Skip to main content

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 SoftwareGST Return FilingGST Registration, Section 8 Company RegistrationNidhi Company RegistrationIEC RegistrationFssai LicenseFile ITR Online.

Comments

Popular posts from this blog

How can digital marketing help your startup to grow faster?

No one can deny the fact that startups need recognition. Startups, being new to the market, need to tell people that they exist. Market primarily consists of potential customers, investors as well as partners. And these are vital for any business. Without marketing, you and your startup is nothing. No one knows you, so they won’t even bother to spare you a glance. Your idea may be unique and outstanding, but without marketing, that idea is completely useless. Being an entrepreneur, you need to know how to sell your products and services. To sell, people need to know about your existence. You need to attract them. To attract customers, you need marketing. Now, there are two primary forms of marketing. First is traditional marketing and the second being, digital marketing. How are you supposed to choose the best way? How are they going to help? The same is discussed below. Traditional marketing is nothing but the old ways of promoting a company. It can be done via posters and banners. ...

The 3 Relationships That Matter When Your Company Is Being Acquired

Getting acquired is one of the major moments of your life. It is a mix bag of feeling because your startup is like a baby that you nurtured from the start and now after selling it away, things will never be the same and you might not have the same freedom to run that business as you used to. The whole process itself is very tedious and involves a lot of aspects. Your legal advisor and countless manuals may furnish you with all the details however you might not have anyone who would guide you how to handle the people aspect related to you’re the whole process of acquisition. So let me help you now. There are a lot of people involved and you need to have cordial relation with almost all of them and have no grudge against any. During this delicate time, it is essential for you to maintain your calm and no matter how stressed you are from the inside, you must stay calm on the outside. And in this critical time, it is imperative for you to have soft skills and here are three important rela...

5 Tips to Help Your Startup Operate Smoothly from Day 1

To pass the different stages of building a startup, you need not climb the treacherous mountains but pass through the valleys paved by others. Starting your own venture can be a quite daunting task. The can be like hurtling down a potholed road with the ups and downs and the unpredictability that takes extra efforts to overcome. It is good to heed the advice of the experienced people. It is always advised to take away from experiences of a person who has gone through the potholed road. To be an entrepreneur in competitive times like these can be a daunting and a demanding task. You need to give in all you have with zero complaints. The following are the best ways to get through the startup transition on day 1: 1. Keep your heart full, your mind clear and your body active You need to keep yourself well through the transition process. It’s good to take some time out for yourself. Do some physical activity, read in your free time and learn every time. You need to understand that...