Home » Income Tax » All you wanted to know about Form 16 and Form 16A

Form 16 and Form 16AForm 16 is basically a certificate issued by an employer that Tax Deducted at Source (TDS) has been deducted from the salary. Income Tax Act says that it is the duty of an employer to issue Form 16 once in a year on or before 31st May of the financial year immediately following the financial year in which tax is deducted. Form 16A is also TDS certificate. Form 16A is for TDS on income other than salary. Form 16A will be issued to you when the bank has deducted TDS on your interest income from fix deposits, TDS deducted on insurance commission, TDS deducted on rent receipt etc. Form 16A is issued to you when TDS is deducted on any income which is liable for TDS deductions.

Form 16 details and sections

Let us have a look at Form 16. It contains two parts, Part-A and Part-B. Part-A of Form 16 consist of the fallowing :

  1. Name and address of employer
  2. Name and address of taxpayer
  3. PAN and Tax (tax deduction account number) of your employer means deductor.
  4. PAN of the taxpayer
  5. Assessment year means the year in which your tax liability is calculated. For instance, if financial year is 2015-16 then assessment year would be 2016-17.
  6. TDS deducted by the employer

In short, we can say that Part-A of Form 16 provides the summary of tax deducted at source (TDS). This section also gives the details about the period of your employment. If you have worked for more than one company, then you have multiple Form 16 issued by each company.

Part-B of Form 16 consist of the following:

  1. Deduction under Section 80-C (Gross and deductible amount)
  2. Payable tax or refund due
  3. Breakup of deduction under section 80-C
  4. Taxable salary
  5. Income from other sources as reported by the employee.

Part- B also consists of the other qualifying deductions such as health insurance premium, interest on education loan etc. If your income from salary is more than the basic exemption limit, then your employer is liable to deduct TDS from your salary and deposit it with the income tax department.

Form 16A, its details, and components:

Form 16 A is a TDS certificate certifying the amount and nature of TDS deducted. As per the Income Tax Act, TDS is liable to be deducted on all the payments if the payment expected to be made during the year is Rs. 30 thousand. The Form 16 A is issued under section 203 of Income Tax Act, 1961 and contains the fallowing details

  1. Name of the deductor
  2. PAN and TAN of the deductor
  3. Name of the deductee
  4. PAN number of the deductee
  5. Nature of payment made, amount paid and date of payment
  6. Receipt number of the TDS payment

The above details are mentioned in the Form 16 A and required to be furnished at the time of filing income tax return.

Writen by : Shreya Dey


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