A Complete Guide on Form 16A
Form 16A is a certificate for Tax Deducted at source (TDS) and is provided along with Form 16. Form 16 is only for salary income the Form 16A is applicable for TDS on income sources apart from salary.
What is Form 16A?
It is basically a TDS certificate that is issued when you are in receipt of income other than salary. For e.g. interest on fixed deposits, life insurance commission, the income of rent etc. There are different rates of TDS for different types of income and each income has a different threshold limit for TDS.
For e.g. Let’s say you have earned an income from playing lottery, card games 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.
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 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.
For what type of payments Form 16A is issued?
We have generally seen Form 16A in case of TDS deduction by the bank or in 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
- For Interest
- For Professional Services
- For Commission or Brokerage
In other words we can also say tha, 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.
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 no PAN then MMR i.e. 35.535%)||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 use of machinery, plant or equipment) 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|
Form 16A Format
- It contains basic information about 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 a unique Aadhar Number similarly the income tax department uses PAN/ TAN to identify taxpayers. To know further, refer to our FAQ on PAN/ TAN.
- This highlights the PAN of the 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 the deductee.
When is Form 16A Required?
Now we know what Form 16A is all about, what it looks like and what all information it carries. It is crucial to know why Form 16A is required? At the time 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.
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?
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 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?
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- If the Indian income tax form 16A is correct but does not match with the 26AS, who will be responsible for it: the employee or the employer?
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.
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.
- Section 234F: Penalty for Late Filing of Income Tax Return
- Income Tax Slab & Tax Rates for FY 2022-23 (AY 2023-24)
- Income Tax Return (ITR) Filing FY 2022-23 (AY 2023-24): How to File ITR Online India
- Form 16: What is Form 16? Form 16 Meaning, Format & How to Upload
- Tax Benefits on Housing Loans for Home Buyers