Form 16 – What It Is and How to Use It to File ITR

Filing your Income Tax Return is a financial responsibility. However, it can often be confusing, especially if you are new to it. There’s quite a lot to keep in mind. As a salaried employee, Form 16 is probably one of the key documents you need when you file your income tax return. It shows the tax that is deducted from your salary along with a breakdown of your earnings, exemptions and taxability.

Understanding what Form 16 is, the new changes you need to know, how to fill it out, and how to upload it can help you avoid worries.

Need help? Try CA Assisted tax filing.

Quick Update

Following the recent overhaul of the Income Tax Act, 1961, several Forms and Sections have been renamed. Under the Income Tax Act, 2025, effective from April 1, 2026, Form 16 and its sub-sections have been renumbered as follows:

The newly introduced Form 130 brings several notable changes compared to the existing Form 16 framework. Some of them are:

• “Assessment Year” and "Financial Year” have been replaced with “Tax Year”
• Additional details like email ID, phone number, and country code to be included
• Employers must now disclose the TDS rate along with the tax deducted
• Reporting system aligned with updated platforms like TIN 2.0
• Older OLTAS-based reporting framework phased out.

What is Form 16?

Form 16 (now known as Form 130 under the Income Tax Act, 2025) is a certificate that is typically issued by an employer to a salaried employee. The form shows the Tax Deducted at Source, along with detailed information on the individual’s salary, deductions and the applicable exemptions.

Simply put, Form 16 certifies that the required tax has been deducted from a person’s salary and then deposited with the government. This is to be issued by your employer on or before June 15 of the following year following the end of the financial year.

Form 16 Part A vs Part B

Form 16 consists of several parts. Parts A and B are typically the most common. Once you download Form 16, you will notice that it consists of two parts, Part A and Part B.

To understand the meaning and the differences between Form 16 Part A and Part B, take a look at the table given below:

How to Read Form 16?

As a salaried employee, your Form 16 is a key document. Here’s how you can read all its components.

Basic Details

Form 16 contains important information about both the employee and employer, such as names, designation, PAN details, employer’s TAN, and the financial year for which the certificate is issued.

Part A

The form is divided into two main parts. Part A shows the amount of TDS deducted from your salary and deposited with the Income Tax Department. It includes:

• Name and Address of the employer
• PAN and TAN of the employer
• Employee’s PAN
• Quarter-wise summary of total salary paid during the relevant financial year.
• Quarter-wise summary of tax deducted and deposited by the employer.

Part B

Part B offers a very detailed breakdown of your salary components. It includes:

• Detailed breakup of salary
• Detailed breakup of allowances exempted, TDS deducted by the employer
• Deductions allowed under the IT Act under Chapter VI-A
• Total taxable income offered for TDS deduction.

Make sure you check all the Form 16 details carefully. In case there are any errors, do not proceed with the ITR unless they are corrected. In case of a mismatch, the IT return would get rejected.

How to Use Form 16 to File Your ITR with the JioFinance app?

To file your ITR in the JioFinance app, you can simply upload your AIS (Annual Information Statement), and the details are auto-filled. However, if you do not have your AIS handy, you can also upload your Form 16.

Form 16 is proof that the government has received the tax deducted by your employer. While it acts as an income proof, it may also be required by financial institutions to verify your credentials, especially when you’re applying for a loan.

Using Form 16 significantly reduces manual data entry and minimises errors.

Here’s how you can use it to file your ITR, step-by-step:

Get Form 16 from Your Employer

Around 15 June 2026, your employer will issue you the Form 16. Keep other documents like bank statements, investment proofs, home loan interest, etc.

Download the JioFinance app

Download and open the JioFinance app. Log in using your mobile number and verify it through OTP authentication.

Go to the Tax Filing Section

On the home dashboard, navigate to the “Tax” section and select “Tax Filing.” The app provides guided support to help you complete the filing process smoothly.

Auto-fill Your Details via AIS

Upload your AIS directly to the app to automatically fill in your details. You can also upload supporting documents, such as Form 16 and Form 26AS, if required. The app automatically reads and extracts important information for your filing.

Review the Details

Carefully review the information to ensure accuracy and add any additional income details, such as interest income or capital gains, if applicable.

Choose the Correct Tax Regime

Based on your income, tax slab and deductions, the app will clearly show the suitable tax regime and the applicable ITR form.

Review and Submit Your ITR

Review your return and submit it directly through the app.

Remember:

Form 16, now called Form 130, should be correctly filled out when you file your Income Tax Return. This should be kept in mind as several important details are extracted from Form 16, such as:

1. Exemptions and deductions under Section 10 and Section 16 (now renamed as Section 11 and 19, respectively)
2. Taxable salary after exemptions and deductions
3. Income from house property declared by the employee for TDS calculation
4. Income from other sources is considered for TDS purposes
5. Detailed deductions claimed under Section 80C (now renamed as Section 123)
6. Final tax liability or refund amount payable to the taxpayer.

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I Have Two Form 16s - What Do I Do?

Salaried employees who have more than one employer simultaneously may receive multiple Form 16s. Also, switching one or more jobs in a financial year may lead to you having more than one Form 16 certificate from your previous and current employers. In such a scenario, you need to consolidate your total income and need to calculate the TDS as deducted by all the employers during the year.

Make sure you:

• Inform all your current employers about your previous one, along with the salary structure, using Form 12B
• Receive Form 16 from all your employers
• Consolidate the income from all employers when you file your taxes
• Keep in mind that whether TDS is deducted or not, include the amount in your ITR.

Form 16 vs Form 26AS vs AIS

The table below shows the key differences between Form 16, Form 26A and Annual Information Statement.

In Conclusion

Form 16, now renamed Form 130 under the Income Tax Act, 2025, remains one of the most important documents for salaried taxpayers. It not only shows the tax deducted from your salary but also provides a detailed summary of your income, exemptions, deductions, and taxable income.

Even if tax filing feels complicated initially, keeping your documents organised and understanding the basics can help you avoid errors, delays, and unnecessary stress during the filing season. For more help, download the JioFinance app. Make tax planning simpler with guided insights and calculators.