Here's all you need to know about Form 16 before filing your income tax return
Salaried employees across India are awaiting a key document — Form 16 — from their employer to file their income tax return (ITR). In this article we lay out why Form 16 is an important document for employees to file their taxes, by when you can expect to get your Form 16, and the important details it contains.
TDS certificate
Form 16 is important for employees as it contains details of the tax deducted at source (TDS) by the employer. According to the income tax rules, employers must issue Form 16 by 15 June 2025.Also read | For some NRIs, capital gains from Indian mutual funds are tax-free
It also contains other details such as deductions claimed under various sections of the Income Tax Act, including 80C and 80D, house rent allowance (HRA), and others.
Simplifying the process
Form 16 streamlines the process of filing income tax returns, particularly when using pre-filled forms on the income tax portal. However, in case of a delay from the employer, individuals can still file their returns by using documents such as salary slips, Form 26AS, and the Annual Information Statement (AIS).
'For FY25, the last date to issue Form 16 is 15 June. In case of any delay in issuing Form 16, there is penalty of ₹500 per day on the employer," said Mayank Mohanka, founder of TaxAaram India.
Also read | Who can avail the indexation benefit on property sale and is it even worth it?Even after receiving Form 16, it is advisable to verify the details across platforms to avoid any discrepancies that could lead to enquiry from the Income Tax Department.
Does everyone get a Form 16?
Employers are not required to provide Form 16 to employees whose salaries were not subjected to TDS. For example, taxable income up to ₹5 lakh is tax-free under the old tax regime, and up to ₹7 lakh under the new tax regime.'For example, in the old tax regime income up to ₹5 lakh is tax-free after availing a rebate under Section 87A. In the new tax regime, income up to ₹7 lakh is tax-free for FY25. Note that from FY26, the nil tax threshold has been raised to ₹12 lakh under Section 87A", said Mohanka of TaxAaram India.
Parts A and B
Form 16 is segregated into two parts — Part A and Part B.
Part A contains details such as the name of the employer and employee, the employer's Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN), the employee's PAN, period of employment, TDS deducted and deposited.
Part B contains details such as salary paid, other income, deductions claimed, and tax payable, among other things.
Switched jobs? You'll need two Form 16s
A salaried employee can have two Form 16s in a single financial year if he or she has changed jobs during the financial year. In this case, the individual will need to obtain a Form 16 from both the previous employer and the present employer.
Remember, the last date for filing IT returns has now been extended to 15 September 2025 from the usual deadline of 31 July 2025.Also read | Category III alternative investment funds were created 15 years ago. They still lack clear tax rules
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