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Difference between Form 16 and Form 16A

Form 16 and Form 16A

Many people get confused between two terms and those are form 16 and form 16-A. To understand the concept of both the forms, this article will prove to be very helpful. Let’s understand the concept in detail.

Form 16:-

Under section 203 of the Income Tax Act, 1961, Form 16 is the certificate of income tax describing the amount of tax deducted. It is like a salary certificate which is issued by the employer to its employee for a particular financial year. It specifies the amount of total salary paid by the company to its employee and also specifies the amount of tax deducted in a year.
If a person is working in one or more offices he will receive more than one form 16. Form 16 consist of two parts, one part is known as part A and other is known as part B. Part A consists of information of both the employer and the employee such as name, address, phone number, TAN, period of employment etc. Part B consist details of salary, tax deductible, other income etc.
If an employee income is above the exemption limit of Rs.2,50,000 then as per the provisions of the act it is the duty of the employer to deduct the amount of TDS from the salary of the employee and to deposit it with the government. If an employee’s income is less than Rs.250000 then there will be no deduction from the salary of the employee.

Form 16 A:-

Form 16 A is a TDS certificate from income other than salary. It is issued to a person when there has been a deduction of TDS on interest income from fixed/recurring deposits. As income earned from all payments other than salary is different from income earned from salary so it is denoted as form 16A. Income which is received from rent receipts is also TDS deductible.
This certificate comprises information such as PAN card details, TAN details, name and address of the deductor, income earned and TDS deducted and deposited. It is issued when payment is received from several different sources but excluding salary income. In effect these forms do not overlap and are complementary to each other, the only difference being the source.
Both the forms are requisite and important to understand for every employee as well as an employer.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.

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