of Salary Income

What is Form 16- TDS Certificate

Form 16 is a salary TDS certificate, which is issued to a salaried employee, whose salary is liable for TDS deduction every year. If your salary is below the basic exemption limit, your employee will not deduct TDS and may not issue form 16 to you.

However, these days, as a good work practice, many organizations issued the certificate to the employee as it contains a consolidated picture of the earnings of the individual and other additional uses as well.

What does Form 16 consist of?

Form No. 16 is a TDS certificate, which employers issue to their employees. It provides a validation that TDS has been deducted and deposited with the government authorities on behalf of the employee. It consists detailed summary of the salary paid to the employee and the TDS deducted. This form is divided into 2 parts i.e. Part A and Part B

Part A of Form No. 16 contains the following:-

Part A contains the basic details of the employer and the employee, which include details of PAN, TAN of employers, etc.

  • It contains the employer’s name, address, PAN & TAN.
  • It contains the employee’s name, address, and PAN.
  • It contains a period of salary, amount of salary, and TDS on salary.

Part B of Form No. 16 contains the following:-

Part B of the form is an annexure to part A, It is also to be prepared by the employer and contains details of the breakup of salary, deductions approved under chapter VI A.

  • It contains components of your salary and deduction claimed by you.
  • It contains total salary, total deduction, and tax deducted on your income.

Form 16 in case of change of job

If during the financial year, you change your job from one employer to another, then every employer will issue a separate Part A and B of form 16, for the period of employment.

Due Date of Form 16

Form 16 contains the information you need to prepare and file your Income Tax Return. Employers must issue it every year on or before 15th June of the next year, immediately after the financial year in which the tax is deducted. However, vide circular no. 12/2021, dated 25th June 2021, the due date to furnish the TDS certificate to employees in Form No. 16 has extended from 15th July 2021 to 31st July 2021.

Form No. 16 Format PDF Download

Difference between form no. 16 and 16A

ParametersForm 16Form 16A
MeaningForm no. 16 is a salary TDS certificate, which is issued to a salaried employee, whose salary is liable for TDS deduction every year.Form no. 16A is also a TDS certificate, it is applicable for TDS on income other than salary.
EligibilityFor the salaried person with regular incomeFor self-employed or any other profession
IssuerThe EmployerFinancial Institutions like banks, tenants, etc.
FrequencyIt is issued for the completed year i.e. AnnuallyIt is issued quarterly
Issued AgainstIt is issued against salaried employeesIt is issued against non-salaried employees

Frequently Asked Questions- FAQs

  1. What is Form 16?

    Form 16 is a salary TDS certificate, which is issued to a salaried employee, whose salary is liable for TDS deduction every year. If your salary is below the basic exemption limit, your employee will not deduct TDS and may not issue form 16 to you.

  2. How can I get Form 16 for my salary?

    Form 16 is a TDS certificate, which employers issue to their employees. It provides a validation that TDS has been deducted and deposited with the government authorities on behalf of the employee

  3. When can we expect Form 16?

    Form no. 16 contains the information you need to prepare and file your Income Tax Return. Employers must issue it every year on or before 15th June of the next year, immediately after the financial year in which the tax is deducted.

  4. What is the password for Form 16?

    Form 16 is a TDS certificate that is always password-protected, but when you download it with the help of any tax software, form no. 16 don’t have any passwords.

    If there is a password, the form will open with 5 characters of the PAN number in upper case and the date of birth of the employee in DDMMYYYY format.

  5. How can I check Form 16 Online?

    It is the liability of your employer to issue form no. 16 before the due date of the financial year which is 15th June of next financial year. After receiving it from the employer you can check it with the details you have provided to your employer.

  6. How can I get my TAN Number?

    A TAN application can easily be made by depositing form 49B at any of the TIN facilitation centers. Nowadays it is also become very easy and popular to apply for a TAN application online by way of an online application.

    Applicants need to follow the below mention steps-
    Step 1- Visit the NSDL website or click here to visit.
    Step 2- At the bottom go to apply for a new TAN and select from the dropdown ‘category of Deductors’
    Step 3- On doing so the applicant is redirected to Form 49B.
    Step 4- Fill in the given form.
    Step 5- Click Submit
    Step 6- On Confirmation, the acknowledgment screen is displayed which contains the following
    14-Digit acknowledgment number
    Name of the applicant
    Status of the applicant
    Contact details
    Payment Details
    Space for Signature
    Step 7- Save the acknowledgment and take a printout of it.
    Step 8- The printout of the acknowledgment along with the other documents is required to be sent to NSDL address. (Address and documents details are given below in this post)

    Full Details- https://newtaxroute.com/how-to-make-tan-application-online.html

  7. How can I save form 16 without a password?

    You can use any tax software for downloading form no. 16 without password or you can select In the security tab select “No Security” in the security method drop-down menu to remove the password.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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