Both Form 16 and Form 16A are required for filing your Income Tax Return. Both are TDS (Tax Deducted at Source) documents, which prove the tax deducted from the payer by the deductor.
At the same time, Form 16 and Form 16A are considered to be similar by people. However, both of these certificates serve different purposes and are distinctly different.
In today’s blog, we will discuss Form 16 and Form 16A and their differences.
What is Form 16?
Form 16 is an essential salary TDS certificate issued with the income tax act 1961 compliance. Form 16 is issued by your employer if your salary for the last financial year has exceeded a threshold of Rs. 2,50,000. On the other hand, your employer will not issue this document if your salary does not cross this threshold.
Once your salary crosses the Rs. 2,50,000 mark, your employer has to deduct TDS from your salary and give it to the government of India as per the income tax act.
If you have additional income sources apart from a single job, your employer is entitled to take into account your whole income (Other income sources included) for TDS deduction.
Also, you will have to submit multiple form 16s if you have worked for multiple employers in a single financial year. Another form which just contains the TDS data of Form 16 is Form 26AS.
Components of Form 16
The Form 16 document is issued by your employer to confirm the details about how much salary you have earned in the past year and for how much TDS you shall be liable for the same Amount.
Form 16 shall be issued on 15th June every year. This document has two parts –
Part A –
Part A contains information about the employer and employee, such as their name and address, the period of employment, PAN and TAN details, and the TDS deducted.
Part B –
Part B of the Form 16 breaks down the salary paid by the employer, other income sources, deductions allowed, tax payable, etc.
Now that you have understood what Form 16 is, let us talk about Form 16A.
What is Form 16A?
Similar to Form 16, Form 16A is also a TDS Certificate. As Form 16 is applicable to the income you gained from your salary, Form 16A is applicable to the income you gained from other than salary sources.
For example, you will have to fill out Form 16A when the bank deducts TDS on the interest you earned from fixed deposits, rent, insurance commission, etc. Remember, Form 16A shall be issued to you whenever TDS is deducted from the income you receive (which you have gained from other than salary) crosses a certain threshold.
All the details of Form 16A are also available on Form 26AS. However, this is not the same case with Form 16 as the details of Form 16 available on the Form 26AS are only the TDS deducted by the employer.
Components of the Form 16A
Components of the Form 16A include information such as –
- Employer and Employee’s Name, PAN and TAN details
- Payment Information
- Reference of TDS payment
- The deposited tax amount and the date of deposit
These details are also available on the Form 26AS as discussed above.
Key Differences between Form 16 and Form 16A
| Parameters | Form 16 | Form 16A |
| Applicable to | Salaried employees earning more than Rs. 2,50,000 | A person earning from other than salary means. |
| Issued By | Form 16 is issued by the employer | Form 16A is issued by financial institutions, tenants, etc. |
| Parts | Form 16 contains 2 parts. Part A contains details such as TDS deducted and Part B contains details of the salary paid, etc. | Form 16A only has one part. Detailed included are details about the deductor and deductee, Amount paid, TDS, etc. |
| Frequency of Issuance | Form 16 is issued once in a year on or before 15th june | Form 16A is issued quarterly |
| Law | Form 16 complies with the Section 203 of the Income Tax Act | Form 16A complies with the Section 203 of the Income Tax Act |
Conclusion
Both Form 16 and Form 16A are crucial tax filing certificates for tax returns in India. They both serve the same objective of confirming the TDS collected and deposited to the government of India. At the same time, their use and issuance depends on the type of income and its source.
Understanding these differences can help Indian taxpayers correctly report their income details and TDS when filing their tax returns.
Also Read : Major Updates: Changes To ITR-1 Filing For AY 2024-25 Announced By Income Tax Department
FAQs (Frequently Asked Questions)
Do I need Form 16 if my salary is less than Rs. 2,50,000?
No, According to Section 203 of the Income Tax Act, you do not necessarily need Form 16. However, it is still recommended to get it from your employer for your own records.
Can I file my ITR without Form 16 or 16A?
Yes, you can still file your ITR even if you do not have Form 16 or Form 16A. You can use the alternative Form 26AS, which consolidates all the similar TDS information.
Who Issues Form 16A?
Form 16A can be issued by any entity that deducts TDS from your non-salary income. These entities can be banks, post offices, tenants, etc.
How frequently is Form 16A issued?
Form 16A is typically issued every quarter. But you might receive a consolidated annual certificate, too.
What if I don’t receive Form 16 or Form 16A?
In case you do not receive Form 16 or Form 16A, you can contact your employer or the TDS deductor (bank, post office, etc) and request the form. You can also download Form 16 from the Income Tax Department website.