Form 16

Form 16 is the certificate an employer issues each year summarising the salary paid to an employee and the TDS deducted on their behalf. It has two parts — Part A covers TDS deposited with the government, and Part B breaks down the salary and deductions in detail. Under the Income-tax Act, 2025 and Income-tax Rules, 2026, effective 1 April 2026, Form 16 is renumbered Form 130 — the content and purpose are unchanged.

Employees use Form 16 (Form 130) as the primary reference document when filing their annual income tax return, since it reconciles what the employer already reported to the government against what the employee declares. Employers are legally required to issue it by June 15th following the end of the financial year.