Form 16 is issued by the company, it contains details such as; salary earned by the employee and the amount of tax deducted. In other words, Form 16 can be defined as a detailed written document wherein a company provides complete information of its each employees salary along with all the legal tax deductions on his/her CTC. It is mandatory for the taxpayer (employee) to submit Form 16 in order to file the Income Tax returns every financial year. This form acts as the proof of his/her income and tax paid to the government.