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Form 16 Generation Software for Indian SMEs

Build Form 16 Part B for your whole team from inside Offrd. Record monthly TDS, capture each person's regime and Chapter VI-A declarations, then combine Part A from TRACES with the Part B that Offrd generates. One dashboard, one financial year at a time.

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What Does the Form 16 Dashboard Do?

Form 16 sits under Payroll, as Employee Tax. The dashboard lists every employee for a financial year and shows where each one stands: PAN added, TDS recorded, declaration captured, and document status. You work down the list or act on the whole team in one go.

A status view per employee

Each row shows PAN, TDS recorded, declaration state and a draft status, with per-person actions to upload Part A, generate Part B, combine the two, and view the result. You can see at a glance who is ready and who is not.

Monthly TDS entry

Open a TDS screen for the year. Months that already have a payslip in Offrd are pre-filled. For months without one, type the gross salary and TDS, or use Fill all months to apply a single figure across the year and tidy up the rest.

Regime and declarations

Pick New Regime or Old Regime for each person, then record HRA, LTA and Chapter VI-A items. The form greys out anything the chosen regime does not allow, so you are not entering numbers that will be dropped later.

Bulk actions when you need them

Bulk Generate Part B runs across the whole list. Bulk Combine merges Part A and Part B for everyone marked ready. For a small team that is two clicks rather than one employee at a time.

Part A from TRACES, Part B from Offrd

Form 16 has two halves. Part A is the TDS certificate issued through TRACES once your quarterly returns are processed. Part B carries the salary breakup and tax computation. Offrd generates Part B and lets you upload Part A against each employee, then combines both into one file.

So the split is clear. You file returns and pull Part A from TRACES as usual. Offrd does the Part B work and the assembly, so the final document an employee receives has both parts together.

When Is Form 16 Due, and What Is the Penalty?

A little context helps before you start. These are the rules every Indian employer works within, regardless of which tool prepares the certificate.

The deadline and the penalty

Form 16 for FY 2025-26 must reach every employee whose salary had TDS deducted by 15 June 2026. The rule sits under Rule 31 of the Income Tax Rules. Miss it and the employer faces a penalty under Section 272A(2)(g), charged per day per certificate until the certificate is issued, with the total capped at the TDS amount for that employee. The Finance Act 2022 raised the daily figure to Rs 500 from the older Rs 100, so check the current rate with your CA rather than an old blog.

If no TDS was deducted from an employee's pay, the law does not compel a Form 16 for that person, though many employers issue one anyway.

Why Part A waits on your Q4 return

Part A is the TDS certificate the government generates, and it only becomes available on TRACES once your fourth-quarter Form 24Q return is filed and processed. An employer cannot prepare Part A by hand. That is the gating step in the calendar: returns first, then Part A download, then assembly. Part B, the salary breakup and tax computation, is the employer's to prepare, and that is the half Offrd builds for you.

Knowing the order saves a scramble in June. Get the Q4 return in, pull Part A, and the combine step is the short part.

Why Use Form 16 Software Instead of a Spreadsheet?

Form 16 season is short and the inputs are scattered: payslips here, TDS figures there, a regime choice and a stack of investment proofs per person. The dashboard pulls those into one place for an SME with a handful of employees.

How Do You Generate Form 16 in Offrd?

Five steps from a fresh dashboard to a combined Form 16. Most of the work is one-time setup plus the TDS and declaration entry; generation itself is quick.

1

Set company TAN and PAN

Add your TAN and PAN in Company Settings. Without them the Form 16 PDF prints Not Available against those fields, which is why the dashboard prompts for it up front.

2

Record monthly TDS

Open the TDS screen for the financial year. Payslip months come pre-filled. Enter gross salary and TDS for any month without a payslip, or apply one figure to every month with Fill all months and adjust the odd one.

3

Capture regime and declarations

Choose New Regime or Old Regime. Record HRA and LTA where the regime permits, then the Chapter VI-A items such as 80C, 80D and 80CCD(2). Disallowed fields grey out so the entry stays honest to the regime.

