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Difference between Form 16 and Form 16A

Updated on: Jun 5th, 2024

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10 min read

Forms 16 and 16A are essential for taxpayers since they are used to calculate the amount of tax owed. They are also required to file income tax returns. Taxpayers frequently mix up the two documents due to their nearly identical purpose.

In this article, we will discuss Form 16, and Form 16A, and the differences between them.

What is Form 16?

Form 16 is your salary TDS certificate.

  • If your income from salary for the financial year is more than the basic exemption limit of Rs 2,50,000 your employer is required, by the Income Tax Act, to deduct TDS from your salary and deposit it with the government.
  • If you have also disclosed your income from other heads to your employer, they will consider your total income for TDS deduction.
  • If your income is below the basic exemption limit, your employer will not deduct any TDS and may not issue this form to you.
  • If you have worked with more than one employer during the year, you will have more than one Form 16.
  • Form 16 is one of the essential documents which is required to file your ITR
  • Only the TDS details of Form 16 are available in Form 26AS.

What are the Components of Form 16?

This Form 16 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 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. 2023-24, the due date for the issue of Form 16 shall be 15th June 2024. 

What is Form 16A?

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.

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. 

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

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

All about Tax Deducted at Source (TDS)

How to View and Download Form 26AS ?

Frequently Asked Questions

When does a deductor issue Form 16?

An employer deducting tax or TDS on the salary paid to an employee issues Form 16 to the employee.

Which period is Form 16 issued for?

The employer issues Form 16 on an annual basis, for one financial year.

Which period is Form 16A issued for?

A Form 16A is issued quarterly. The due date is the 15th of the month following the due date for the quarterly TDS return.

How can I benefit from Form 16 and Form 16A?

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.

I have received Form 16A. How do I check the validity of the same?

You can log in to your income tax portal and check your Form 26AS if the amount shown in Form 16A is being reflected. Also, Form 16A should be generated from the TRACES portal, which will have the watermark of the TRACES logo.

Is it mandatory to have all the Form 16 and Form 16A to file my ITR?

It is essential to have Form 16 issued by your employer since it contains details of your salary, Deduction and exemption. 

However Details of Form 16 part A and Form 16A details on a consolidated basis will be available in your income tax portal in Form 26AS. I.e Instead of referring to each and every Form 16A to claim the TDS, You can utilise Form 26AS, which will contain consolidated data of all the TDS done in the financial year.

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Quick Summary

Forms 16 and 16A are critical for taxpayers to calculate tax owed and file tax returns. Form 16 is for salary TDS, while Form 16A is for other sources of income. Both contain essential details like deductor/deductee info and TDS amounts. Form 16 is for individuals with salary income, while Form 16A is for non-salary income.

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