Form 16 is a certificate issued by an employer to employees, detailing the income earned and the tax deducted at source (TDS) from salaries. It is crucial for tax filing, as it provides a summary of the taxable income, deductions, and the total TDS deducted during the financial year. Form 16 is issued annually and includes details such as the employee’s PAN, employer’s TAN, and the period of employment. This form helps employees accurately file their income tax returns by providing the necessary information to calculate their tax liability and claim any refunds. It is essential for ensuring tax compliance and accuracy.