Form 16A is a TDS certificate that is issued by the deductor on a quarterly basis. It is a statement concerning the nature of payments, the amount of TDS, and the deposited TDS payments to the Income Tax department. It also consists of brokerage, interest, professional fees, contractual payments, rent, and other sources of income.
Unlike Form 16, which only consist salary structure, Form 16A of income tax charge TDS from:
- Receipts from business or profession fees.
- Rental receipts from a property or rent.
- Sale proceeds from capital assets.
- Additional source.
Important components of Form 16A
The important components of Form 16A are:
- Details of the Employer: It contains the name, TAN, and PAN of the employer.
- Details of Employee: It contains the name, TAN, and PAN of the employee.
- Mode of Payment: Both offline and online modes of payment are available.
- Receipt number of TDS: The receipt number of TDS helps in the tracking of back details.
The date and deposit tax amount with the income tax department help track information.
Significance of Form 16A
Form 16A plays a pivotal role while filing an income tax return, especially when someone has other sources of income apart from their salary. Here are the key benefits of Form 16A:
- Filing of income tax returns: The details contained in Form 16A help employees file their income tax returns. It guides employees in reporting their total income, which includes salary and other sources.
- Tracking of TDS: It helps every individual keep track of the tax deducted at source (TDS) on their income. It gives you a summary of TDS deducted at source.
- Income Proof: Form 16A works as evidence of an individual's total earnings from other sources. Government agencies and financial institutions, like banks, easily accept this source as income proof.
- Loan Applications: This form is important in verifying the loan applications. Financial institutions often need a record of the assets and liabilities of an individual to check the guarantee on loan repayment.
How to download Form 16A?
Below are the following steps to download Form 16A:
- Visit the official website of the income tax department.
- Complete the registration process on the website.
- Click the "Download" tab, and then select Form 16A.
- Fill in the PAN details, and then click “Go to continue.”.
- Click submit and download Form 16A.
What is the difference between Form 16 and Form 16A?
Form 16 and Form 16A are both TDS certificates, but there are certain differences between them. The following are the differences between Form 16 and Form 16A:
- Form 16 is a TDS certificate deducted from salary, whereas Form 16A is issued for income other than salary.
- Form 16 is issued by the employer, whereas Form 16A is issued by financial institutions.
- Form 16 is used for deducting tax from salary, whereas Form 16A is for removing taxes from another source of income apart from salary.
Final Thoughts
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