Tax and Business Consultant
11616 Points
Joined July 2015
"Form 16" is issued by the employers to the employees after deducting the TDS from their salary.
Every employer must issue Form 16, if TDS has been deducted from the employee’s salary as per the law under the IT Act, 1961.
Form 16 is a certificate of proof under section 203 of the Income-tax Act, 1961 that TDS has been deducted from employee’s salary. The employees then use it for filing Tax Returns.