An individual can have income from sources other than that from his/her salary. This could be interest received on deposits and/or returns from mutual funds, bonds, and investments, rental receipts, commission earned, etc. In some cases, the payer of income may need to deduct tax at source, known as TDS. As mandated by the government, a TDS certificate needs to be issued by the deductor when TDS is deducted. This certificate is furnished in Form 16A India. In layman terms, Form 16A is a TDS certificate that contains the details of:
In this article, you will find what is form 16a and form 16 format.
The notified format of Form 16 A can be downloaded here.
This form acutely shows details such as:
Form 16A is required at the time of filing the income tax return. This helps the filer to verify the income earned and TDS deducted. All details that are available in Form 16A are also available in Form 26AS. Further, this TDS can be used to set-off the tax payable (if any) or a refund can be claimed*. Moreover, some banks and financial institutions use Form 16A to verify the details of the applicant for processing loan applications. *Subject to conditions
|S.No||Form 16||Form 16A|
|1.||Form 16 is the certificate issued by an employer to his/her employee stating how much tax was deducted at the source on the salary paid.||Form 16A is to certify the TDS amount deducted when the individual earns any income from sources other than salary.|
|2.||Form 16 is issued when the total income of an employee exceeds INR 2,50,000.||Form 16A is issued when income from other sources exceeds the prescribed limits and TDS is deducted.* *Various sections under the Income Tax Act have defined the limits for deduction of TDS.|
|3.||The TDS will be deducted based on the income tax slab, applicable to the employee.||In Form 16A, TDS is deducted on income from other sources based on pre-defined TDS rates.|
|4.||Form 16 is issued annually.||Form 16A is issued quarterly.|