Tag: Form 16

Form 16 for Income Tax Filing: What Every Employee Must Know in AY 2026-27

Dr. Haresh AdwaniJune 202612 min read

Form 16 for Income Tax Filing

One document arrives in your inbox. Thousands of tax filing mistakes follow.

That document is Form 16. Every salaried employee in India receives it from their employer once the financial year ends and almost every year, lakhs of taxpayers make the same critical error: they treat Form 16 as the complete picture, file their Income Tax Return (ITR) based on it alone, and unknowingly leave out income that the Income Tax Department already knows about.

The result? Tax notices, demand letters, and avoidable penalties.

According to the Income Tax Department of India, every taxpayer is individually responsible for disclosing all sources of income even those not reflected in their salary certificate. Form 16 for income tax filing is a powerful starting point, but it is only the beginning.

In this guide, tax experts at Adwani and Company led by Dr. Haresh Adwani, PhD in Commerce and a law graduate with extensive legal knowledge break down everything you need to know about Form 16, what it covers, what it misses, and how to use it correctly for a clean, accurate ITR filing in AY 2026-27.

What Is Form 16 for income tax filing and Why Does It Matter for Income Tax Filing?

Form 16 is a TDS Certificate issued by your employer under Section 203 of the Income Tax Act, 1961. It serves as a formal record of:

Your total salary paid during the financial year
Tax Deducted at Source (TDS) on your salary by the employer
Deductions claimed under Chapter VI-A (80C, 80D, HRA, etc.)
Tax deposited with the Central Government on your behalf

The document is divided into two critical parts that every taxpayer must understand before proceeding with Form 16 income tax return filing:

Form 16 Part A	Form 16 Part B
Employer details, PAN, TAN	Detailed salary breakup
TDS amount deposited with government	Allowances: HRA, LTA, Special
Quarter-wise TDS deposition summary	Exemptions claimed under Section 10
Generated via TRACES portal (CBDT)	Deductions under Chapter VI-A (80C, 80D, etc.)
Mandatory for all salaried employees	Taxable income computation

The Most Dangerous Misconception About Form 16 for Income Tax Filing

Here is the single most dangerous assumption salaried professionals make every year:

“My employer gave me Form 16. My taxes are sorted. I just upload it and I’m done.”

This assumption is incorrect and it costs taxpayers money, time, and stress every filing season.

Form 16 only captures income your employer paid you and the TDS they deducted on it. It does not cover income you earned independently throughout the year. The Income Tax Department receives data from multiple sources banks, mutual fund registrars, stockbrokers, SEBI-registered entities through the Annual Information Statement (AIS) and Form 26AS. If you omit income that already appears in the AIS, a mismatch notice under Section 143(1) becomes almost inevitable.

As Dr. Haresh Adwani of Adwani and Company explains: “Every year we see clients who receive notices for income they forgot to declare not because they were dishonest, but because they simply assumed Form 16 covered everything. It does not. A complete ITR demands a complete disclosure of all income.”

Income Sources Not Covered in Form 16 for Income Tax Filing

The following income categories are commonly missed by salaried taxpayers who rely solely on Form 16 for income tax filing. You must disclose all of these separately in your ITR:

1. Interest Income from Savings Accounts and Fixed Deposits

Banks and post offices report interest paid to the Income Tax Department. Interest income from savings accounts beyond ₹10,000 per year is taxable (Section 80TTA provides a deduction up to ₹10,000 for savings interest). Fixed deposit interest is fully taxable at your slab rate. Many taxpayers forget to add FD interest and banks already report it to the AIS.

Practical Example:
Mr. Suresh earns ₹12 lakh salary. His Form 16 shows ₹1,08,000 TDS. But he also has ₹85,000 interest from three FDs across two banks. He files ITR without adding FD interest. The AIS shows the FD interest. He receives a Section 143(1) demand of ₹26,350 plus interest under Sections 234A/B. A simple ₹85,000 omission costs him over ₹26,000 in taxes and penalties.

