Form 16 is an Income tax form. It is used by the companies to provide their salaried individuals information on the tax deducted. Alternatively, you can consider Form 16 as your Salary TDS certificate. Suppose the income from your salary for the financial year is more than the basic exemption limit of Rs. 2, 50, 000. Then, in this case, your employer is required to deduct TDS on your salary and deposit it with the government. When From 16 is provided to an employee by their employer, it is considered as a source of proof of filing their Income Tax Returns. And if your income does not fit the basic exemption limit, the employer does not deduct any TDS in that case.
In simple terms, Form 16 is a certificate provided by your employer which certifies details regarding the salary you have earned during the year and how much TDS has been deducted. It consists of two parts i.e. Part A and Part B, where part A consists of information of the employer & employee, like the PAN and TAN details, name and address, TDS deducted & deposited, etc.
However, part B consists of details pertaining to other income, deductions allowed, salary paid, tax payable etc. Form 16 is annually issued by the employer on or before 15th June of the next year, where it immediately follows the financial year in which tax is deducted. Also, in case you lose Form 16, your employer can issue a duplicate one.
