TDS Certificate — Form 16, Form 16A and Form 16B Download Guide FY 2025-26

TDS Certificate — Form 16, Form 16A and Form 16B Download Guide FY 2025-26

TDS certificates — Form 16, Form 16A and Form 16B — are your statutory proof that tax was withheld from your income and deposited with the Central Government. For FY 2025-26 (Assessment Year 2026-27), all three are generated exclusively from the TRACES portal (tdscpc.gov.in), meaning the figures your deductor gives you must match your Form 26AS and Annual Information Statement (AIS) exactly. Knowing how each certificate works, when it is due, and how to reconcile it against government records is the difference between a smooth ITR filing and an unwelcome intimation under Section 143(1).

The Four TDS Certificates — A Quick Reference

Each certificate maps to a specific income type and a specific deductor. Here is the landscape at a glance:

All four must be generated from data that flows through the TRACES portal. A certificate typed in Word or formatted in Excel — regardless of how professional it looks — has no statutory value and cannot support a TDS credit claim.

Form 16 — TDS Certificate for Salary Income

Form 16 is issued by every employer who deducts TDS from salary payments under Section 192 of the Income-tax Act, 1961. It is structured in two distinct parts, and confusing the two is one of the most common errors at ITR time.

Part A — The TRACES-Generated Core

Part A is downloaded exclusively from TRACES after the employer files Form 24Q (the quarterly TDS return for salary) for all four quarters of the financial year. It contains:

• Employer's full name, address, PAN and TAN (Tax Deduction Account Number)
• Employee's name, PAN and designation
• A quarter-by-quarter summary of TDS deducted and deposited to the government
• A unique TRACES certificate number and the portal's digital signature

This part is non-negotiable. If your employer hands you a Part A not sourced from TRACES — identifiable by the absence of a TRACES watermark and certificate number — the certificate cannot support your TDS credit if the Income Tax Department's CPC (Centralised Processing Centre, Bengaluru) runs a system-level match. Always verify the certificate number by logging into TRACES as a deductee.

Part B — The Employer's Salary Computation

Part B is prepared by the employer directly (not generated by TRACES) and contains the detailed income and tax arithmetic:

• Gross salary components: basic pay, HRA, LTA, special allowance, perquisites
• Exempt allowances under Section 10 (HRA under Section 10(13A), LTA under Section 10(5), etc.)
• Standard deduction of Rs. 75,000 for FY 2025-26
• Deductions under Chapter VI-A: Sections 80C, 80D, 80G and others (only under the old tax regime)
• Net taxable income, tax computed under the chosen regime, surcharge if applicable, and health and education cess at 4%

If the employee has opted for the new tax regime (the default from FY 2023-24 onwards), Part B will show a simpler computation with only the standard deduction applied — no Chapter VI-A deductions.

Due Date, Password and Verification

For FY 2025-26, Form 16 must be issued on or before 15 June 2026. This deadline falls squarely in the ITR filing season, so if you have not received Form 16 from your employer by that date, follow up immediately — the employer faces a penalty of Rs. 100 per day under Section 272A(2)(g) for every day of delay beyond that date.

The PDF password for Form 16 downloaded from TRACES is typically:

`` PAN in uppercase + date of birth in DDMMYYYY format ``

Example: PAN ABCDE1234F, date of birth 15 August 1988 → password ABCDE1234F15081988. Always confirm the exact format displayed on the TRACES download screen, as CBDT notifications can update password conventions.

The same rules and procedures apply for FY 2026-27 (AY 2027-28); Form 16 for FY 2026-27 will be due by 15 June 2027.

Form 16A — Non-Salary TDS Certificate

Any deductor making a payment to a resident on which TDS is deducted under the 194-series sections — other than salary and property purchases — must issue Form 16A. Common payment types that generate a Form 16A include:

• Section 194A: Interest from banks, non-banking financial companies (NBFCs), and co-operative societies
• Section 194C: Payments to contractors and sub-contractors
• Section 194H: Commission or brokerage to agents and brokers
• Section 194I: Rent from land, buildings, plant or machinery
• Section 194J: Professional fees, technical service fees, royalties, and directors' remuneration
• Section 194Q: Purchases from a resident seller exceeding Rs. 50 lakh in a financial year (TDS by the buyer)

Form 16A is generated entirely from TRACES after the deductor files Form 26Q (the quarterly TDS return for non-salary payments to residents). It cannot be issued until the return is filed, processed and updated on TRACES.

