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What is form 16A?

Form 16A is a Tax Deducted at Source (TDS) Certificate that denotes the amount of TDS, Nature of Payments and the TDS Payments deposited with the IT Department. Form 16-A shows utility in non-salaried remunerations. Professional fee for TDS, Bank Interest, Rental payment.

Understand Functional Procedure

  • When Mr. B makes a payment to Mr. C, the Income Tax Department mandates that a portion of the total payment made for Mr. C be deducted by Mr. B and paid to the Income Tax Department directly.

  • This is called Tax Deducted at Source, or TDS. Since Mr. B is deducting part of the payment, Mr. B is called the deductor and Mr. C, the deductee.

  • In case of this deduction, the deductor transfer payment to the IT Department and gives a TDS Certificate.

Form 16A Format

Deductor name & PAN & TAN

  • This can be the bank from where your TDS is deducted at source.

  • Insurance companies from where TDS is applicable.

  • Any other person/place you receive income from and on which TDS is applicable.

Deductee Name and PAN

  • Details will be of the individual who is receiving the TDS benefits.

Payment

  • Date of payment

  • Amount of payment

  • Nature of payment

The receipt number: Of the TDS payments

  • All the above details that need to be mentioned in the Form 16A are required to be mentioned when filing Income Tax returns.

  • Form 16A is a TDS Certificate mentioning all amounts of TDS deducted, nature of payments as well as TDS payments being actually deposited with the Income Tax Department.

  • Professional fees, Rent, Bank Interest payments to the IT Department - they issue a TDS Certificate.

How to Fill in the Form 16A?

  • Enter the Deductor name and address; while filling in the address, ensure to fill in their PIN number as well.
  • Fill in the TAN of the Deductor (this is an alphanumeric number with the first 4 digits in alphabets and 5 in digits and 1 in alphabets).
  • You will also need to fill in the PAN of the Deductor. This also is an alphanumeric number with the first 4 digits in alphabets and 5 in digits and 1 in alphabets).
  • Enter the information of 4 acknowledgement numbers.
  • The nature of payment is next, whether the payment is of contractual type, professional, etc.
  • For all payments mentioned, there are corresponding codes. Enter those.
  • Name of the deductee whose TDS has been deducted.
  • In the column, PAN no. of the deductee, mention the PAN number of the deductee whose TDS has been deducted.
  • Enter the period in the Form. This will be for the financial year. As an example, for this financial year, the period will be: 1st April 2017 - 31st March 2018.
  • After filling in all these details, you’ll now need to enter the TDS deduction details.
  • The TDS amount is mentioned in words.

How to Get the Form 16A?

  • This document is generally issued by your deductor.
  • It is issued for the present financial year and reflects the total earnings and total income taxes deducted for that financial year from other sources of income apart from your salary.
  • To get Form 16A, you could download the Form from the website of the Income Tax Department.
  • The form is available on their website in a PDF format and a fillable form as well.

When is Form 16A Required?

  • When you file your Income Tax returns for a year with the Income Tax department, and you have Income from other sources apart from your salary that have the tax deducted at source (TDS), then Form 16A is required.
  • Generally, banking & financial bodies utilise this document in their process of verification upon the application of loans or credits of any sort.

Difference Between Form 16 and Form 16A

Example

A. Form 16A is given to you when banks take TDS on the interest income that you have accrued from fixed deposits.

B. For TDS deducted on insurance commission.

C. For TDS deducted on your rent receipts. For TDS deducted on any other income you receive.

  • Form 16A has details such as name, address of deductor/deductee, PAN/TAN details, challan details of TDS deposited.

  • Besides, it contains information on the income received and the deducted TDS and its deposit.

  • Most of the information which is present in Form 16A is also available on Form 26AS. It is utilised to file your return. Yet, the function of Form 16 is different. Information on Form 16 that is common with 26AS i.e. the employer’s TDS deduction.

  • Both the forms are important and are required to help you file your return smoothly. One can also calculate the income information and amount of TDS and rate of deduction.

Frequently Asked Questions

What is the Form 16A?

A certificate issued by the tax deductor which could be a Bank, Company, Individual who has deducted TDS from the amount payable to you and given to the IT authorities. It holds information required to prepare and file your income tax return. Given every year on or prior to 15th June of the upcoming year, this certificate follows the year when tax is reduced.

How can I get Form 16A online?

Generally, this document is given by the deductor who issues this payment and gathers taxes for the deductee. It is issued for a particular Financial Year showing details regarding the payment made and tax collected from the same.

The steps to download Form16A from TRACES website is as following:

  • Deductor logs in to TRACES website.
  • Go to Downloads tab and select Form 16A.
  • Fill details regarding the financial year, quarter, form type, PAN etc. and click on add. One can select for bulk PAN download or singular download as required. Details that are shown in Form 16A are also shown where you can verify and update details.
  • Post deductor page validation, you will be asked for KYC in either digital signature or Normal KYC through using fiscal year, form type.
  • Enter the details i.e. Authentication code.
  • After the KYC details are done with, all the functions that can be done by Deductor on traces is provided.
  • After this, the Download Request Confirmation page comes up. This page contains Request Number for the request of download of Form 16A.
  • The file requested can be searched by using requested date or requested number or simply you can apply for view all. (In case of Submitted status kindly wait for 24-48 hours).
  • Click on the row you want to select and click HTTP Download.
  • If you don’t have Traces Pdf Utility, you will not be able to see the file in PDF format.
  • Select requested downloads and you will be able to see link to download utility as.
  • Download PDF utility for PDF convertor under the name TRACES-PDF-CONVERTOR V 1.4
  • Install the downloaded zip folder open the pdf file given for Form 16A. Input your TAN for password.

What is difference between Form 16 and Form 16a?

  • Form 16 is a TDS certificate issued by your employer. Form 16 is solely for salaried income, whereas Form 16A is used for TDS on other incomes.
  • Form-16A contains information such as:
  • Name & address of deductor/deductee.

  • PAN/TAN details.

  • Challan details of TDS deposited.

The form also holds details of the income that you have been earning together with the TDS deduction and deposit on this income.

Can Form 16 (Part A) / Form 16A be issued manually?

  • Part A in form16 for ITD is a manual preparation which is invalid from 2012-13 – Employer should generate TDS Certificate online.

If I have received Form 16 and Form 16A, do I have to file an income tax return?

  • If you are a salaried person, it is very important to understand the details given in Form 16. Understanding the content of Form-16 helps you file your I-T returns easily.

What are the details available in TDS certificate (Form 16 / 16A)?

  • Form 16/ 16A denotes reduction of tax at the base and is given upon deduction of tax by the employer on behalf of the employees.

  • The certificates contain details of TDS / TCS regarding a variety of transactions that take place between the deductor and deductee. It is compulsory to issue these certificates to the Tax Payers.

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