Form 16 can be issued before the end of a FY if any employee resignes from an organisation before the end of a financial year. It is a normal practice of the Organisations to provide Form-16 after the end of the FY for administrative reasons. If the organisation is not issuing form-16 before the end of the FY then it can issue YTD with TDS on salary which can be issued to the new organisation for the purpose of considering previous employer income

Form 16 should be issued within 1 month from the end of the relevant financial year as per sectin 203. But if the employee terminates his contract of employment before the financial year, then Form 16 should be issued by the employer immediately i - e before the end of the financial year.