Form 16A

5paisa Research Team

Last Updated: 27 May, 2024 12:52 PM IST

PF 16A

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Form 16A is essential tool that makes it easier for taxpayers to calculate & pay appropriate taxes. Taxpayers should be aware of this document's components, generation method, & verification procedure, among other things, to make most out of it. This will be useful in multiple contexts.

What Is Form 16A?

Employers issue Form 16A, or TDS Certificate, to employees for withholding taxes at source. Income Tax Act of 1961 states that payments above Rs. 30,000 that are not exempt from taxation are subject to TDS. Form 16A contains crucial information about TDS deductions from sources of income other than salaries & acts as documentation of such deductions. For example, information about revenue received from securities, rent receipts, insurance commissions, interest from fixed deposits, & other sources is provided. Every quarter, this certificate is given out. Note that quarterly TDS return deadline falls on same day as general due date, which is fifteenth of month. TDS rate is solely determined by type of non-salary revenue. Interestingly, information in this certificate can also be found in Form 26AS.

When Is Form 16A Required?

Form 16A is needed when you file your annual income tax returns with income tax department & you have income from sources other than your pay where tax is withheld at source (TDS).
This document is used by majority of banks & other financial organizations throughout verification process when you apply for loan of any kind, including personal, home, auto, or consumer loans.

How To Download Form 16A?

After filing TDS return for non-salary payments using Form 26Q, people should download Form 16A.
These procedures can be used by deductor to download Form No. 16A –

Step 1: Go to official Income Tax website.
Step 2: Enter TRACES & log in.
Step3: Click "Downloads" tab.
Step 4: Choose "Form 16A."
Step 5: Give necessary information.
Step 6: Select "Go." After completing these procedures, people can download aforementioned form & fulfil necessary formalities.

Form 16A Format

Details & elements that comprise Form 16A are:

1. Deductor's name, PAN, & TAN can be bank where TDS is withheld at source, insurance companies where TDS is applicable, or any other individual or entity that provides you with income & for which TDS is applicable.
2. Deductee's name & PAN - This information relates to person who is getting TDS benefits.
3. Payment details, including amount & type of payment made.
4. TDS payment receipt number

All of these informational items must be included on Form 16A when submitting income tax returns.

TDS Certificate, Form 16A, contains all TDS amounts that have been deposited with Income Tax Department.

IT Department issues "TDS Certificate" to deductor when non-salary income payments are made, such as rent, bank interest payments, & TDS professional fees.

How To Fill Form 16A?

  • When completing TDS Certificate Form 16A, following guidelines must be followed. Enter name & address of deductor, being careful to include their PIN (Postal Index Number).
  • Enter Deductor's TAN, which is alphanumeric number consisting of first four letters of alphabet, five letters, & one letter.
  • PAN of Deductor, which is alphanumeric number consisting of first four, fifth, & one letters, must also be entered.
  • Data entry for four acknowledgement numbers should be done.
  • type of compensation, whether it be contractual, professional, or anything else, comes next.
  • Enter codes that correspond to each of listed payments.
  • name of person from whom TDS was withheld.
  • In column labelled "PAN no. of deductee," mention PAN number of deductee from whom TDS is being withheld.
  • Enter period—which will be fiscal year—into form. 
  • Once you've filled out every field, you'll need to input TDS deduction details.
  • amount of TDS is expressed in words.

What Type of Payments Form 16A Is Issued?

Form 16A is usually linked to commissions received or TDS deductions made by banks. But let's look at some more circumstances where Form 16A might be given out.
Form 16A is provided for number of payment kinds, such as:

  • Payments with interest
  • cost of expert services
  • Payments for commission or brokerage

To put it another way, payments that don't fit into one of following categories are issued Form 16A:

  • Wages (Form 16 is provided for this purpose).
  • Property sale (Form 16B is issued here)

Provisions for rent under section 194IB (For this, Form 16C is provided.)
To summarize, payments not covered by Form 16, Form 16B, or Form 16C are made using Form 16A.

Importance of Form 16A

Form 16A form online is important since it is certificate that employer or deductor issues for current fiscal year. When someone earns money from sources other than their pay check, it becomes even more crucial.
Following are main ideas emphasizing significance of Form 16A:

  • Tax Filing: In order to file taxes correctly, data on Form 16A form online is necessary. It assists people in disclosing all of their income, including money from sources other than salaries.
  • Income Tax Return (ITR): To file Income Tax Return (ITR), Form 16A data is needed. It guarantees that all income is reported correctly & helps to ensure that tax laws are followed.
  • TDS Tracking: People can monitor amount of Tax Deducted at Source (TDS) paid on their non-salary earnings by using Form 16A. It offers synopsis of TDS that deductor has taken out.
  • Proof of Income: Form 16A form online is legally recognized document that displays individual's revenues from range of sources. It is commonly acknowledged by banks, governments, & other organizations as proof of income.
  • Loan Applications: supporting documentation for loan applications is Form 16A. It is frequently needed by financial institutions to confirm individual's income & determine if they qualify for loan. It offers thorough summary of person's financial circumstances.

Difference Between Form 16 & Form 16A

Employers offer proof of tax deductions at source (TDS) to their staff members in form of Forms 16 & 16A. This is typically applied to things like winnings from horse races, crossword puzzles, lotteries, etc.

Five Ways Form 16 & Form 16A Differ:

EXPLANATION It is certificate under Section 203 Income Tax for tax deducted at source from income chargeable under head of 'salaries'. other than salary.
ELIGIBILITY Anyone who earns steady & regular income in form of salary. self-employed or professional
APPLICABLE TOWARDS Interest on securities, dividends, interest other than interest on securities, etc. Issued against rent, commission, professional charges, building, plant, machine hired, commission agents, etc.
COMPRISES OF Proof of income, details of tax paid by employer on behalf of employee, PAN & TAN of employer, PAN of employee, acknowledgement of amount of tax paid, education cess & surcharges. Name, TAN, PAN of employer; Name & PAN of all employees. Amount paid & nature of payment, receipt number of TDS payment.
ONLINE VERIFICATION Can be verified online Can be verified online


Taxpayers should be aware of this document's components, generation method, & verification procedure, among other things, to make most out of it. This will be useful in multiple contexts. Form 16A, TDS certificate, verifies tax compliance, taxpayer statements, salary details, financial year, taxable income, deductions, & employee tax information, It serves as essential documentation for tax purposes. salary certificate serves as proof of income, while deduction certificate outlines eligible tax deductions.

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Frequently Asked Questions

Yes, errors can be rectified by filing revised Form 16A.

Record-Keeping Duration for Form 16A: Keep Form 16A for at least 6 years.

Guidelines for Form 16A Generation: Follow tax regulations & ensure accurate details.