Transient electromagnetic (TEM) data can be seriously distorted by induced polarization (IP) phenomena when a polarizable body is present. The TEM field generated by a grounded-wire source contains transverse electric (TE) and transverse magnetic (TM) modes. The IP effect is most commonly studied with the TEM total field, rather than considering the difference between TE and TM fields. To investigate the effect of IP phenomena on the TE and TM fields, we have performed a detailed analysis on IP-distorted TEM data based on numerical and field examples. We first compare the IP effect on the TE and TM fields when polarizable bodies with different polarizable parameters are present. The TM field is more severely affected by the IP effect than the TE field. Compared to a single grounded-wire source, a double-line grounded-wire source can generate a larger TM field in the horizontal electric field. We compare the IP effect on TEM data from single- and double-line grounded-wire TEM configurations, and find that the data from the double-line configuration have a higher TM/TE ratio and are more severely affected by IP phenomena than in the single-line case. Thus, it would be easier to identify and extract the IP response from field data acquired with a double-line grounded-wire source configuration. These results have been verified by a field survey of the Kalatongke copper-nickel ore district, which has predominantly layered geology, in Xinjiang, China.