Glossary
Form 16
Form 16
Certificate of Tax Deducted at Source on Salary Form 16 is a certificate issued by an employer to an employee, summarizing the salary paid and the Tax Deducted at Source (TDS) deposited with the Income Tax Department on the employee's behalf during a specific financial year.
Where it appears in practice
It is essential for salaried individuals when filing their Income Tax Returns, as it serves as proof of tax paid and helps in claiming tax credits. It is typically required by banks for processing personal or home loan applications.
A worked example
In June, an employee receives Form 16 from their HR department detailing their ₹12 Lakh salary and the ₹1.5 Lakh TDS deducted, which they then use to file their annual Income Tax Return.
Related terms
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
Income Tax Return Filing