It comes under section 203 of Income Tax Act, 1961 and is a certificate that gives information on the tax deducted at source (TDS) of your annual income. It presents all the details of the tax that is deducted by your employer and paid in advance. In simple terms, Form 16 is the salary or income certificate issued by your employer and contains all the details that will help the taxpayer to file their income tax returns with the income tax department. Every employer should provide this form to their employees, as form 16 serves as an important proof of the tax paid. For employees who do not fall into the tax bracket, form 16 is not generally issued, as they do not have to pay taxes or file returns. Understanding Form 16 Form 16, also known as salary TDS certificate has two parts to it. Part A serves as the proof of the tax deducted by the employer and contains all the TDS information. Part B is an annexure that furnishes further details like your total income, tax deductions, tax paid, due to tax and other income if any. Let us look at each part in detail.