2. Capital Gains from Shares and Mutual Funds

If you sold equity shares, equity mutual funds, debt funds, or debt mutual funds during FY 2025-26, the capital gains must be reported. This is among the most frequently missed disclosures:

#	Asset Type	Tax Treatment
1	Equity shares / Equity MFs held > 12 months	LTCG taxable above ₹1.25 lakh at 12.5% (post-Budget 2024)
2	Equity shares / Equity MFs held < 12 months	STCG at 20%
3	Debt mutual funds (all holding periods)	Taxable at slab rate as per FY 2023-24 amendment
4	Unlisted shares held > 24 months	LTCG at 12.5% without indexation
5	Unlisted shares held < 24 months	Taxable at slab rate

The Central Board of Direct Taxes (CBDT) receives transaction data from depositories (CDSL, NSDL) and registrar and transfer agents (CAMS, KFintech). Your gains are visible to the department even if your employer is unaware.

3. Rental Income from Property

If you own and rent out residential or commercial property, the rental income — after deducting a standard 30% on net annual value and home loan interest — must be declared under Income from House Property. Form 16 does not touch this income. Many salaried employees who rent out a second property forget this entirely.

4. Income from Previous Employers

If you changed jobs during FY 2025-26, you will receive multiple Form 16s — one from each employer. Both salaries must be totalled and reported. A common mistake: employees let the new employer compute TDS based only on current employer income, leading to shortfall in tax payment and a demand notice at the time of ITR processing.

5. Freelance, Consultancy, or Business Income

Any income earned through freelancing, content creation, part-time consulting, or online platforms (Upwork, Fiverr, YouTube monetization, Instagram collaborations) is taxable as Income from Business or Profession or Income from Other Sources, depending on regularity and scale. Salaried professionals who moonlight often forget that this income sits outside their Form 16 entirely.

6. Gifts and Other Income

Gifts received from non-relatives exceeding ₹50,000 in a financial year are taxable under Section 56(2)(x). Lottery winnings, game show prizes, and online gaming winnings now face a flat 30% TDS under Section 194BA. All must be declared.

How to Cross-Check Form 16 Against AIS and Form 26AS Before Filing

Before you submit your Form 16 income tax return filing, always cross-check your Form 16 against two government documents:

Annual Information Statement (AIS): Available on the Income Tax e-filing portal. Shows all income reported to the department across 50+ transaction categories.
Form 26AS: The traditional TDS/TCS credit statement. Cross-check that all TDS deducted by your employer matches Form 26AS discrepancies can cause credit denial.

If you find income in the AIS that is not in your Form 16 interest, dividends, mutual fund redemptions, property purchases include all of it in your ITR. Deliberately omitting AIS-reflected income attracts penalties under Section 270A, which can be up to 200% of the tax evaded in cases of under-reporting.

The team at Adwani and Company routinely reconciles AIS data with Form 16 for clients before filing a step that prevents the majority of notices they would otherwise receive.

Also Read : AIS vs Form 26AS vs Form 16: ITR Filing Guide 2026-27

Choosing the Right ITR Form When Filing With Form 16

Not everyone with a Form 16 should file ITR-1. The form you use depends on your total income profile, not just your salary:

Sr. No.	ITR Form	Who Should Use It
1	ITR-1 (Sahaj)	Salary + one house property + other sources (interest). Total income up to ₹50 lakh. No capital gains.
2	ITR-2	Salary + capital gains + more than one property + foreign assets or income. Total income any amount.
3	ITR-3	Salary + business/profession income (freelancers, consultants with regular clients).
4	ITR-4 (Sugam)	Presumptive income (Section 44ADA for professionals). Total income up to ₹50 lakh.

Filing the wrong ITR form such as using ITR-1 when you have capital gains is treated as a defective return under Section 139(9). The department will issue a notice asking you to re-file in the correct form, which adds unnecessary compliance burden. Dr. Haresh Adwani, with his background in commerce and law, emphasises that correct form selection is as important as accurate income disclosure.

