Form 16 and 16A both are the TDS certificate of your income from different sources. Both forms vary in terms of purpose, eligibility, and where they are applicable. In one line, we can say that form 16 is issued for salary income, and form 16A is issued for non-salary income. Here in this post, we will discuss the difference between forms 16 and 16A.
Difference between form 16 and 16A
Both forms are vital for taxpayers as they play an integral role in determining the payable tax amount. They are also quite essentials for filing income tax returns. Here is the difference between forms 16 and 16A.
Form 16- The TDS certificate for Income of salary
What is form 16 under Income Tax?
Form 16 is a salary TDS certificate issued to a salaried employee, whose salary is liable for TDS deduction every year. If your salary is below the basic exemption limit, your employee will not deduct TDS and may not issue form 16 to you.
What does form 16 consist of?
This form is divided into 2 parts i.e. Part A and Part B
Part A of Form 16 contains the following:-
- Part A contains the basic details of the employer and the employee.
- It contains the employer’s name, address, PAN & TAN.
- It contains the employee’s name, address, and PAN.
- It contains a period of salary, amount of salary, and TDS on salary.
Also Read- Time limits to deposit TDS and to file TDS return.
Part B of Form 16 contains the following:-
- It contains components of your salary and deduction claimed by you.
- It contains total salary, total deduction, and tax deducted on your income.
Form 16A- The TDS certificate for Income other than salary
What is form 16A under Income Tax
Form 16A is also a TDS certificate, it is applicable for TDS on income other than salary. Form 16A indicates the amount of income paid and TDS deducted on that specified income. The non-salary income includes professional fees, contract fees, interest income, etc. Form 16A issued under section 203 of the Income Tax Act, 1961.
What does form 16A consist of?
Form 16A contains the following details.
- Name and address of the deductor.
- Name and address of the deductee.
- A unique identification no. of the deductor which includes PAN and TAN numbers also.
- A unique identification no. of the deducted which includes PAN of the deductee only.
- Total amount due to the deductee.
- Amount deducted and paid to The Income Tax Department.
Must Read- Know the difference between Gross Total Income and Total Income under Income Tax Act
Difference between form 16 and 16A- Table
| Parameters | Form 16 | Form 16A |
|---|---|---|
| Meaning | Form 16 is a salary TDS certificate issued to a salaried employee, whose salary is liable for TDS deduction every year. | Form 16A is also a TDS certificate, it is applicable for TDS on income other than salary. |
| Eligibility | For the salaried person with regular income | For self-employed or any other profession |
| Issuer | The Employer | Financial Institutions like banks, tenants, etc. |
| Frequency | It is issued for the completed year i.e. Annually | It is issued quarterly |
| Issued Against | It is issued against salaried employees | It is issued against non-salaried employees |
Frequently Asked Questions- FAQs
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What is form 16?
Form 16 is a salary TDS certificate issued to a salaried employee, whose salary is liable for TDS deduction every year. If your salary is below the basic exemption limit, your employee will not deduct TDS and may not issue form 16 to you.
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Who is eligible for form 16A?
Form 16A is also a TDS certificate, it is applicable for TDS on income other than salary. Form 16A indicates the amount of income paid and TDS deducted on that specified income. The non-salary income includes professional fees, contract fees, interest income, etc
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Can I generate form 16 online?
You can not as an employee generate form 16 online but if you are an employer then it is your liability to generate form 16 online within the specified time.
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What happens if I don’t have form 16?
For filing of Income Tax Return, if you don’t have form 16, despite form 16 you can use salary slips, form 26AS, and any other proof of Income like a Bank Statement in which salary is received.
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What is the salary limit for form 16?
Form 16 is a salary TDS certificate issued to a salaried employee, whose salary is liable for TDS deduction every year. If your salary is below the basic exemption limit, your employee will not deduct TDS and may not issue form 16 to you.
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken based on the above article.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)