What is Form 16?

If you are a salaried employee, you must receive Form 16. It is for salaried employees in India and acts as a report card for their tax payments. This form is issued by an employer to the employee when, during the financial year, they deduct tax from their salary income. The certificate confirms that the employer has deducted a tax and deposited it to the government. Like residents, this form is also important for NRIs who have had Indian salary income or worked in India.

Want to know more about Form 16 in detail? Read the blog and get your answers. 

What is Form 16?

For salaried taxpayers in India, Form 16 is an essential document. This form is issued by the employer every year under section 203 of the Income Tax Act 1961. The form contains information about tax deducted at source (TDS) in salary. Additionally, in many situations, you can also use this form as proof of income.

Confused? In simple terms, Form 16 states that your employer deducts income tax from your salary and deposits it with the tax officials. The form shows your total paid salary, claimed tax deductions, computed taxable income, and deposited TDS. 

Further, every employer who deducts TDS on salary needs to issue Form 16 to their employees by June 15 following the end of the financial year. For instance, in FY 2025-26, the form should be issued by June 15, 2026. 

This was all about Form 16. Moving ahead, let's know who can receive this form in India. 

Who Can Receive Form 16?

Form 16 under income tax filing is essential for those whose salaries are deducted at source. Considering this, it is not mandatory that all employees in the organization receive this form. Further, let's know who is eligible to receive this form.

• According to section 203 of the Income Tax Act, 1961, if the income of the employee is taxable, the employer is accountable for deducting TDS from his salary.
• If your employer has deducted tax at source (TDS) from your salary during the financial year, you are entitled to receive Form 16.
• During the financial year, if you switch jobs, it is vital to collect Form 16 from your previous as well as new employer. 

Let's know the conditions under which Form 16 is not required.

• If there is no TDS deduction made by the employer, then they are not accountable to provide Form 16 to the employee.
• However, at present, several organisations issue this form to their employees as a good work practice. It consists of a consolidated image of the earnings of the individual and is used for other purposes as well, such as income proof.

So, only salaried employees with taxable income in India, whether residents or NRIs, are eligible to get Form 16. Now, moving further, let's know the important details mentioned in this form. 

Important Details Available in Form 16

Form 16 consists of two parts, i.e., Part A and Part B. Part A contains a summary of the deducted TDS, PAN, and TAN number of the employer, PAN number of the employee, etc. In contrast, Part B contains a detailed breakdown of salary, tax exemptions, and deductions under the Income Tax Act, 1961. Further, let's know about the important details available in Form 16.

• Part-A

  • Name and address of the employer and employee
  • TAN of the employer
  • PAN number of the employer and employee
  • Quarterly break-up of the amount of deducted TDS on salary
  • The date on which the monthly deducted TDS is deposited with the tax officials

• Part-B

  • Total salary (including all allowances and perquisites)
  • Under section 10, tax-exempt allowances (reduced from total salary)
  • Income other than salary stated for TDS deduction
  • Tax deduction under Chapter VI-A
  • Total taxable income stated for TDS deduction
  • Estimated tax liability (as applicable tax, surcharge, cess, and rebate are separately calculated)
  • Tax relief under section 89 of the Income Tax Act, 1961

These are the important details available in Form 16. Further, Part A is an official government-generated document and should be generated through the TRACES portal. Part B contains the clear income and tax picture of your salary. So, cross-verify every mentioned amount with your salary slips. It is because the discrepancies between your records and Part B are common, specifically when you switch jobs, have variable pay components, and more. Moving forward, let's know how to download this form. 

How to Download Form 16?

Employees cannot download Form 16 from the income tax portal; only employers can download it through TRACES. However, they can access the form in the following ways:

• Option 1: Ask for Form 16 directly from your employer. It is the most common and easiest route. Your payroll or HR department can download the form from the portal and give it to you either as a physical document or a password-protected PDF via email. However, you should get it before June 15 each year.
• Option 2: You can also obtain Form 16 using the HR or payroll portal of the company. Many big companies, through self-service portals like Workday, SAP, and more, make the form available to employees. For this, you need to log in to the portal, navigate to the tax documents or salary section, and download the form.
• Option 3: If you independently want to verify that your employer has deposited the deducted TDS to the government, you can do so using the TRACES portal. If you want to verify that TDS has been deposited by your employer, you can review Form 26AS or AIS through the income tax portal.

In case, during the year, you have changed your job, you will receive a separate Form 16 from each employer for the duration you worked for them. Both forms are needed when filing your ITR as your total taxable income for the year includes the salary you received from both employers. 