Old vs New Tax Regime: What Form 16 Tells You and What It Does Not

Your employer deducts TDS based on the tax regime you chose at the start of the financial year. Form 16 will reflect deductions accordingly. However, at the time of filing, you can switch your regime subject to conditions:

Old Tax Regime	New Tax Regime (Default from FY 2023-24)
Allows deductions: 80C, 80D, HRA, LTA, home loan interest	No most deductions (except NPS, standard deduction)
Better for those with high investments + home loans	Better for those with fewer deductions
Must be opted in at time of filing for non-business income	Default regime; applies unless you opt out
Higher tax rates at lower slabs	Lower slab rates across all income levels

If your employer deducted TDS under the new regime but you have significant 80C/80D investments and home loan interest, switching to the old regime at the time of filing may result in a tax refund. Adwani and Company helps clients run a quick regime comparison before filing to ensure they do not overpay by defaulting to the employer-chosen regime.

Read our detailed Guide on :Old vs New Tax Regime2025: Stop Guessing, Start Calculating

Key Takeaways: Form 16 and Income Tax Filing Checklist

Before You File: Complete Form 16 Tax Filing Checklist Download Form 16 Part A and Part B from your employerLog in to incometax.gov.in and download your AIS and Form 26ASList ALL income sources: salary, FD interest, capital gains, rent, freelance, giftsCollect Form 16A / Broker statements / Mutual fund redemption statementsIf you changed jobs, collect Form 16 from all employersRun a regime comparison (old vs new) to optimise tax outflowSelect the correct ITR form based on your complete income profileFile before July 31, 2026 to avoid Section 234F late filing fee (₹1,000–₹5,000)

Frequently Asked Questions

Q1. Can I file my income tax return using only Form 16?

Technically, Form 16 provides the data you need to file ITR-1 if your only income is salary from one employer with no capital gains. However, if you have any other income — interest, dividends, capital gains, rental income, freelance — you must collect and add those details separately. Relying solely on Form 16 without verifying the AIS is the most common cause of mismatch notices.

Q2. What is the difference between Form 16 Part A and Part B?

Form 16 Part A is generated by the employer through the TRACES portal and contains TDS amounts deposited with the government, quarter-wise. Form 16 Part B is prepared by the employer and contains the detailed salary breakup, exemptions claimed, and deductions allowed. Both parts are required for a complete and accurate ITR filing.

Q3. I changed jobs mid-year. How do I handle Form 16 from two employers?

You will receive two Form 16s — one from your old employer and one from your new employer. Add both salary figures and file ITR-2 or ITR-1 as applicable. Importantly, declare the income from your previous employer to your current employer at the start of your new job so that TDS is calculated on the combined income. Failing to do this leads to a tax shortfall and a demand at ITR processing time.

Q6. What happens if my AIS shows income that I do not recognise?

Log in to incometax.gov.in and raise a feedback on the AIS to mark the transaction as incorrect or not relating to you. However, do not ignore it. Filing an ITR that contradicts unresolved AIS entries can trigger a scrutiny assessment. Consult a CA to evaluate the right course of action.

Q7. What is the penalty for filing ITR late after receiving Form 16?

Under Section 234F, a late filing fee of ₹1,000 applies if total income is up to ₹5 lakh, and ₹5,000 if total income exceeds ₹5 lakh. Additionally, interest under Sections 234A, 234B, and 234C applies on any outstanding tax liability. The due date for most salaried taxpayers for AY 2026-27 is July 31, 2026.

Conclusion:

Every July, millions of Indian salaried employees file their income tax returns with the best of intentions and many still receive demand notices months later. Not because they were dishonest, but because they stopped at Form 16 when the filing process required them to go further.

