Form 12BB – Investment Declaration Form for Income Tax
November 16, 2017
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November 17, 2017

What is Form 16 & How to Get Form 16?

Last Update Date : August 10, 2018

Income tax Form 16

Income Tax Form 16 is a certificate issued under section 203 of the IT Act for tax deducted at source from salary. It is a detailed record of Income Tax deducted from the salary of the employee by the employer. It is also known as a Salary Certificate since it also contains the complete details of salary paid by the employer, its components and as well as the tax deducted from salary. It is issued by the employer even when there is no tax deduction from the salary of the employee.

What is the use of Form 16?

Income Tax Form 16 is required due to its utility in efiling of Income Tax. Since, it is a complete record of income earned and taxes paid, it is the single most important document that is accepted for tax filing purposes. It is also accepted as an income proof in various transactions like loan processing etc. Also Form 16 can be used to verify whether correct taxes are deposited with the government account by comparing the amounts with your Form 26AS. This is  proof that correct taxes are being deducted from salary and deposited with the government.

How to Get Form 16?

There is a common misconception that one can download Form 16 using PAN number from TRACES website. In reality, you can only get your Form 16 from your employer.

Understanding Income Tax Form 16 Format in Detail

Form-16 is divided into two parts. Part A and Part B.

Form 16 Part A

Part A is the certificate of TDS. Hence Form 16 becomes proof of the TDS deducted by the employer from the salary of the employee and paid to the government account.

It is also known as TRACES Form and contains the following details:

  • Personal details of employee: Part A of your Form 16 contains your personal details like your name, address, designation in the organization.
  • PAN and TAN: It also contains your Permanent Account Number and your employer’s Tax Deduction and Collection Account Number.
  • Period of employment: It mentions the duration for which you worked with the employer during the Financial Year.
  • The Assessment Year: Your Form 16 also mentions the Assessment Year in which the return is to be filed for the taxes deducted by your employer.
  • Summary of the taxes deducted and paid: Employers generally deduct TDS from the salary of the employee and deposit the same into the government account. The details of TDS deducted and paid each quarter are summarized in this TRACES form or Part A of the Form-16.
  • Bank challan details: It also contains details like BSR code of the bank branch through which payments are made and challan numbers etc for reference. All these details are of utmost importance when it comes to presenting the Form16 as a proof of tax deducted and paid to the government account.

Fundamentally, part A of form 16 provides summary of tax deducted from your income and deposited to the government as per the monthly and quarterly TDS return filed by the employer.

Form 16 Part B

Part B is an annexure containing details of salary paid, other income, tax due and tax paid. This is a complete detailed record of salary and related deductions and exemptions computed in a step by step manner.
This part of the Form-16 is a complete detailed record of the salary of an individual. The name and PAN of the employee are quoted even in this part of Form16. It contains details of

  • Gross salary: The Part B of your Form 16 mentions your gross salary which is also your CTC and includes components like DA, TA, HRA, LTA, other allowances, perquisites, bonus etc.Gross salary is further divided into three parts:
    (a) Salary as per provisions contained in section 17(1)
    (b) Value of perquisites under section 17(2)
    (c) Profits in lieu of salary under section 17(3)
  • Exemptions claimed under section 10 of the I-T Act: Exemptions from salaries include things like house rent allowance, leave travel allowance, conveyance allowance, attire allowance, medical allowance to name a few. Part B details the amount of each of these allowances that are exempt from tax. The salary chargeable to tax is thus derived.
  • Net taxable salary: You can also see your net taxable salary calculated after deducting tax exemptions under section 10.
  • Details of salary u/s 16: Here you can see the details of the deduction allowed for Entertainment Allowance, Profession Tax or tax on Employment. From AY 2019-20 a new deduction will be added here under the head “Standard Deduction”.
  • Details of any other income: Details of any other income are then specified under this section. However, all these details (apart from salary) need to be declared with the employer first so that they can be included in the Form-16. These generally will include your net income from House Property and any other source as reported by you to your employer. This is included in the calculation of taxes payable for the year on your total income and by declaring this income to your employer you are relieved from the responsibility of paying Advance Tax.
  • Deductions from salary under section 80C to 80U: Details of deductions under Chapter VI-A are also shown below this. Each deduction under section 80C e.g. employee’s contribution to PF, life insurance premiums, home loan principal repayments, children’s tuition fees, investment in mutual funds, investment in PPF, Sukanya Samridhhi, or etc. Section 80D deduction for medical insurance and other deductions are also mentioned.
  • Amount of tax on income: Once these amounts are deducted from income chargeable to tax, the net amount chargeable to tax is derived. This is the amount on which tax is calculated at the applicable tax slab rates. Rebate u/s 87A is also given if applicable. After applying the applicable cess and surcharge on the amount of tax, the tax payable for the year is derived.
  • Income tax paid and hence either taxes due or refund due: Finally the amount of tax deducted from the salary of the employee is deducted from this tax amount and if any taxes are due, it is to be paid by the assesse to the government. However, generally taxes due are NIL as per Form-16, since these are always calculated based on the tax declarations made and investment proofs submitted. In many cases, there is a tax refund due. Taxes are due only in cases where income earned apart from salary is not declared to the employer for the purpose of preparing Form 16.