Quarterly Due Dates for Form 16A — FY 2025-26

Form 16A must be issued within 15 days from the due date of the corresponding Form 26Q filing, not from the actual filing date.

Penalty for Late Issuance — Illustrated

Section 272A(2)(g) imposes a penalty of Rs. 100 per day for each day a TDS certificate is not issued after it was due. The penalty is capped at the TDS amount for which the certificate was required.

Practical illustration: A trading company deducted Rs. 25,000 TDS from a transport contractor under Section 194C in Q1 (FY 2025-26). The Q1 Form 16A was due by 15 August 2025. The company issued it 45 days late on 29 September 2025.

Penalty calculation: Rs. 100 × 45 days = Rs. 4,500 — capped at Rs. 25,000, so the full Rs. 4,500 is payable with no reduction.

An important upstream risk: if the deductor filed Form 26Q late, they first face a Section 234E late filing fee of Rs. 200 per day (capped at the TDS amount). That delay also pushes back certificate availability on TRACES, effectively extending the late-issuance exposure too.

Form 16B — TDS on Immovable Property Purchases

When you purchase immovable property — residential or commercial flat, plot, or any land or building — for a consideration exceeding Rs. 50 lakh, Section 194-IA requires you, as the buyer, to:

1. Deduct TDS at 1% of the total consideration (including any amounts separately charged for parking, fittings or club membership linked to the transaction)
2. File Form 26QB (challan-cum-statement) on the income tax portal within 30 days from the end of the month in which TDS was deducted
3. Download Form 16B from TRACES and issue it to the seller within 15 days from the due date for filing Form 26QB

Form 16B is typically available for download approximately 10–15 days after TRACES processes the Form 26QB filing.

Worked Example: Rs. 85 Lakh Flat in Pune

Sunita buys a flat in Pune for Rs. 85,00,000 in November 2025.

Sunita pays Rs. 84,15,000 to the seller and remits Rs. 85,000 to the government via Form 26QB (Minor Head 800, Major Head 0020). The seller's Form 26AS and AIS will then reflect Rs. 85,000 as TDS credit, which the seller claims when filing their ITR for AY 2026-27.

Practical note: If the property is jointly purchased, each buyer must file a separate Form 26QB for their proportionate share of the consideration. For instance, two co-buyers splitting an Rs. 85 lakh purchase 50:50 must each file a Form 26QB for Rs. 42.5 lakh and deduct TDS at 1% (Rs. 42,500 each) — and each issues a separate Form 16B to the seller.

Form 16C — TDS on Rent Paid by Individuals

An individual or HUF that is not liable to tax audit, but pays monthly rent exceeding Rs. 50,000 to a resident landlord, must deduct TDS under Section 194-IB at the applicable rate. The deduction happens once — in the last month of the financial year (March), or in the last month of the tenancy if the tenant vacates before year-end.

The tenant files Form 26QC (challan-cum-statement) and subsequently downloads Form 16C from TRACES to hand to the landlord. Landlords receiving a large rent must verify that Form 16C appears in their AIS before ITR filing; its absence causes a 143(1) mismatch demand from CPC even if the tenant paid the tax.

How to Download TDS Certificates from TRACES — Step by Step

TRACES (TDS Reconciliation Analysis and Correction Enabling System), accessible at tdscpc.gov.in, is the only authorised source for all four certificate types.

