TDS / Form 16 Certificate - The Proof Of Income Tax Payment Details And Sample Of An Employee

Form 16 certificate also known as TDS certificate is a financial statement issued by an office of a salaried employee that contains earnings, deductions and “Income Tax" or "I-T” paid to the Government. This Form-16 certificate (TDS Certificate) must be issued to every employee who comes under “Tax Deducted at Source - TDS”, by his / her employer in the end of each financial year.

All salaried employees should use Form 16 certificate as a supporting document for I-T Return in India. If you have worked in two different organizations in the same financial year, you must collect separate Form16 certificates from both organizations in order to submit your I-T Return.

Even if your earnings not come to the barrier of TDS, you are entitled to get Form16 document or also known as TDS certificate upon request. In some situations like, availing bank loan for house or car etc., bank may ask to submit Salary certificate and Form 16 as evidence of your earnings, deductions and net income from the company.

Image of Form 16 certificate or TDS Certifciate sample filled up - sample

Definition of Form 16 Certificate in terms of I-T Department, Govt. Of India

Form 16 is a Certificate issued to an employee by his officer under section 203 of the Income-tax Act, 1961 for Tax deducted at source from income chargeable under the head “Salary”.

Form 16 certificate must have details of the Tax Deducted at Source (TDS) by the company on behalf of employee.

Tax Deducted at Source: TDS is a tax levy to be retained by a third-party payer (employer or officer who authorized to issue form-16 certificate) over the revenues paid to the person concerned, the tax due in respect of the same income. Tax deducted at source is the normal taxation the income of most of the countries.

Tax-deduction Account Number: TAN is the authorization number that an employer or officer should get from the income tax department prior collecting TDS. It is TAN holder’s responsibility, obtaining TDS from an employee’s salary and the same amount to be paid to the government as collective tax on behalf of its employee.

Employee should use the form-16 certificate for filing the Income Tax (I-T) return every ending of financial year.

Image of Form 16 certificate or TDS Certifciate sample filled up - sample
Image of Form 16 certificate or TDS Certifciate sample filled up - sample

Structure of Form 16 Certificate (Tax Certificate)

Now we will look into the format of Form-16 certificate and what are the data to be specifically shown on the Form 16 format structure:

  1. First part of the form-16 format requires the primary information about employer (who collected the TDS) and employee.  It must have address, designation, PAN, TAN, period of the TDS, Assessment year and acknowledgement numbers of all quarterly statements of the TDS received from I-T department.
  2. Second part of the Form-16 template requires the details of the salary paid by the employer, other income reported by the employee and Tax deducted at the source.
  3. Third part of Form 16 format shows the details of tax deducted and deposited into I-T Department, Govt. Of India.

And finally, all the data given in this “Form-16” certificate must certify the issuing officer with signature, date and office stamp.

Download sample filled in “Form 16 certificate / TDS Certificate” in PDF format.

Procedure to download Form 16 Certificate from TRACES

Registration is required to download form 16 certificate from TRACES website. After logon, you can see the form 16 download link under the download menu for downloading Form 16 certificate.