What is Form 16 and Form 16A?
- 22 Comment
Introduction
In this article I will be writing about Form 16 and Form 16A which is most commonly used while filing the IT returns. Many people not aware of the from 16 and the intention of this post it to provide details about the form 16 and why it is needed. Form 16 and 16A is similiar in nature with small different. This article explains it very well. If you come across any doubts or queries regarding the Form 16 and 16A please post it in the comments section. Please subscribe to our future articles here.
What is Form 16?
If you are salaried employee in an organization, then you will get the salary after deducting tax by the employer. This process is called as Tax Deduction at Source(TDS). Every company has to get the TIN. TIN is Tax Identification Number. This number is issued to person who is responsible to deduct Tax on payments made to employees.
At the end of financial year, company must issue a form 16 which contains the details about the salary earned by that employee and how much tax deducted. It will have details on each month. In simple tersm Form 16 is details about the tax deducted by the employer in behalf of employee. The same will be paid to governemt by the company. Many people thing that getting the Form 16 alone is enough for the tax filing. Tax payer has to use the Form 16 to file the IT return every financial year end.
For example, if you have worked in two different companies in the same financial year, he must obtain the two Form 16 to file the IT returns.
What is Form 16A?
The purpose of the Form 16 and 16A is the same except the issuing person. Form 16 is applicable only to the salaried employee. There is many other areas where TDS can be applicable like deducing the tax for interest earned by your Fixed Deposit in the Bank. Here bank is the person who deducts the tax. For every financial year they must issue a TDS certificate to the customer. They have to fill the Form 16A and hand over to the customer.
Summary
I hope this article is useful to understand the basics of Form 16 and Form 16A. These two forms are most widely used in our life time. If you have any doubts please post it in the comments section. I will answer all you queris. Thank you for reading this article. Please subscribe to our future articles here.
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22 Comments on this post
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Archana said:
I want to know, if the persons(Man) total income is above 150000 and after deduction under 80c if it becomes 130000 then we have to issue form Form 16 or not? if not what is the reason
September 12th, 2009 at 4:48 am -
krishnas said:
Hello Archana,
Thank you for the comments. Form 16 is issued by the companies to their employees with details of how much tax deducted from their salaries. It is required for them to submit the IT returns.
Filing IT returns is mandatory for whose income is above the taxable limit. If your taxable income is below 150000, you are not required to pay the tax and need not file the IT returns. No need of Form 16.
Thanks,
KrishnaSeptember 12th, 2009 at 5:24 am -
Avinash said:
I am still not clear with significance of Form 16A , Please explain me ?
October 25th, 2009 at 10:37 pm -
krishnas said:
Hello Avinash,
Form 16A is given for the TDS deducted apart from the salary income. It can be interest on the deposits, etc.
Thanks,
KrishnaOctober 25th, 2009 at 11:03 pm -
Sanjay said:
I am a salaried person. I have filed my IT returns this year.
Now I want to apply for a personal loan. The bankers are asking for Form 16. I dont know what to submit.I searched for this information and found that we will get an acknowledgement once we file our IT returns. But I didn’t get any such acknowledgement till now.
Please help me.November 4th, 2009 at 11:24 am -
krishnas said:
Hello Sanjay,
Form 16 is different from the IT returns acknowledgement. If you are salaried person then you would have got the form 16 from your employer. Without that you cannot file the IT returns. Don’t worry. You can get it from your employer. You ask your employer that I need form 16. How you have files returns without form 16?
Thanks,
KrishnaNovember 4th, 2009 at 4:38 pm -
Bhaskar Raju said:
I am a salaried employee. And my total income is 400000. I didn’t applied form 16 last 2 years. Now I am going to apply Home loan.
Can I apply last 2 years form 16 now??
Please advice me.
November 20th, 2009 at 4:36 am -
krishnas said:
Hello Bhaskar,
There is no need to apply for the Form 16. It is available with your employer. Ask your employer to give the Form 16 for the past two years.
So, you did not file the IT returns for the past two years?
Thanks,
KrishnaNovember 20th, 2009 at 6:05 am -
Mukesh kumar said:
I want to know what is simplest way of income tax saving kindly explain me, such as salary of employee is 6,60,000/-
December 11th, 2009 at 4:07 am -
Mangal said:
HI,
Thanks for the post.
