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What is Form 16A? - How to Get and Fill Form 16A?

Updated on: 30 May, 2024 11:49 AM

Form 16A is a certificate issued under section 203 of the Income Tax Act, 1961, to the person who has deducted tax at source (TDS) on certain payments other than salary such as interest, commission, rent, etc. Form 16A contains details of the TDS deducted and deposited with the government on behalf of the deductee.

Form 16 is only for salary income, and Form 16A is applicable for TDS on income sources apart from salary. Taxpayers generally get confused between these two, let us understand the differences.

What is Form 16A?

Form 16 A is basically a TDS certificate that is issued when you receive income other than your salary, e.g., interest on fixed deposits, life insurance commission, rent income, etc. There are different rates of TDS for different types of income, and each income has a different threshold limit for TDS.

Suppose, say you have earned an income from playing the lottery, card games, etc Rs 50,000. As per Sec 194B, such income attracts TDS @ 30% if the 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.

Significance of Form 16A

Form 16A is an important document for individuals and entities whose income is subject to tax deducted at source (TDS) on income other than salary. The form is issued by the deductor (the person or organization that deducts the TDS) to the deductee (the person or entity from whom TDS is deducted). Form 16A serves as a certificate that verifies the amount of TDS deducted and remitted to the government on the deductee's behalf.

The form serves multiple purposes:

  1. Proof of TDS: Form 16A acts as proof that TDS has been deducted from the deductee's income and paid to the tax authorities. This is important for maintaining accurate financial records and ensuring proper tax compliance.
  2. Tax Liability Reduction: The TDS amount indicated in Form 16A can be claimed as a tax credit when the deductee files their income tax return. This reduces the deductee's overall tax liability.
  3. Income Documentation: Form 16A provides a record of income from sources other than salary, such as interest, rent, or professional fees, for which TDS has been deducted.
  4. Cross-Verification: When filing an income tax return, the deductee can use Form 16A to cross-verify the TDS information provided by the deductor. This helps ensure accuracy in reporting income and tax withheld.
  5. Record Keeping: Form 16A is an important document to keep on file as it may be required for future reference during audits or other financial assessments.

When filing an income tax return, the deductee should use Form 16A to claim the TDS that has been deducted. The TDS amount will be credited against the tax liability, reducing the amount of tax owed. File Income Tax Return Here.

What is the Difference Between Form 16 and 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 TDS on income sources apart from 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.

Taxpayers are required to file ITR in this case, too, where their TDS is applicable on “Income other than Salary.

Parameters Form 16 Form 16A
Eligibility Individuals with salary Professionals and self-employed individuals (other than Salary)
Issuer The employer Financial institutions, tenants, banks, etc.
Issued against salaried individuals Non-salaried
Issuance frequency Annual Quarterly
Applies to Salary Income Income from Rent, professional charges, commission agents, hired machinery, etc.
Law Section 203 of the Income Tax Act Section 203 of the Income Tax Act

Form 16A Format

The format of Form 16A may vary depending on the deductor's software and the format prescribed by the Income Tax Department. However, the following are the general details that are included in Form 16A:

  1. Name and address of the deductor and the deductee
  2. PAN of the deductor and the deductee
  3. Assessment year for which the certificate is issued
  4. Quarter for which TDS has been deducted
  5. Nature of payment on which TDS has been deducted
  6. Date of payment and date of deduction of TDS
  7. TDS amount deducted and deposited with the government
  8. Challan number and date of deposit of TDS with the government
  9. Unique TDS certificate number
  10. Any other relevant details as required
Decode Form 16A

When is Form 16A Required?

Now that we know what Form 16A is all about, what it looks like, and what information it carries it is crucial to know why Form 16A is required. When you are filing your income tax return, the 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 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 for the correct TDS.

Here’s why Form 16A is important -

  • Tax Filing: Form 16A is vital for accurately filing taxes as it helps individuals report their total income, including non-salary sources.
  • Income Tax Return (ITR): Form 16A data is necessary for filing the Income Tax Return (ITR) to ensure accurate reporting of total income and compliance with tax regulations.
  • TDS Tracking: Form 16A assists individuals in tracking the amount of Tax Deducted at Source (TDS) paid on their non-salary earnings by providing a summary of the TDS deducted by the deductor.
  • Proof of Income: Form 16A serves as an authorized proof of income, demonstrating the individual's earnings from various sources. It is widely accepted as evidence of income by financial institutions, government agencies, and other entities.
  • Loan Applications: Form 16A is crucial in supporting loan applications as financial institutions often require it to verify the individual's income and assess their loan eligibility. It offers a comprehensive overview of the individual's financial situation.

