Form 16 Explained for Freshers: What It Is and How to Use It

Last updated: 11 October 2026 · By the Asuraa Team

Quick answer: Form 16 is the certificate your employer issues after the financial year showing your salary and the tax deducted at source from it. The e-filing portal describes it as the TDS certificate on salary under section 203 of the Income-tax Act, 1961. Employers issue it by 15 June; you use it to verify TDS against Form 26AS and AIS and to file ITR-1.

Key takeaways

• The e-filing portal describes Form 16 as the certificate of tax deducted at source on salary under section 203 of the Income-tax Act, 1961.
• Form 16 Part A shows PAN, TAN and quarterly TDS deposited, while Part B shows the salary breakup, exemptions and deductions.
• ITR-1 applies to resident individuals with total income up to Rs 50 lakh, including salary income.
• A return not e-verified within 30 days of filing is treated as invalid, according to the e-filing portal.
• The Income-tax Act, 1961 was repealed from 1 April 2026, but income for 2025-26 is still taxed under it.

Form 16 is often the first tax document a fresher receives, and it usually lands in your inbox in June with little explanation. It is worth understanding properly, because it is the bridge between the tax your employer deducted from your salary and the return you file. This guide covers what Form 16 contains, how to check it, how to use it to file your return, and what changes now that the Income-tax Act, 2025 is in force.

This is general information, not tax advice.

What is Form 16?

Form 16 is the certificate your employer gives you showing the salary paid to you during a financial year and the tax deducted at source (TDS) from it. The Income Tax Department's e-filing portal describes it as the certificate of TDS on salary under section 203 of the Income-tax Act, 1961, issued by the employer to the employee at the end of the financial year, covering income, deductions or exemptions, and tax deducted.

You use it to check that the tax cut from your payslips actually reached the government in your name, and to fill in your income tax return accurately.

When do employers issue Form 16?

Employers issue it after the financial year ends, by 15 June of the following year, as BankBazaar's Form 16 guide notes. For salary paid between April 2025 and March 2026, that means a certificate by mid-June 2026.

If you changed jobs during the year, expect one certificate from each employer that deducted tax. If your salary was below the taxable limit and no tax was deducted, you may not receive one at all, and you can still file using your payslips and the department's statements.

What is the difference between Part A and Part B?

Part A records the tax deducted and deposited, while Part B shows how your taxable salary was worked out. Here is what each part, and the two related statements on the portal, contain.

Sources: Part A and Part B contents from BankBazaar; Form 26AS and AIS from the e-filing portal.

Part A is the piece that ties to government records. Part B is the employer's calculation, which you should cross-check against your payslips. Our guide on how to read a salary slip explains the salary heads you will see.

How do you check your Form 16 is correct?

Match it against your payslips and against the department's own records before you file. A simple check:

1. Confirm your PAN. A wrong PAN on Part A means the tax is credited to someone else.
2. Match TDS with Form 26AS and AIS. Log in to the e-filing portal, open Form 26AS (under e-File, Income Tax Return, View Form 26AS) and AIS, and compare the TDS figures quarter by quarter.
3. Add up gross salary from payslips. It should match Part B, including any joining bonus or arrears.
4. Check the tax regime used. Part B should reflect the regime you declared to your employer.
5. Check exemptions and deductions. Make sure any deductions you declared and proved appear in Part B if you chose the old regime.

If anything does not match, raise it with your payroll team in writing before filing. Employers can correct their TDS statements, which then update your records.

How do you use Form 16 to file your income tax return?

Most salaried freshers can file ITR-1 (Sahaj) using Form 16 as their main reference. The e-filing portal says ITR-1 applies to resident individuals with total income up to Rs 50 lakh from sources including salary.

According to the portal's ITR-1 filing guide, the broad steps are:

1. Log in to the e-filing portal and choose to file an income tax return online.
2. Select the assessment year and ITR-1, and your reason for filing.
3. Choose your tax regime. The new regime is the default; you must actively opt for the old regime if you want it.
4. Review the prefilled data. Salary and TDS are prefilled from information your employer furnished. Compare each figure with Form 16 Part B and Part A.
5. Pay any tax due or confirm the refund, then validate and preview the return.
6. E-verify within 30 days. The portal states that a return left unverified past the time limit is treated as invalid.

