Form 16 is a TDS certificate on salary. It contains information about tax deducted and deposited on the employee's behalf.
The employer deducts TDS and deposits it with the government when the employee's salary is more than INR 2.5 Lakh in the financial year. Form 16 is a summary of your salary income as reported to the Income Tax Department.
The due date for employers to issue Form 16 for FY 2018-19 to their employees is 10th July 2019. From FY 2018-19 onwards Form 16 should be issued in a standardized format prescribed by the government.
Form 16 is divided into two parts: PART A and PART B.
- Form 16 Part A contains details of TDS deducted by your employer. It is sent by the employer at the end of each financial year. It contains details of employer, taxpayer, salary and TDS deducted.
- Form 16 Part B is a breakdown of components under the income head of Salary. It contains details of your allowances, prerequisites, bonus, deduction, taxable income and tax payable.