After filing its TDS returns, a business issues TDS certificates, Form 16 for salary and Form 16A for other payments, to those from whom it deducted tax. These are downloaded from TRACES and let the recipient claim credit in their return. Samkhya generates and issues your Form 16 and Form 16A correctly and on time.
A TDS certificate is the document a deductor gives a deductee showing the tax deducted and deposited on their behalf. Form 16 is the annual certificate for salary, issued to each employee by 15 June following the financial year; it has a Part A (the TDS summary, from TRACES) and a Part B (the salary breakup). Form 16A is the certificate for non-salary payments, such as contractor, professional, rent, or interest payments, issued quarterly, within 15 days of the TDS return due date. Both are downloaded from TRACES and carry the TRACES watermark, which makes them valid. Under the Income Tax Act, 2025, from 1 April 2026, Form 16 becomes Form 130 and Form 16A becomes Form 131, though Form 16 remains the certificate for the 2025-26 year.
The TDS certificates matter for several reasons:
There are two TDS certificates:
The certificates connect deductors and deductees:
Certificates are issued:
Issuing the certificates follows the filing of the TDS returns. Once a return is filed and processed, the deductor downloads the certificate from TRACES, Form 16 for employees after the year-end Q4 return, and Form 16A for non-salary deductees after each quarter’s return. The certificate carries the TRACES watermark, which makes it valid; a certificate generated outside TRACES without the watermark is a common error. Form 16 is issued to each employee by 15 June, combining Part A from TRACES with Part B prepared from the salary records; Form 16A is issued within 15 days of the return due date. From 1 April 2026, the certificates are renumbered under the Income Tax Act, 2025, with Form 16 becoming Form 130.
For Form 16:
For Form 16A:
Issuing the certificates follows a clear sequence:
Generating your TDS certificates with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team handles the TRACES download, Part B, and the issue of the certificates.
Once the certificates are issued:
The certificates have clear timelines: Form 16 is issued to employees by 15 June following the financial year, and Form 16A within 15 days of the TDS return due date for the quarter. Both must be downloaded from TRACES and carry the TRACES watermark, a certificate issued from a private system without the watermark is not valid and creates problems for the recipient at filing. Failing to issue a certificate carries a penalty (broadly Rs. 500 per day of default). A 2026 point to note is the renumbering under the Income Tax Act, 2025: Form 16 becomes Form 130 and Form 16A becomes Form 131 for the 2026-27 year, while Form 16 remains correct for 2025-26 salaries issued by 15 June 2026.
| Certificate | Detail |
| Form 16 | Annual salary certificate. |
| Form 16 Due | By 15 June. |
| Form 16A | Quarterly non-salary certificate. |
| Form 16A Due | Within 15 days of return date. |
| Source | Downloaded from TRACES. |
| Renumbered | Form 130 and Form 131. |
What is Form 16?
Form 16 is the annual TDS certificate for salary, issued by an employer to each employee, showing the tax deducted and deposited, with a Part A and a Part B.
What is Form 16A?
Form 16A is the TDS certificate for non-salary payments, such as contractor, professional, rent, or interest payments, issued quarterly.
When is Form 16 issued?
Form 16 is issued to employees by 15 June following the financial year, after the Q4 salary TDS return is filed and processed.
Why must certificates come from TRACES?
A TDS certificate is valid only if downloaded from TRACES with the TRACES watermark; one generated outside TRACES is not valid.
Are Form 16 and 16A being renamed?
Yes. Under the Income Tax Act, 2025, from 1 April 2026, Form 16 becomes Form 130 and Form 16A becomes Form 131.
What if a certificate is not issued?
Failing to issue a TDS certificate attracts a penalty, broadly Rs. 500 per day of default, so timely issue matters.