If you are unsure which regime suits you, our guide to the new tax regime for salaried freshers walks through the choice.

Does Form 16 change under the Income-tax Act, 2025?

Yes, from the 2026-27 tax year, though the certificate for 2025-26 is still issued under the old law. The Income Tax Department's transition FAQs state that the Income-tax Act, 1961 was repealed from 1 April 2026, that income for 2025-26 is still taxed under the 1961 Act, and that TDS on salary under the new law sits in section 392, with policy largely unchanged. The same FAQs replace "previous year" and "assessment year" with a single "tax year".

BankBazaar reported in March 2026 that the salary TDS certificate becomes Form 130 under the new rules. Confirm the current form name and layout on the department's Income Tax Forms (2026) page when your employer issues your first certificate under the new law.

What do most guides on Form 16 get wrong?

Many guides imply you cannot file a return without Form 16. That is not true. Form 16 is a certificate that helps you file accurately; the department checks your return against Form 26AS and AIS, which it already holds. BankBazaar also notes that Form 16 is not mandatory for filing and that alternatives such as Form 26AS can be used. If your employer is late or you never received one, you can still file using payslips and the portal's statements.

The more useful lesson is the reverse: a Form 16 that does not match your AIS is a warning sign. If your employer deducted tax but did not deposit or report it correctly, the credit will not appear against your PAN. Catch that before you file, not after a notice arrives.

What should freshers do with Form 16 after filing?

Keep it with your payslips, offer letter and relieving letter for at least the next few years. New employers sometimes ask for the previous employer's Form 16 or tax details when you join mid-year, so they can calculate TDS correctly for the rest of the year. Store each year's certificate as a PDF in one folder.

For how tax fits into your overall pay, see our salary guide for tech jobs in India and our explainer on CTC vs in-hand salary.

Related guides

• Salary Guide for Tech Jobs in India: Pay, CTC and Take-Home (2026)
• UAN Activation for Freshers: How to Activate and Use Your EPF Account
• How to Answer "What Is Your Expected Salary?" as a Fresher

FAQ

What is Form 16 in simple words?

Form 16 is a certificate from your employer showing how much salary it paid you in a financial year and how much tax it deducted at source and deposited in your name. The Income Tax Department's e-filing portal describes it as the TDS certificate on salary under section 203 of the Income-tax Act, 1961. You use it to check TDS and file your return.

When will I get my Form 16?

Employers issue Form 16 after the financial year ends, by 15 June of the following year. For salary paid from April 2025 to March 2026, expect it by mid-June 2026. If you worked for two employers that both deducted tax, you should receive one from each. If no tax was deducted, you may not receive one.

Can I file my income tax return without Form 16?

Yes. Form 16 helps you file accurately, but it is not mandatory. You can file using your payslips together with Form 26AS and the Annual Information Statement on the e-filing portal, which show the TDS credited against your PAN. Many salary and TDS figures are also prefilled in ITR-1 from data your employer furnished.

What is the difference between Form 16 and Form 26AS?

Form 16 is issued by your employer and shows your salary, exemptions, deductions and TDS. Form 26AS is generated by the Income Tax Department on the e-filing portal and shows tax deducted or collected against your PAN from all sources. Before filing, match the TDS in Form 16 Part A with Form 26AS and your AIS.

Is Form 16 changing under the new Income-tax Act?

The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and salary TDS now sits in section 392 of the new law. Income for 2025-26 is still under the old Act, so that year's certificate remains Form 16. BankBazaar reported in March 2026 that the new certificate is Form 130; confirm on the official forms page.

Final thoughts

Form 16 is your employer's record of the tax it deducted; your job is to check it against the department's records and file on time. Keep it with your other employment documents, and when you are ready for your next role, explore openings on Asuraa's free job search.