Form No. 16 has to be issued annually by an employer (deductor) to its employees (deductee) in case of deduction made under section 192 (Salaries). It is to be noted that Form No. 16 should be issued by 31st May of the financial year immediately following the financial year in which income was paid and deducted.
Form No. 16 has two parts viz Part A and Part B.
- Part A: It contains the details of tax deduction and deposit.
- Part B: It contains the details of the income.
As per the Circular No. 04/2013 dated 17th April 2013, it is now mandatory for all employers (including government deductors who deposit TDS in Central Government Account through book entry) to issue the Part A of Form No. 16 to their employees by generating and subsequently downloading the certificate from the TRACES website.
Part B of the Form No. 16 shall be prepared manually by the employer and will be issued to the employee.
One can use TDSMAN software to generate both Part A and Part B of Form No. 16.
TDSMAN is also integrated with the TRACES website and helps downloading Part A of Form No. 16 from the software itself. The software takes care of all the data that is to be sent to the TRACES website for the authentication of the deductor.
Further, users can view the lists of requests done to the TRACES website with the option of downloading the requested file from the TDSMAN software itself.