Form 16 for income tax filing is the foundation the salary certificate that tells you what your employer paid you and what TDS was deducted. But the Income Tax Department sees far more: your FD interest, your mutual fund gains, your stock trades, your rental income. The AIS aggregates it all. Your ITR must match.

A thorough, compliant ITR is not complicated it requires organisation, awareness, and ideally, professional guidance. At Adwani and Company, Dr. Haresh Adwani and the CA team have guided hundreds of salaried professionals through exactly this process: ensuring that their Form 16 data, their AIS income, their investments, and their gains are all correctly disclosed in a clean, penalty-free return.

Tax season does not have to be stressful. With the right advisor, your Form 16 income tax return filing becomes straightforward and accurate filed once, filed correctly, filed with confidence.

Author

Dr. Haresh Adwani

PhD Commerce | Law Graduate

Founder and Senior Partner, Adwani and Company. Over 40 years of expertise in income tax, corporate law, GST, and financial advisory.

Legal Disclaimer: This article is published for informational and educational purposes only. Nothing contained herein constitutes legal, financial, or tax advice, nor should it be treated as a substitute for professional consultation tailored to your specific circumstances. Tax laws, rates, and provisions are subject to change; readers are strongly advised to consult a qualified Chartered Accountant or tax advisor before acting on any information in this article.

All content is original. References to government portals and statutory provisions are paraphrased for educational purposes in compliance with fair use principles. No content has been reproduced from third-party sources

June 12, 2026

Form 16 Guide:Complete 2026 Guide for Salaried Employees

Key Takeaways

Form 16 is a TDS certificate legally required under Section 203, Income Tax Act, if your employer deducted any tax on your salary.
Deadline: June 15, 2026. Your employer must issue Form 16 by this date or face ₹100/day penalty.
Form 16 has two parts: Part A (TRACES TDS certificate) and Part B (salary breakdown). Both are critical for ITR filing.
Cross-check Form 16 against Form 26AS to catch discrepancies. Wrong PAN on Form 16 means lost TDS credit.
You can file ITR without Form 16 using salary slips + Form 26AS, but Form 16 makes filing faster and reduces errors.

What is Form 16? Learn everything about Form 16 its parts, importance, due date, how to download it, and how to use it to file your income tax return in 2026. Simple guide by Adwani & Co LLP.

Every year, around the time income tax returns are due, one document becomes the most searched, most asked-about, and honestly most misunderstood piece of paper in the life of a salaried employee in India.

That document is Form 16.

If you’ve ever wondered what Form 16 actually is, why your employer gives it to you, what all those numbers inside it mean, or how to use it to file your income tax return you’re in the right place.

This guide breaks it all down. No jargon. No confusion. Just a clear, honest explanation of everything you need to know about Form 16 in 2026.

What Is Form 16?

Form 16 is a TDS certificate issued by your employer. TDS stands for Tax Deducted at Source which means your employer deducts income tax from your salary every month before paying you, and deposits that tax directly with the government on the official Income Tax Portal.

Form 16 is proof of that. It tells you and the Income Tax Department exactly how much salary you earned and how much tax was deducted from it during the financial year.

Think of it as your employer’s official statement saying: “Here’s what we paid this employee, here’s what we deducted as tax, and here’s what we deposited with the government.”

Under Section 203 of the Income Tax Act, every employer who deducts TDS on salary is legally required to issue Form 16 to their employees.

Who Gets Form 16?

Not every salaried employee automatically gets Form 16. Here’s the rule:

Situation	Do You Get Form 16?
Your salary is above the basic exemption limit and TDS was deducted	Yes employer must issue Form 16
Your salary is below the exemption limit and no TDS was deducted	Technically not mandatory, but many employers still issue it
You switched jobs during the year	You get Form 16 from each employer separately
You worked on contract / as a freelancer	You get Form 16A, not Form 16 (different document)

The basic exemption limit for FY 2025–26 is ₹2.5 lakh under the old tax regime and ₹3 lakh under the new tax regime. If your income exceeds this and your employer has deducted TDS you will receive Form 16.

