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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.
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
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.
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.
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:
What is difference between Form 16 and Form 16a?
Name & address of deductor/deductee.
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?
If I have received Form 16 and Form 16A, do I have to file an income tax return?
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.