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Who is Eligible for Form 16 in India? (FY 2024-25 / AY 2025-26)

  • Writer: Nimisha Panda
    Nimisha Panda
  • Jun 20
  • 12 min read

Salaried individuals whose employer deducted Tax Deducted at Source (TDS) from their salary are those who are eligible for Form 16. This guide pertains to the Financial Year (FY) 2024-25, which corresponds to the Assessment Year (AY) 2025-26. Reading this will help you understand the full eligibility criteria for Form 16, what steps to take if you do not receive it, and grasp its overall importance in your financial planning. You can learn more about income tax to better understand these concepts. "Information verified by TaxBuddy Experts.

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What is Form 16?

What is Form 16 is a common question, and it's essentially a TDS certificate. Employers issue Form 16 to their employees under Section 203 of the Income Tax Act, 1961. The Form 16 meaning is tied to its purpose: it acts as proof that your employer has deducted TDS from your salary and deposited it with the government. The Form 16 purpose also includes summarizing the salary paid to you and helping immensely when you are filing your Income Tax Returns (ITR). Think of this TDS certificate for salary as a yearly statement that details your earnings and the tax paid on your behalf. The Income Tax Department mandates this certificate if tax has been deducted.


The main purposes of Form 16 include:


  • Proof of TDS deducted and deposited.

  • A summary of salary paid and allowances.

  • Crucial aid in accurate ITR filing.


Core Eligibility Criteria for Receiving Form 16

The eligibility criteria for Form 16 primarily hinge on two conditions: being a salaried employee and having TDS deducted by your employer. If your employer deducts tax from your salary because your taxable income surpasses the basic exemption limit under the Income Tax Act, they must provide you with Form 16. Knowing when do I get Form 16 is linked to these conditions; typically, it's issued after the financial year ends. The conditions for Form 16 are legal requirements that employers must follow.


Salaried Employment

Form 16 for salaried employees is specific to individuals who earn a salary from an employer. This document isn't meant for freelancers or self-employed individuals; they usually refer to their Form 26AS for tax credit details or might receive Form 16A if TDS was deducted on non-salary payments. The distinction is important: Form 16 for freelancers is not applicable for their professional income.


Tax Deducted at Source (TDS) by Employer

A primary condition for TDS deducted Form 16 eligibility is that your employer must have actually deducted TDS from your salary. An employer deducted tax Form 16 becomes mandatory if your annual income, after considering all declared deductions and exemptions, is likely to cross the basic exemption limit under the tax regime you've chosen. This is a mandatory requirement as per the Income Tax Act.


Income Exceeding Basic Exemption Limit

The issuance of Form 16 below taxable income situations needs clarification. Generally, if an employee's income is below the basic exemption limit for FY 2024-25 and, consequently, no TDS is deducted, the employer is not obligated to issue Form 16. So, the rule of no TDS no Form 16 often applies.


Form 16 Eligibility: Old Tax Regime vs. New Tax Regime (FY 2024-25)

Your tax regime Form 16 eligibility can be influenced by whether you opt for the old or new tax regime, especially if your income is near the threshold levels for FY 2024-25. The choice affects how TDS is calculated. For Form 16 old regime eligibility, TDS is applicable if income (after deductions) exceeds limits like ₹2.5 lakh, ₹3 lakh for senior citizens, or ₹5 lakh for super senior citizens. For Form 16 new regime eligibility, the threshold for TDS applicability is generally if income exceeds ₹7 lakh, as there's a rebate, though tax itself kicks in above ₹3 lakh. Regardless of the regime, if TDS is deducted from your salary, your employer must issue Form 16. It's wise to check the latest income tax slabs for precise figures. These guidelines are based on Budget 2023 announcements and current tax slabs for FY 2024-25.


