Reviewed by CA & CS Team · Regikart | Last Updated: 6 June 2026 | Reading time: ~9 minutes
| Question | Quick answer |
|---|---|
| When is Form 16 due for FY 2025-26? | Employers must issue it on or before 15 June 2026. |
| Who issues it? | Your employer, only if TDS was deducted on your salary during FY 2025-26. |
| Where does it come from? | Part A is downloaded from the TRACES portal; Part B is prepared by the employer. |
| Penalty for delay? | Rs. 100 per day per certificate under Section 272A(2)(g) of the Income-tax Act, 1961. |
| Any name change? | From Tax Year 2026-27, Form 16 is renumbered Form 130 under the Income-tax Act, 2025. For FY 2025-26 it is still called Form 16. |
If you earned a salary in the year ended 31 March 2026, your employer owes you one document before you can comfortably file your income tax return: Form 16. It is the single most useful piece of paper in the salaried filing season, and the law puts a hard date on it.
For FY 2025-26 (Assessment Year 2026-27), Form 16 must reach every eligible employee by 15 June 2026. This guide explains what the certificate contains, the difference between Part A and Part B, how it is generated on TRACES, what to do if you do not receive it, and the one change every payroll team should note this year.
What is Form 16?
Form 16 is the TDS certificate for salary income, issued under Section 203 of the Income-tax Act, 1961, read with Rule 31 of the Income-tax Rules, 1962. It certifies that your employer deducted tax at source from your salary during the financial year and deposited it with the Central Government against your PAN.
In plain terms, it is your employer’s written confirmation of two things: how much you were paid, and how much tax was withheld and paid on your behalf. Those figures become the backbone of your income tax return.
Key terms in one line each:
- TDS — Tax Deducted at Source: tax the employer withholds from your salary each month.
- TRACES — the TDS Reconciliation Analysis and Correction Enabling System portal (tdscpc.gov.in) from which valid certificates are generated.
- Form 26AS / AIS — the government’s tax credit statement and Annual Information Statement that record every TDS entry against your PAN.
- Deductor / Deductee — the employer who deducts tax, and you, the employee whose tax was deducted.
Why does Form 16 matter to you?
Form 16 matters because it pre-fills almost everything you need for your return: gross salary, exempt allowances, deductions claimed, taxable income, and the tax already paid. Filing without it is possible but slower and more error-prone.
It also serves outside the tax world. Banks and lenders routinely ask for Form 16 as income proof for home loans, personal loans, and visa applications. A clean, employer-issued Form 16 is the easiest way to demonstrate verified income.
Part A and Part B: what is the difference?
Form 16 has two parts, and both must be issued together as one complete certificate.
| Part | What it contains |
|---|---|
| Part A | Employer and employee details (name, address, PAN, TAN), the assessment year, period of employment, and a quarter-wise summary of TDS deducted and deposited. Generated and authenticated on TRACES with a unique certificate number. |
| Part B | The detailed salary breakup — gross salary, exempt allowances under the relevant provisions, deductions claimed, taxable income, and tax computed. Prepared by the employer; the section references for FY 2025-26 follow the Income-tax Act, 1961. |
Part A is the machine-generated, watermarked half that proves the tax reached the government. Part B is the human-prepared half that explains how your taxable salary was arrived at. A certificate is only complete when both travel together.
How is Form 16 generated? (Employer process)
If you run payroll, the sequence below is the safe order. Skipping the reconciliation step is the most common reason employees later report mismatches.
- Confirm all four quarters of Form 24Q are filed for FY 2025-26 — Q1 (Apr–Jun 2025) through Q4 (Jan–Mar 2026). Part A cannot be downloaded until every quarter is filed.
- Reconcile TDS data on TRACES under your TAN — verify challan mapping, employee PANs, and that total TDS matches what shows in each employee’s Form 26AS. Fix mismatches with a correction statement before proceeding.
- Request the Part A download from TRACES for FY 2025-26. TRACES issues Part A with a unique certificate number per employee; carry that number into Part B.
- Prepare Part B with the correct salary breakup and FY 2025-26 (1961 Act) section references.
- Combine, digitally sign, and distribute the complete certificate to every eligible employee — including those who left during the year — on or before 15 June 2026.
How does an employee download or open Form 16?
Employees do not download Form 16 from TRACES themselves; the employer issues it. Once you receive it, opening it is straightforward:
- Form 16 from TRACES is usually password-protected. The common format is your PAN in uppercase followed by your date of birth in DDMMYYYY. Example: PAN ABCDE1234F with date of birth 15 August 1988 gives ABCDE1234F15081988.
- Always confirm the exact format shown on the download screen, as password conventions can be updated by notification.
- Check that the certificate carries the TRACES logo/watermark. A document prepared only in Excel or accounting software, without the TRACES authentication, is not a valid Form 16.
