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Salary & Income Tax

Form 16: What Each Part Contains and How to Check It

PS

Priya Sharma

· 3 min read

✓Fact-Checked & Verified · FY 2026-27

Form 16 is the certificate of tax deducted from salary, and it is the starting point of most salaried returns. Treating it as a document to copy figures from, rather than one to verify, is how mismatches reach the department.

★Quick Summary & Key Takeaways
  • ✓Part A is generated from TRACES and shows tax deducted and deposited quarterly.
  • ✓Part B is the salary computation your employer used.
  • ✓Form 26AS and the AIS must agree with Part A.
  • ✓An employer's failure to deposit TDS is visible in 26AS, not in Form 16.

Part A

Generated from the TRACES portal and digitally signed. It carries the employer's TAN, your PAN, the assessment year, the period of employment, and a quarterly summary of tax deducted and tax deposited.

Because it is generated from the department's own records rather than typed by your employer, Part A is the figure that matters. If tax was deducted but not deposited, Part A will show it.

Part B

Prepared by the employer. It carries gross salary, exempt allowances under Section 10, the standard deduction, deductions under Chapter VI-A, taxable income and tax computed.

This is where errors occur, usually because declarations were submitted late or proofs were not accepted. It is also where the regime applied for TDS appears — which does not bind you at filing.

Reconcile against 26AS and AIS

Form 26AS shows all tax credited against your PAN. The Annual Information Statement adds interest, dividends, securities transactions and high-value spending reported by third parties.

Check that Part A matches 26AS. Check that income in the AIS you have not declared is either included in your return or correctly flagged as not belonging to you. An unexplained AIS entry is a common trigger for a notice.

What to do about mismatches

If Part A and 26AS differ, the employer must file a correction statement — you cannot fix it yourself. If Part B omits a deduction you were entitled to, claim it in the return; the return governs, not Form 16.

If tax was deducted but not deposited, you may still claim credit, but the process is slower and the department will generally pursue the deductor. Keep the payslips evidencing deduction.

Frequently asked questions

### Can I file my return without Form 16?

Yes. Form 16 is a certificate, not a prerequisite. Compute salary income from your payslips and claim TDS credit on the basis of Form 26AS. Employers are required to issue Form 16, but its absence does not prevent filing.

### What if Form 16 and Form 26AS do not match?

Form 26AS reflects the department's records and generally prevails. The employer must file a correction statement to fix the discrepancy; you cannot correct it from your side. Raise it with the employer promptly, because corrections take time.

### Does the regime shown in Form 16 bind me?

No. The regime your employer applied for TDS purposes reflects what you declared to them. You may file under the other regime if it is more favourable, provided you have no business income, and claim a refund of excess TDS.

Frequently Asked Questions

Can I file my return without Form 16?

Yes. Form 16 is a certificate, not a prerequisite. Compute salary income from your payslips and claim TDS credit on the basis of Form 26AS. Employers are required to issue Form 16, but its absence does not prevent filing.

What if Form 16 and Form 26AS do not match?

Form 26AS reflects the department's records and generally prevails. The employer must file a correction statement to fix the discrepancy; you cannot correct it from your side. Raise it with the employer promptly, because corrections take time.

Does the regime shown in Form 16 bind me?

No. The regime your employer applied for TDS purposes reflects what you declared to them. You may file under the other regime if it is more favourable, provided you have no business income, and claim a refund of excess TDS.

PS

Priya Sharma

Corporate Legal & Compliance Counsel

Specializing in commercial contract litigation, Section 138 NI Act recovery, commercial property leases, and MSMED Act compliance.

🛡️ Reviewed by Dyopact Legal & Tax Compliance Desk·Statutory reference: Central Board of Indirect Taxes & Customs (CBIC) & Income Tax Dept
Statutory Legal & Tax Disclaimer: This article is published for informational and operational enablement purposes under Indian commercial and indirect tax laws. It does not constitute formal legal opinion or chartered accountancy counsel. Tax policies, interest formulas, and notification thresholds are governed by the statutory circulars of the GST Council, CBIC, and Ministry of Micro, Small and Medium Enterprises. Consult a certified Chartered Accountant (CA) or commercial legal advocate for transaction-specific advisory.