What is Form 16A?

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.

How Form 16A is different from Form 16?

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.

Let’s Decode Form 16A

Decode Form 16A

  • It contains basic information of the tax deductor like name, address etc. Deductor is the individual who pays you and he/she is required to deduct TDS (if subject to it) before discharging the payment.
  • It provides basic information of the deductee like name, address etc. Deductee is the person receiving the payment and the amount received is net of TDS (if it’s subject to TDS).
  • PAN/ TAN are a unique identification of every deductor. Just like everyone has individual has unique Aadhar Number similarly the income tax department uses PAN/ TAN to identify taxpayers. To know further, refer our FAQ on PAN/ TAN.
  • This highlights the PAN of deductee.
  • Here is the AY and the period for which income is shown. For e.g. AY 2018-19 (FY 2017-18) and income received from 1/4/17 to 31/07/2017 (For Quarter-I).
  • This head contains the information about income (not salary) received by you in the period selected on which provisions of TDS are attracted.
  • This head contains information about TDS payments made to the income tax department by the deductor on behalf of deductee.

When & Why Do I Need Form 16A?

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! ????

Frequently Asked Questions

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

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

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

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.

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

Ans. 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?

Ans. 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?

Ans. Yes, 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?

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.

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

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 .

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

Ans. You are required to verify it with the concerned bank.

Q- If the Indian income tax form 16A is correct but not matching with the 26AS, who will be responsible for it: the employee or employer?

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.

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. 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.