How to issue Form 16 to employees (and what employees do with it)

Form 16 is the annual salary TDS certificate. Issuing it correctly is the difference between employees filing ITR smoothly and chasing you for fixes through July.

Step 1: Confirm Form 16 is required

Mandatory for every employee whose salary exceeded ₹2.5 lakh AND TDS was deducted. Optional below those thresholds but employees often request anyway. Issue once per FY.

Step 2: File Q4 TDS return first (Form 24Q)

Form 16 generates AFTER your Q4 24Q is filed. Filing deadline 31 May, Form 16 issue deadline 15 June. Don't skip this step.

Step 3: Download Part A from TRACES

tdscpc.gov.in → Deductor login → Form 16 → Request → Wait 24-48h → Download. Part A is auto-generated by Income Tax department; you cannot edit it.

Step 4: Generate Part B from your payroll software

Part B = detailed salary breakdown: Gross salary, allowances exempted under Section 10, deductions under Chapter VI-A (80C, 80D, etc.), tax computation. Use payroll software OR Income Tax department's Form 16 utility.

Step 5: Sign with DSC and issue

Companies + LLPs: DSC required. Email to employees OR upload to employee self-service portal. Keep one signed copy on file per Section 36 (6-year retention).

Step 6: Re-issue corrections

If employee finds error (wrong amount, wrong PAN), file Correction TDS Return → re-download Part A → re-issue Form 16. Don't try to manually edit Part A — Income Tax cross-validates.

Frequently asked questions