Glossary
What is Form 16?
What Form 16 contains, when an employer must issue it, and where the TDS figures in it come from.
Updated
In short
Form 16 is the annual certificate an employer issues showing salary paid and income tax deducted from it. SimpleERP does not generate Form 16, but its component summary report gives the monthly TDS totals behind it.
Form 16 is the certificate an employer gives each employee whose tax was deducted from salary, showing the salary paid and the income tax deducted and deposited for the financial year. Part A, downloaded from the TRACES portal, lists TDS deposited each quarter; Part B shows the salary break-up and tax working. It is generally issued by 15 June after the year ends, as notified.
Form 16: a worked example
Ramesh N, works manager at Lakshmi Steel Furnitures, has ₹8,125 TDS deducted each month in 2026-27 under the new regime. The quarterly totals that appear in Part A of his Form 16:
| Quarter | Months | TDS deducted |
|---|---|---|
| Q1 | April to June 2026 | ₹24,375 |
| Q2 | July to September 2026 | ₹24,375 |
| Q3 | October to December 2026 | ₹24,375 |
| Q4 | January to March 2027 | ₹24,375 |
| Total | ₹97,500 |
FAQ
Questions, answered
Who must issue Form 16?
Every employer who deducts TDS from an employee's salary must issue Form 16 for that financial year. If no tax was deducted, Form 16 is not mandatory, though some employers issue a salary certificate on request.
What is the difference between Part A and Part B?
Part A is generated from the TRACES portal and shows TDS deducted and deposited quarter by quarter against the employee's PAN. Part B is prepared by the employer and shows the salary break-up, exemptions, deductions and the tax computed.
Can SimpleERP generate Form 16?
SimpleERP cannot generate Form 16. It records TDS on each payslip and totals it by month in the component summary report, which you can export to CSV. Your CA uses those totals to file TDS returns and download Form 16 from TRACES.
What if an employee changed jobs during the year?
Each employer issues its own Form 16 for the months it paid salary and deducted tax. The employee adds both when filing the return. This is general information, not tax advice; ask your CA.
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