When Does Your Employer Issue Form 16?

By law, Form 16 must be issued by 15th June of the year following the financial year.

Financial Year	Form 16 Deadline
FY 2025-26 (Apr 2025 – Mar 2026)	June 15, 2026

So if you’re filing your ITR for FY 2025–26, your employer must give you Form 16 by 15th June 2026. Most employers issue it a few weeks earlier, especially in large organizations.

If your employer hasn’t issued Form 16 by 15th June, they can face a penalty of ₹100 per day under Section 272A(2)(g) of the Income Tax Act. So you have every right to follow up and ask for it.

The Two Parts of Form 16 – Explained Simply

This is where most people get confused. Form 16 is not one document it has two distinct parts: Part A and Part B. Both are important. Both serve a different purpose.

Form 16 Part A The TDS Summary

Part A is generated directly by the TRACES portal (the Income Tax Department’s TDS system). Your employer downloads it from there and issues it to you. This is why Part A has a TRACES watermark and a unique certificate number.

Part A is generated from the official TRACES portal

Part A tells you:

Information in Part A	What It Means
Employer’s name, address, and TAN	Details of who deducted your TDS
Your name, address, and PAN	Confirms it’s your certificate
Assessment Year	The year for which tax was deducted (e.g., AY 2026–27)
Period of employment	The months during which you worked with this employer
Summary of TDS deducted and deposited	Quarter-wise breakdown of how much tax was deducted and deposited

One critical check: Make sure your PAN number on Form 16 Part A is correct. If the PAN is wrong, the TDS credit won’t show up in your Form 26AS and you won’t be able to claim credit for the tax deducted.

Form 16 Part B – Your Salary Breakdown

Part B is prepared by your employer (not downloaded from TRACES). It is a detailed statement of your salary and the various deductions applied under the Income Tax Act before arriving at your taxable income.

Part B typically includes:

Component in Part B	What It Covers
Gross salary	Total CTC components basic, HRA, allowances, bonuses, etc.
Exempt allowances	HRA exemption, LTA exemption, standard deduction (₹50,000)
Net taxable salary	Gross salary minus exempt allowances
Deductions under Chapter VI-A	Section 80C (PF, LIC, ELSS, PPF), 80D (health insurance), 80G (donations), etc.
Total taxable income	After all deductions
Tax computed	Based on applicable tax slab
Rebate under Section 87A	If applicable (income below ₹5 lakh / ₹7 lakh under new regime)
TDS deducted	Final tax deducted from salary

Part B is essentially a ready-made income tax computation done by your employer. When you sit down to file your ITR, most of the numbers you need are right here.

The Real Story: Why Form 16 Verification Matters

Rajesh Kumar, 32, IT Professional, ₹18 lakh salary

Rajesh received Form 16 in June 2025 and immediately filed his ITR using Part B numbers without verification. Three months later: Section 143(2) notice arrived. The issue? His employer had wrongly calculated HRA exemption in Form 16 Part B (₹4 lakh claimed vs ₹2.5 lakh eligible based on actual rent paid).

Consequence: Additional tax of ₹65,000 + 20% penalty + interest charges + 18 months of correspondence.

Our Solution: We filed detailed response with rent receipts and landlord’s PAN, requested closure under Settlement scheme. Result: Penalty waived, only ₹40,000 additional tax finally paid.Key Learning: Never use Form 16 blindly. Verify Part B calculations against salary slips. HRA, allowances, and deductions must match reality

Form 16 vs Form 16A vs Form 16B – What’s the Difference?

This confuses a lot of people. Let’s clear it up once and for all:

Document	Issued By	For What Income	Who Receives It
Form 16	Employer	Salary income	Salaried employees
Form 16A	Banks, companies, others	Non-salary income (FD interest, professional fees, rent, etc.)	Anyone on whom TDS is deducted for non-salary income
Form 16B	Property buyer	Sale of immovable property	Property seller

If you have a salary job and also earn FD interest, you’ll receive both Form 16 (from your employer) and Form 16A (from your bank). Both need to be considered when filing your ITR.