Form 16 vs Form 16A vs Form 16B
Form 16 is one of three TDS certificates. They are easy to confuse, so here is the quick map.
| Certificate | Covers | Issued by / when |
|---|---|---|
| Form 16 | TDS on salary | Employer, annually, by 15 June 2026 for FY 2025-26 |
| Form 16A | TDS on non-salary payments — professional fees, rent, contractor, commission, interest | Deductor, quarterly, within 15 days of the TDS return due date |
| Form 16B | TDS under Section 194-IA on sale of immovable property above Rs. 50 lakh | Buyer of the property, to the seller |
All three are generated only from the TRACES portal. The figures must match your Form 26AS and AIS.
Common mistakes to avoid
- Not cross-checking with Form 26AS and AIS. If the TDS in Form 16 does not match your 26AS, the department’s system flags it. Reconcile before you file.
- Ignoring multiple Form 16s. If you changed jobs during FY 2025-26, each employer issues a separate Form 16. You must combine all of them while filing.
- Treating a salary slip as Form 16. A payslip is an accounting document of your CTC breakup; Form 16 is a statutory TDS certificate. They are not interchangeable.
- Accepting an unauthenticated certificate. Without the TRACES watermark, it is not valid for your return.
Penalty for not issuing Form 16 on time
Failure to issue Form 16 by 15 June 2026 attracts a penalty of Rs. 100 per day per certificate under Section 272A(2)(g) of the Income-tax Act, 1961, for each day of delay. The penalty is capped at the amount of TDS for the relevant certificate.
If your employer has not issued Form 16 by the deadline, follow up in writing immediately. The obligation — and the penalty exposure — sits with the employer, not the employee.
How Form 16 fits the wider filing picture
Form 16 is issued by the employer under Section 203, generated through TRACES, and reconciled against Form 26AS and the Annual Information Statement maintained by the Income Tax Department. The salaried income tax return for AY 2026-27 is then prepared from Form 16 and is generally due by 31 July 2026 for non-audit taxpayers. Because FY 2025-26 income is assessed under the Income-tax Act, 1961, Form 16 for this year continues under the old Act even though the Income-tax Act, 2025 takes effect from 1 April 2026.
The big change this year: Form 16 becomes Form 130
Under the Income-tax Act, 2025 — effective from 1 April 2026 — the salary TDS certificate is renumbered as Form 130 from Tax Year 2026-27 onwards. This is a renumbering exercise under the new Act’s simplified structure, not a change to what the certificate does.
| Aspect | FY 2025-26 (this year) | Tax Year 2026-27 onwards |
|---|---|---|
| Certificate name | Form 16 | Form 130 |
| Governing law | Income-tax Act, 1961 | Income-tax Act, 2025 |
| Due date | 15 June 2026 | 15 June 2027 |
| What it certifies | Salary TDS | Salary TDS (unchanged) |
Key takeaways
- Form 16 for FY 2025-26 is due by 15 June 2026.
- Part A comes from TRACES; Part B is prepared by the employer; both go together.
- Always reconcile against Form 26AS and AIS before filing.
- Late issuance costs the employer Rs. 100 per day per certificate.
- From Tax Year 2026-27, the same certificate is called Form 130 under the new Act.
Frequently asked questions
When will I receive Form 16 for FY 2025-26?
By 15 June 2026 at the latest, if your employer deducted TDS on your salary during the year.
Is Form 16 mandatory?
An employer must issue Form 16 if TDS was deducted on your salary. If no TDS was deducted, the employer may not be required to issue it, but you can still file your return using payslips, Form 26AS and AIS.
Can I file my ITR without Form 16?
Yes. Compile your payslips, bank statements, investment proofs, Form 26AS and AIS, and compute income and TDS from those. Form 16 simply makes the process faster and more accurate.
What is the password to open Form 16?
Commonly your PAN in uppercase followed by your date of birth in DDMMYYYY format. Confirm the exact format shown on the download screen.
I changed jobs during the year. How many Form 16s will I get?
One from each employer who deducted TDS. Combine all of them while filing your return.
What if there is an error in my Form 16?
Check the figures against your payslips. If something is wrong, ask your employer to file a correction statement so the TDS return and certificate are corrected.
Form 16 ka due date kya hai FY 2025-26 ke liye?
FY 2025-26 ke liye employer ko Form 16 latest 15 June 2026 tak jaari karna hota hai.
What is Form 130?
Form 130 is the renumbered salary TDS certificate under the Income-tax Act, 2025, applicable from Tax Year 2026-27. For FY 2025-26 the certificate is still Form 16.
Need help with Form 16 or salaried filing?
If you are an employer juggling Form 24Q filing, TRACES reconciliation and Form 16 distribution — or a salaried taxpayer who wants the return done right the first time — Regikart’s CA & CS team handles end-to-end payroll TDS and ITR filing. Reach us at +91 70444 94804 or [email protected].
Related reading: see the companion guide on the 15 June 2026 advance tax instalment at /blog/advance-tax-15-june-2026.
About the author
CA & CS Team
Reviewed by Regikart at Regikart. Want to discuss this in the context of your business?
