Form 16 is a TDS (Tax Deducted at Source) certificate issued by employers to salaried employees, detailing the tax deducted from their salary and deposited with the Income Tax Department. It serves as proof of income and tax paid, helping employees file their Income Tax Returns (ITR). The form consists of:

Part A – Contains details of employer and employee PAN & TAN, quarterly TDS deductions, and salary payments.

Part B – Includes a detailed salary breakup, deductions under Section 80C to 80U, and the final taxable income calculation.

For businesses managing contract workers, gig employees, and blue-collar workforce, ensuring accurate and timely Form 16 issuance is essential for compliance with tax regulations and payroll transparency. Companies leverage HRMS platforms and payroll automation tools to generate Form 16 efficiently, validate TDS records, and streamline employee tax documentation.