This was all about how to download Form 16. Moving ahead, let's know the password format of the form. 

Form 16 Password Format

The Form 16 password format among different organisations can differ slightly. The standard password format for Form 16 is as follows:

First 5 characters of PAN (in uppercase) + Date of birth in DDMMYYYY format. For instance, if your PAN number is ABCDE1234F and your DOB is March 15, 1986, the password would be: ABCDE15031986. 

Additionally, you can also try different combinations such as:

• PAN in lower case and date of birth in DDMMYYYY format
• Only PAN in lower case
• Only PAN in upper case
• Only date of birth in DDMMYYYY format

This was all about the Form 16 password format. Now, moving further, let's know how to upload this form for ITR filing. 

How to Upload Form 16 for ITR Filing?

You can upload Form 16 for ITR filing using the income tax e-filing portal or any third-party platforms. It autofills most of your ITR fields without manual entry. Further, here is how you can file your ITR after uploading Form 16 on the income tax e-filing portal. 

• Step 1: Log in to the income tax e-filing portal with PAN and password.
• Step 2: Go to e-File → File Income Tax Return.
• Step 3: Choose the assessment year and ITR form (generally ITR-1 and ITR-2).
• Step 4: Review the pre-filled information available on the portal and reconcile it with your Form 16 before proceeding or enter the data manually from your Form 16.

Moreover, uploading Form 16 auto-populates TDS and salary income, but does not mention all your income. FD interest, interest on savings accounts, rental income, capital gains, and any other income sources should be manually added. Considering this, never think that after uploading Form 16, your ITR is completed.

So here is how you can upload Form 16 for ITR filing. Moving forward, let's know the difference between Form 16, Form 16A, Form 16B, and Form 26AS.

Difference Between Form 16, Form 16A, Form 16B and Form 26AS

The table below showcases the difference between Form 16, Form 16A, Form 16B, and Form 26AS:

Form 26AS is the master record. It contains information about all tax credits stated under your PAN from every income source. Considering this, to ensure the information matches before filing your ITR, always cross-verify Form 16 and Form 16A figures against your Form 26AS. Discrepancies between these forms are one of the common reasons for ITR processing mismatches and subsequent notices.

Moving ahead, let's know the key considerations NRIs need to be aware of regarding Form 16. 

Key Considerations for NRIs

NRIs who have worked in India as employees in Indian companies, or as assignees from foreign companies deputed here, may get a Form 16 for the time they worked here. Here is what they need to keep in mind. 

Partial Year Employment

Your Form 16 only mentions the period you worked in India. Additionally, your residential status depends on the number of days in a financial year you lived in India, and your tax obligation depends on it.

For instance, for several years, Mr. A worked in Singapore and in November 2025 returned to India. From November to March, he worked in India and received Form 16 from his Indian employer. The residential status of Mr. A is now RNOR (Resident But Not Ordinarily Resident). Considering this, only the income he earned in India is taxable here, not his Singapore-earned income. 

Higher TDS Concerns

Throughout the year, for tax withholding, if your employer treated you as a resident but for some or all of it, you were an NRI, and due to your incorrect residential status, you may have paid higher TDS. Considering this, you can reclaim the excess deducted TDS by declaring your correct residential status when filing your ITR in India.

Form 16A for NRO Accounts

NRIs with NRO savings accounts or fixed deposits also receive Form 16A from their bank. Banks generally deduct TDS on NRO interest income at rates prescribed under the Income-tax Act, subject to applicable surcharge, cess, and DTAA benefits where available. This form is different from Form 16 as it is issued by the banks. Additionally, when filing your ITR, cross-verify the Form 16A with Form 26AS. 

DTAA Benefits and TDS Correction

If excess TDS was deducted, for instance, under a DTAA, if you were entitled to a lower tax rate than the bank or employer standard tax rate. You can claim the excess TDS as a refund when filing your ITR with the correct tax obligation. Considering this, keep your tax residency certificate (TRC) and Form 10F ready to help you in claiming DTAA. 

These are some of the key things NRIs need to consider while having a salary income in India. 

Final Thoughts

Lastly, Form 16 is an essential document. It acts as your income proof not only for filing ITRs but also for availing loans. For NRIs with Indian salary income, it adds a layer of residential status determination, making it even more vital to review Form 16 carefully. 

Furthermore, if you need any assistance with Form 16 or tax matters, Savetaxs is the name you can trust. We have a team of financial experts who resolve all your doubts and help you gain confidence regarding your tax obligations in India. So connect with us and avoid the stress.