Know Your Documents
What Is Form 16? Meaning, Parts A & B, and the "Tax Year" Change
Form 16 is the certificate your employer gives you after deducting TDS from your salary — under the new Act, deducted under Section 392 (formerly 192). Here's how to read every line of it.
What Exactly Is Form 16?
- A TDS certificate proving your employer deducted tax from your salary and deposited it to the government
- Issued annually — employers must provide it (when TDS was deducted) by 15 June after the Tax Year ends
- Now printed with 'Tax Year 2026-27' instead of the old 'Assessment Year 2027-28' — the most visible new-Act change for salaried people
- Not to be confused with Form 168 (the new avatar of 26AS) — that one you download yourself from the portal
Part A vs Part B — What's Inside
| Part A | Part B |
|---|---|
| Employer name, TAN & address | Detailed salary breakup (basic, HRA, allowances, perquisites) |
| Employee name & PAN | Deductions claimed (123/124 etc., std deduction) |
| Period of employment | Taxable income computation |
| Summary of TDS deducted & deposited each quarter | Tax after rebate/surcharge/cess |
| Challan/booking references of tax deposited | Relief u/s 89, if any, and final TDS figure |
Quick audit: the TAN-PAN details in Part A and the TDS amounts should match your AIS/Form 168. Mismatch? Ask your payroll first, then reconcile before filing.
Example — Reading a real Form 16 (₹12.75L salary, new regime)
Gross salary ₹12,75,000
• Less: Standard deduction ₹75,000 (shown under deductions)
• Taxable income ₹12,00,000
• Tax on total income ₹60,000
• Less: Rebate u/s 156 ₹60,000 → tax payable ₹0
• TDS deducted: ₹0 — and Part A will show NIL deductions across quarters.
Your Form 16 is now effectively a one-page summary of the ₹12-lakh zero-tax story.
• Less: Standard deduction ₹75,000 (shown under deductions)
• Taxable income ₹12,00,000
• Tax on total income ₹60,000
• Less: Rebate u/s 156 ₹60,000 → tax payable ₹0
• TDS deducted: ₹0 — and Part A will show NIL deductions across quarters.
Your Form 16 is now effectively a one-page summary of the ₹12-lakh zero-tax story.
How Do You Get Form 16? (Myth-Busting)
- You don't download Form 16 from the income tax portal — your employer issues it (they generate it from TRACES)
- If TDS was deducted, issuing Form 16 is mandatory for the employer
- No TDS deducted (e.g. ₹12L rebate cases)? The employer may not issue Form 16 — that's fine and normal
- What you CAN download from the portal: AIS, TIS and Form 168 — these plus payslips are enough to file even without Form 16
Where Form 16 Gets Used Beyond ITR
- Income proof for home/car/personal loans and credit cards
- Visa applications and BGV (background verification) during job switches
- Cross-checking your employer's TDS deposits against your AIS before filing
- Computing the old-vs-new regime comparison before you commit (enter its numbers into our calculator)
Changed jobs mid-year? You'll get one Form 16 per employer. Consolidate all salaries while filing — the combined income may push you into a higher slab, which is when people discover a shortfall (and interest). Compare both Form 16s, then file.
📌 Remember: Part A vs Part B (read both!)
Part A = employer + TAN + quarterly TDS summary (match with 26AS!). Part B = salary breakup + exemptions + deductions YOUR employer considered. Most filers read Part B and skip Part A — then miss TDS mismatches that stall refunds. Changed jobs? Collect BOTH employers' Form 16s and combine — each applied full exemption separately, so the merged math usually shows extra payable. TRACES password: PAN (lowercase) + DOB (DDMMYYYY).
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
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