How to Fill Form 16A?

Form 16A is issued by the deductor to the deductee after deducting tax at source (TDS) on certain payments such as interest, commission, rent, etc. The following are the steps to fill in Form 16A:

  1. Download the format of Form 16A from the Income Tax Department's website or use the format provided by the deductor's software.
  2. Fill in the name and address of the deductor, PAN of the deductor, and the unique TDS certificate number.
  3. Fill in the name and address of the deductee, PAN of the deductee, and the assessment year for which the certificate is issued.
  4. Mention the quarter for which TDS has been deducted, the nature of payment on which TDS has been deducted, and the date of payment and date of deduction of TDS.
  5. Fill in the TDS amount deducted and deposited with the government, challan number, and date of deposit of TDS with the government.
  6. Provide any other relevant details as required.
  7. Sign and print Form 16A and issue it to the deductee within 15 days from the due date of furnishing the statement of TDS.

Which Types of Payments Under Form 16A Attract TDS?

We have generally seen Form 16A in case of TDS deduction by the bank or case of commission income, but let's understand what are the other scenarios under which Form 16A can be issued.

Some cases of payments for which Form 16A is issued are

  1. For Interest
  2. For Professional Services
  3. For Commission or Brokerage

In other words, we can also say that Form 16A is issued for payments other than:

  • Payment of salary: For this, Form 16 is issued
  • Sale of property: For this, Form 16B is issued
  • Payment of rent u/s 194IB: For this Form 16C is issued

In a nutshell, it can be said that Form 16A is issued in all such cases where Form 16, Form 16B or Form 16C is not issued.

How to Download Form 16A?

  • Step 1: Login to TRACES
    TRACES is an online platform that is maintained by the Income Tax Department of India. It is used to manage TDS statements, generate TDS certificates, and perform various other functions related to TDS.
  • Step 2: Enter your details
    PAN, Password, and Captcha Code. After entering these details, click on the ‘Login’ button.
  • Step 3: Go to ‘Downloads’ and select ‘Form 16A’
  • Step 4: Select the relevant quarter
    You can select the quarter by clicking on the dropdown menu next to ‘Quarter’.
  • Step 5: Verify your details
    You can do this by clicking on the ‘View’ button next to your name.
  • Step 6: Download Form 16A
    The Form 16A will be downloaded in a PDF format.
    Check the downloaded Form 16A an ensure that the document contains all the necessary details. The document should have the following headings:
    • Name and address of the deductor
    • PAN and TAN of the deductor
    • Name and address of the deductee
    • PAN of the deductee
    • Assessment year for which the TDS is deducted
    • Date of payment
    • Amount paid
    • Amount of TDS deducted
    • Challan details

If any of these headings are missing, you should contact your employer to rectify the error.

How to Verify Form 16A Online?

There are two ways to do KYC validation:

  • Log in to the TRACES official portal. With DSC (Digital Signature Certificate): Click on the ‘Validate’ option, enter the DSC password, and click on ‘Sign’.
  • Without DSC: Enter details such as the Token number of IT return filed, challan details, PAN, and TDS amount deposited. Click on ‘Proceed’.

After the KYC details have been validated, a success message and a request number will appear. Wait for 24-48 hours after the request status is ‘Submitted’. Form 16A can be accessed and downloaded from the ‘Downloads’ section using the request number when the status is ‘Available’.

