As the income tax return (ITR) filing season for FY 2025-26 gets underway, salaried taxpayers are eagerly awaiting Form 16 from their employers. This important document serves as proof of tax deducted from salary and plays a key role in ensuring accurate and hassle-free income tax return filing. Here’s a look at some important facts about – like when will the Form 16 be issued for FY 2025-26 and who will issue it in case you switched jobs last year.
What is Form 16?
Form 16 is a crucial (TDS) certificate issued by employers to salaried employees in India. It serves as official proof that tax has been deducted from your salary and deposited with the Income Tax Department.
Why is Form 16 important?
It is a crucial document, which is needed while filing your taxes
Form 16 serves as a comprehensive statement of an employee’s salary earnings and the tax deducted at source during a financial year, making it easier to verify tax details and file income tax returns.
Here’s what it contains:
- Part A provides details of the employer and employee, PAN/TAN information, the amount of TDS deducted from salary, and quarterly records of tax deposited with the Income Tax Department.
- Part B contains a detailed breakup of the employee’s salary income paid during a financial year, allowances and perquisites received during the financial year, deductions claimed under provisions such as Sections 80C and 80D, taxable income, tax payable, and any eligible rebates or reliefs.
The employer is required to verify the details in both Part A and Part B before issuing the certificate.
When do employers issue Form 16?
As per income tax rules, employers must furnish Form 16 by June 15 of the succeeding financial year. Accordingly, for salary paid and TDS deducted during FY 2025-26, Form 16 should be issued on or before June 15, 2026.
What happen if you change jobs?
In case you change job during a financial year, the employers of both the organisations are supposed to issue Form 16 for the period they worked with them.
How can employees access Form 16?
Form 16 is issued by the employer and shared with the employee; it is not available for direct download by employees from the Income Tax Department or any other source.
Plan your tax filing after receiving Form 16
The last date for filing income tax returns by individual taxpayers in ITR-1 and ITR-2 is July 31, while for non-audit taxpayers filing ITR-4, the deadline is August 31. But filing taxes ahead of the due date helps taxpayers avoid late filing fees, interest on unpaid taxes, and other compliance issues.
Since employers generally issue Form 16 by June 15, taxpayers get over a month to verify their income and tax details before filing their ITR by the July 31 deadline.