Income Tax
TDS on Salary & Form 16 Explained: How It Affects Your ITR
Taxwapsi Editorial Team1 June 2026 3 min read
TDS (Tax Deducted at Source) on salary is the tax your employer deducts every month and deposits with the government on your behalf. At year-end, they issue Form 16 — your single most important document for filing your income tax return.
How is salary TDS calculated?
Your employer estimates your annual taxable salary, applies the regime you chose (old or new), subtracts eligible deductions and the standard deduction, computes the tax, and divides it across 12 months. Declare your investments early so TDS isn't over-deducted.
What's in Form 16?
- Part A: Employer/employee details, PAN/TAN, and a quarter-wise summary of TDS deducted and deposited.
- Part B: A detailed salary break-up, exemptions (HRA, LTA), deductions (80C, 80D) and the final tax computed.
Using Form 16 to file your ITR
- Match the TDS in Form 16 with your Form 26AS and AIS.
- Enter salary, exemptions and deductions from Part B.
- Claim any deductions you forgot to declare to your employer — you can still claim them while filing.
- Pay any balance tax or claim a refund.
FAQs
No Form 16 — can I still file? Yes. Use your salary slips, Form 26AS and AIS.
Two employers in one year? Collect Form 16 from both and combine the income.
Upload Form 16 to Taxwapsi and your return auto-fills in minutes.