Central regulation

Form 16 — Annual TDS Certificate to Employees

Employer must issue Form 16 (Parts A and B) to each employee from whose salary tax was deducted, by 15 June of the year following the financial year. Part A is downloaded from TRACES; Part B is prepared in the prescribed format.

Definition

Employer must issue Form 16 (Parts A and B) to each employee from whose salary tax was deducted, by 15 June of the year following the financial year. Part A is downloaded from TRACES; Part B is prepared in the prescribed format.

What it means in practice

Form 16 — Annual TDS Certificate to Employees is administered by Income Tax Department / CBDT. The obligation is grounded in Income-tax Rules, 1962 — Rule 31 (Rule 31).

Even employees below taxable threshold must be issued Form 16 if any TDS was deducted; salary statement under Rule 26A is good practice for the rest.

Triggers (applicability predicates)

These predicates are evaluated by Compliance Radar's applicability engine against a business profile to decide whether this rule applies.

Deadlines and penalty

Cadence: annual next action: 2026-06-15

Penalty for default: Default in issuance: penalty Rs 100/day per certificate under Sec 272A(2)(g).

Citations