Form 16 and Form 16A: All the Differences You Need To Know

Last Updated at: February 17, 2020
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Difference between Form 16 and Form 16A

 

Taxable Income Range (In Rs.) Tax Rate prior to Budget 2020 (Existing) Tax Rate Post Budget 2020
0-2.5 lakh Exempted Exempted
2.5-5 lakh 5% 5%
5-7.5 lakh 20% 10%
7.5-10 lakh 20% 15%
10-12.5 lakh 30% 20%
12.5-15 lakh 30% 25%
Above 15 lakh 30% 30%

As evident from the table, filing the income tax returns above a specified income amount is mandatory. Form 16 is of utmost significance, which acts as a financial proof for the tax payment and deductions made to the government. The issue of both the forms, Form 16 and Form 16A is done under Section 203- Income Tax Act, 1961. But, before knowing how these forms are different, we must know their components and the information they cater to.

  1. Components of form no. 16
  2. Form 16- Types
  3. Components of Form 16A
  4. Difference between form 16 and form 16A
  5. Similarities between form 16 and form 16A
  6. How are form 16 and form 26AS related?
  7. Conclusion

Components of form no. 16

Form 16, in simple terms, is the TDS certificate issued for the salaried individuals on the amount collected as tax by the deductor. Form 16 is further divided into two components, which include part A and part B.

  • Part A:

The details contained in this part include the following:

    • Personal details of both the employer and the employee
    • PAN details, TAN (Tax Deduction and Collection Amount Number) details.
    • Assessment year under which the tax is paid/deducted.
    • The employment period of the individual in the financial year
    • Summary of the salary
    • Deduction date and amount
    • Acknowledgement number
  • Part B:

In the form no. 16, this part contains all the financial details including salary paid, tax due, tax paid. Additional details namely the employer’s name and PAN details are also mentioned. The list of details included is as follows:

    • Total salary
    • Exemptions and allowances
    • Gross income, i.e., the total amount of salary along with other sources of income such as rent, house, etc.
    • Salary deductions
    • The amount of salary that is taxable after all the payments and other interest amounts that need to be paid

File Your Income Tax Returns

Form 16 – TypesForm 16 and Form 16A: All the Differences You Need To Know

The form no. 16 is of two types, namely:

  • Form 16A: Under this form, the TDS amount that is deducted is on the income of the individual other than the salary.
  • Form 16B: under this form, the TDS amount that is deducted on the income of the individual is on the income from the property.

Form 16 and Form 16A: All the Differences You Need To Know

The form 16 download can be done from the TRACES website using the login credentials. Apart from form 16 download, one can also get form 16A and fill it to file the income tax return.

Components of Form 16A

Just like form no. 16, the details that are included in form 16A are as follows:

  • Deductor’s name and address
  • Decductee’s name and address
  • PAN number and TAN number of the deductor
  • PAN number of the deductee
  • The total due amount of the deductee
  • Like income tax form 16, the amount paid to the income tax department is also mentioned

Difference between form 16 and form 16A

While both form 16 and 16A can be downloaded through the same platforms, form 16A is a component of form 16. They have a number of differences on the basis of various criteria which include the following:

  • Definition: Form 16 is a TDS certificate for all the salary, while Form 16A is the TDS certificate for the income obtained apart from the salary. (Freelancers are also included in this form)
  • Eligibility: All the salaried individuals having a steady and annual income exceeding Rs.2,50,000 are eligible for form 16, while the individuals having their business or are self-employed have to obtain form 16A, under which 10% of the income is deducted as TDS.
  • The income tax form 16 is issued on an annual basis, while the form 16A is issued on a quarterly basis.

Similarities between form 16 and form 16A

Additionally, the similarities in income tax form 16 and form 16A include:

  • Both the forms are under the same section, i.e., 203 of the Income Tax Act, 1961.
  • Form 16 and Form 16A can be downloaded online. In addition to this, the verification of both forms can also be done online.

How are form 16 and form 26AS related?

While income tax form 16 and form 26AS might look similar, but actually, the Form 26AS is used for the verification of the details mentioned under the form 16 and its components, along with the information regarding deductions from salary and other income sources.

26AS contains:

  • Part A
  • TDS (Tax Deducted at Source)
  • TCS (Tax Collected at Source)
  • Part B
  • Details of TCS (Tax Collected at Source)
  • Part C
  • Tax paid details (other than TDS & TCS)
  • Part D
  • Paid refund details
  • Part E
    AIR transaction details
  • Part F
    Details of Tax Deducted on sale of immovable property u/s194IA (For Buyer of property)
  • Part G
    TDS defaults* (processing of defaults)

Conclusion

There are some minor as well as major differences between form 16 and form 16A that must be considered before the filing of the form. All the individuals must check the criteria they belong to and register their financial documents accordingly.

