Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What it is
Part A from TRACES (TDS deposited) and Part B (salary and deductions detail).
Issue by 15 June
Employers must give it by 15 June after the year ends; employees use it to file their ITR.
Part A, Part B and getting it right
Part A is generated and downloaded from the TRACES portal after the quarterly TDS returns (Form 24Q) are filed, and it carries the TRACES logo and a unique certificate number; it summarises salary paid and tax deducted and deposited, quarter by quarter. Part B is the annexure prepared by the employer, giving the detailed salary break-up, exemptions, deductions claimed and the tax computed under the employee’s regime. Only an employer who deducted TDS must issue Form 16, by 15 June following the financial year; where no tax was deducted, there’s strictly no Form 16, though many employers still give a salary statement. Because employees rely on it to file their returns, the figures must agree with Form 24Q and with 26AS and AIS — a mismatch is a common reason for return-processing queries. Filing the fourth-quarter 24Q accurately and on time is what lets Part A be generated cleanly, so the certificate can go out by the June deadline. Issuing a wrong or late Form 16 can also attract a penalty, so accuracy matters.