Form 16 Explained 2026: Part A, Part B & How to File ITR

Last updated: May 2026. General information, not tax advice.

Quick answer: Form 16 is the TDS certificate your employer issues annually proving how much salary they paid you and how much tax (TDS) they deducted and deposited with the government. It has two parts — Part A (TDS summary, from TRACES) and Part B (detailed salary + deductions breakup). You use it to file your Income Tax Return (ITR). Employers must issue it by 15 June following the financial year.

If you’re salaried in India, Form 16 is the single most important tax document you receive each year — and most people only half-understand it. This guide explains exactly what each part means, how to read it, how to file your ITR with (or without) it, and what to do if you changed jobs.

What is Form 16?

Form 16 is a TDS (Tax Deducted at Source) certificate under Section 203 of the Income Tax Act. Your employer deducts tax from your monthly salary, deposits it with the government against your PAN, and at year-end issues Form 16 certifying:

• Total salary paid to you in the financial year
• Total tax deducted and deposited on your behalf
• The breakup of exemptions and deductions considered

It’s essentially your employer’s signed statement: “We paid this person X, deducted Y as tax, and deposited it with the government.”

When do you get Form 16?

Employers must issue Form 16 by 15 June following the end of the financial year (FY ends 31 March). So for FY 2025-26 (April 2025–March 2026), you should receive it by 15 June 2026.

You only get Form 16 if tax was deducted from your salary. If your income was below the taxable threshold and no TDS was deducted, the employer may not issue one — you can still file your ITR using salary slips and Form 26AS / AIS.

Form 16 Part A vs Part B

This is the part everyone confuses.

Part A — the TDS summary

Generated and downloaded by the employer from the TRACES portal (the government’s TDS system). It contains:

• Your name and PAN, employer’s name and TAN
• Period of employment with that employer
• Summary of tax deducted and deposited, quarter by quarter
• A unique TDS certificate number

Because it comes from TRACES, Part A is the government-verified portion. If you had multiple employers in a year, each issues a separate Part A.

Part B — the salary and deduction breakup

Prepared by the employer (annexure to Part A). It contains the detailed computation:

• Gross salary breakup (basic, allowances, perquisites)
• Exemptions under Section 10 (HRA, LTA, etc.)
• Standard deduction
• Deductions under Chapter VI-A (80C, 80D, 80CCD(1B), etc.)
• Taxable income and tax computed
• Which tax regime was applied (old or new)

Part B is what you actually transcribe most of into your ITR.

How to file your ITR using Form 16 (step by step)

1. Collect documents: Form 16 (Parts A & B), Form 26AS and AIS (download from the income tax portal), bank interest statements, capital gains statements, proof of any deductions not routed through the employer.
2. Cross-check Part A against Form 26AS / AIS. The TDS in Form 16 Part A should match Form 26AS. If it doesn’t, raise it with your employer before filing — mismatches cause notices.
3. Log in to the income tax e-filing portal and start the relevant ITR form (usually ITR-1 for simple salaried income, ITR-2 if you have capital gains / multiple house properties).
4. Pre-filled data now auto-populates much of the return from AIS/26AS — verify it against Form 16 Part B rather than typing blindly.
5. Enter income, exemptions, deductions from Part B. Add any income not in Form 16 (e.g., interest, freelance income, capital gains).
6. Choose the tax regime. The portal computes tax under your selected regime. Compare both before finalizing if you have significant deductions.
7. Pay any balance tax / claim refund, submit, and e-verify (Aadhaar OTP, net banking, etc.). E-verification is mandatory — an unverified return is invalid.

What if you changed jobs during the year?

If you had two or more employers in a financial year, you get a separate Form 16 from each. You must:

• Combine salary from all Form 16s
• Be careful: each employer gave you the basic exemption / standard deduction / 80C separately, so your combined taxable income may be higher than each individual Form 16 suggests — you often owe additional tax at filing
• Ideally, declare your previous employer’s income to your new employer when you join (via Form 12B) so TDS is computed correctly for the rest of the year and you avoid a year-end shortfall

This “double exemption” problem is the single most common reason job-switchers get an unexpected tax bill at ITR time.

What if you don’t have Form 16?

You can still file your ITR:

• Use monthly salary slips to compute gross salary
• Use Form 26AS / AIS for TDS and other reported income
• Compute deductions yourself with proof
• File as normal

Form 16 makes filing easier; it isn’t legally mandatory for you to have one to file.

Frequently asked questions

What is Form 16? An annual TDS certificate from your employer certifying salary paid and tax deducted/deposited on your behalf. Used to file your ITR.

What is the difference between Form 16 Part A and Part B? Part A is the TRACES-generated TDS summary (government-verified). Part B is the employer-prepared detailed salary and deduction breakup.

When should I receive Form 16? By 15 June following the financial year (e.g., by 15 June 2026 for FY 2025-26).

Is Form 16 the same as Form 16A? No. Form 16 is for salary TDS. Form 16A is for TDS on non-salary income (interest, professional fees, rent, etc.).

Can I file ITR without Form 16? Yes, using salary slips and Form 26AS / AIS.

I changed jobs — how many Form 16s will I get? One from each employer who deducted TDS. Combine all of them when filing; you may owe extra tax due to duplicated exemptions.

What is the password to open Form 16? Set by the employer/payroll provider — commonly a combination of PAN and date of birth. Confirm the exact format with your payroll team.

Where to go from here

If you switched jobs this year, check whether you under-paid tax due to duplicated exemptions before the filing deadline — it’s far cheaper to pay it at filing than after a notice.

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General information only, not tax advice. Consult a qualified tax professional for your situation.