Form 16 Explainer & Calculator
Understand your Form 16 and calculate your actual tax liability
Form 16 is a certificate issued by your employer showing the Tax Deducted at Source (TDS) from your salary. It contains details of your income and tax deductions during the financial year. This calculator helps you understand each section of your Form 16, verify the tax calculations, and determine if you have any additional tax liability or are eligible for a refund.
Form 16 Analysis Results
Tax Status
Additional Tax Payable
Tax Refund Due
Total Income
Taxable Income
Total Tax Liability
TDS Deducted
Form 16 Breakdown
- Gross Salary ₹ 0
- Exempt Allowances - ₹ 0
- Standard Deduction - ₹ 50,000
- Professional Tax - ₹ 0
- Other Income Sources ₹ 0
- Section 80C (Investments) - ₹ 0
- Section 80D (Health Insurance) - ₹ 0
- Section 80TTA (Savings Interest) - ₹ 0
- Other Deductions - ₹ 0
- Tax on Income ₹ 0
- Surcharge ₹ 0
- Education & Health Cess (4%) ₹ 0
- Relief Under Section 89 - ₹ 0
- Net Tax Liability ₹ 0
- TDS Deducted by Employer - ₹ 0
- Remaining Tax Liability ₹ 0
What should I do next?
Based on your Form 16 analysis, your TDS matches your tax liability. No additional action needed.
Disclaimer: This calculator provides an estimate based on the information you provided. For precise tax planning, please consult a tax professional.
Form 16 Guide & Tutorial
Understanding Form 16
Form 16 is a crucial tax document issued by employers to their employees, certifying the Tax Deducted at Source (TDS) from their salary. It serves as proof of tax payment and is essential for filing income tax returns.
Parts of Form 16
- Part A: TDS certificate with employer and employee details
- Part B: Detailed salary breakup and tax computation
- Annexures with investment proofs and declarations
Important Dates
- Financial Year: April 1 to March 31
- Form 16 Issuance: By June 15
- ITR Filing: Usually July 31
Form 16 Structure and Components
Part A Contents
- TAN of the employer
- PAN of the employee
- Assessment Year
- Period of employment
- Total tax deducted and deposited
- Quarter-wise TDS details
Part B Contents
- Detailed salary breakup
- Allowances and perquisites
- Deductions under Chapter VI-A
- Tax computation details
- Previous employer details (if any)
- Relief under section 89
How to Read Your Form 16
Verify Basic Information
Check your PAN, name, employer details, and assessment year for accuracy.
Review Salary Details
Examine gross salary, allowances, and perquisites in Part B to ensure they match your salary slips.
Check Deductions
Verify standard deduction, professional tax, and other deductions under Chapter VI-A.
Understand Tax Computation
Review tax calculation, including surcharge and education cess if applicable.
Verify TDS Details
Cross-check TDS amounts and deposit details in Part A with your salary slips.
Important Sections in Form 16
| Section | Description | What to Check |
|---|---|---|
| Gross Salary | Total salary before exemptions | Basic + DA + HRA + Other allowances |
| Exempt Allowances | Allowances not taxable under Section 10 | HRA, LTA, and other exemptions |
| Chapter VI-A Deductions | Tax-saving investments and expenses | 80C, 80D, and other deductions |
| Previous Employment | Income from previous employer | Salary and tax details if changed jobs |
Frequently Asked Questions
If you find discrepancies in your Form 16:
- Compare with your salary slips and investment proofs
- Document the discrepancies with supporting evidence
- Contact your employer's HR or payroll department
- Request a revised Form 16 if needed
Keep all communication records for future reference.
When you change jobs during a financial year:
- You'll receive Form 16 from both employers
- Previous employer's income should be disclosed to new employer
- Combine income from both Form 16s while filing ITR
- Check tax calculation considering total annual income
Keep both Form 16s and salary slips for accurate tax filing.
Section 89(1) relief applies when you receive salary arrears or advance salary:
- Calculate tax on total income including arrears
- Calculate tax on income without arrears
- Calculate tax on arrears in the year they were due
- Relief = Difference between actual tax and tax if paid in due year
File Form 10E to claim this relief.
If your employer hasn't issued Form 16:
- Request it formally from your employer
- Use monthly salary slips and Form 26AS as alternatives
- File complaint with Income Tax Department if needed
- File ITR using available documents:
- Form 26AS for TDS details
- Salary slips for income details
- Bank statements for salary credits
Employers are legally required to issue Form 16 by June 15.
To verify TDS deposits:
- Check Form 26AS:
- Login to income tax portal
- Download Form 26AS
- Compare with Form 16 entries
- Verify Quarterly Details:
- Check TDS for each quarter
- Match deposit dates
- Verify challan numbers
Report discrepancies to employer and income tax department if needed.