 

Form 16 and Form 16A: All the Differences You Need To Know

67

 

Taxable Income Range (In Rs.) Tax Rate prior to Budget 2020 (Existing) Tax Rate Post Budget 2020
0-2.5 lakh Exempted Exempted
2.5-5 lakh 5% 5%
5-7.5 lakh 20% 10%
7.5-10 lakh 20% 15%
10-12.5 lakh 30% 20%
12.5-15 lakh 30% 25%
Above 15 lakh 30% 30%

As evident from the table, filing the income tax returns above a specified income amount is mandatory. Form 16 is of utmost significance, which acts as a financial proof for the tax payment and deductions made to the government. The issue of both the forms, Form 16 and Form 16A is done under Section 203- Income Tax Act, 1961. But, before knowing how these forms are different, we must know their components and the information they cater to.

  1. Components of form no. 16
  2. Form 16- Types
  3. Components of Form 16A
  4. Difference between form 16 and form 16A
  5. Similarities between form 16 and form 16A
  6. How are form 16 and form 26AS related?
  7. Conclusion

Components of form no. 16

Form 16, in simple terms, is the TDS certificate issued for the salaried individuals on the amount collected as tax by the deductor. Form 16 is further divided into two components, which include part A and part B.

  • Part A:

The details contained in this part include the following:

    • Personal details of both the employer and the employee
    • PAN details, TAN (Tax Deduction and Collection Amount Number) details.
    • Assessment year under which the tax is paid/deducted.
    • The employment period of the individual in the financial year
    • Summary of the salary
    • Deduction date and amount
    • Acknowledgement number
  • Part B:

In the form no. 16, this part contains all the financial details including salary paid, tax due, tax paid. Additional details namely the employer’s name and PAN details are also mentioned. The list of details included is as follows:

    • Total salary
    • Exemptions and allowances
    • Gross income, i.e., the total amount of salary along with other sources of income such as rent, house, etc.
    • Salary deductions
    • The amount of salary that is taxable after all the payments and other interest amounts that need to be paid

File Your Income Tax Returns

Form 16 – TypesForm 16 and Form 16A: All the Differences You Need To Know

The form no. 16 is of two types, namely:

  • Form 16A: Under this form, the TDS amount that is deducted is on the income of the individual other than the salary.
  • Form 16B: under this form, the TDS amount that is deducted on the income of the individual is on the income from the property.

Form 16 and Form 16A: All the Differences You Need To Know

The form 16 download can be done from the TRACES website using the login credentials. Apart from form 16 download, one can also get form 16A and fill it to file the income tax return.

Components of Form 16A

Just like form no. 16, the details that are included in form 16A are as follows:

  • Deductor’s name and address
  • Decductee’s name and address
  • PAN number and TAN number of the deductor
  • PAN number of the deductee
  • The total due amount of the deductee
  • Like income tax form 16, the amount paid to the income tax department is also mentioned

Difference between form 16 and form 16A

While both form 16 and 16A can be downloaded through the same platforms, form 16A is a component of form 16. They have a number of differences on the basis of various criteria which include the following:

  • Definition: Form 16 is a TDS certificate for all the salary, while Form 16A is the TDS certificate for the income obtained apart from the salary. (Freelancers are also included in this form)
  • Eligibility: All the salaried individuals having a steady and annual income exceeding Rs.2,50,000 are eligible for form 16, while the individuals having their business or are self-employed have to obtain form 16A, under which 10% of the income is deducted as TDS.
  • The income tax form 16 is issued on an annual basis, while the form 16A is issued on a quarterly basis.

Similarities between form 16 and form 16A

Additionally, the similarities in income tax form 16 and form 16A include:

  • Both the forms are under the same section, i.e., 203 of the Income Tax Act, 1961.
  • Form 16 and Form 16A can be downloaded online. In addition to this, the verification of both forms can also be done online.

How are form 16 and form 26AS related?

While income tax form 16 and form 26AS might look similar, but actually, the Form 26AS is used for the verification of the details mentioned under the form 16 and its components, along with the information regarding deductions from salary and other income sources.

26AS contains:

  • Part A
  • TDS (Tax Deducted at Source)
  • TCS (Tax Collected at Source)
  • Part B
  • Details of TCS (Tax Collected at Source)
  • Part C
  • Tax paid details (other than TDS & TCS)
  • Part D
  • Paid refund details
  • Part E
    AIR transaction details
  • Part F
    Details of Tax Deducted on sale of immovable property u/s194IA (For Buyer of property)
  • Part G
    TDS defaults* (processing of defaults)

Conclusion

There are some minor as well as major differences between form 16 and form 16A that must be considered before the filing of the form. All the individuals must check the criteria they belong to and register their financial documents accordingly.

 

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