Difference Between Form 16 and Form 16A
Form 16 is issued by employers to salaried employees, showing salary paid and TDS deducted under Section 192 during a financial year. It is provided on or after 16 June of the assessment year and is essential for filing ITR for salaried individuals.
Form 16A, on the other hand, is issued quarterly by deductors for TDS on income other than salary, such as interest, rent, or professional fees. It serves as proof of TDS deducted and is required for income tax filing.
What is Form 16?
Form 16 is a TDS certificate issued by an employer to salaried employees, detailing the salary paid and the tax deducted at source (TDS) under Section 192 of the Income Tax Act for a particular financial year. It is usually issued on or after 16 June of the assessment year and serves as proof of income and tax paid. Form 16 is essential for filing Income Tax Returns (ITR) as it contains key information such as PAN, TAN, salary breakup, deductions claimed, and the total tax deposited with the government.
What are the Components of Form 16?
Form 16 in the Income Tax Act is a certificate, where the employer certifies details regarding the salary you have earned during the year and how much TDS has been deducted. It has two parts – Part A and Part B.
- Part A has information about the employer & employee, like name & address, PAN and TAN details, the period of employment, and details of TDS deducted & deposited with the government.
- Part B includes details of salary paid, other incomes, deductions allowed, tax payable, etc.
Form 16 is a certificate issued to salaried individuals by their employer when they deduct tax from the employee's salary. In simple words, it is an acknowledgement stating that your deducted tax has been deposited with the income tax department. It must be issued by 15th June of the year for which it is being issued. For example, for FY 2024-25, the due date for the issue of Form 16 shall be 15th June 2025.
What is Form 16A?
Form 16A is a TDS certificate issued by a deductor for tax deducted on income other than salary, such as interest, rent, professional fees, or commission, under various sections of the Income Tax Act. It is issued quarterly and contains details like the deductee PAN, deductor TAN, nature of payment, amount paid, and TDS deducted and deposited with the government. Form 16A is essential for verifying TDS credits and ensuring accurate filing of your Income Tax Return (ITR).
For example, a Form 16A shall be issued when a bank deducts TDS on your interest income from fixed deposits, for TDS deducted on insurance commission, for TDS deducted on your rent receipts. Form 16A will be issued when TDS is deducted from any other income you receive that is liable for such deduction.
What are the Components of Form 16A?
Form 16A includes details like:
- Employer’s name, PAN and TAN
- Employee’s name, PAN and TAN
- Payment details
- TDS payment number
- Date of deposit and deposited tax amount
These details are also available in Form 26AS.
Difference Between Form 16 and Form 16A
This comprehensive table below highlights the most fundamental differences between Form 16 and Form 16A.
| Basis | Form 16 | Form 16A |
| Eligibility | Individuals with salary | Professionals and self-employed individuals |
| Issuer | The employer | Financial institutions, tenants, banks, etc. |
| Issued against | salaried individuals | Non-salaried |
| Issuance frequency | Annual | Quarterly |
| Applies to | Salary Income | Income from Rent, professional charges, commission agents, hired machinery, etc. |
| Law | Section 203 of the Income Tax Act | Section 203 of the Income Tax Act |
Related Articles
What is Form 16 – Basics, Part A & Part B of Form 16, FAQs
How to generate Form-16A for payments other than Salary
Frequently Asked Questions
About the Author
CA Mohammed S Chokhawala
I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more
Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.
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