Income Tax Form 16 (Payroll)

Form 16 is the Certificate issued for tax deducted at source from income chargeable under the head Salaries.

The format of Form 16 for the u/s 115BAC tax regime is not yet notified by the department. The Form 16 is generated as per the format used in the previous year. The current format remains applicable for regular tax regime.

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Generate Form 16

Updates supported as per the latest changes in the tool

You can generate Form 16 along with Annexure A or Annexure B depending on Deductor Type selected in F11: Features (Statutory & Taxation).

Annexure A if the Deductor Type is Government

Annexure B if the Deductor Type is Others

Generate Form 16

1. Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax > Returns > Form 16 .

2. Select the required Employee from the List of Employees and press Enter

3. Specify the following details in the Print Configuration screen:

o Name: Specify the name of the person responsible for Income Tax Deduction.

o Son/Daughter of: Specify the father’s name for the TDS Deductor

o Designation: Specify the designation of the person responsible for TDS Deduction

o From: By default displays 1-4-2010 which can be changed.

o To: Enter the To date (by default it will be 31.03.2011)

o Challan Date Till: In this field enter the date to consider the challan payments made.

o Type of Copy: Specify Original or Duplicate as required

o Place: Enter the name of the Place (e.g. Bangalore)

o Date of Printing: Specify the Date of issue of Form 16

o Quarter/Acknowledgement: Specify the acknowledgement number of the TDS returns filed against the appropriate Quarter.

o CIT (TDS) Details: In this section enter the address of the Commissioner of Income Tax having jurisdiction for TDS deduction for the assessee.

o Address: Enter the address of the commissioner office

o City: Mention the City name

o Pin Code: Enter the PIN Code

o Appearance of Employee Names : Select the Display Style for the Employee Names, like Name Only , Alias Only , etc.

o Include Previous Employer Income :Set this option to Yes to print income earned by the employee from their previous employer.

o Include 'Part A' while printing : Set this option to Yes to print income Part A in Form 16.

Similarly, the Form 16 can be generated for all the employees.

Note : In Form 16 , the value declared for Rajiv Gandhi Equity Saving Scheme will be printed in Section 9, Deductions under Chapter VIA .

Facility is provided to print only the duplicate copies of Form 16 .

Updates Supported as per the Latest Changes in the Tool

Field Name


1. Gross Salary:

Reported total amount of salary received from other employer(s)

The field is introduced to show the salary of the previous employer separately.

To view this, enable Include Previous Employer Income while printing Form 16.

This includes the following:

Salary as per provisions contained in section 17(1)

Value of perquisites under section 17(2) (as per form no. 12BA, wherever applicable)

Profit in lieu of salary under section 17(3) (as per form no. 12BA, wherever applicable)

Allowances to the extent exempt under section 10

Every allowance exempt under Section 10 should be printed along with the section and clause number.

For example: Transport Allowance 10(5)

Deductions Under Chapter VIA: Each deduction should appear along with the section details.

(A) Section 80C, 80CCC, 80CCD , and so on


(B) Other Sections (such as 80E, 80G and 80TTA) under Chapter VI-A

As in option A, each section will have the title and respective components under it.

For example:

a) Section 80D



This field should be numbered as 15 .

This column should be introduced after the rebate column; therefore, while computing the net tax payable, this value should be considered.