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Zoho Payroll

Form 16

Form 16 in Zoho Payroll is the annual TDS certificate issued to employees by the employer, certifying salary income and tax deducted at source for the financial year, required for income tax filing.

Form 16 is the annual TDS certificate issued by employers to salaried employees under Section 203 of the Income Tax Act. It has two parts: Part A (TRACES-generated) certifying TDS deducted and deposited quarter by quarter, and Part B (employer-generated) detailing the full salary breakup, exempt allowances, deductions claimed, and net taxable income. Zoho Payroll generates Form 16 Part B for all employees after the financial year closes.

Form 16 Part A vs Part B

Part A is downloaded from TRACES and certifies TDS deposited by the employer with the government. It cannot be generated from Zoho Payroll directly but is linked to Form 24Q data that Zoho Payroll helps prepare. Part B is the detailed salary certificate generated from Zoho Payroll’s records: it shows all earnings, exemptions (HRA, LTA, etc.), deductions (80C, 80D, PT), and the final taxable income and tax computed.

Generating Form 16 in Zoho Payroll

After the financial year ends (after March 31), navigate to Tax Filings > Form 16 in Zoho Payroll. The system aggregates full-year salary data, exemptions, deductions, and TDS for each employee and generates Form 16 Part B PDFs. Employers must distribute Form 16 to all employees by June 15 of the following financial year.

Form 16 and Employee ITR Filing

Form 16 is the primary document employees use to file their Income Tax Return. Part B provides all figures needed: gross salary, HRA exemption, standard deduction, Chapter VI-A deductions, net taxable income, and total TDS. Zoho Payroll’s accurate payroll processing throughout the year ensures Form 16 data is correct and matches the TDS deposited.

Example: An employee’s annual gross salary is Rs 9.6 lakh. After HRA exemption Rs 84,000, standard deduction Rs 50,000, and 80C deduction Rs 1.5 lakh, taxable income = Rs 7.16 lakh. Total TDS = Rs 68,000 deducted across 12 months. Zoho Payroll generates Part B with all these figures; the employer downloads Part A from TRACES and combines both for Form 16.
What is Form 16 in Zoho Payroll?

Form 16 is the annual TDS certificate issued to employees by the employer. Part A (from TRACES) certifies TDS deposited, and Part B (generated by Zoho Payroll) details salary breakup, exemptions, deductions, and taxable income. Zoho Payroll generates Part B for all employees after the financial year closes.

By when must Form 16 be issued to employees from Zoho Payroll?

Employers must issue Form 16 to employees by June 15 following the end of the financial year (e.g., June 15, 2025 for FY 2024-25). Zoho Payroll generates Part B in bulk, which is then combined with TRACES-generated Part A and distributed to employees as a combined PDF.

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