Guide2 min readLast updated: June 2026

Form 16 and TDS

A focused guide to the relationship between salary Form 16 and tax deducted at source.

Connection

How Form 16 connects to TDS

Form 16 is the salary TDS certificate issued by an employer. It summarizes salary paid and tax deducted from salary.

Part A focuses on TDS and employer details, while Part B explains salary and tax computation.

  • Employer TAN
  • Employee PAN
  • Quarterly TDS
  • Salary computation
  • Final tax estimate

Example

Form 16 flow

  • Part A shows TDS deposited.
  • Part B shows salary tax calculation.
  • Both help prepare ITR.

Part A is the TDS anchor

Use Form 16 Part A when checking employer TDS credit details.

Part A

TDS details in Part A

Part A usually includes employer TAN, employee PAN, assessment year, period of employment, and quarterly tax deposited.

These details help you compare employer TDS with AIS and Form 26AS.

  • Employer TAN
  • Employee PAN
  • Quarter details
  • Tax deposited
  • Certificate period

Example

Part A check

  • PAN matches your profile.
  • Employer TAN is present.
  • Quarterly TDS totals match tax records.

Wrong PAN is serious

If PAN is wrong, tax credit may not map correctly. Ask payroll to review it.

Part B

Tax computation in Part B

Part B explains how salary, deductions, exemptions, rebate, cess, and final tax were calculated by payroll.

It helps you understand whether TDS deducted was reasonable, but final ITR may still need other income and deductions.

  • Gross salary
  • Exemptions
  • Deductions
  • Taxable income
  • Tax payable and TDS

Example

Part B reconciliation

  • Tax payable shown in Part B.
  • TDS deducted shown by employer.
  • Compare with your total income before filing.

Form 16 is not the full return

Add income outside salary separately when preparing ITR.

FAQ

Frequently asked questions

Form 16 is an employer-issued salary TDS certificate. You should also compare it with AIS and Form 26AS.

Official links

Government references

Important

Disclaimer

Educational reference only

Form16.com is an independent informational and calculator platform. It is not a government website and does not provide legal, tax, or financial advice.
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