Form 16 looks intimidating the first time you open it, but it's really just your employer's summary of what they paid you and what they deducted, split into two parts.
Part A shows a summary of TDS deducted and deposited with the government each quarter, along with your employer's TAN and your PAN — this is essentially proof that tax was actually paid on your behalf, not just deducted from your salary.
Part B is the detailed breakup: your gross salary, exemptions claimed (like HRA), deductions under Chapter VI-A (80C, 80D, and so on), and the final tax computation that determined how much TDS was deducted each month. This is the section you'll actually use to fill out your ITR, since it lays out exactly how your taxable income was arrived at.
It's worth cross-checking Form 16 against Form 26AS (or the newer AIS) before filing your return, since discrepancies between what your employer reported and what actually reached the tax department, while rare, can cause processing delays if not caught early.
Frequently asked questions
What is a salary calculator with old vs new regime comparison?
It takes your gross annual salary and computes your income tax liability under both the old and new tax regimes side by side, factoring in standard deduction, applicable slabs, cess, and rebates, so you can see which regime results in lower tax for your specific numbers.
What is the key difference between the old and new tax regimes?
The old regime has fewer, wider slabs but allows numerous deductions and exemptions like 80C, HRA, and home loan interest, while the new regime offers lower slab rates and a larger tax-free threshold but removes almost all deductions except the standard deduction.
Which regime is the default now?
The new tax regime is the default option for all taxpayers; if you want to be taxed under the old regime with its deductions, you must explicitly opt for it, either when filing your return or by informing your employer for TDS purposes.