Forms 16 and 16A are essential for taxpayers since they are used to calculate the amount of tax owed. They are also required for filing income tax returns. Taxpayers frequently mix up the two documents due to their nearly identical purpose.
In this article, we will discuss Form 16, Form 16A, and the difference between them.
Form 16 is your salary TDS certificate.
This Form 16 is a certificate, where the employer is certifying 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.
Form 16 is a certificate issued to salaried individuals by their employer when he deducts tax from the employee's salary. In simple words, it is an acknowledgement that states 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 the F.Y. 2019-20, the due date for the issue of Form 16 shall be 15th June 2020. However, the due date stands extended to 15 August 2020.
Form 16A is also a TDS Certificate. While Form 16 is for only salary income, Form 16A is applicable for TDS on ‘Income Other than Salary’.
For example, a Form 16A shall be issued to you – 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. In fact, when TDS is deducted from any other income you receive that is liable for such deduction.
This certificate also has details of the name and address of the deductor/deductee, PAN/TAN details, and challan details of the TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income. All details that are there in Form 16A are available on Form 26AS. This can be used to file your return.
However, the same is not the case with Form 16. Details of Form 16 that are available in Form 26AS are only TDS deducted by the employer. Both forms are important and are required to help you file your return smoothly. You can also verify the income details and how much TDS has been deducted and at what rates.
Form 16A includes details like:
These details are also available in Form 26AS.
This comprehensive table below highlights the most fundamental differences between Form 16 and Form 16A.
|Parameters||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|
|Applies to||Dividends, interest on securities, etc.||Rent, professional charges, commission agents, hired machinery, etc.|
|Law||Section 203 of the Income Tax Act||Section 203 of the Income Tax Act|
An employer deducting tax or TDS on the salary paid to an employee issues Form 16 to the employee.
The employer issues Form 16 on an annual basis, for one financial year.
A Form 16A is issued quarterly. The due date is the 15th of the month following the due date for the quarterly TDS return.
You can use the data of income and TDS in form 16 and form 16A to file your income tax return and calculate and pay your tax.
What is Form 16 – Basics, Part A & Part B of Form 16, FAQs
How to generate Form-16A for payments other than Salary
All about Tax Deducted at Source (TDS)