Rate of TDS Deduction in Various Cases of Form 16A

S. No. TDS Section Nature of Payment Rate of TDS Exemption Limit
1 Section 192A TDS on Premature Withdrawal from Provident Fund 10% if PAN is provided. If EPF withdrawal is made without PAN, the applicable rate is 20%. Amount is less than Rs.50000
2 Section 193 TDS on Interest on Securities 10% Upto Rs.5000 in a financial year (FY) for Individual/HUF in the case of Debentures and other than debenture Rs. 10,000
3 Section 194 TDS on Dividends 10% Upto Rs.2500 in an FY (for Individual)
4 Section 194A TDS on Interest (Other than Interest on Securities) 10% Up to Rs.40,000 (for payments made by banks, cooperative banks, or on post office deposits) and up to Rs.5000 (for other cases). [In the case of a senior citizen, the limit of Rs 10,000 shall increase to Rs. 50,000 w.e.f. 1.4.2018]
5 Section 194B TDS on Winnings from Lottery or Crossword Puzzles 30% Up to Rs.10000
6 Section 194BB TDS on Winnings from Race Horses 30% Up to Rs.10000
7 Section 194C TDS on Payment to Contractors 1% (for Individual/HUF) 2% (other person) Up to Rs.30000 for individual payment. Up to Rs.100000 for the total amount during an FY.
8 Section 194D TDS on Insurance Commission Insurance Company Resident Agent 5% (for Individual/HUF) 10% (other people) Up to Rs.15000 during FY
9 Section 194DA TDS on Payment in Respect of Life Insurance Policy 1% Less than Rs.100000
10 Section 194E TDS on Payments to Non-Resident Sportsmen or Sports Association 20% No exemption limit
11 Section 194F Payment with respect to repurchase of units by Mutual Fund Companies 20% No exemption limit
12 Section 194EE TDS on Payment for Deposit Under National Saving Scheme 10% Upto Rs.2500
13 Section 194G TDS on Commission on the Sale of Lottery Tickets 5% Upto Rs.15,000
14 Section 194H TDS on Commission or Brokerage 5% Upto Rs.15,000
15 Section 194I TDS on Rent 2% (on rent paid for the use of machinery, plant, or equipment) and 10% (other cases) Up to Rs.2,40,000during the FY
16 Section 194 IC TDS on Payment Made Under Specified Agreement 10% No exemption limit available
17 Section 194J TDS on Fees for Professional or Technical Services 10%
2% (in case of payment made to the business of operating a call centre).
Up to Rs.30000 during FY (the separate limit for each kind of payment)
18 Section 194LA TDS on Payment of Compensation on Acquisition of Certain Immovable Property 10% upto Rs. 2,50,000
19 Section 194LB TDS on Income by way of Interest from Infrastructure Debt Fund 5% No exemption limit
20 Section 194LBA TDS on Certain Income from Units of a Business Trust 10% (for resident) 5% ( for non-resident) No exemption limit
21 Section 194LBB TDS on Income in Respect of Units of Investment Fund 10% (for resident) For non-resident person the tax rate will be as per the rates in force during FY. No exemption limit
22 Section 194LBC TDS on Income in Respect of Investment in Securitisation Trust 25%(for individual or HUF) or 30% (for any other person) No exemption limit
23 Section 194LC TDS on Income by way of Interest from Indian Company 5% No exemption limit
24 Section 194LD TDS on Income by way of Interest on Certain Bonds and Government Securities 5% No exemption limit
25 Section 195 TDS on Other Payments Made to NR (Not Company) or Foreign Company Rate as specified in Act or DTAA No exemption limit
26 Section 194N TDS on payment of certain amounts in cash 2% Up to Rs 1 Crore
27 Section 194M TDS on certain Payment by Individual/ HUF 5% Amount is less than Rs 50 lakhs
28 Section 194BA TDS on net winning from online gaming 30% No limit provided yet

If you still feel unsure about efiling Income Tax Returns yourself, you can easily hire an eCA to do it for you. Don’t wait any longer; book your eCA today!

Frequently Asked Questions

Q- After how many days of filing the quarterly TDS return can Form 16/ 16A be downloaded?

Form 16/ 16A must be issued by employers to employees within 15 days of filing their fourth-quarter TDS returns.

Q- Which amount should I take while filing ITR? Form 16A or 16B?

Both the forms are required while filing ITR.Form 16A and 16B are TDS certificates of tax deducted by the other party on their behalf.

Q- Who is eligible for Form 16a?

Form 16A is issued by the employer or deductor in the current financial year to the employees. For the cases where you have an additional source of income other than salary, this form is required.

Q- I am unable to download Form 16 / 16A as the number of PANs for which Form 16 / 16A was submitted was higher, however, the PDFs generated were less. What should I do?

You are required to verify PAN no. submitted by you. The PAN no. filed may be wrong or inactive.

Q- How to verify the authenticity of Form 16A online?

You can verify it with Form 26AS, as Form 26S contains all the taxes paid by you directly or indirectly.

Q- Can the income tax returns be filed using form 16a without payslips?

Yes, the return can be filed using form 16A. Form 16A is not related to salary payslips.

Q- Should Form 16 A be given to an employee whose TDS has never been deducted?

Form 16A is not for the employees, Form 16A is not required to be issued if TDS has not been deducted.

Q- In the absence of Form 16/16A, where can I fill in the TDS details in the Income Tax Return form ITR-2 based on the 26AS statement?

Yes, TDS details can be filled with the help of Form 26AS in absence of TDS certificate as Form 26AS is a consolidated statement of all the taxes deducted.

Q- My form 16A (issued by HDFC) shows a series of interest credited, but these amounts are not present in my acct statement. What to do?

You are required to verify it with the concerned bank.

Q- How can I get my Form 16A?

You can demand your form 16A from the agency/person who has deducted your TDS. Like banks, financial institutions, contractors, agencies, etc.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.