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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.

Check this for your businessThe Compliance module

Information, not legal advice. Every rule links its official source; check how it applies to you with a professional before you act.

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 conditions)

Compliance radar in LuckPanda checks these conditions against a business profile to decide whether this rule applies.

  • has_employees=true
  • deducts_tds_on_salary=true

Deadlines and penalty

Cadence
Every year · Annual renewal
Next due
Later Next due 15 Jun 2027 (in 247 days)
Penalty for default
Default in issuance: penalty Rs 100/day per certificate under Sec 272A(2)(g).

The next date is worked out from today (India time) and the rule's statutory schedule; extensions notified by the government are not reflected.

Citations

Form 16 — Annual TDS Certificate to Employees by state