Can you please guide me in following.I joined a new company in October this year. Previous to that I was working in a newly start up company and my Salary was below 1,60,000/-. So there was no tax deducted in my pervious company.
Now I’m filling up my Employee Proof Submission for the 2009-10 in my current company. So I need to submit details of my Previous Employer. My previous employer is saying they Don’t have TAN number and also there was no TDS so they can’t give me Form16 or IT Computational Sheets(which I can submit since in mid year I can’t get form 16)My current company is saying either form16 or Tax Computationcal Sheets with a TAN is required/mandatory.
So in this case what should I do? I need to submit them before the 11 Jan.
Thanks in advance
MangalDecember 15th, 2009 at 8:04 am -
fillip said:
Hi I have not filed form 16 for past two years. and I dont have form 16 currently. Is it possible to avail loan without From 16 as a co applicant. My brother has Form16 but his salary is only 16,000 PM.
thanks
December 21st, 2009 at 8:33 am -
A.vISWESWARrAO said:
Dear Sir,
I want to take personal loan from state bank of india,they asked pay slip & form 16.I asked my company for form 16 but thye told it will came on march end.Now what to do now.My salary -Rs.8,762/pm. in this regard i have to file the my it or not.Kindly give me full data for my problemsRegards
A.VisweswarRao
9912596536January 5th, 2010 at 4:06 am -
Bhanushree said:
hi.
In case salary income is below taxable limit because of deductions under Chapter VI .Then is it mandatory for the employer to issue form 16 in such case?
my one more doubt is in case salary income comes below taxable limit and it is not because of deductions under chapter VI. then can the employer still issue form 16?February 21st, 2010 at 7:51 am -
Smi Nilesh NaikSatam said:
Dear Sir,
I am contract base employee in xyz company. I am working since Nov 23, 2009 to still date and my Per month salary is 7,500/.
Now my company told me we dedicut 10% TDS from this month salary, and this dedicution for my total salary (3months). That means they dedicut 2,500/ amount from salary (Feb 2010).
So Please guide me about this TDS funda and benefit of form 16
Tanuja Desai.
February 25th, 2010 at 12:51 am -
IFRS said:
Form 16 gains more and more importance as it is required to be furnished at the time of approval of loans…….
and all these forms are mandatorily going to be computerised very soon rather than issuing certificates whereby u will be able to view them all online and verify with the Income Tax Authorities
A very good initiative by one of india’s best finance ministers-P. ChidambaramFebruary 25th, 2010 at 12:33 pm -
neha said:
my current take home salary is 17000 and my company is not providing me the form 16 as they say i am not eligble for it as there is no tax deduction on my salary. Pls. advice urgently as i need to give the same to the bank as i need an auto loan.
March 2nd, 2010 at 5:08 am -
vikrant rai said:
thanks for posting comment regarding form 16 and 16 a,is tds is deducted on estimated income ,plz tell me the systematic procedure
March 4th, 2010 at 3:55 am -
subhash chander nainwaya said:
During the financial year 2008-09 I was serving in IAF and taken pre mature retirement in Nov 2008. My Form-16 might have been lost in post and it is not possible to get a copy of that at this stage ,as inquired from AFCAO.
What is the procedure of filing IT Return in absence of Form-16 at this stage for the Assessment Year 2009-10
March 7th, 2010 at 12:09 am -
HARI DUTT said:
In previous year my salary cross the limit and this year also my salary cross the limit and I have shown savings under section 80CC, So no TDS deducted from my salary and my employer is refused to issue form 16, because my salary is not deducted and I don’t have all salary slips. So previous year I have not file return. My question is do we need to file return. If yes than what happen when I am not filing return. If yes then from where I will fill that form and how I fill that form i.e. ITR form, what is the time of deposit of ITR form
Thanks
March 12th, 2010 at 3:09 am -
Ramesh said:
n previous year my salary cross the limit and this year also my salary cross the limit and I have shown savings under section 80CC, So no TDS deducted from my salary and my employer is refused to issue form 16, because my salary is not deducted and I don’t have all salary slips. So previous year I have not file return. My question is do we need to file return. If yes than what happen when I am not filing return. If yes then from where I will fill that form and how I fill that form i.e. ITR form, what is the time of deposit of ITR form
Thanks
March 12th, 2010 at 3:24 am
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