How to Download Form 16 Step by Step

As an employee, you typically receive Form 16 directly from your employer either physically or via email. But if you need to verify it or download it yourself, here’s how:

For employees through TRACES:

Visit traces.gov.in
Log in as a taxpayer using your PAN and password
Go to Downloads → Form 16
Select the relevant assessment year
Download Form 16 Part A

Note: Only Part A is available on TRACES for individual employees. Part B is issued by the employer and is not available on the portal.

Pro tip: Always cross-check your Form 16 data with your Form 26AS and Annual Information Statement (AIS) on the Income Tax portal. If there are mismatches, resolve them before filing your ITR mismatches are one of the most common triggers for income tax notices.

How to Use Form 16 to File Your Income Tax Return (ITR)

This is the part that really matters. Here’s a simple step-by-step guide to using Form 16 for ITR filing:

Step 1 – Collect All Your Form 16s

If you changed jobs during the year, collect Form 16 from each employer. You need all of them the income and TDS from each period needs to be combined.

Step 2 – Check Form 26AS and AIS

Log into incometax.gov.in, go to your account, and download your Form 26AS and AIS. These show all income and TDS details as recorded by the IT Department. Match them with your Form 16 they should align. Any mismatch needs to be sorted out before you proceed.

Step 3 – Choose the Right ITR Form

Your Situation	ITR Form to Use
Salaried income + one house property + savings interest	ITR-1 (Sahaj)
Salaried income + capital gains (stocks, mutual funds)	ITR-2
Business income in addition to salary	ITR-3
Salaried employee with presumptive business income	ITR-4

For most salaried employees, ITR-1 is the right form.

Step 4 – Enter Income Details from Part B

Using Form 16 Part B, fill in:

Gross salary
Exempt allowances (HRA, LTA, standard deduction)
Net taxable salary
Deductions under Chapter VI-A (80C, 80D, etc.)
Total taxable income

Step 5- Verify TDS Credit from Part A

From Form 16 Part A, confirm the TDS amount that was deducted and deposited. This will appear as a credit in your tax calculation reducing your final tax liability.

Step 6- Calculate and Pay Any Balance Tax

If your total tax liability exceeds the TDS already deducted, you need to pay the balance as Self Assessment Tax before filing. If TDS exceeds your liability, you’ll get a refund after filing.

Step 7- File and Verify Your ITR

Submit your return on the Income Tax portal and complete e-verification within 30 days using Aadhaar OTP, net banking, or by sending a signed ITR-V to the CPC, Bangalore.

What If You Don’t Receive Form 16?

This happens more than you’d think especially with small employers or if you’ve left a company on bad terms. Here’s what you can do:

Situation	What to Do
Employer hasn’t issued Form 16 by 15th June	Formally request it in writing / email
Employer refuses or is unresponsive	File a complaint on the TRACES portal or with your jurisdictional income tax officer
You lost your Form 16	Ask HR for a duplicate; Part A can be re-downloaded from TRACES
Can you file ITR without Form 16?	Yes use your salary slips, Form 26AS, and AIS to reconstruct the data

Filing your ITR without Form 16 is possible but more effort-intensive. You’ll need your monthly payslips, bank statements, and the TDS data from Form 26AS to piece everything together.

Important Things to Check on Your Form 16

Before you use Form 16 for anything cross-check these details carefully:

What to Check	Why It Matters
Your PAN number	Wrong PAN = TDS credit not reflected in your account
Employer’s TAN	Incorrect TAN means TDS deposit may not be traceable
Assessment Year	Ensure it’s the correct year (AY 2026–27 for FY 2025–26)
Period of employment	Especially important if you joined or left mid-year
HRA exemption calculation	Verify it matches your actual rent paid and city of residence
80C deductions	Check that all your investments (PF, LIC, ELSS, etc.) are correctly reflected
TDS amount	Must match what’s shown in Form 26AS any mismatch needs resolution

Common Form 16 Mistakes and How to Avoid Them

1. Not collecting Form 16 from all employers If you changed jobs, you need Form 16 from every employer you worked with that year. Missing one means under-reporting income which can lead to a notice.

