Every June, salaried employees across India ask HR the same thing: "When will I get my Form 16?"

This year, there's an important change to know about.

What is Form 16?

Form 16 is a certificate issued by an employer to an employee showing the salary paid and the tax deducted at source (TDS) during a financial year. It's one of the most important documents for filing an income tax return.

The two parts of Form 16

Part A
- Employer and employee details, including PAN and TAN
- Period of employment
- Quarterly summary of TDS deducted and deposited
- Generated from the TRACES portal

Part B
- Detailed salary breakup
- Exemptions and allowances
- Deductions claimed by the employee
- Taxable income and tax calculation

Why Form 16 matters

- Proof of salary income and tax deducted
- Essential for filing income tax returns
- Often requested for loans and visa applications
- Helps employees verify that the tax deducted was actually deposited

Deadline

Employers are generally required to issue Form 16 by 15 June following the end of the financial year.

The big change: Form 16 becomes Form 130

The Income-tax Act, 2025 came into effect on 1 April 2026, along with new Income-tax Rules. Under the new framework, Form 16 is renamed Form 130, and it refers to a "Tax Year" instead of separate financial and assessment years.

What changes and what doesn't

- Form 16 remains valid for FY 2025-26, issued in June 2026
- Form 130 applies from Tax Year 2026-27 onwards
- The quarterly salary TDS return Form 24Q is replaced by Form 138
- The purpose of the certificate stays essentially the same

Common Form 16 problems

- TDS deducted but not deposited correctly
- Mismatch between Form 16 and Form 26AS
- Wrong PAN details
- Missing deductions that the employee declared
- Delays in issuing the certificate

Tips for employers

- File quarterly TDS returns accurately and on time
- Collect investment declarations and proofs early
- Verify employee PAN details
- Communicate the Form 16 to Form 130 change clearly
- Keep payroll and TDS records reconciled every month

How QkrHR helps

In QkrHR, statutory compliance is built into payroll from the Essential plan onward. TDS is calculated under both tax regimes in every payroll run, employees submit investment declarations through self-service, and Form 24Q and Form 16 are generated from payroll data. Employees can download their documents from the QkrHR mobile app instead of waiting for HR to email them.

The bottom line

Form 16, now becoming Form 130, is more than a yearly formality. Accurate TDS throughout the year makes it simple, error-free, and stress-free for both employers and employees.

Read the full explanation:
https://www.qkrbiz.com/hrms-software/hr-glossary/form-16
Book a free demo: https://www.qkrbiz.com/signup

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