Difference between Form 16 and 16A

Form 16 and Form 16A are the proofs of the tax deducted at source (TDS) that is issued by the employer to his employees. However, there are certain differences in both the forms that you need to know to understand which form is applicable to you.

Let us see what differences exist between these two forms.

Form 16 Form 16A
Form 16 is a certificate under Section 203 of the Income Tax Act which is used as a proof of tax deducted at source from the income chargeable under the ‘salaries’ head. Form 16A is a certificate under Section 203 of the Income Tax Act which is used as a proof of tax deducted at source for income other than salary.
Anyone who is earning a regular and steady income in the form of salary is eligible for this form. Anyone who is receiving any income chargeable to tax under the income tax act and which is subject to TDS is eligible to receive this form from the payer of such income.
This form is applicable only towards income from salary. This form is issued whenever any tax is deducted at source from incomes such as rent of building or plant and machinery, commission, professional fees, payments made to contractors, the sale of immovable property, interest on bank deposits or other securities, etc.
Form 16 comprises of proof of income, details of tax paid on behalf of the employee by the employer, PAN and TAN of the employer, employee’s PAN, acknowledgement of the tax amount paid, education cess and surcharges. Form 16A comprises of Name, PAN, TAN of the payer of the income (deductor), PAN and name of the payee (deductee). It also comprises of the amount and the nature of payment, tax deducted and the receipt number of the TDS payment.

Form 16 and Form 16A both are important forms and are required to help you file your IT returns smoothly. Both the forms can be verified online.

Form 16 Download

Word Format | Excel Format

How to File Income Tax Return with Form 16?

H&R Block, the global leader in individual Income Tax Return filing services , is the right choice for you. We have the expertise for all your tax situations whether you have just a Form-16 for filing (i.e. a simple salary tax return) or have extensive tax filing, involving capital gains or international tax issues.

Our team consists of highly trained chartered accountants, law graduates, MBAs, and other tax professionals that can give you expert assistance in getting your Income Tax return filed carefully and precisely!

We specialize in providing tax planning, preparation and filing services to individuals, including non-resident Indians (NRIs) and expatriates. Use our Income Tax Calculator to figure out your tax amount for FY 2017 – 2018.

Upload Form 16 to File Your ITR

How to download Form 16?

Form-16 is generally issued by your employer in hard copy as well as soft copy. Nowadays digitally signed Form no. 16 are issued to employees via emails. These can be downloaded and used in Income Tax Return e-filing.

Who is Eligible for Form 16?

All salaried employees are eligible to get Form 16 from their employers. If your employer deducts TDS from your salary, then he / she must issue Form16 to you.

What is the periodicity of issuance of Form-16?

Form 16 is generally issued by employers by 15th of June each year. However, this date may vary from one company to the other. Certain companies may issue it sooner or later.

How to Get Form 16 from Previous Employer?

If you need Form16 for any previous year, you can ask your employer to issue you the same. Provisions in the Income Tax Act make it mandatory for an employer to issue Form 16 to his employee if TDS has been deducted from his salary.

How to Get Form 16 for Previous Years?

If you need Form-16 for any previous year, you can ask your employer to issue you the same.

What if the employer does not issue Form 16?

If the employer does not issue Form-16 then you may refer to your Form 26AS. This form contains details of tax deducted from your payments and deposited in the government account. If, however you cannot access this or it does not reflect any TDS payments then you must demand your Form 16 from your employer. It is your right to do so.

Can Income Tax Return be filed without Form 16?

Even if you do not have a Form 16, you can still file a tax return. However, you will need several other documents related to your incomes & expenses like your Form 26AS, payslips, rent receipts, TDS certificates from banks, tax saving investment proofs, home & education loan certificates, travel expense bills, all bank statements etc.

People Also Ask

What is income from salary?

Any remuneration or fixed regular payment received by an employee (especially a professional or a white-collar worker) from his employer is called a salary. As per the Income Tax laws, it is taxed under the head Income from salary or pension.

Is pension income taxable as salary?

Yes, pension income is taxed as salary income. However, pension received from the United Nations organisation is exempt from tax.

Is family pension income taxed as salary income?

No, it is taxable as income from other sources.

Does Income Tax Department charge tax on retirement benefits like Gratuity & Provident Fund?

Gratuity & PF are not taxable for the government employees. For non-government employees, Gratuity is exempt subject to limits prescribed in this regard & PF receipts are exempt from tax if the same are received from a recognised PF after rendering continuous service of not less than 5 years.

I worked for 3 different employers last year and none of them deducted any TDS or issue Form 16 to me but my income exceeds the tax exemption limit. Do I need to pay taxes on my own?

Yes, you need to pay tax yourself if your total income exceeds the basic exemption limit and your employers have not deducted any or adequate amount of tax.

If I receive my pension through a bank, who will issue Form 16 or pension statement to me-the bank or my former employer?

In this case, Form 16 will be issued by the bank.

Some deductions are not reflecting in my Form 16. Can I claim them while filing my Income Tax Return?

This may happen if you failed to submit proofs for such deductions to your employer or your employer failed to include them in your Income Tax Return. However, you do not need to worry as most of the deductions can be claimed at the time of filing returns.

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