Form 16 Summary Tool — Recompute Tax and Find Your Refund
Form 16 is the certificate your employer issues by 15 June showing salary paid and tax deducted. Part A (from TRACES) lists TDS deposited quarter by quarter; Part B shows the tax computation. Errors are common — a missed deduction, the wrong regime, or a second employer's salary not considered. This tool lets you enter the Part B figures line by line, recomputes the tax independently, and compares it with the TDS actually deposited so you know whether to expect a refund or pay self-assessment tax before filing.
How the computation flows
- Gross salary = salary u/s 17(1) + perquisites u/s 17(2) + profits in lieu u/s 17(3)
- Less exemptions u/s 10 (HRA, LTA, gratuity, leave encashment) — old regime only
- Less standard deduction u/s 16(ia): ₹75,000 (new) / ₹50,000 (old); entertainment allowance and professional tax u/s 16(ii)/(iii) — old regime only
- Add income or loss from house property and other income reported to the employer
- Less Chapter VI-A deductions (80C, 80D, 80CCD(1B), 80TTA etc. in the old regime; 80CCD(2) in both)
- Tax on total income at slab rates, less rebate u/s 87A, plus surcharge and 4% cess, less relief u/s 89
- Compare with TDS in Part A → refund or balance payable
Worked example
Salary u/s 17(1) ₹12,60,000, new regime, FY 2025-26, no other income. Taxable income = 12,60,000 − 75,000 = ₹11,85,000. Slab tax = 20,000 (5% on ₹4–8 lakh) + 38,500 (10% on ₹8–11.85 lakh) = ₹58,500. Income is within ₹12 lakh, so rebate u/s 87A = ₹58,500 and tax is nil. If the employer deducted ₹55,000 TDS using old-regime slabs by mistake, the entire ₹55,000 is refundable when you file.
Before you file
- Match Part A TDS with Form 26AS and AIS — only deposited TDS gives credit.
- If you changed jobs, combine both Form 16s but take the standard deduction only once.
- Deductions not declared to the employer (80D, 80G, 80TTA) can still be claimed in the ITR.
- Any balance tax should be paid as self-assessment tax (Challan 280, code 300) with interest u/s 234B/234C where applicable.
Frequently Asked Questions
What is the difference between Form 16 Part A and Part B?
Part A is downloaded from TRACES and certifies the TDS deducted and deposited with challan details. Part B is the employer's annexure showing the detailed salary break-up, exemptions, deductions and tax computation.
My Form 16 shows tax under the old regime but I want the new regime. Can I change?
Yes. Salaried taxpayers without business income can choose either regime while filing the return regardless of what the employer applied. Excess TDS is refunded.
Why does my refund differ from the Form 16 figure?
Common reasons: other income (interest, capital gains) not reported to the employer, deductions claimed directly in the ITR, TDS from other deductors, or a mismatch between Part A and Form 26AS.
Do I need Form 16 to file my return?
Not mandatory. You can file using salary slips, Form 26AS and AIS, but Form 16 makes it easier because it gives the exact figures of exemptions and deductions considered by the employer.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.