What is Form 16 and how to use it to file your ITR: a complete guide for FY 2025-26

For informational purposes only. Ek Crore does not recommend specific tax strategies or financial decisions. Tax rules change frequently — verify current rules at incometax.gov.in before acting. Consult a practising CA for advice tailored to your situation.

Form 16 is a TDS certificate your employer issues under Section 203 of the Income Tax Act, 1961. It tells you exactly how much salary you earned in FY 2025-26 and how much income tax was deducted at source on your behalf. For most salaried employees, Form 16 is the single most important document for filing ITR.

Your employer must issue it by 15 June 2026. If you have not received it by that date, you can still file — but you will need to piece together the same information from your salary slips, bank statements, and AIS.

What Form 16 contains: Part A and Part B

Form 16 has two parts. They are often stapled together but serve different purposes.

Part A: the government's record of TDS deducted

Part A is generated directly from the TRACES portal (the government's TDS reconciliation system at tdscpc.gov.in). Your employer cannot edit or fabricate Part A — it reflects exactly what was deposited with the government on your behalf.

Part A contains:

• Your employer's TAN (Tax Deduction Account Number)
• Your PAN
• The financial year (April 2025 to March 2026)
• Quarter-wise breakdown: how much TDS was deducted and deposited in each quarter (Q1: April–June, Q2: July–September, Q3: October–December, Q4: January–March)
• A unique TDS certificate number

What to cross-check: The total TDS in Part A must match the TDS shown for this employer in your Form 26AS. If they do not match, the TDS was either not deposited or deposited under the wrong PAN — and the credit will not appear on your account when you file your ITR.

Part B: your employer's salary computation

Part B is prepared by your employer. It shows the detailed calculation of your taxable salary and the tax computed on it. This is where you find everything you need to fill in the salary section of your ITR.

Source: Salaried Individuals for AY 2026-27, Income Tax Department

How to use Form 16 to fill your ITR: a field-by-field mapping

Once you have Form 16 in hand, here is how to use it on the e-filing portal at incometax.gov.in.

Step 1: Salary income. Take the "Net taxable salary" from Part B. This goes in the "Salary" field in the income section of ITR-1. The portal may pre-fill this from Form 26AS — compare it to Part B and use the higher figure if they differ (you report income conservatively, not TDS conservatively).

Step 2: Deductions (old regime filers only). If you are using the old tax regime, enter each deduction from Part B into the corresponding section of the ITR. Section 80C goes in the 80C row, 80D in the 80D row, and so on. Do not enter deductions you cannot prove with documents — bring the actual receipts and certificates to hand.

Step 3: TDS credit. In ITR-1, there is a section called "Tax Details" or "Schedule TDS." Enter your employer's TAN, the total TDS from Part A, and the TDS certificate number. The portal may pre-fill this from Form 26AS. Verify it matches Part A of your Form 16.

Step 4: Tax regime. Part B of Form 16 shows which regime your employer used to deduct TDS. If you want to file under a different regime, you can change it on the portal — the tax computation will update automatically. If you switch to a regime with lower tax than what was deducted, you will get a refund.

◇ Quick check: Open Part B of your Form 16 and find the "Net taxable salary" figure. Open the ITR portal. Find the pre-filled salary number. If they match, you are in good shape. If they differ by more than a few hundred rupees, investigate before submitting.

Worked example: reading Arjun's Form 16

Arjun is a software engineer earning ₹15L gross salary in FY 2025-26. His Form 16 Part B shows:

Arjun enters ₹13,02,600 as his salary income in ITR-1. The portal pre-fills the TDS of ₹1,20,141 from his Form 26AS. His employer's computation and the portal's computation match. He has no additional income, so his net tax payable is zero. He files, e-verifies, and is done.

Note: All figures are illustrations. Your actual exemptions and deductions depend on your specific situation and regime choice.

Common Form 16 errors and what to do

Error 1: Wrong PAN on Part A. If your employer filed the TDS return with the wrong PAN (even one digit off), the TDS credit goes to the wrong account. You will not get credit for that TDS when you file your ITR. Fix: ask your employer to file a revised TDS return with the correct PAN. This takes time — raise it early, before July.

