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Know everything about Form 16 & 16A of Tax Deducted at Source

Introduction

Let's discuss the importance of one of India's most crucial paperwork for taxes. Under section 203 of income tax deducted at source, there are three different types of forms that are filed. Form 16, Form 16A, and Form 16B, are the three different kinds of forms which is been filed.

What is Form 16?

Form 16 is an income tax form that organizations use to tell their employees about the taxes deducted. The proof filing of income tax returns by the employer to the government is known as Form 16. If an employee exceeds the limit decided by the government then the employer needs to deduct a certain amount from the employee's salary as a form of TDS (Tax Deducted at Source). Employees can claim Form 16, from the employer.

All about Form 16 and 16A of TDS

How to download Form 16?

  • Visit the income tax department website
  • Login to the website
  • Go to the download tab
  • Select Form 16
  • Select the appropriate financial year for which Form 16 is needed
  • Enter PAN, click on Add and click on go to proceed
  • Click on submit for downloading Form 16
 

What is Form 16A?

Form 16A is used for the deduction of the income other than salary. Income earned as a form of commission, Interest, mutual funds, and dividends, which are non-salary income, and are subjected to the TDS deduction.

The process to download Form 16A

  • Login to TRACES - Enter details regarding PAN, TAN, and other details which is been needed
  • Navigate to Form 16A - After login, go to the download option and select Form 16A.
  • Select financial year and PAN - Need to select a financial year for which TDS certificate is needed. Through Bulk PAN or Search PAN deductor can request for Form 16A
  • Details of Authorized person - Preview related to the profile information is generated, information will be printed out and click on submit.
  • Select one of the KYC validation - There are two options related to the KYC a user needs to select one of the options.
  • Success page - After completion of the KYC validation, a success page is generated, along with 2 request number that one can download from site.
  • Navigate to requested download - Enter the Request Number, Request Date, or View All to see all of the requests. Choose the appropriate row. Click the download button if the status is ‘Available.'
  • Download TRACES utility - Select HTTP Download from the drop-down menu. The file is downloaded as a zip file. It is not necessary to extract the file. To access requested downloads, go to Downloads > Requested Downloads. To get started, use the ‘Click here' button.
  • Enter Verification code - To download utility for form 16A, click on TRACES
  • Enter the zip file and open the JAR file - Enter all the details which are needed to download form 16A.

Differences between Form 16 and Form 16A

Form 16

Form 16A

It is a certificate for the employee on the tax deducted on there salary.

A TDS certificate is generated for the income earned from other sources, which is not considered a salary.

This one only implicates to the salaried employee

Applicable to any individual who has earned income from mutual funds, commission, or any other kind of income except salary.

This certificate is generated by an employer for employee

This is generated by a person or institution

It is issued yearly

It is issued annually or quarterly

Employers can deduct TDS if employee salary exceeds 2,50,000 in a financial year

TDS must be deducted from the income earned if the limit exceeds 50,000.

 

FAQs on Form 16 & Form 16A

1. What are the benefits of Form 16 and Form 16A?

The data of TDS and income will help taxpayers at the time of filing for income tax returns and for calculating tax for the income.

2. Is it necessary for salaried personnel to complete Form 16?

Form 16 is one of the most necessary documents for salaried individuals to file their income tax returns.

3. What is the difference between Form 16 and Form 16A?

Form 16 is only used by salaried people, whereas Form 16A is used by anyone with income that isn't in the form of a salary.

4. For which period Form 16 is issued?

For every financial year Form 16 is been issued by an employer to the employee.

5. For which period Form 16A is issued?

Every quarterly Form 16A is been generated, and the due date for Form 16A is every 15th of the month.

Conclusion

At the time of tax calculation Form 16 and Form 16A is useful, it will be useful for the smoothly filing of an income tax return. With knowledge of Form 16 and Form 16A, taxpayers will be capable of understanding their importance and applying them appropriately.

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Category Income Tax, Other Articles by - Ishita Ramani 



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