Differences between Form 16 and Form 16A: An Overview

Every taxpayer should have a clear idea of Form 16 and 16A as there is much confusion about their purposes. Salaried individuals need to pay taxes on their taxable source of income, and these sources are divided into 2 categories: salary and sources of income other than salary. Form 16 and 16A have different roles in filing ITR for these two sources of income. 

Therefore, this article will focus on the differences between Form 16 and Form 16A. Keep scrolling to know in detail.

What is Form 16?

As discussed in the introduction, there are 2 types of income sources: salary and non-salaried components. Form 16 is for filing an income tax return on salary, and employers generally issue it for their employees under section 203 of ITA.

Therefore, Form 16 is a certification of an employee’s salary for a particular financial year. Further, it also states the TDS deduction on salary. Therefore, a salaried individual should consider the following points while understanding the purpose of Form 16:

  • Form 16 is issued to salaried individuals only if their salary exceeds the exemption limit of ₹250,000.
  • Individuals must submit more than one Form 16 if they have worked with more than one employer in a financial year.
  • If salaried individuals tell their about their other sources of income to their employers, those will also be counted under the TDS deduction.

Also Read: TDS On Salary – Calculation, Deductions, Limit & more

What is Form 16A?

Simply put, Form 16A is a TDS certificate for income other than salary. An employer files TDS on non-salaried income by filling out this form under section 203 of the Income Tax Act, 1961.

Hence, Form 16A is issued quarterly and is due on the 15th day of the month. Individuals should consider the following points while filing ITR under Form 16A:

  • Income above ₹30000 is applicable for TDS deduction
  • Income from the sources such as rent, commissions, bank interests etc., are considered income sources other than salary

Also Read: Guide on How to Calculate Income Tax on Salary: Learn with Example

What Are the Differences between Form 16 and Form 16A?

There are some major differences between these two forms. These are as follows:

ParametersForm 16Form 16A
PurposeForm 16 is for filing TDS deduction on taxable salaryForm 16A is for filing TDS deductions on taxable income sources other than salary 
FrequencyIt is issued yearlyIt is issued quarterly
Issuing AuthorityEmployers issue Form 16Financial institutions, tenants, and banks issue Form 16A
EligibilityThis applies to those who get a regular salaryThis applies to self-employed persons as well as salaried persons
Issued toForm 16 is issued to salaried employeesForm 16A is issued to salaried and non-salaried employees  
Sources of IncomeForm 16 applies to income from salaryForm 16A applies to income other than salary.
Relationship with Form 26ASOnly TDS details of Form 16 are there in Form 26ASEvery detail of Form 16A is present in Form 26AS

What Are the Contents of Form 16?

The important documents to fill out Form 16 are as follows:

  • Annual Income proof.
  • Payment Acknowledgement Number.
  • TAN and PAN details of the employer.
  • Paid tax for the employees.
  • Employee’s PAN details.
  • Education surcharge and cess.

Also Read: TDS On Salary – Calculation, Deductions, Limit & more

What Are the Contents of Form 16A?

The documents are:

  • TDS payment number.
  • Deductor’s details such as name, TAN and PAN details.
  • Payment details.
  • Employee’s details such as name, TAN and PAN details.
  • Record of the date and amount of the tax deposit.

Also Read: How to Apply for TAN? Acknowledgement, Document and Payment Details

Final Words

This article provides all the information you need to know on the differences between Form 16 and Form 16A. Both are related to income tax return filing, and every taxpayer should know the differences between these two properly. However, these Forms are under section 203 and can be verified online.

Frequently Asked Questions:

How to generate Form 16A?

The stepwise guide to generating Form 16A is as follows:

Step 1: Log in to the official TRACES website.
Step 2: Check your last TDS status.
Step 3: Go to the download tab and choose Form 16.
Step 4: Give the current financial year.
Step 5: Get the details of the authorised person and click on submit.
Step 6: Provide KYC details.
Step 7: Get the unique request number to track the form later.
Step 8: Download Form 16A PDF.

What is TDS?

TDS or tax deducted at source is a certain amount that gets deducted from a person’s or entity’s yearly income. TDS is only applicable when the income exceeds a certain exemption limit. The Income Tax department determines the rate of TDS deduction.

What are the features of Form 16?

The features of Form 16 are as follows:
> This is proof of income.
> There are possibilities to make corrections in Form 16.
> It is only applicable if income exceeds a certain limit.
> It should be issued by an employer.

Animesh Gupta is a Chartered Accountant by profession and a NISM certified Mutual Fund Expert. He has over 4+ years of experience working in the Financial Services Industry. In his role at Wintwealth, he is part of the Credit and Risk team and evaluates the risk of the bonds available on Wintwealth's platform.

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