Form 16 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 25, 2026

Form 16 Income Tax Rules 2026 pdf download and Key points

FORM NO. 16
[See rule 31(1)(b)]
Certificate of donation under section 45(4)(a) made to the research association, university, college or other institution or company

Under the new Income-tax Rules, 2026, it is important to first clarify a major change in terminology: The old Form 16 (used for Salary TDS under the 1961 Act) has been replaced by Form No. 130.

Under the new 2026 framework, Form No. 16 is now a completely new form designated as the Annual Certificate to Donors for Scientific Research. It is governed by Section 45(4)(a) read with Section 45(3) of the Income-tax Act, 2025.

Here are all the key points regarding the new Form 16:

1. Purpose of the Form Form 16 is a statutory annual certificate issued to donors who contribute sums for scientific research. It serves as documentary support that facilitates the verification of tax deductions claimed by the donor under Section 45 of the new Act.

2. Who Issues and Receives It

Issued By: It is issued by the prescribed undertaking or institution (such as a research association, university, college, approved Indian R&D company, or National Laboratory) that receives the eligible sums for scientific research.
Received By: It is issued directly to the donor who made the contribution.

3. Nature of the Certificate

Annual, Not Transactional: Form 16 is an annual certificate that aggregates all donations received from a specific donor during the tax year. It is not a transaction-wise receipt and does not acknowledge individual donations separately.
While an institution can still issue separate commercial receipts or acknowledgments at the time of the donation, those are distinct from this statutory annual certificate.

4. Frequency and Due Date

It must be issued once for each tax year.
The due date for issuing Form 16 is on or before 31st May immediately following the end of the relevant tax year.

5. Linkage with Form 15 Form 16 is intrinsically linked to Form 15 (the annual statement of donations furnished by the institution to the Income-tax Department). Form 16 is systematically generated based on the data the institution reports in Form 15, ensuring consistency between the donor’s certificate and the department’s records.

6. Structure and Contents The system-generated electronic certificate contains the following details:

Name and approval details of the prescribed institution receiving the funds.
The donor’s name, address, and Permanent Account Number (PAN).
The aggregate amount of the donation received during the tax year.
The specific tax year to which the donation relates.
The relevant clause of section 45(3) under which the donation falls.

7. Specific Applicability (Not for General Charities) Form 16 applies only to donations for scientific research under section 45. It does not apply to general charitable donations, which are governed by an entirely separate reporting and certificate framework (such as Form 114).

8. Legal Implications and Corrections

No Automatic Deduction: Simply possessing Form 16 does not guarantee the donor a tax deduction. It is a certification requirement; the actual deduction remains subject to the donor fulfilling the conditions under section 45 and verification by the Income-tax Department.
Corrections: If any error or omission is identified in the certificate, the institution is permitted to issue a corrected or revised Form 16.

1. What is FORM 16?
Ans: FORM 16 is a prescribed annual certificate to be issued by a prescribed undertaking or institution referred to in section 45(3) of the Income-tax Act, 2025, certifying the sums received from a donor during a tax year for scientific research.
2. Which provision mandates issuance of FORM 16?
Ans: FORM 16 is mandated under section 45(4)(a) of the Income-tax Act, 2025.
3. Who is required to issue FORM 16?
Ans: Every prescribed undertaking or institution referred to in section 45(3) which
receives eligible sums for scientific research is required to issue FORM 16.
4. To whom is FORM 16 issued?
Ans: FORM 16 is issued to the donor who has paid the sum eligible for deduction under section 45.
5. What is the nature of FORM 16?
Ans: FORM 16 is an annual certificate.It is not a transaction-wise receipt and does not acknowledge individual donations separately.
6. Is FORM 16 issued every time a donation is received?
Ans: No. FORM 16 is issued once in respect of a tax year, certifying the total sums received from the donor during that year, similar to Form 10BE under the Income-tax Rules, 1962.
7. What is the due date for issuing FORM 16?
Ans: FORM 16 is required to be issued on or before 31st May immediately following the end of the relevant tax year.
8. What details are required to be contained in FORM 16?
Ans: FORM 16 contains, inter alia:
 name and approval details of the prescribed institution;
 donor’s name, address and PAN;
 aggregate amount of donation received during the tax year;
 tax year to which the donation relates; and
 the relevant clause of section 45(3) .
9. What is the relationship between FORM 15 and FORM 16?
Ans:  FORM 15 is an annual statement furnished by the institution to the Incometax Department.
 FORM 16 is an annual certificate issued by the institution to the donor.
FORM 16 is generated on the basis of information furnished in FORM 15.
10. Is FORM 16 applicable to donations to charitable institutions?
Ans: No. FORM 16 applies only to donations for scientific research under section 45. Donations to charitable institutions are governed by a separate certificate framework [Form 114].
11. Can an institution issue a receipt at the time of donation?
Ans: Yes. An institution may issue a separate commercial receipt or acknowledgement at the time of donation. However, such receipt is distinct from FORM 16, which is a statutory annual certificate.
12. Can FORM 16 be corrected or revised?
Ans: Yes. Where any error or omission is noticed, a corrected FORM 16 may be issued.
13. Does issuance of FORM 16 guarantee deduction to the donor?
Ans: No. FORM 16 is a certification requirement. Deduction is subject to fulfilment of conditions under section 45 and verification by the Income-tax Department.
14. Is FORM 16 required to be issued electronically?
Ans: Yes. FORM 16 is envisaged as a system-generated electronic certificate.

Form 16 Income Tax Rules 2026 pdf download and Key points

Form 16 Income Tax Rules 2026 pdf download and Key points

Form 16 Income Tax Rules 2026 pdf download

Form No.16– Frequently Asked Questions

Guidance Note on Form 16