As a Deductor — Issuing Form 16 / 16A / 16B

1. Go to tdscpc.gov.in → click Login → select Deductor.
2. Enter your TAN, PAN, password and captcha.
3. Navigate to Downloads → Form 16 / 16A / 16B / 16C as applicable.
4. For Form 16A: Select the financial year, quarter and the deductee's PAN. For bulk issuance to many vendors, use the Bulk PAN Download option; this generates a single ZIP file containing individual PDFs for each deductee.
5. For Form 16B: Select the financial year and the Form 26QB acknowledgement number. The certificate appears under the download queue once TRACES has processed the filing.
6. Once request status changes to Available, download the ZIP. Individual PDFs open with the password shown on the TRACES download confirmation screen (usually the date of birth of the authorised signatory in DDMMYYYY format for Form 16B — always check the TRACES instruction displayed on that screen).
7. Before issuing Form 16 to employees, ensure Part A carries the TRACES certificate number and watermark. Merge Part A (from TRACES) with Part B (prepared by HR/payroll) into a single PDF. A DSC (Digital Signature Certificate) is not mandatory on Part A since TRACES already issues it with a system-generated digital signature.

As a Deductee — Verifying Your Own Credits

1. Go to tdscpc.gov.in → click Login → select Tax Payer.
2. Enter your PAN, date of birth, password and mobile OTP for authentication.
3. Navigate to View 26AS/Annual Tax Credit Statement — this redirects to the income tax portal (incometax.gov.in) where Form 26AS is now hosted under the e-Filing section.
4. Check every TDS entry: deductor name, TAN, amount deducted, amount deposited, and whether the deposit is marked as "Book Entry" or against a valid BSR code challan.
5. Separately visit incometax.gov.in → AIS/TIS for the Annual Information Statement, which provides a broader view including interest income from multiple banks, dividend credits, SFT-reported transactions, and GST turnover.

Reconciling Certificates Against Form 26AS and AIS

Reconciliation before filing your ITR is where most of the real CA work happens, and where most self-filers skip corners they will later regret.

The three-way match you must complete:

1. TDS certificate (Form 16 / 16A / 16B) issued by the deductor
2. Form 26AS on the income tax portal — populated from deductor's TDS returns
3. AIS — a broader statement that also picks up the TDS entries

Check for:

• Does the TDS amount on each certificate match Form 26AS to the rupee?
• Is your PAN recorded correctly in the certificate and in 26AS? A PAN error diverts your credit to a stranger's account.
• Does the assessment year on the certificate match what you are filing? For FY 2025-26, the AY is 2026-27. Selecting AY 2025-26 on the TRACES download screen produces a certificate for the wrong year.
• Are all quarters represented? A missing Q3 certificate often means the deductor filed the Q3 Form 26Q late and the data has not yet flowed to TRACES.

When there is a mismatch:

Contact the deductor and ask them to file a correction statement (prepared using the RPU / FVU utility and submitted via TRACES → Defaults → Request for Correction). Once TRACES processes and accepts the correction statement, Form 26AS updates — typically within 3–7 working days. Only then should you file your ITR.

Do not file your ITR against a mismatch. CPC's Section 143(1) processing will automatically disallow any TDS credit not reflected in Form 26AS at the time of processing, generating a tax demand even if the deductor genuinely deducted and deposited the tax.

Worked Example: Two Form 16s After a Mid-Year Job Change

Rajan worked at Company A from April 2025 to September 2025, then moved to Company B from October 2025 to March 2026 — the full FY 2025-26. He did not inform Company B of his prior income from Company A.

Company B projected Rajan's annual salary at Rs. 15,60,000 (Rs. 7,80,000 × 2) and computed TDS solely on that. It had no knowledge of the Rs. 5,40,000 received from Company A.

Rajan's actual tax computation for AY 2026-27 — new tax regime, FY 2025-26:

Because advance tax was not paid by 15 March 2026 (the final installment deadline), Rajan also faces interest under Section 234B at 1% per month from April 2026 until the date of ITR filing — approximately Rs. 194 per month on the Rs. 19,420 shortfall. Avoidable entirely had he disclosed Company A's income to Company B's HR at joining.

