Form 16 Explained: How to Read, Verify & Use It

Form 16 looks complicated — but you only need to verify a few key things to stay compliant and avoid tax issues.

Quick takeaway
Form 16 is your employer’s tax report. You don’t need to understand every line — but you must verify the critical numbers before filing ITR.

What Is Form 16?

Form 16 is a certificate issued by your employer showing salary paid and tax deducted (TDS) during the financial year.

Part What it contains
Part A Employer details & TDS summary
Part B Salary breakup & tax calculation
✅ If you worked for multiple employers, you will receive multiple Form 16s.

Form 16 Part A: What to Check

Part A is generated from the TRACES portal and confirms tax deducted by your employer.

Item Why it matters
Employer TAN & PAN Ensures TDS credit is valid
Your PAN Must match exactly
Total TDS Should match Form 26AS
Employment period Confirms correct salary duration
⚠️ If TDS in Form 16 does not appear in Form 26AS, it may not be credited to you.

Form 16 Part B: What to Check Carefully

Part B shows how your employer calculated tax on your salary. This is where most mistakes happen.

Section What to verify
Gross salary Matches annual salary slips
Exemptions HRA, LTA correctly applied
Deductions 80C, 80D, NPS as declared
Taxable income Calculation looks reasonable
❌ Employer mistakes do not protect you. You are responsible for correct tax filing.

Form 16 Verification Checklist (10 Minutes)

  1. Match gross salary with payslips
  2. Verify deductions claimed vs proofs submitted
  3. Cross-check TDS with Form 26AS
  4. Ensure correct tax regime is applied
  5. Check PAN and personal details
🎯 This quick check prevents most tax notices.

How to Use Form 16 for Filing ITR

Form 16 makes ITR filing easier — but it is not a substitute for verification.

⚠️ Blindly uploading Form 16 can lead to under-reporting or over-reporting.

Form 16 is a guide, not a guarantee.
A few minutes of verification can save months of stress later.