Form 16 Issuance Deadline (Salary TDS Certificate)

Under Section 203 of the Income Tax Act, every person or entity deducting tax at source (TDS) on salary must issue a certificate to the deductee (the employee) confirming the tax deducted and deposited with the government. For Financial Year 2026-27, the deadline to issue Form 16 to employees is June 15, 2027\.

Form 16 consists of two parts:

* Part A: Downloaded by the employer from the TRACES portal, it contains the summary of tax deducted and deposited on behalf of the employee. * Part B: Prepared by the employer, it contains the detailed breakup of the salary paid, allowances exempt under Section 10, and deductions claimed under Chapter VI-A (like 80C, 80D).

Important Considerations:

1. Dependency on Q4 Return: Employers can only generate Part A of Form 16 from the TRACES portal after successfully filing the Q4 TDS return (Form 24Q), which is due on May 31st. 2. Penalties for Delay: Failing to issue Form 16 to employees by the June 15th deadline attracts a penalty of ₹100 per day of default under Section 272A(2)(g) of the Income Tax Act, subject to a maximum of the TDS amount. 3. Employee Impact: Salaried employees rely heavily on Form 16 to file their Income Tax Returns (ITR-1 or ITR-2) by the July 31st deadline. Delays in issuing Form 16 create unnecessary panic and compliance roadblocks for your workforce.