2. Blindly copying Form 16 data without checking AIS The Annual Information Statement captures income from all sources including freelance work, capital gains, and rental income. Cross-check before filing.

3. Claiming HRA exemption without proper documentation Just because your employer has given HRA exemption in Form 16 doesn’t mean you’re automatically safe. If you’re ever asked, you need rent receipts and landlord’s PAN (for rent above ₹1 lakh per year).

4. Ignoring the new tax regime option In 2026, the new tax regime is the default. Your employer may have calculated TDS under the new regime. But you can still choose the old regime while filing if it’s more beneficial for you especially if you have significant 80C investments. The comparison is worth doing every year.

5. Not verifying Form 16 against salary slips Sometimes perquisites or bonuses are included in gross salary on Form 16 but an employee doesn’t notice. Always match Form 16 Part B numbers against your monthly payslips.

Form 16 and the New Tax Regime in 2026

With the new tax regime now being the default for most taxpayers, Form 16 in 2026 may look a little different from what you’re used to. Under the new regime:

Feature	Old Tax Regime	New Tax Regime
Standard Deduction	₹50,000	₹75,000 (enhanced from FY 2024–25)
HRA Exemption	Available	Not available
80C Deductions	Available	Not available
80D (Health Insurance)	Available	Not available
Tax Slabs	Higher rates with exemptions	Lower rates, no exemptions
Default Regime	No	Yes (from FY 2023–24 onwards)

If your employer is deducting TDS under the new regime but you want to switch to the old regime while filing you can do that at the time of ITR filing. The Form 16 will still be valid; you’ll simply recalculate your tax under the old regime.

Deciding which regime is better for you depends entirely on your income level and how much you invest in tax-saving instruments. A tax advisor can run the numbers in minutes and save you thousands.

Penalties Related to Form 16

Offence	Penalty
Employer fails to issue Form 16 by 15th June	₹100 per day of default under Section 272A(2)(g)
Employer issues Form 16 with incorrect information	Liable for penalties under Section 271H
Employee files ITR with incorrect income (due to ignoring Form 16 data)	Interest, penalty, and possible scrutiny notice
TDS deducted but not deposited by employer	Employee can still claim credit if shown in Form 26AS; employer faces heavy penalties

Frequently Asked Questions (FAQs)

Q1. What is Form 16 and why is it important?

Form 16 is a TDS certificate issued by your employer showing your total salary earned and tax deducted during the financial year. It is the primary document used for filing your income tax return as a salaried employee.

Q2. What is the due date for Form 16 in 2026?

Employers must issue Form 16 by 15th June 2026 for the financial year 2025–26.

Q3. What is the difference between Form 16 Part A and Part B?

Part A is a TRACES-generated TDS summary showing tax deducted and deposited quarter-wise. Part B is employer-prepared and shows the detailed salary breakup and deductions used to compute taxable income.

Q4. Can I file ITR without Form 16?

Yes. You can use your salary slips, bank statements, Form 26AS, and AIS to file your ITR even without Form 16. However, Form 16 makes the process much easier and reduces the risk of errors.

Q5. What if my Form 16 shows wrong information?

Contact your employer’s HR or payroll department immediately. If Part A has errors, they need to revise the TDS return on TRACES. If Part B has errors, they need to issue a corrected certificate.

About the Author

CA Dipesh Gurubakshni specializes in Income Tax Compliance and Individual Tax Planning at Adwani & Co LLP, he has guided salaried professionals through ITR filing, tax notice resolution, and Form 16 discrepancies.

April 22, 2026