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Form 16, explained line by line

Form 16 is your employer's sworn account of what it paid you and what tax it deducted. Reading it properly takes ten minutes and catches most filing errors before they happen.

Reconcile with my computation

What it means

Form 16 is the TDS certificate a salaried employee receives under Section 203. Part A carries employer and employee identification, the assessment year, and quarterly TDS deposited with the government. Part B carries the salary computation: gross salary, exempt allowances, deductions claimed and tax computed.

The formula

Taxable salary (Part B) = Gross salary − exempt allowances − deductions allowed

Part A's TDS figures must match Form 26AS and the Annual Information Statement, because those are what the department credits you with. Part B's computation must match your own — if it does not, your return can differ from your Form 16, provided you can support it.

Worked example

  • Part A shows ₹1,64,000 of TDS deposited across four quarters.
  • Part B shows gross ₹18,65,520 less a ₹75,000 standard deduction.
  • Reconcile both against your payslips and Form 26AS before filing.

How to use it

  1. 1Check Part A against Form 26AS. Every quarter's TDS should appear identically in both.
  2. 2Verify Part B's deductions. Anything you declared late to your employer may be missing.
  3. 3Claim what was missed in your return. You may claim eligible deductions at filing even if they are absent from Form 16.

Frequently asked questions

What if my Form 16 does not include a deduction I am eligible for?

You can still claim it in your income tax return, provided you hold the evidence. Your return does not have to match Form 16 exactly, but you should be able to justify the difference.

When should I receive Form 16?

Employers are required to issue it by 15 June following the end of the financial year.

Do I need Form 16 to file my return?

No. You can file using payslips, Form 26AS and the Annual Information Statement, though Form 16 makes the reconciliation considerably easier.

Related tools & guides

Calculations on this site are based on official government provisions and should be verified against the latest government publications (incometax.gov.in).