Decoding Form 16: A Salaried Employee's Guide to TDS Verification
- Form 16 is divided into two parts: Part A, which contains details of the tax deducted and deposited by the employer, and Part B, which provides a detailed breakdown of the salary paid and tax calculated.
- The TRACES portal must be used to verify that the TDS details in Part A of Form 16 match the information in Form 26AS exactly.
- Salaried employees can cross-check the gross salary, exemptions, deductions, taxable income, and tax computed in Part B of Form 16 against their salary slips for accuracy.
Form 16 Comparison Table
| Part | Contents | Where to Verify |
|---|---|---|
| Part A | Employer PAN/TAN, your PAN, TDS deducted and deposited quarter-by-quarter | TRACES portal — must match Form 26AS exactly |
| Part B | Gross salary, exemptions (HRA, LTA), deductions (80C, 80D), taxable income, tax computed | Cross-check against your salary slips for the full year |
| Part A — Generated by | Employer downloads from TRACES using TAN login — you cannot alter it | Signature or DSC required; unsigned Part A is invalid |
How to Verify TDS Was Actually Deposited
Part A of Form 16 tells you what your employer deducted from your salary. What it doesn't automatically tell you is whether that money reached the government. That's the check most employees skip — and it's exactly where problems surface.
Log into the TRACES portal using your PAN and cross-check Form 26AS (or the Annual Information Statement). Form 26AS shows TDS credited against your PAN by each deductor. The TDS amounts in Form 16 Part A should match the entries in Form 26AS for your employer's TAN. Quarter-by-quarter, rupee-by-rupee.
What a Mismatch Means — and What to Do
If Form 26AS shows less TDS credit than Form 16 Part A, your employer deducted the tax but may not have deposited it on time (or at all). This is more common than people realise, particularly with smaller companies facing cash flow issues. The Income Tax Department will hold you responsible for the shortfall at the time of filing — even though the fault lies with the employer.
Your recourse: raise it in writing with your HR or finance team immediately. The employer needs to pay the outstanding TDS plus interest under Section 201(1A) and file a correction statement. Only after the correction reflects in Form 26AS will your credit be restored. Do not file your ITR assuming the credit will appear later — it won't, without the employer fixing the underlying TDS return.
The one thing worth internalising: Form 16 is your employer's declaration, not the government's confirmation. The TRACES portal is the confirmation. Most people never open it — until they get a notice.
This post is general information only and does not constitute tax, financial, or investment advice. Consult a qualified professional for your specific situation.