How to Generate Form 16 for Employees (2026 Guide)
Master the process of issuing tax certificates to your team accurately and on time.
What is Form 16?
Form 16 is a certificate issued by an employer to its employees, documenting the tax deducted at source (TDS) and remitted to the Income Tax Department. It is a critical document for employees when filing their Income Tax Returns (ITR).
Components: Part A and Part B
Part A: Generated from the TRACES portal. It contains the summary of tax deducted and deposited by the employer.
Part B: Prepared by the employer. it contains details of the salary paid, exemptions under Section 10, and deductions under Chapter VI-A (like 80C, 80D).
Steps to Generate Form 16
1. TDS Filing: File your quarterly TDS returns (Form 24Q).
2. TRACES Portal: Log in to the TRACES portal and request for Form 16 Part A.
3. Part B Preparation: Calculate the final tax liability of each employee, considering all declarations and investments.
4. Merging & Signing: Merge Part A and Part B into a single document and sign it digitally using DSC.
5. Issuance: Issue the certificate to employees by 15th June of the assessment year.
One-Click Form 16 with WorkoTime
Generating Form 16 for hundreds of employees can take weeks of manual work. WorkoTime automates this entire cycle. It tracks employee investments throughout the year, calculates final tax, and generates both Part A and Part B ready for digital signature. Issue certificates via WhatsApp or Email in one click.