What Rajan should do now: Collect both Form 16s. Aggregate the salary figures manually in Schedule Salary of the ITR. Verify that both employers' TDS credits appear in Form 26AS. Pay self-assessment tax and interest via Challan 280 before filing. Do not rely solely on the pre-filled ITR, which picks up TDS credits but may not correctly populate the gross salary from Company A if Company A's Form 24Q filing had any discrepancy.

Common Mistakes and Pitfalls to Avoid

1. Accepting a manually typed Form 16 Part A Some smaller employers issue a Part A drafted in Word or Excel. This is non-compliant. Insist on the TRACES-generated PDF with a certificate number. During scrutiny or refund processing, the Assessing Officer and CPC both validate against TRACES data — a self-prepared Part A will not pass that check.

2. Filing the ITR before Q4 TDS data flows to Form 26AS Form 26Q for Q4 (January–March) is due 31 May. TRACES takes a few days to process it. If you file your ITR in the first week of June before this data has updated, your pre-fill will be incomplete. Check Form 26AS on or after 10 June before finalising the return.

3. Omitting Form 16A from banks and NBFCs Fixed deposit interest is the most commonly missed TDS item. Banks issue Form 16A quarterly for TDS under Section 194A. These certificates often surface in AIS but may be overlooked when building the ITR. Cross-check every Form 16A against Schedule TDS-2 (for non-salary TDS) in the ITR form.

4. Filing Form 26QB on the wrong PAN or wrong consideration A buyer who mistypes the seller's PAN or enters only the registered sale price (excluding parking charges or furniture that is contractually part of the deal) creates a mismatch that requires a formal correction on the TIN portal. Corrections take 2–3 weeks to reflect and can delay the seller's ITR filing.

5. Trying to download Form 16B immediately after Form 26QB filing Form 16B is not available instantly. TRACES needs 10–15 days to process the Form 26QB data. Attempting an earlier download will return a "No Records Found" error. Plan the timeline — if you file Form 26QB on 28 November, the earliest realistic download date is around 10–13 December.

6. Confusing the financial year with the assessment year on the TRACES screen FY 2025-26 = AY 2026-27. On the TRACES certificate download screen, the dropdown asks for the assessment year. Selecting AY 2025-26 will pull certificates from a prior year. This error is surprisingly common during the first few days of a new filing season.

7. Not following up on TDS from job-change employers Many employees leave a job mid-year and assume they will get Form 16 at the year-end. Employers are not always diligent about issuing Form 16 for a partial-year employee once that person has left. Follow up explicitly before the 15 June 2026 deadline. If the employer refuses or is unresponsive, you can still compute your tax using the salary slips and cross-check against Form 26AS — but the burden falls on you to reconcile any discrepancy.

Key Takeaways

• Form 16 (salary TDS) must be issued by 15 June 2026 for FY 2025-26. Always insist on a TRACES-generated Part A carrying a unique certificate number — a self-typed Part A has no legal validity.
• Form 16A (non-salary TDS) is issued quarterly. The Q4 FY 2025-26 deadline is also 15 June 2026. Deductors who miss any quarterly deadline face Rs. 100 per day in penalties under Section 272A(2)(g), capped at the TDS deducted.
• Form 16B (property purchase TDS at 1% under Section 194-IA) is generated by the buyer via Form 26QB. Allow 10–15 days after filing before attempting the TRACES download; issue to the seller within 15 days of the Form 26QB due date.
• Reconcile all certificates against Form 26AS and AIS before filing the ITR. Any mismatch requires a deductor correction statement — do not file with an unresolved discrepancy.
• Employees who change jobs mid-year must aggregate both Form 16s and recompute total tax. Undisclosed prior-employer income routinely results in under-deduction and a self-assessment tax demand plus Section 234B interest at ITR time.
• The income tax portal (incometax.gov.in) hosts Form 26AS and AIS; the TRACES portal (tdscpc.gov.in) is where certificates are downloaded. Know which portal does what before your client calls in a panic.
• All four certificates — Form 16, 16A, 16B and 16C — apply identically for FY 2026-27 (AY 2027-28); the portal procedures and legal framework are unchanged for the current year.