we need to do upgrade SharePoint 2010 farm to SharePoint 2013,
Does SharePoint 2013 supports SQL Server 2016 or not? or we can go for Server 2014?
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SharePoint 2013 will never be supported on SQL 2016. (with the exception of SSRS integration, keep reading for that).
SharePoint support generally works in the following way. A SharePoint release will support the latest SQL Server version(n) at the time of release as well as the one previous released version (n-1) and one addition/new release of SQL (n+1). For the case of SharePoint 2013, the follow SQL versions are supported:
SQL 2014 - n+1
SQL 2012 - n
SQL 2008 R2 - n-1
SharePoint 2013/2016 and SQL Server 2016 Supportability with SSRS fun facts!
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According to the following link, the answer is no, SQL Server 2016 is not supported with SharePoint 2013.
https://technet.microsoft.com/en-us/library/mt493254(v=office.16).aspx
SQL Server 2014 is supported, but should have the May 2014 Cumulative Update installed
