Form 16a of Income Tax

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Form 16a of Income Tax

Form 16A is a crucial document for taxpayers who incur income from sources other than salary. As a responsible citizen of India and an honest individual, you must file a TDS form. If you are worried about how you can do that, here in the article, you will find all the necessary information regarding Form 16A.

But before that, let’s find out what Form 16A is in detail.

What Is Form 16A?

Form 16A is a TDS certificate that employers issue when deducting tax at source. As stated in the Income Tax Act 1961, payments over ₹30,000 that are not entitled to tax exemptions are liable for TDS.

TDS Certificate 16A acts as evidence that TDS has been deducted from income sources other than salary and includes information about the same.

The Form is issued quarterly, and its due date is the 15th of each month. Then, quarterly TDS returns are due. Remember, the TDS rate depends entirely on the type of non-salaried income.

Elements of Form 16A Income Tax

Here are the components of Form 16A:

Particulars Details
Details of Employer Name, PAN, Tan
Details of Employee Name, PAN, Tan
Nature of Payment Offline or Online mode
TDS Receipt Number Assists in tracking details
Date and amount deposited with the Income Tax Department Assists in tracking details

Types of Transactions That Require Form 16A

Here is the list of non-salaried earnings that attract TDS, as per Section 206C of the Income Tax Act. Remember that each transaction attracts a different rate of tax.

  • Rent

  • Dividends

  • Lottery or crossword puzzle winnings

  • Horse race winnings

  • Payouts to contractors

  • Payouts for National Savings Scheme

  • Payouts to non-resident athletes or sports association

  • Insurance Commission

  • Interest accrued on bank accounts

  • Commission, compensation or brokerage

  • Payments for repurchasing mutual fund units

  • Income from Indian company shares

  • Foreign currency bond income

  • Technical and professional service fee

  • Revenue generated from units mentioned in Section 196b

  • Earnings from foreign companies mentioned under Section 196a

Steps to Fill Salary Form 16A

-Step 1: Provide the deductor’s name, address and PIN correctly.

-Step 2: Now, fill in the deductor’s PAN and TAN details correctly.

-Step 3: Next, enter the details for four acknowledgement numbers.

-Step 4: Now provide the nature of payment; whether the payment is professional, contractual or otherwise.

-Step 5: Next, enter the corresponding codes for all the payments.

-Step 6: Now, the name of the deductee whose TDS was deducted is entered.

-Step 7: Next, enter the PAN number of the deductee in the column of PAN no. whose TDS is deducted.

-Step 8: Now, enter the fiscal period.

-Step 9: After all these details have been filled in correctly, you now need to enter the TDS deduction information.

-Step 10: Finally, the TDS amount is stated.

Steps For Form 16A Download Online

-Step 1: Visit the official website of the Income Tax Department.

-Step 2: On the homepage, scroll down to the bottom and find “TRACES”. Then click on it.

-Step 3: You will be redirected to the TRACES website, where you need to navigate to log in using your credentials.

-Step 4: Now, go to the “Downloads” tab and then select “Form 16A”.

-Step 5: Next, you need to provide your requested information and click on “Go”. Then, you can download your form.

How to Verify Form 16A Online?

Taxpayers can verify their Form 16A details using the Income Tax Department’s TRACES website. Through this, they can find out the deductions made by their employer by accessing Form 23AS and entering the TAN, PAN, certificate number and financial year details of the employer.

If you find any discrepancies in the form or the details provided, you should immediately contact your employer for corrections. Here are some of the reasons for discrepancies in the form:

  • Providing incorrect PAN and TAN details

  • Failure to file TDS returns

  • Omitting the TDS payment details in TDS returns

  • Quoting the wrong amount

  • Quoting incorrect Challan Identification Number (CIN)

Difference Between Form 16, Form 16A and 16B

Basis Form 16 Form 16A Form 16B
Issued By The employer issues form 16.  Form 16A is issued by financial institutions, tenants and other concerned entities.  Form 16B is issued by the property buyer to its seller. 
Received By Salaried employees receive the form Non-salaried employees receive it.  Property sellers receive it.
Purpose of Form Form 16 is issued when tax is deducted at source from salary.  It is issued when tax is deducted at source on income generated from non-salary sources.  Form 16B is issued when tax is deducted from income through the sale of property or any other immovable asset. 
Elements of Form Proof of income, Employer’s PAN and TAN details, employee’s PAN, tax amount paid on behalf of the employee by the employer, payment acknowledgement, education cess and surcharges Bank and TAN details of the deductor, PAN of deductee, amount of tax, TDS payment receipt number Seller’s PAN, assessment year, acknowledgement number of Form 26QB, deductions under ITA, breakup of salary paid, relief under Section 89
ITA Section Section 203 of ITA deals with tax deducted at source based on chargeable earnings.  Section 203 of ITA deals with tax deducted at source from non-salary incomes. Section 194 of ITA deals with the sale of property. 

Summing Up

By now, you must have gotten a good understanding of what Form 16A is and how you can download TDS TRACES Form 16A online. So, make sure you utilise the information provided here to file your income tax return accurately.

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Can ITR be filed using Form 16A without payslips?

Can ITR be filed using Form 16A without payslips?

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Yes, you can file the ITR using Form 16A without using salary slips, as they are not related to it.

What is the importance of Form 16A?

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Form 16A is crucial in several ways, such as: Information presented in the form is helpful when filling out income tax forms It helps track TDS paid on other earnings Acts as authorised proof of earning Form 16A certificate also helps in loan applications and improves eligibility

Can Form 16A be given to employees whose TDS has never been deducted?

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No, there is no need to issue Form 16A if TDS is not deducted from the employee’s income.

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