top of page

Form 16A

 

What is Form 16A?

Essentially, Form 16A is a TDS Certificate and is issued by employers on deducting Tax at Source. According to the Income Tax Act, 1961, payments over Rs.30000 that are not entitled to exemptions are liable for TDS. Form 16A serves as proof that TDS was deducted from income sources other than salary and provides essential details about the same. For instance, income generated in the form of interest of fixed deposits, insurance commission, rent receipts, securities, etc. are some of the details that are included.

This certificate is issued every quarter. It must be noted that the due date is usually the 15th of a month and is followed by the due date for quarterly TDS return. The rate of TDS depends entirely on the nature of non-salary income. Notably, the details contained in this certificate are also available in Form 26AS.  

​

Form 16A Format

 

Deductor name & PAN & TAN

  • This can be the bank from where your TDS is deducted at source.

  • Insurance companies from where TDS is applicable.

  • Any other person/place you receive income from and on which TDS is applicable.

Deductee Name and PAN

  • Details will be of the individual who is receiving the TDS benefits.

Payment

  • Date of payment

  • Amount of payment

  • Nature of payment

The receipt number: Of the TDS payments

  • All the above details that need to be mentioned in the Form 16A are required to be mentioned when filing income tax return.

  • Form 16A is a TDS Certificate mentioning all amounts of TDS deducted, nature of payments as well as TDS payments being actually deposited with the Income Tax Department.

  • Professional fees, Rent, Bank Interest payments to the IT Department - they issue a TDS Certificate.

 

How to Fill in the Form 16A?

 

  • Enter the Deductor name and address; while filling in the address, ensure to fill in their PIN number as well.

  • Fill in the TAN of the Deductor (this is an alphanumeric number with the first 4 digits in alphabets and 5 in digits and 1 in alphabets).

  • You will also need to fill in the PAN of the Deductor. This also is an alphanumeric number with the first 4 digits in alphabets and 5 in digits and 1 in alphabets).

  • Enter the information of 4 acknowledgement numbers.

  • The nature of payment is next, whether the payment is of contractual type, professional, etc.

  • For all payments mentioned, there are corresponding codes. Enter those.

  • Name of the deductee whose TDS has been deducted.

  • In the column, PAN no. of the deductee, mention the PAN number of the deductee whose TDS has been deducted.

  • Enter the period in the Form. This will be for the financial year. As an example, for this financial year, the period will be: 1st April 2017 - 31st March 2018.

  • After filling in all these details, you’ll now need to enter the TDS deduction details.

  • The TDS amount is mentioned in words.

 

How to Get the Form 16A?

​

  • This document is generally issued by your deductor.

  • It is issued for the present financial year and reflects the total earnings and total income taxes deducted for that financial year from other sources of income apart from your salary.

  • To get Form 16A, you could download the Form from the website of the Income Tax Department.

  • The form is available on their website in a PDF format and a fillable form as well.

 

When is Form 16A Required?

​

  • When you file your income tax return for a year with the Income Tax department, and you have Income from other sources apart from your salary that have the tax deducted at source (TDS), then Form 16A is required.

  • Generally, banking & financial bodies utilise this document in their process of verification upon the application of loans or credits of any sort.

 

Significance of Form 16A

 

Form no 16A is issued by the employer or deductor in the current financial year. It is mostly required in a situation where the individual has an additional source of income other than his/her salary. Financial institutions use this certificate to complete the verification process before extending financial products, including secured and unsecured loans.

These pointers below highlight the importance of Form 16A –

  • The information present in this certificate proves useful while filing taxes.

  • Such information is needed to file ITR as well. 

  • It helps to track the amount of TDS paid on other earnings.

  • It serves as authorised proof of income.

  • The certificate helps to support loan applications and improve eligibility.

 

 

 

DISCLAIMER- These materials are public information and have been prepared solely for educational purposes. These materials reflect only the personal views of the author and are not individual legal advice.

It is understood that each case is fact specific and that the appropriate solution in any case will vary. Finally, the owner will not be accountable for any loses injuries or damages from the exposures or usage of this information.

​

bottom of page