LegalDev prepares and issues Form 16 — Part A and Part B — for your employees, reconciled against your quarterly TDS returns and generated straight from TRACES, so your HR team never has to chase numbers in March.
Form 16 is the certificate your organisation is legally required to give every employee from whose salary tax has been deducted at source. It is not a formality — it is the primary record an employee uses to check what was earned, what was deducted, and what was deposited with the government against their PAN.
For the employee, it turns a year of payslips into one document they can hand to a bank, use for a visa application, or drop straight into their income tax return. For the employer, it is proof that TDS obligations under the Income Tax Act have been met correctly and on time.
An incorrect Form 16 creates problems long after it is issued. A mismatch between the TDS shown on the certificate and the amount reflected in the employee's Form 26AS can trigger a tax notice, delay a refund, or force the employee to file a revised return.
That is why we do not simply export a certificate — we reconcile the salary data, the challans deposited, and the quarterly TDS returns first, then generate Form 16 so the numbers on paper match the numbers on record with the tax department.
Many employers only generate Part A from TRACES and leave Part B to be assembled manually, which is where errors creep in. LegalDev prepares both halves of the certificate as one consistent document.
Generated directly from the TDS return filed by the employer, covering:
Built from the employee's actual salary structure and declarations, covering:
A straightforward, four-stage process that runs alongside your existing payroll cycle.
Having these ready shortens the turnaround considerably.
Employers who fail to issue Form 16 on time face a penalty of Rs. 100 for every day of delay under Section 272A(2)(g), until the certificate is finally issued. We build in buffer time specifically to avoid this.
Deadline: 15 June of the relevant assessment year.
Form 16 is a certificate your employer issues under Section 203 of the Income Tax Act. It confirms how much salary you were paid in a financial year and how much tax was deducted at source (TDS) from that salary and deposited with the government on your behalf.
Any employer who has deducted TDS on an employee's salary during the financial year is required to issue Form 16 to that employee. If no TDS was deducted, the employer is not legally bound to issue it, though many still do as good practice.
Form 16 is not mandatory to file a return, but it makes the process far easier. It lays out your salary breakup, exemptions, deductions and TDS in one place, so most salaried employees rely on it to fill their ITR accurately.
For a given financial year, employers must issue Form 16 to employees on or before 15th June of the following assessment year, once fourth-quarter TDS returns have been processed.
Yes. Form 16 can be generated through TRACES and shared with employees digitally, provided it carries a valid digital signature or is authenticated as prescribed. LegalDev handles this generation and distribution end to end.
A delay in issuing Form 16 attracts a penalty of Rs. 100 for every day of default under Section 272A(2)(g), continuing until the certificate is actually issued, subject to the total TDS amount for that quarter.
Yes. Each employer you worked with during the financial year, and who deducted TDS on your salary, is expected to issue a separate Form 16 for the period you were employed with them.
Tell us your employee count and current payroll setup — we'll map out a timeline that comfortably beats 15th June.