What is Form 16 and 16A?

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Form 16/ 16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employees.

What is Form 16 and 16A? - IndiaCopy
Form 16 and 16A

Form 16 is a certificate given by the Central Board of Direct Taxes.

Form 16, Form 16A and Form 16B are the three TDS deduction certificates. All three are used in different types of payments. Therefore, they are also given different names.

Form 16

When TDS is deducted from Salary, Form 16 is given in the form of a TDS certificate. This certificate is given by the company or employer to the employee, from whose salary tax (TDS) is deducted. This form provides details of salaries and deducted taxes of employees by companies. Form 16 is a very important document which is required when filing an income tax return. It is produced on the basis of the financial year and It is mandatory to issue these certificates to Tax Payers.

This is proof that the employer has deducted TDS from the salary of the employee, who has submitted it to the government in the name of the employee. That employee can show it as tax payment in his income tax return.

Form 16 A

Form 16A provides the necessary and basic description of companies and employees. Therefore, PAN and TAN of companies and employees are included as well as their permanent address.

Form 16A is also a TDS certificate whereas Form 16A is for salary income only, Form 16A can be applied for TDS on income other than salary. Apart from salary, when TDS is deducted on any other form of payment, then Form 16A is given as a TDS certificate for the same. Such as in the event of TDS being deducted on payment of interest, rent, commission, etc.

This is proof that TDS deducted from the income of the payee has been deposited to the government in his name only. One whose TDS is deducted can show it in his income tax return.

Form 16 part b

When the TDS is deducted on the payment made for the purchase of immovable property, Form 16B is given as a certificate for that. Such as in deals of land, houses, shops, etc.

This is proof that the TDS deducted from the payment made to the seller of the property has been deposited to the government in his name only. The property seller can show it in his income tax return.

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