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How to Generate Form 16 for Employees: Employer Guide

Form 16 is the annual TDS certificate an employer issues to every salaried employee from whom tax was deducted. Part A comes from the TRACES portal and Part B is prepared from payroll. It must be issued by 15 June after the financial year ends.

File your TDS returns first

Form 16 is built from the quarterly TDS returns (Form 24Q) you file. Ensure all four quarters are filed and processed on TRACES before generating certificates.

Download Part A from TRACES

Log in to the TRACES portal as a deductor, request Form 16 Part A for the relevant year, and download it once available. Part A shows the tax deducted and deposited, quarter by quarter.

Prepare Part B

Part B is the salary breakup and tax computation: gross salary, exemptions, deductions claimed, taxable income and tax. Generate it from payroll for each employee.

Merge and digitally sign

Combine Part A and Part B, verify the totals reconcile with Form 26AS, and sign the certificate, digitally or manually, before issuing.

Issue by 15 June

Distribute Form 16 to each employee by 15 June following the financial year, so they can file their income tax returns using it.

Frequently asked questions

What is the deadline to issue Form 16?

Employers must issue Form 16 by 15 June following the end of the financial year.

What is the difference between Part A and Part B?

Part A, from TRACES, certifies the tax deducted and deposited. Part B is the detailed salary and tax computation prepared by the employer.

This guide explains the general process under Indian law and uses established statutory figures. Rules and portals change and some details are state-specific, so confirm the current requirement on the official government portal before you act.

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