Form 16 under the Income-tax Act, 2025 is a statutory annual certificate issued by prescribed institutions or undertakings to donors for contributions made towards scientific research under Section 45. It certifies the aggregate amount of donations received from a donor during a tax year and must be issued on or before 31 May following the end of the relevant year. The form is generated based on information furnished in Form 15 and serves as documentary support for deduction claims, though it does not guarantee allowance of deduction, which remains subject to statutory conditions and verification. Form 16 is not a transaction-wise receipt but a consolidated annual certificate, and institutions may issue separate receipts at the time of donation. It must be issued electronically and can be revised in case of errors. The form enhances transparency, enables verification, and supports system-driven compliance for scientific research donations.
Income Tax Department
Ministry of Finance, Government of India
FAQ’s pertaining to Income Tax Form 16: Certificate of donation under section 45(4)(a) made to the research association, university, college or other institution or company
FORM 16 – Annual Certificate to Donors for Scientific Research (Section 45(4)(a) read with section 45(3) of the Income-tax Act, 2025)
Q1. 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.
Q2. Which provision mandates issuance of FORM 16?
Ans FORM 16 is mandated under section 45(4)(a) of the Income-tax Act, 2025.
Q3. 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.
Q4. 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.
Q5. 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.
Q6. 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.
Q7. 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.
Q8. 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) .
Q9. What is the relationship between FORM 15 and FORM 16?
- FORM 15 is an annual statement furnished by the institution to the Income-tax 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.
Q10. 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].
Q11. Can an institution issue a receipt at the time of donation?
AnsYes.
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.
Q12. Can FORM 16 be corrected or revised?
AnsYes.
Where any error or omission is noticed, a corrected FORM 16 may be issued.
Q13. 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.
Q14. Is FORM 16 required to be issued electronically?
Ans Yes.
FORM 16 is envisaged as a system-generated electronic certificate.
Guidance Note on Form 16 – Annual Certificate to Donors for Scientific Research
(Section 45(4)(a) read with section 45(3) of the Income-tax Act, 2025)
1. Purpose of Form 16
Form 16 is a statutory annual certificate issued to donors who contribute sums for scientific research to prescribed institutions. It facilitates verification of deductions claimed under section 45 of the Income-tax Act, 2025.
2. Nature of Certificate
Form 16:
- is annual and donor-wise;
- certifies aggregate donations received during the tax year;
- is not a receipt for individual transactions.
Any transaction-level receipt issued by the institution is outside the scope of Form 16.
3. Linkage with Form 15
Form 16 is intrinsically linked to Form 15.
Data furnished in Form 15 forms the basis for generation and issuance of Form 16, ensuring consistency between departmental records and donor certificates.
4. Periodicity and Due Date
Form 16 is required to be issued once every tax year in respect of donations received during that year and must be issued on or before 31st May.
5. Role in Deduction Verification
Form 16:
- provides documentary support to donors;
- enables automated matching of deduction claims; and
- reduces the scope for misreporting or duplication.
Issuance of Form 16 does not, by itself, confer deduction.
6. Correction Mechanism
Where errors are identified, institutions may issue a corrected Form 16.
7. System-driven Compliance under the Income-tax Act, 2025
Form 16 reflects the broader policy shift towards digitised, segmented and traceable compliance, with distinct reporting streams for scientific research incentives.
8. Conclusion
Form 16 is a critical element of the scientific research donation framework under the Income-tax Act, 2025. By retaining its character as an annual donor certificate, the form ensures continuity, legal certainty and effective verification of deductions under section 45.
