Form 16 is your TDS certificate for your pay. If your wage income for the fiscal year reaches the basic exemption cap of Rs 2,50,000, your employer is allowed by the Income Tax Act to deduct TDS and deposit it with the government. If you have not reported your compensation from other sources to your employer, your gross salary would be considered for TDS deduction. If your salary is less than the basic exemption cap, your company may not withhold TDS and will not provide you with this form. You would have more than one Form 16 if you worked for more than one employer throughout the year.
This Form 16 is a certificate under which the boss certifies the specifics of your income for the year and the amount of TDS deducted. It is divided into two parts: Part A and Part B. Part A contains information about the employer and employee, such as name and address, PAN and TAN specifics, length of work, and TDS deducted and deposited with the government. Part B covers information such as wages charged, other revenue, allowable deductions, tax payable, and so on. Type 16 is a certificate granted to salaried workers by their boss as he deducts taxes from their wages. Simply put, it is an acknowledgment that the deducted tax has been deposited with the Income Tax Department. In layman's language, it's an acknowledgment that the deducted tax has been deposited with the Income Tax agency. It must be published by the 15th of June of the year in which it is issued. For eg, the deadline for submitting Form 16 for Fiscal Year 2019-20 is June 15, 2020. However, the deadline has been pushed back to August 15, 2020.