Form 16 Explained —
Part A, Part B & Your ITR
What Form 16 is, what Part A and Part B contain, when your employer must issue it, how to use it to file your income-tax return, and what to do if you never receive one.
Form 16 is the TDS certificate your employer issues for tax deducted from your salary under Section 192 of the Income-tax Act, 1961. It has two parts: Part A (downloaded from TRACES) shows the quarter-wise TDS deducted and deposited with the government, and Part B gives your salary breakup, exemptions, Chapter VI-A deductions and final tax. Employers must issue it by 15 June after the financial year. It is the main document salaried people use to file their income-tax return — though it is not legally mandatory.
For FY 2025-26 (AY 2026-27), Form 16 is still governed by Section 192 of the Income-tax Act, 1961. The new Income-tax Act, 2025 (its salary-TDS provision is Section 392, with revised certificate Forms 130/131) applies to tax deducted from Tax Year 2026-27 onwards. The form's content and purpose stay the same; only the statutory reference changes going forward.
Part A vs Part B — What Each Contains
A complete Form 16 has both parts. Part A is TRACES-generated and government-verified; Part B is prepared by the employer. If you only receive a Part B on letterhead without a TRACES Part A, the certificate is incomplete.
| Feature | Part A | Part B |
|---|---|---|
| Source | TRACES portal | Employer / payroll |
| Main content | Quarter-wise TDS deducted & deposited | Salary breakup & tax computation |
| Key fields | Employer TAN/PAN, your PAN, challan & BSR details, 24Q acknowledgements | Gross salary, Section 10 exemptions, Chapter VI-A deductions, taxable income, tax & cess |
| Verify against | Form 26AS / AIS | Your monthly salary slips |
| Used in ITR for | TDS credit claimed | Salary income & deductions |
Part A can only be generated once all four Form 24Q TDS statements for the year are filed (Q4 was due 31 May 2026 for FY 2025-26).
How Part B Builds Up Your Taxable Income
Part B is essentially your salary tax computation on one page. It moves from gross salary down to tax payable — the same figures you carry into your ITR.
| Row in Part B | What it shows |
|---|---|
| Gross salary | Basic, DA, HRA, allowances, bonus, commission, perquisites |
| Exemptions u/s 10 | HRA exemption, LTA, gratuity, leave encashment, etc. |
| Standard deduction | Rs 75,000 (new regime) or Rs 50,000 (old) |
| Income from other sources | Interest / other income you reported to the employer |
| Deductions (Chapter VI-A) | 80C, 80D, 80CCD, 80E, 80G — old regime only |
| Taxable income | Gross total income minus deductions |
| Tax, 87A rebate & 4% cess | Tax on slabs, rebate u/s 87A if eligible, then cess |
| TDS deducted | Total tax deducted and deposited for the year |
Under the default new regime most Chapter VI-A deductions (including 80C) are not available; Part B will reflect whichever regime your employer applied.
Part B shows tax computed under the regime your employer used for TDS. When you actually file, you can still switch to the other regime (if you have no business income) — for example moving to the old regime to claim 80C, or to the new default regime with its Rs 75,000 standard deduction and 87A rebate up to Rs 12 lakh taxable income. Compare both before filing.
Not sure which regime your Form 16 used, or which is cheaper?
Compare with an expert →When Must Your Employer Issue Form 16?
Employers must issue Form 16 by 15 June of the year following the financial year. For FY 2025-26, the deadline is 15 June 2026 (AY 2026-27).
- Worked for more than one employer in the year? Each issues a separate Form 16 for your period with them — combine them when filing.
- Form 16 should be issued even if no TDS was deducted (salary below the taxable threshold), though practice varies.
- Late or non-issuance can attract a penalty of Rs 100 per day under Section 272A(2)(g), capped at the tax deductible.
How to File Your ITR Using Form 16
Form 16 reports salary and the TDS on it — nothing else. You must separately add bank/FD interest, capital gains, rental income and any freelance earnings, and you can claim deductions (e.g. 80D paid on your own) that you never declared to your employer. Always reconcile with your Form 26AS and AIS.
Want a CA to file your return accurately from your Form 16?
Get ITR Filing Help →No Form 16, or TDS Doesn't Match?
You can file your ITR without Form 16. The e-filing portal pre-fills salary and TDS from Form 26AS and AIS — cross-check it against your salary slips.
If you never got Form 16
- Request it in writing from HR / payroll
- Download Form 26AS & AIS from the e-filing portal for TDS
- Rebuild the salary figures from your monthly slips
- File the ITR using 26AS / AIS data — Form 16 is not mandatory
If TDS in Form 16 ≠ Form 26AS
- Treat Form 26AS / AIS as the source of truth for TDS credit
- Ask the employer to file a TDS correction (revised 24Q)
- Do not claim more TDS than appears in 26AS or the refund may be held
- Keep the challan / deposit proof in case of a query
Form 16 is for TDS on salary (Section 192). Form 16A is for TDS on non-salary payments — FD interest, rent, professional fees, commission — issued by banks and other deductors. See our Form 16A guide for those.
No Form 16, multiple employers, or a TDS mismatch to sort?
Talk to a Tax Expert →Form 16 — Frequently Asked Questions
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