How Form 16 works
Form 16 has two parts. Part A shows the employer and employee details and the quarterly TDS deposited. Part B shows the salary breakup, exemptions, deductions and the final tax. You use it to file your income-tax return and to confirm the TDS matches Form 26AS.
Why Form 16 matters
Form 16 is the main proof of your salary income and taxes paid, needed for filing returns, loan applications and visa paperwork.
Reading Part A and Part B
Part A of Form 16 is generated from the government's TDS system and shows your PAN, the employer's TAN, and the tax deposited each quarter, so it should tie exactly to your Form 26AS. Part B is prepared by the employer and shows the salary breakup, the exemptions and deductions claimed, and the final tax under your chosen regime. When you file your return, the figures flow from Part B, and any mismatch between Part A and Form 26AS is worth resolving with the employer before filing. Keep Form 16 safe, because banks and consulates routinely ask for the last two or three years of it as proof of income.
Frequently asked questions
When is Form 16 issued?
Employers issue Form 16 after the financial year ends, usually by 15 June, for the previous year in which tax was deducted.
What if no tax was deducted?
If no TDS was deducted, the employer may not issue Form 16, but you can still file your return using your payslips.