4

Save, lock and generate Part B

Save and lock the declaration. Locking is required before Part B generates. Generate for one employee, or use Bulk Generate Part B to run the whole list at once.

5

Upload Part A and combine

Upload each employee's Part A from TRACES, then Combine to merge it with Part B into one file. Bulk Combine does every ready employee in a single action.

Which Tax Regime and Deductions Does It Cover?

The declaration screen follows the regime you pick. Under the new regime it keeps the standard deduction and 80CCD(2) and greys out the rest. Under the old regime the full set of exemptions and Chapter VI-A items opens up. The table below lists the heads the dashboard captures.

Declaration head Section What it covers
House Rent Allowance10(13A)Monthly rent, city type, landlord name and PAN. Old regime only.
Leave Travel Allowance10(5)Actual travel expenses incurred. Old regime only.
Life insurance, PPF, ELSS, EPF, home loan principal80CCommon tax-saving investments and payments.
Pension fund contribution80CCCSits within the combined 80C limit.
Employee NPS, additional80CCD(1B)Over and above the 80C limit.
Employer NPS contribution80CCD(2)Allowed under the new regime as well as the old.
Medical insurance premium80DSelf, family and parents.
Disabled dependent maintenance80DDHigher limit for severe disability.
Specified disease treatment80DDBHigher limit for senior citizens.
Education loan interest80EActual interest paid, no upper limit.
Donations80GEligible post-relief amount.
Savings account interest80TTAInterest on savings deposits.

The limits and rules shown on the declaration screen follow current income tax provisions. Confirm the right figures for each employee with your CA or tax advisor before locking, since individual circumstances vary.

Who Is the Form 16 Dashboard For?

Small and growing Indian companies that run payroll in Offrd and need to hand employees a Form 16 at year end without juggling spreadsheets. It suits a team where one person handles HR and payroll, often alongside finance, and where the certificate count runs to a few dozen rather than thousands.

If you already have a CA filing your TDS returns, this fits neatly. They file and supply Part A from TRACES; you assemble the rest here.

HR and payroll teams Founders Finance and accounts Companies under 250 staff

Related on Offrd

Form 16 builds on the payroll data you already keep in Offrd. These pages cover the parts that feed into it.

Offrd assembles Form 16 inside the platform. It does not file TDS returns or issue Part A. Part A comes from the TRACES portal after your quarterly returns are processed, and you upload it here to combine with Part B. Tax computation should be checked against current rules with your CA or tax advisor.

Form 16 Questions

Does Offrd file Form 16 with the income tax department?
No. Offrd helps you build and assemble Form 16 inside the platform. Part A still comes from the TRACES portal after your TDS returns are filed. You download Part A from TRACES and upload it into Offrd to combine with the Part B that Offrd generates.
Where does Part A come from?
Part A is the TDS certificate issued through TRACES once quarterly returns are processed. You upload that file against each employee in the dashboard. Offrd then combines it with Part B so the final document carries both halves.
Can I generate Form 16 for the whole team at once?
Yes. The dashboard has Bulk Generate Part B across all employees, and a Bulk Combine action for everyone whose Part A is already uploaded. You can still work on one employee at a time when only a few need attention.
Why does the PDF show Not Available for TAN or PAN?
Those fields read from Company Settings. If the company TAN or PAN is missing, the dashboard shows a setup banner and the Form 16 PDF prints Not Available until you add them. Fill both in settings and regenerate.
Does it handle both the new and old tax regimes?
The declaration screen lets you pick New Regime or Old Regime per employee. Under the new regime it allows the standard deduction and 80CCD(2), and greys out HRA, LTA and the other Chapter VI-A items that the regime does not permit.
Do I have to enter TDS month by month?
Months that already have a payslip in Offrd come pre-filled. For months without one, enter gross salary and TDS yourself, or use Fill all months to apply a single figure across every month and adjust the odd one after.

Get Your Team's Form 16 Ready

Run payroll in Offrd through the year and the Form 16 inputs are mostly there already. Start free and see the dashboard before the next filing season.

Start free on Offrd Book a short demo

50 free credits on signup. Pay per document at Rs 99, or Rs 50 per active employee per month.