It is basically a TDS certificate which is issued when you are in receipt of income other than salary. For e.g. interest on fixed deposits, life insurance commission, income of rent etc. There are different rates of TDS for different types of income and each income has different threshold limit for TDS.
For e.g. Let’s say you have earned an income from playing lottery, card game etc of Rs 50,000. As per Sec 194B, such income attracts TDS @ 30% if the amount of income exceeds Rs 10,000. Hence, when you receive the income, a net of Rs 35,000 (50,000 – 30% of 50,000) will be given to you. This amount of tax (Rs 15,000) will be reflected in your Form 16A.
Both Form 16 & 16A are TDS certificates but Form 16 is for individuals who receive income from salary. On the other hand Form 16A is for all incomes other than salary. While Form 16 is issued annually to the employee, Form 16A is issued quarterly. You can further refer our guide on Form 16 for more information.
Now we know what Form 16A is all about, what it looks like and what all information it carries. It is crucial to know that why Form 16A is required? At the time when you are filing your income tax return, tax will be calculated on your total income. Now, if you do not claim TDS mentioned in Form 16A or Form 26AS then you may end up paying tax twice on the income on which TDS has already been deducted and paid to ITD on your behalf. Therefore, Form 16A which acts as a proof of your taxes already paid should be kept handy while filing your ITR.
It should be noted that, Form 26AS should always be matched with Form 16/16A. In case of any mismatch, you should immediately contact the deductor. If the mismatch is not corrected then you will not get credit of correct TDS.
We hope that you are now aware of all the facts regarding Form 16A. Still if you are facing any issues, we are here to help you. Just get in touch with our eCAs and we’ll solve your issue. Happy Filing! ????
Ans. Form 16/ 16A must be issued by employers to employee within 15 days of filing their fourth quarter TDS returns.
Ans. Both the forms are required while filing ITR.Form 16A and 16B areTDS certificates of tax deducted by the other party on their behalf.
Ans. You are required to verify PAN no. submitted by you. The PAN no. filed may be wrong or inactive.
Ans. You can verify it with Form 26AS as Form 26S contains all the taxes paid by you directly or indirectly.
Ans. Yes, return can be filed using form 16A. Form 16A is not related to salary payslips.
Ans. Form 16A is not for the employees , Form 16 is. However, Form 16A is not required to be issued if TDS has not been deducted.
Ans. Yes, TDs details can be filled with the help of Form 26AS in absence of TDS certificate as Form 26AS is consolidated statement of all the taxes deducted .
Ans. You are required to verify it with the concerned bank.
Ans. If Form 16A is correct, hen technically Form 26AS should be correct as it reflects the amount shown in Form 16A and processed after TDS return only.
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