Error 2: TDS amount in Part A does not match Form 26AS. Part A is pulled from TRACES, but it may not reflect very recent deposits. Check your Form 26AS around the time you receive Form 16 — if there is a mismatch, the employer may have deposited TDS late or under the wrong challan. The employer needs to reconcile and file a correction.

Error 3: Missing deductions in Part B. If you submitted investment proofs to your employer in January (the usual deadline) but Part B does not reflect them, the employer may have missed them. Ask for a corrected Part B. Employers can issue a revised Form 16 Part B without filing a revised TDS return.

Error 4: Previous employer's income not included. If you changed jobs during FY 2025-26, your new employer should have included your income from the previous employer in the TDS computation (you would have provided a salary certificate or details). If they did not, Part B may show only the salary from your current job. You must add both amounts yourself in the ITR — take salary details from the previous employer's Form 16 or salary slips.

⚠ Common mistake: Treating Form 16 as always correct. It is a TDS certificate, not a tax assessment. Your employer's payroll team can make errors in Part B. Always verify your Form 16 figures against your own salary slips, bank credits, and investment receipts before filing.

What if your employer has not issued Form 16 by June 15?

Employers are legally required to issue Form 16 by 15 June 2026. A delay attracts ₹100 per day per employee in penalty under the Income Tax Act.

If your Form 16 is late or never comes, you can still file your ITR using:

• Your salary slips for April 2025 to March 2026 (to compute gross salary)
• Your AIS on the income tax portal (Services → Annual Information Statement) for TDS and all income records
• Your bank statements for savings account interest and FD interest not captured in salary
• Your investment receipts for Section 80C and other deductions (old regime)

The information in AIS and Form 26AS together gives you everything Part A of Form 16 would have shown. Part B requires more reconstruction from your own records.

Bottom line

• Form 16 Part A comes from the government's TRACES system — it shows TDS actually deposited on your behalf
• Form 16 Part B is your employer's computation of taxable salary and deductions
• Always cross-check Part A against Form 26AS before filing — a mismatch means TDS credit is missing from your account
• If you changed jobs, combine income and TDS from both employers in your ITR
• Request Form 16 from your employer before 15 June; the July 31 ITR deadline does not wait

Frequently asked questions

Q: My employer says they don't need to issue Form 16 because they didn't deduct any TDS. Is that correct?

A: Yes, if your salary was below the taxable threshold for the full year and no TDS was deducted, employers are not legally required to issue Form 16. However, your employer should still issue a salary certificate or letter confirming your salary for the year. You can file your ITR using that certificate, your salary slips, and AIS.

Q: I lost my physical Form 16. Can I get it again?

A: Part A can be re-downloaded from the TRACES portal by your employer — they log in to TRACES and regenerate it. Part B must be reissued directly by your employer. Contact HR or payroll and request a duplicate. You cannot download Form 16 yourself from the income tax portal.

Q: Form 16 shows my salary under the new tax regime, but I want to file under the old regime. What do I do?

A: Form 16 Part B reflects whatever regime your employer used for TDS. When you file your ITR, you can choose a different regime. The portal will recompute your tax under the old regime (including your deductions like 80C, 80D). If the old regime gives a lower tax than what was deducted, you will receive a refund.

Q: I have two Form 16s because I changed jobs. Do I file two ITRs?

A: No. You file a single ITR that combines income from both employers. Add the net taxable salary figures from both Part B documents, and enter the TDS from both Part A documents in the TDS schedule. If your combined income is higher than what each employer assumed separately, you may owe additional tax.

Q: Part B shows HRA exemption but I am not sure it was calculated correctly. How do I verify?

A: HRA exemption is the minimum of three figures: actual HRA received, 50% of basic salary (metro cities) or 40% (non-metro), and actual rent paid minus 10% of basic salary. Calculate all three yourself using your salary slip. If your employer's figure in Part B is lower than what you are entitled to, you can claim the correct amount in your ITR — the portal allows you to override the pre-filled value. Consult a CA if the difference is significant.

Sources: Salaried Individuals for AY 2026-27, Income Tax Department · Form 16 guide, ClearTax · Income Tax Returns help, Income Tax Department

Last verified: May 2026, FY 2025-26 (AY 2026-27). Tax rules change — confirm current rules at incometax.gov.in before acting.