What is Form 16A? What is the difference between Form16 and Form16A?

Blogs > What is Form 16A? What is the difference between Form 16 and Form 16A?

What is Form 16A? What is the difference between Form 16 and Form 16A?

Feb 12, 2018

Know all about Form 16 and Form 16A

Tax deduction at Source (TDS) is a prepayment of tax to the Government instead of paying of tax for our income at the end of the year. The companies who pay your salary deduct your TDS when the salary crosses a certain threshold. You must attach tax certificate of Form 16 and From 16A to show your TDS deduction. It is a definite proof of tax deduction at source (TDS) for both salaried and service providers.

Meaning of Form 16:

Form 16 is a tax certificate that specifies the amount of TDS deducted by the employer from the salary of the employee. It also includes the other income sources of the employee and is issued every quarter.

Image Source

Meaning of Form 16A:

The Form 16A is basically for individuals or for service providers who fall in the nonsalaried category. If you work as a freelancer or have income from other sources which do not come under the purview of salary, then Form 16A is applicable.

Image Source

Difference between Forms 16 and 16A:

The primary difference between these two forms is:

  • Form 16 is for salaried employees and 16A is for non-salaried individuals, corporates or service providers.
  • The employers will provide your details in Form 16 when your gross total income exceeds the limit of Rs.2,50,000 or the specified income tax slab, and the Form 16A is where the payer will deduct as per the income tax TDS slab from the total amount paid to you. This gross total income will also include the income you have disclosed to your employer as income from other heads.
  • Form 16 is issued annually whereas Form 16A is issued every quarter.

If you are a salaried individual and want to know how to save tax on salary or how to claim an income tax refund, just check your Form 16 and know all the deductions and benefits availed by you from your employer. You can check online whether the amount of TDS deducted is correct or not with the help of 26AS.