Form 16 Eligibility & TDS: Old vs. New Tax Regime (FY 2024-25)

Category

Old Tax Regime (Basic Exemption Limit)

TDS Applicable (Old Regime) if Income Exceeds

New Tax Regime (Basic Exemption Limit)

TDS Applicable (New Regime) if Income Exceeds

Individual < 60 yrs

₹2,50,000

₹2,50,000 (Net taxable income)

₹3,00,000

₹3,00,000 (Net taxable income, rebate up to ₹7 lakh results in zero tax)

Senior Citizen (60-80 yrs)

₹3,00,000

₹3,00,000 (Net taxable income)

₹3,00,000

₹3,00,000 (Net taxable income, rebate up to ₹7 lakh results in zero tax)

Super Sr. Citizen (>80 yrs)

₹5,00,000

₹5,00,000 (Net taxable income)

₹3,00,000

₹3,00,000 (Net taxable income, rebate up to ₹7 lakh results in zero tax)


Note: TDS becomes applicable if net taxable income after eligible deductions (for Old Regime) or standard deduction (for New Regime, if applicable) exceeds these exemption limits. The New Regime offers a rebate under Section 87A making income up to ₹7 lakh effectively tax-free, but TDS might still be deducted if projected income is higher or declarations aren't made.


Who is NOT Typically Eligible for Form 16?

Understanding who is not eligible for Form 16 is straightforward if you remember the core rule: it’s for salaried individuals with TDS. Generally, the following individuals do not receive Form 16 for their primary income:


  • Self-employed individuals and freelancers (they get Form 16A for TDS on professional fees).

  • Businesses (they have different tax compliance mechanisms, and tax obligations for businesses vary).

  • Non-salaried individuals.

  • Individuals whose income is below the basic exemption limit and from whom no TDS has been deducted. The Form 16 for non-salaried individuals is not the standard procedure.


Understanding the Components: Form 16 Part A and Part B

The contents of Form 16 are divided into two main sections: Form 16 Part A and Form 16 Part B. Knowing this structure helps you verify the information. Part A is typically downloaded by the employer from the TRACES portal, while Part B is prepared by the employer. Both parts of the TRACES Form 16 are crucial for your tax filing.


Form 16 Part A: Summary of Tax Deducted & Deposited

Form 16 Part A provides a summary of the tax that your employer deducted and deposited with the government. Key details in this part usually include:


  • Employer's Name, Address, PAN, and TAN.

  • Employee's Name and PAN.

  • Period of employment.

  • Quarterly details of TDS deducted and deposited, certified by the employer.


Form 16 Part B: Detailed Salary, Deductions, and Tax Calculation

Form 16 Part B is an annexure to Part A and offers a detailed breakup of your salary, any deductions claimed, and the tax computation. It generally includes:


  • Detailed salary breakup (e.g., basic salary, allowances, perquisites).

  • Exempt allowances under Section 10 (like HRA, LTA).

  • Deductions allowed under Chapter VI-A (such as Section 80C, 80D, etc.). You can check details about tax deductions under Chapter VI-A.

  • Net taxable income and the tax due or any refund applicable.


When is Form 16 Issued? Due Date for FY 2024-25 (AY 2025-26)

The Form 16 issue date 2025 is a key deadline for employers. For the Financial Year 2024-25 (Assessment Year 2025-26), employers are mandated to issue Form 16 to their employees by June 15, 2025. This last date for Form 16 issuance aligns with the employer's requirement to file their Q4 TDS return (Form 24Q) by May 31st. Knowing when to get Form 16 FY 2024-25 helps you plan your tax filing. This is as per Rule 31(1)(a) of the Income-tax Rules, 1962.


Importance of Form 16 for Salaried Employees

The importance of Form 16 for salaried individuals cannot be overstated. It's a crucial document with several benefits of Form 16. Here’s why Form 16 is needed:


  • ITR Filing: It significantly simplifies the process of filing your Income Tax Return accurately.

  • Proof of Income: It serves as a valid proof of your income and tax payment.

  • Tax Verification: It helps you verify that the tax deducted by your employer has been correctly deposited with the government.

  • Loan Applications: Banks and financial institutions often require Form 16 when you are applying for loans.

  • Visa Processing: It may be required during visa application processes as proof of financial standing.


Form 16 Eligibility in Special Scenarios

Eligibility for Form 16 can seem tricky in certain situations. Understanding Form 16 multiple employers, Form 16 job change, and Form 16 for pensioners scenarios is vital.


Changed Jobs During the Financial Year?

