Form 16A | Meaning and Definition

What is Form 16A?

The documentation of tax deduction at sources, Form 16/ 16A, is produced when the employer deducts tax on account of the individuals. These documents detail TDS / TCS for a variety of operations involving the deductor and the deductee. The issuance of these credentials to tax-paying citizens is required.

TDS Certificates are also inferred as Form 16A. While Form 16 is exclusively for gross salary, Form 16A is for TDS on Non-Salary Earnings.

When a bank offsets TDS on your investment earnings via fixed funds, for TDS collected on insurance commissions, or for TDS collected on your rent receipts, for instance, a Form 16A will be provided to you. In conclusion, TDS is subtracted from any other earnings you get that are taxable.

This documentation also includes the name & location of the deductor/deductee, PAN/TAN information, and TDS challan information. It also contains information on the income you’ve earned, as well as the TDS deducted and deposited on that income.

Form 26AS contains all of the information included in Form 16A. You can use this to file your tax return.

In the case of Form 16, however, this is not the case. Only TDS is deducted by the employer, and the details of Form 16 are available on Form 26AS. Both forms are crucial and must be completed to file your return correctly. You can also see the details of your income, including how far TDS has been collected at what percentages.