If you are an employer, it is compulsory to issue Form 16 to the employee.

Form 16 is issued to the salaried individuals from their employer when he deducts the tax from the salary of the employee. It is an acknowledgment that states that the deducted tax has been deposited with the Income Tax Department.

Form 16/16A is issued by the employers to the employee within 15 days of filing their fourth-quarter TDS returns.

If the employer fails to provide Form 16 after deducting the TDS then the minimum penalty that the employer will pay is Rs 100 for every day the default continues.

Form 16 can be downloaded from the TRACES portal by the employer before giving it to the employee.

Form 16 can be downloaded from the online website of the Income Tax Department, this document is typically issued by the employer for the current financial year and reflects the total earning and the income taxes that are applicable for the financial year.

The employer is required to mention the salary details of an employee even if it is nil TDS deduction while filing their TDS returns. So the system-generated Form 16 is issued to the employees.

Every salaried individual who comes under the taxable bracket is eligible for Form 16 if the gross total income is exceeding Rs 2.5 lakhs. You need to pay tax and you are eligible for Form 16.

Form 16 happens to be the most important document to file the income tax return. Form 16 carries various details of the salary paid, the house property, another source of income, deductions, and the tax paid or the deducted. Hence, it is necessary to have Form 16 before filing the income tax return.

Part A enables one to view the taxes deducted from the monthly salary. It can be cross-checked with the salary slips. The CAs advise matching the deducted tax details shown in Part A OF Form 16 with the Form 26 AS.