Understanding TDS, Form 16 and Form 26AS/AIS
These are the documents that track tax already deducted on your income. Here’s what each one means at filing time.
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At tax-filing time you’ll encounter TDS, Form 16 and Form 26AS/AIS. Understanding them makes filing far smoother and helps you claim every rupee of tax already paid on your behalf. General education, not tax advice.
TDS — tax deducted at source
TDS is tax deducted before income reaches you — by your employer on salary, by banks on FD interest, by companies on dividends, etc. It’s not an extra tax; it’s a prepayment adjusted against your final liability. If excess TDS was deducted, you get a refund.
Form 16 — your salary TDS certificate
Form 16 is issued by your employer, summarising your salary, deductions claimed and the TDS deducted and deposited. It’s the primary document for salaried people filing their ITR.
Form 26AS and AIS — your tax passbook
Form 26AS / AIS (Annual Information Statement) is the tax department’s consolidated record of:
- All TDS deducted against your PAN,
- Advance/self-assessment tax paid,
- High-value transactions, interest, dividends, securities trades and more.
The AIS is especially important now — the department pre-populates and cross-checks your return against it, so omissions get flagged.
How to use them at filing
- Cross-check Form 16 and your income against the AIS/26AS before filing.
- Claim all TDS credits so you aren’t taxed twice and get any refund due.
- Report income the AIS shows (interest, dividends, gains) even if small.
- Fix mismatches — a wrong entry in AIS can be flagged for correction.
Reconciling these three avoids notices and missed refunds. Consult a professional for complex cases. Education only, not tax advice.
