Form 16: TDS certificate for salaried employees

Form 16 is now Form 130: What changed?

From FY 2026–27 onwards, Form 16 has been replaced by Form 130 as part of a broader renumbering of income tax forms.

• Form 16 is now called Form 130.
• Form 26AS is now called Form 168.
• The structure remains broadly similar, but reporting is more detailed.
• Additional clarity has been introduced in salary breakdown and deductions.

There is no change in how tax is calculated. The update mainly improves standardization and transparency.

Statutory basis under the Income Tax Act

Form 16 is issued under Section 203 of the Income Tax Act, 1961, which requires every person who deducts tax at source to furnish a certificate of that deduction to the deductee. For salaried employees, this obligation falls on the employer, who must issue Form 16 by June 15th of the financial year immediately following the one in which the salary was paid and tax was deducted.

Who issues and receives Form 16

Every employer who deducts TDS from an employee’s salary must issue Form 16 to that employee. Employees whose income exceeds the basic exemption limit, and on whom TDS has been deducted, receive Form 16 as their official proof of tax compliance for the year. Form 16 is being replaced by a revised certificate, Form 130, effective FY 2026-27 onwards, though its core purpose as a salary and TDS record stays the same.

Why Form 16 is important for salaried employees

Beyond confirming that tax was deducted correctly, Form 16 works as a consolidated salary and tax document, one that employees reach for well beyond tax filing season.

• Salary Above Exemption Limit: Employees earning above ₹2.5 lakh (old regime) or ₹4 lakh (new regime).
• TDS Deduction Cases: Any salary income where the employer has deducted tax at source.
• Annual Documentation: Required for every financial year with TDS transactions.

ITR filing requirement

• ITR Filing: Essential document for accurate income tax return preparation.

Proof for loans and visa applications

• Loan Applications: Primary income proof for home loans, personal loans, and credit facilities.
• Visa Applications: Income verification for international travel and work permits.

Form 16 Part A and Part B: key components

Part A: TDS summary and employer details

• Employer Details: Includes the name and address of the employer.
• Employee Details: Includes the name and address of the employee.
• PAN/Aadhaar Numbers: PAN or Aadhaar numbers of both the employer and the employee.
• TAN of Deductor: The Tax Deduction Account Number (TAN) of the employer.
• Assessment Year: The relevant assessment year for tax deduction or payment.
• Period of Employment: The period during which the employee worked.
• TDS Information: Details of the tax deducted at source (TDS) and the amount deposited with the government.

Part A is generated and downloaded from the TRACES portal.

Part B: salary breakdown and tax computation

• Salary Breakdown: A detailed breakdown of salary paid to the employee.
• Other Income: Any other income reported to the employer apart from salary.
• Allowances: Allowances that are exempt under Section 10.
• Deductions: Deductions under Chapter VI-A of the Income Tax Act.
• Relief under Section 89: Any relief claimed under Section 89.
• Tax Payable: The final tax payable after adjustments.

Part B also carries two annexures depending on the tax regime chosen. Annexure I applies under the old tax regime and itemizes deductions from Section 80C through 80U along with the exemptions claimed. Annexure II applies under the new tax regime, which offers a simplified structure with fewer exemptions but a standard deduction and lower slab rates.

Additional reporting details in Form 130

The updated Form 130 keeps this same Part A and Part B structure but adds:

• More detailed salary component breakdown.
• Standardized reporting format.
• Inclusion of deduction proof identifiers for better traceability.

These additions build on the existing Part A and Part B structure rather than introducing an entirely new section.

How to download and obtain Form 16

Getting Form 16 from your employer

Form 16 cannot be downloaded directly by employees. Only the employer, acting as the deductor, can generate it from the TRACES portal using their TAN login.

Step 1: TDS return filing

• Complete quarterly Form 24Q submissions with accurate employee data.
• Ensure all TDS deposits are reflected in government records.
• Generate consolidated annual TDS summary for all employees.

Step 2: Form 16 generation

• Download Form 16 from TRACES portal for each eligible employee.
• Apply digital signature for authentication and legal validity.
• Verify accuracy of salary details and tax calculations.

Downloading from the TRACES portal

Employees generally receive Form 16 as a PDF from HR rather than downloading it themselves. Form 16 for an earlier financial year follows the same process, with the employer selecting that year while generating the certificate from TRACES.

Step 1: Access TRACES portal

• Visit tdscpc.gov.in and navigate to the Form 16 download section.
• Enter your PAN, employer TAN, and relevant financial year.
• Complete captcha verification and security checks.

Step 2: Document verification

• Verify employer details and employment period accuracy.
• Check TDS deduction amounts against salary slips.
• Confirm quarter-wise deposit details and challan numbers.

Step 3: Download and storage

• Download PDF with embedded QR code for authenticity.
• Save multiple copies for ITR filing and record maintenance.
• Verify e-signature and TRACES authentication stamps.

Form 16 vs Form 16A vs Form 16B: key differences

Form 16, Form 16A, and Form 16B are all TDS certificates, but each applies to a different kind of payment.