Difference between Form 16 and Form 16A

Difference between Form 16 and Form 16A
Form 16 is certificate under section 203 of the income tax act,1961 for TDS from income chargeable under salaries.
In other words Form 16 is ‘Salary Income Certificate’ issued by your employer.

Form 16 is divided into two parts, Part A and Part B.

Part A consists of the employer & employee, like name & address, PAN and TAN details, employment period, TDS details deducted & deposited with the government.

Part B includes details of salary paid, other incomes, deductions allowed, tax payable etc.

All salaried employees have to file their income tax returns by July 31. While filing the return, it is advised to have Form-16.Form 16 contains information like Tax deducted amount, BSR code of the bank where TDS is deposited by the employer, Challan number and deposited date of the TDS to government. This information helps while claiming the TDS at the time of filing income tax return.

Form-16 contains details of TDS on monthly basis. So for eg. if TDS of Rs. 3500 is deducted from your salary for the month of April 2017, than Form-16 will show month wise details for all the TDS deducted throughout the financial year.

It is the final certificate issued by your employer giving details of the salary you have earned and the tax deducted on your behalf and paid to government. This certificate is given to you after the end of the financial year, generally by May 17.

In case there hasn’t been any TDS from your salary, you just get a salary certificate or Form-16 Part B.

Read this guide to know more about Form 16.

Form 16A

It is a certificate under section 203 of the income tax act,1961 for tax deducted at source from any incomes other than salary.
Form-16A is applicable for TDS on Income Other than Salary.

For example: Form 16A is issued by banks when they deduct TDS on interest income earned on your Fixed Deposits / Recurring Deposits.

If you are not a salaried employee and work as a professional for an organisation and earn fees, then the certificate that shows TDS details deducted while making payments to you is Form 16A.

The best way to understand the difference between Form 16 and Form 16A is to consider Form 16 as your salary TDS certificate and Form 16A as TDS certificate on income from sources other than a salary. So virtually any income(other than salary) you receive on which TDS has been deducted is listed in Form 16A.

Although you are not required to submit these forms to the income tax department while filing your return, it is advisable to keep them on record for the ease of return filing process.

Form 16 is issued for TDS deducted for salary payments if TDS is deducted and Form-16A is issued for the TDS deducted from non-salary payments if TDS is deducted from the payments like commission, contract, professional fees, rent, interest etc.

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