Form 16 is essentially a certificate employers issue to their employees. In simple words, it is an acknowledgment which states your deducted tax has been deposited with the income tax department. It provides a validation that TDS has been deducted and deposited with the government authorities on behalf of the employee. It gives a detailed summary of the salary paid to the employee and the TDS deducted. Any person responsible for paying salary is required to deduct tax at source on the amount payable and issue Form 16 to the employees at the end of each financial year.