If you've experienced a Form 16 job change during FY 2024-25, each employer who deducted TDS from your salary will issue a separate Form 16 for the period you worked with them. It's essential to collect all multiple Form 16 documents, including the Form 16 previous employer issued, to file your ITR accurately by consolidating all income.


Working for Multiple Employers Simultaneously?

Similar to changing jobs, if you are working for Form 16 two employers or more at the same time and TDS is deducted by each, every employer is required to issue a separate Form 16. If you have a part time job Form 16 might be issued if TDS was cut. Consolidating income from all sources is crucial for correct ITR filing.


Are Pensioners Eligible for Form 16?

The eligibility for Form 16 for pension income depends on who pays the pension and if TDS is deducted. If your former employer pays your pension and deducts TDS on this amount (treating it as income from a former employer), then that ex-employer should issue Form 16. However, if your pension is disbursed by a bank and the bank deducts TDS (for instance, on pension or interest accrued in the bank account), the bank might issue Form 16A for that TDS, not Form 16. This distinction helps clear confusion regarding TDS on pension Form 16.


What if My Income is Below Taxable Limit but Employer Still Issues Form 16?

Sometimes, employers issue Form 16 for non taxable salary situations or when there's Form 16 no TDS deduction. While not mandatory if no TDS was deducted, some employers do this as a good work practice. It provides the employee with a consolidated statement of their earnings for the year, which can be useful as proof of employment or for their personal records, and even when applying for loans.


How to Get Your Form 16?

Many wonder how to get Form 16 or try to download Form 16 themselves. It's important to know that employees cannot download their Form 16 directly from the income tax portal. The Form 16 from employer is the only way to receive it. Your employer, through their HR or payroll department, will generate and provide it to you, usually as a password-protected PDF or sometimes physically. Employers download Form 16 from the TRACES portal.


What to Do If You Don't Receive Your Form 16 by the Due Date?

If your Form 16 not received by the June 15th deadline, your first step should be to contact your employer or their HR department. If your employer not giving Form 16 persists despite requests and TDS was deducted, you have recourse. You can inform the Assessing Officer under whose jurisdiction you file your returns. The employer faces a penalty for not issuing Form 16, which is ₹100 per day of default under Section 272A(2)(g) of the Income Tax Act.


Common Errors in Form 16 and How to Get Them Rectified

It's possible to find errors in Form 16. Common issues include PAN mismatch, incorrect TDS amounts, spelling mistakes in your name, an incorrect assessment year, or an outdated address. If you notice any wrong details in Form 16, you should immediately notify your employer. The process for how to correct Form 16 involves the employer filing a revised TDS return and then issuing a revised Form 16 to you. Prompt correction is vital for accurate ITR filing.


Key Details to Verify in Your Form 16:

  • Your PAN is correct.

  • Name and address details match your records.

  • TDS amounts shown match your salary slips and Form 26AS.

  • Assessment Year is correct (e.g., AY 2025-26 for FY 2024-25 income).

  • All deductions claimed have been correctly reflected.


Form 16 vs. Form 16A, Form 16B, and Form 26AS

Understanding tax forms like the difference between Form 16 16A 16B and Form 16 vs 26AS is crucial for comprehensive tax management.


  • Form 16: This is a TDS certificate for tax deducted by an employer on salary income.

  • Form 16A: This is a TDS certificate for tax deducted on income other than salary. Examples include TDS on interest from fixed deposits, rent received, or professional fees paid.

  • Form 16B: This TDS certificate is for tax deducted on the sale of immovable property.

  • Form 26AS: This is a consolidated annual tax statement. It shows all taxes (TDS, TCS, Advance Tax, Self-Assessment Tax) deposited against your PAN with the government.


