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Difference between Form 16 & Form 16A


Some of our customers have written to us enquiring about the difference between Form 16 and Form 16A. In this article, we will tell you about both these forms and their importance while filing your income tax returns.
Form 16
Form 16 is your Salary TDS Certificate.   If your income from salary for the financial year is more than the minimum exemption limit of Rs 2,50,000 your employer is required by the Income Tax Act to deduct TDS on your salary and deposit it with the government. If you have also disclosed your income from other heads to your employer, he will consider your total income for TDS deduction. If your income is below the minimum exemption limit your employer will not deduct any TDS and may not issue you this form. If you have worked with more than one employer during the year, you will have more than one Form 16.
This Form 16 is a certificate, where the employer is certifying details regarding the salary you have earned during the year and how much TDS has been deducted. It has two parts, Part A and Part B. Part A has information of the employer & employee, like name & address, PAN and TAN details, period of employment, details of TDS deducted & deposited with the government. Part B includes details of salary paid, other incomes, deductions allowed, tax payable etc.

Form 16A
Form 16A is also a TDS Certificate. While Form 16 is for only salary income, Form 16A is applicable for TDS on Income Other than Salary. For example –a Form16A shall be issued to you when a bank deducts TDS on your interest income from fixed deposits, for TDS deducted on insurance commission, for TDS deducted on your rent receipts, in fact any other income you receive on which TDS has to be deducted. This certificate also has details of name & address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.
Both the forms are important and are required to help you file your return smoothly. You can also verify the income details and how much TDS has been deducted and at what rates.

In case you have questions about these forms or any other query you would like to ask, do comment and let us know.

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