Broadly put, Form 16 is the documentary evidence of tax compliance for a taxable individual. Under section 203 of the Income Tax Act, 1961, Form 16 is issued as a proof of tax deducted at source (TDS) from salary. The certificate indicates an exhaustive summary of the amount credited to an employee as salary and the TDS applicable on such amount. This certificate is issued on an annual basis, after conclusion of the financial year. The concerned employer deducts the tax from employees’ salaries and deposits with the Government. It is mandatory for an employer to issue Form 16 as a certificate of TDS to the employee whose income qualifies…
