TaxFinancial Glossary
Form 16
Definition
A certificate issued by an employer to an employee, detailing the salary paid and TDS deducted during the financial year. It consists of Part A (TDS details) and Part B (breakup of salary, exemptions, deductions, and tax computation). Employers must issue Form 16 by 15 June each year.
Why It Matters
Form 16 is the primary document for filing your income tax return as a salaried individual. It contains all the information needed to fill out ITR-1 or ITR-2. If your employer-reported figures do not match your Form 26AS (annual tax statement), reconcile before filing to avoid notices.