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!
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 ]
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 ]
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:
|Criteria||Form 16||Form 16A|
|Source of Income||Salary.||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 form||Anyone 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 it||Employer 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 it||Salaried 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.|
|Periodicity||Issued annually.||Issued quarterly.|
|Components of form||Two parts:||Only one part containing:|
|Rate of TDS||Income 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.