Overview
Form 16 is the annual TDS (Tax Deducted at Source) certificate that an employer issues to every employee under Section 203 of the Income Tax Act, 1961. It is the proof that tax was deducted from the employee's salary and deposited with the Income Tax Department. Employees use Form 16 while filing their income tax return.
Tazk Payroll automatically computes the Form 16 figures based on the salary processed during the financial year, applicable government tax slabs, declared exemptions, and the chosen regime (Old or New).
Accessing Form 16
From the sidebar, expand TDS and click Form16. The Form16 List page opens, showing one row per employee per financial year.
Form16 List Columns
| Column | Description |
|---|---|
| Name | Employee name |
| FY | Financial Year (for example, 2025 – 2026) |
| Tax On Total Income | Total tax computed on the employee's annual income after applying slabs and exemptions |
| Monthly Tax | Tax to be deducted per month (TDS instalment) |
| Total Deduction | Total deduction claimed by the employee under various sections |
| Status | Current status of Form 16 generation |
| Action (eye icon) | Opens the generated Form 16 PDF for that employee and FY |
Top Controls
- Search — Find a record by employee name or financial year
- Close (×) — Close the Form16 List view
Viewing the Form 16 Certificate
Click the eye icon on a row to open the official Form 16 certificate (Form No. 16, see rule 31(1)(a)) — Part A of the certificate is shown. The certificate contains:
- Certificate No. and Last updated on date
- Name and address of the Deductor (employer) and Deductee (employee)
- PAN of the Deductor, TAN of the Deductor, PAN of the Employee, Employee Reference No.
- CIT (TDS), Assessment Year, and the Period (From / To)
- Summary of amount paid/credited and tax deducted at source — quarterly breakdown (Q1–Q4) showing Receipt Numbers, Amount paid/credited, Amount of tax deducted, and Amount of tax deposited/remitted
- Details of Tax Deducted and Deposited in the Central Government account through Book Adjustment — with BIN (Book Identification Number), Receipt numbers of Form 24G, DDO serial number, Date of Transfer voucher, and Status of Matching with Form 24G
How Form 16 is Calculated
- The system uses each month's processed salary for the financial year as the base.
- It applies the government tax slabs for that financial year, based on the regime selected by the employee (Old Regime or New Regime — controlled via Form 12BB).
- Eligible exemptions and deductions declared by the employee through Form 12BB (HRA, LTA, Interest on Borrowing, Section 80C deductions, etc.) are reduced from the gross income before computing tax.
- The result is split across the year as the Monthly Tax (TDS) and totalled as Tax On Total Income.
End-to-End Form 16 Flow
- Employee declares investments and exemptions through Form 12BB.
- Payroll is processed monthly and TDS is deducted as per the chosen regime and slab.
- At year end, the system aggregates the data and prepares Form 16 for each employee.
- Open TDS → Form16, find the employee + FY row, and click the eye icon to view or download the certificate.