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Though both are TDS certificates, there is a difference between Form 16 and 16A. Read this guide by H&R Block to understand form 16 vs form 16a differences.

Difference between Form 16 and Form 16A

Last Update Date : June 04, 2019
Estimated Read Time: 3 min

Guide explaining Difference of Form 16 vs Form 16A

There is a difference between Form 16 and 16A even though both are TDS certificates. Depending on the sources of your income, it is possible that you may get both the forms in a financial year, which may lead to confusion when you file your income tax return.

Read this guide by H&R Block to know how the two forms are different and get the confusion out of your mind!

What is Form 16?

Form 16 is a certificate for the income you earn from salary, in a financial year. Part A of Form 16 is proof that TDS from your salary has been deducted by your employer and the same has been deposited with the Income Tax Department. Part B contains details of your salary and deductions.

[ Read: How to get Form 16 ]

What is Form 16A?

Form 16A is a TDS certificate for the income you earn from sources apart from salary, which is liable for TDS, in a financial year. It is proof that the deductor has deducted TDS from your payment and deposited the amount with the Income Tax Department.

[ Read: Form 16A of Income Tax ]

Form 16 vs 16A – Detailed Comparison in Tabular Format

Under section 203 of the I-T Act, 1961, Form 16 or Form 16A must be issued when tax is deducted at source and deposited with the ITD. The following table shows the difference between Form 16 and Form 16A:

CriteriaForm 16Form 16A
Source of IncomeSalary.Other than salary such as interest on bank deposits, rent from property/plant/machinery, capital gains, professional fees, winnings from lottery, a commission from the sale of insurance products, etc.
Income eligibility to get the formAnyone who is earning a regular salary exceeding Rs 2,50,000 is eligible to get Form 16.The minimum income limit is variable depending on the source of income to get Form 16A.
Who issues itEmployer issues Form 16.Deductor makes the payment and issues Form 16A. For example, banks will issue it in the case of interest earned on fixed deposits and clients will issue it in the case of professional fees.
Who receives itSalaried individuals are issued Form 16.Non-salaried individuals in receipt of payment other than salary are issued Form 16A if taxes are deducted at source on such income.
PeriodicityIssued annually.Issued quarterly.
Components of formTwo parts:

  • Part A- TAN and PAN of deductor, PAN of deductee and TDS payment details.
  •  Part B- Salary breakup, deductions applied and tax liability.
Only one part containing:

  • TAN and PAN of deductor.
  • PAN of deductee.
  • Nature and amount of payment to the deductee.
  • TDS payment details.
Rate of TDSIncome Tax slab rate is applicable.Varies depending on the source of income. However, it ranges from 1% to 30%.

 

SIDENOTE: To verify if the TDS mentioned in the two forms is deposited with the government, you must download your Form 26AS from the TRACES portal. It contains information about all the taxes paid by you or deposited on your behalf (in the form of TDS) to the government.

While filing your income tax return, you may get confused between Form 16 and Form 16A, if you receive both the forms. You must remember the differences between the two forms listed in this article, to ensure that you refer to the correct form while filling your ITR.

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CA Madhuri Marne
Madhuri is a tax expert at H&R Block (India) with over a decade of professional experience. Having co-authored a book on economics for the ICAI exam, she now enjoys writing about tax-related topics in a simple and easy manner. Outside of work, Madhuri is passionate about teaching students who are appearing for professional exams.

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