Form-16 and What it Contains:
- 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.
- Form 16 is your salary TDS certificate which is issued once in the year by the employer issued on or before 15th June.
- If your income from salary for the financial year is more than the basic 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, they will consider your total income for TDS deduction.
- If your income is below the basic exemption limit, your employer will not deduct any TDS and may not issue this form to you.
- If you have worked with more than one employer during the year, you will have more than one Form 16.
Parts of Form-16:
Form-16 consists of two parts like Part-A and Part-B and contains following details
- Part A has information of the employer & employee, like name & address, PAN and TAN details, the 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 16 is a certificate issued to salaried individuals from their employer when he deducts tax from the employee salary.
What is 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.
- This certificate also has details of the name and 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.
- All details that are there in Form 16A are available on Form 26AS. This can be used to file your return.
- A Form 16A is issued quarterly. The due date is 15th of the month following the due date for quarterly TDS return
Example:
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, when TDS is deducted on any other income you receive that is liable for such deduction.
Most Asked Questions:
Q. How can I benefit from Form 16 and Form 16A?
And: You can use the data of income and TDS in form 16 and form 16A to file your income tax return and calculate and pay your tax.
Q. Which period is Form 16A issued for?
Ans: A Form 16A is issued quarterly. The due date is 15th of the month following the due date for quarterly TDS return.
Q. When does a deductor issue Form 16?
Ans: An employer deducting tax or TDS on the salary paid to an employee issues Form 16 to the employee.
