Form 16
Definition
The TDS certificate an employer issues to an employee in India, summarising salary paid and tax deducted at source during the financial year. Part A shows the TDS deposited and Part B details the salary and deductions used to compute it.
Why it matters
Form 16 is the primary document an employee uses to file their income-tax return, and its figures must reconcile with Form 26AS and the AIS to avoid mismatches and notices.
Related Terms in India GST
Form 16A
The TDS certificate issued for tax deducted at source on income other than salary — such as interest, rent, commission or professional fees. It is generated from the deductor's TDS return and shows the tax credited against the recipient's PAN.
Form 24Q
The quarterly TDS return an employer files in India reporting tax deducted from salaries under Section 192. The annual (fourth-quarter) filing includes detailed salary and deduction information used to generate Form 16.
Form 26Q
The quarterly TDS return for tax deducted on payments to residents other than salary — interest, contractor payments, professional fees, rent and similar. It feeds the credits that appear in payees' Form 26AS.
Form 27Q
The quarterly TDS return for tax deducted on payments to non-residents, reporting deductions under Section 195 and related provisions along with details needed for treaty relief.
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