What is Form 16? Understanding Parts A and B

Form 16 is the most important document for salaried individuals in India when filing their Income Tax Returns (ITR). It serves as a certificate of Tax Deducted at Source (TDS) on your salary. Employers are mandatory required to issue this form by June 15th every year if they have deducted tax from your salary.

Even if no tax was deducted, many employers still provide it as a comprehensive record of your earnings for the financial year.

Form 16 is divided into two parts, both of which are required for a complete picture of your taxes:

• Part A: Generated from the TRACES portal, it contains the PAN and TAN of the employer, your PAN, and a summary of tax deposited with the government quarterly.
• Part B: Prepared by the employer, it is an annexure containing details of salary paid, other income reported by you, deductions claimed (like 80C, 80D), and the final tax payable or refund due.