Form 16 is a certificate issued by employers to their employees, providing details of the salary paid and the tax deducted at source (TDS) under Section 192 of the Income Tax Act, 1961. It serves as proof of TDS deduction and is essential for employees while filing their income tax returns. Form 16 contains information such as gross salary, exemptions, deductions claimed under Chapter VI-A, TDS deducted, and deposited with the government. Employers are required to issue Form 16 annually, usually by June 15th following the financial year. Proper issuance ensures transparency, compliance with tax laws, and facilitates accurate filing of income tax returns by employees. Errors in Form 16 or delayed issuance can result in tax complications, penalties, and difficulties in claim of deductions. Professional assistance is often recommended for preparation, reconciliation of TDS, and correct issuance to employees. Timely and accurate Form 16 issuance strengthens corporate governance, ensures statutory compliance, and aids employees in fulfilling their tax obligations efficiently.