Feature

Form 16

Form 16A

Form 16B

Form 26AS

Issued for

TDS on Salary

TDS on Income Other than Salary

TDS on Sale of Property

Consolidated Tax Credits

Issued by

Employer

Deductor (e.g., bank, tenant, company)

Buyer of Property

Income Tax Department (accessible via portal)

Frequency

Annually

Quarterly or Annually

Per transaction

Annually (updated regularly)

Primary Purpose

ITR filing for salary income

ITR filing for non-salary TDS income

Proof of TDS on property sale

Overall tax payment verification


Conclusion

Your Form 16 rights include receiving this crucial document if TDS has been deducted from your salary. An accurate Form 16 is paramount for a smooth ITR filing with Form 16. Salaried individuals should understand their eligibility, diligently check all details on the form once received, and know the steps to take if it's not issued on time or contains errors. Being informed helps you manage your taxes effectively. If you need assistance, don't hesitate to Contact TaxBuddy experts or Explore ITR filing plans.


FAQ

Q1: Is Form 16 mandatory if my income is below the taxable limit but TDS was deducted due to non-declaration of investments? No, Form 16 is not mandatory if your income is below the taxable limit and no tax is payable after considering all deductions and exemptions. However, if TDS has been deducted, your employer should issue Form 16, even if you are not liable to pay tax.


Q2: My employer deducted TDS but hasn't issued Form 16. What is the penalty? If your employer fails to issue Form 16, they may be penalized under Section 272A of the Income Tax Act. The penalty can range from ₹100 to ₹200 per day of delay, subject to the maximum penalty amount of ₹50,000.


Q3: Can I file my ITR without Form 16? Yes, you can file your Income Tax Return (ITR) without Form 16, but you will need to have the details of the TDS deducted, which you can get from your Form 26AS or salary slips. Form 16 is simply a document summarizing your salary income and TDS.


Q4: Does Form 16 guarantee that my taxes are correctly calculated? No, Form 16 only reflects the TDS deducted by your employer. It doesn't necessarily guarantee that your taxes are correctly calculated, as the final tax liability depends on various factors, including deductions and exemptions you may claim.


Q5: I lost my Form 16. Can I get a duplicate? Yes, you can request a duplicate Form 16 from your employer. They are obligated to provide it if TDS was deducted from your salary.


Q6: Is a digitally signed Form 16 valid? Yes, a digitally signed Form 16 is valid and legally acceptable. The Income Tax Department accepts digitally signed forms, and it has the same validity as a physically signed form.


Q7: What is the Form 16 issue date for FY 2024-25 (AY 2025-26)? Form 16 for FY 2024-25 (Assessment Year 2025-26) must be issued by your employer on or before June 15, 2025, as per the Income Tax Department's guidelines.


Q8: Does opting for the new tax regime mean I won't get a Form 16? No, opting for the new tax regime does not mean you won't get Form 16. Your employer will still issue Form 16, but under the new tax regime, there will be no deductions, and your tax liability will be calculated at the new rates.


Q9: I am a consultant receiving professional fees with TDS. Will I get Form 16? As a consultant, if TDS is deducted from your professional fees, you will not receive Form 16. Instead, you will receive Form 16A, which is used for TDS on income other than salary.


Q10: If my employer makes an error in Form 16, who is responsible for getting it corrected? If your employer makes an error in Form 16, they are responsible for issuing a corrected form. You should inform them of the mistake, and they will have to rectify it.


Q11: My new employer is asking for Form 16 from my previous employer. Why? Your new employer asks for Form 16 from your previous employer to calculate your tax liability correctly and to ensure that your TDS is adjusted appropriately.


Q12: Is Form 16 the same as an Income Tax Return? No, Form 16 is not the same as an Income Tax Return (ITR). Form 16 is a certificate issued by your employer showing the TDS deducted on your salary, while the ITR is a comprehensive document filed with the Income Tax Department to report your total income and tax liability.


Q13: Do I need to submit Form 16 to the Income Tax Department? No, you do not need to submit Form 16 to the Income Tax Department while filing your ITR. However, it is a good idea to keep a copy of Form 16 for your records and to accurately file your return.


Q14: Will I get a Form 16 if I am serving my notice period? Yes, you should receive a Form 16 if TDS was deducted during your notice period. Your employer will issue Form 16 at the end of the financial year, regardless of whether you are serving notice.


Q15: Can my employer charge me for issuing Form 16? No, your employer cannot charge you for issuing Form 16. It is their legal obligation to provide it if TDS has been deducted from your salary.


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