What is Form 16 and Form 16A?
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File Your Income Tax Returns Online
(Last date for filing returns 31-July-2010)
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 is to provide details about the form 16 and why it is needed. Form 16 and 16A is similar 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.
Form 16 Related Articles
What is TDS and TAN?
What you should know about Form 15g and Form 15H
Top 6 Rules for TDS on Fixed Deposit
How to correct form 16 data?
What is TDS and TAN?
What you should know about Form 15g and Form 15H
Top 6 Rules for TDS on Fixed Deposit
How to correct form 16 data?
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 a 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 terms Form 16 is details about the tax deducted by the employer in behalf of employee. The same will be paid to government by the company. Many people think that getting the Form 16 alone is enough for the tax filing. Receiving the form 16 is different from filing the tax returns. 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, you must obtain the two Form 16 to file the IT returns.
Form 16 is Certificate of deduction of tax at source under section 203 of the Income Tax Act, 1961. Employers provide TDS certificate to the employees on Form 16.
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.
- Example for Form 16A:
- Form 16A is provided by any other institutions deducted the tax in the form of TDS has to issue Form 16A. For example, you are working as an agent for a bank, they provide you the commissions for the sales. In that case they will deduct the tax and give you the money. At the end of year, they will give you Form 16A with the details of tax deducted on your commissions. This form will be used same like Form 16 to submit your IT returns.
- Form 16A is issued in the following cases:
- For interest on securities; dividends;
- interest other than interest on securities;
- winnings from lottery or crossword puzzle;
- winnings from horse race;
- payments to contractors and sub- contractors;
- insurance commission;payments to non-resident sportsmen/sports associations;
- payments in respect of deposits under National Savings Scheme;
- payments on account of repurchase of units by Mutual Fund or Unit Trust of
India; - commission, remuneration or prize on sale of lottery tickets;
- rent;
- fees for professional or technical services;
- income of foreign companies referred to in section 196A(2);
- income from units referred to in section 196B;
- income from foreign currency bonds or shares of an Indian company referred to in section 196C;
- income of Foreign Institutional Investors from securities referred to in section 196D
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 queries. Thank you for reading this article. Please subscribe to our future articles here.
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62 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 -
amit said:
Hi
I just want to know that if I only submit the Form 16 with the challan, will that suffice ? Besides that i am employed from April 2005 but have not filed tax. What should I do now. I want clear evrything as soon as possible. Please guide me.
Regards
AmitMarch 19th, 2010 at 11:19 am -
santanu kumar mishra said:
i want to file for 16A -TDS submissio form- which have been deducted from my salary.My question is that i have not submitted for year 2007-08 & 2008-09….how can i file the form & whether i can file the TDS or not..? please clarify my doubts…..
santanu
March 21st, 2010 at 8:11 am -
santanu kumar mishra said:
i want to file for 16A -TDS submission form- which have been deducted from my salary.My question is that i have not submitted for year 2007-08 & 2008-09….how can i file the form & whether i can file the TDS or not..? please clarify my doubts…..
santanu
March 21st, 2010 at 8:11 am -
vikas said:
I want to know time limit of issue of form 16.
March 23rd, 2010 at 12:18 am -
S. Sivaramakrishnan said:
Dear Sir:
I have two questions:
1. If an employer is required to deduct TDS based on salary levels and does not do so, is it an offence? What is the penalty for such offence?
2. If an employee’s salary is say, Rs. 2.4 lacs per annum, he will certainly come in the taxable category and the employer does not, for what ever reaon, deduct TDS, is the employer still required to provide form 16 showing TDS as zero? Or is form 16 is not required to be issued in such a case?
Request you to clarify.
Thanks and regards.
SivaramakrishnanMarch 24th, 2010 at 12:05 am -
sree said:
Hi,
I have a doubt regarding form 16,. I have applied for a vehicle loan in SBI, they are asking about the form16.
But my company is not providing me Form16 because they are saying I am not eligible for it as there is no tax deduction on my salary. My current take home salary is 16000
So pls give me a solution urgently, so only i have to give the same to the bank for the loan.
waiting for your reply…….pls……April 4th, 2010 at 11:24 pm -
sunil s said:
My monthly income in the company is 12000/-,but the company accounts person is no issuing the Form 16.Now i am applying loan in SBI but the SBI PEOPLE ARE CONCERNED WITH THE FORM 16……….. SO Please help me out.
April 9th, 2010 at 3:19 am -
Pratik Cheulkar said:
Hi,
I had bought a flat for investment/tax saving in the 9/2006. Thus I was not a taxable employee in my company and no tax was deducted.Now I sold my flat and bought a new one. For buying a housing loan, I would require a Form 16.
Will my employer have any of my Form 16 with it even if earlier I was not a taxable employee?
Rgds,
PratikApril 13th, 2010 at 7:27 am -
Ameya said:
Hi,
I am working in private company from 2 years and i want to apply for a car loan and i have only 1 form 16 of last year and for current year it will take time so is there any solution for that.
Also my salary is revised in this year and it is now taxable but in last 2 years its was not taxable.
Thanks in advanceApril 14th, 2010 at 6:00 am -
Keith said:
Hi,
I am a salaried person, I haven’t submitted return in last year but now for a loan I need IT return of last 3 years.
Can I submit it now for this year as well last years.
Thanks,
KeithApril 18th, 2010 at 11:13 pm -
uma said:
i am working as a teacher in a private school.My annual income is 80000.how can i get form16?i want to apply for home loan using it.
April 29th, 2010 at 11:22 pm -
Dolon said:
1.which form must isue a sub contractor organization or ground handling agencies of airlines Form 16 or Form 16A?
2.Have any rule that a sub contractor organisation must hang a copy of Form 16 on the wall of its head office?
May 6th, 2010 at 8:37 am -
Kundan Kar said:
I have queries of two question kindly snding of two answer as early as possible in my mail id.
1.which form must isue a sub contractor organization or ground handling agencies of airlines Form 16 or Form 16A?
2.Have any rule that a sub contractor organisation must hang a copy of Form 16 on the wall of its head office?
May 6th, 2010 at 11:20 pm -
aakash said:
Is TDS deductible on Saving Accounts too
May 19th, 2010 at 11:00 pm -
BHASKER BHATT said:
sir i was submitted the revised return of first quarter for our company, now i need to issued the form 16A for the same, but i am confused that which acknowledgment no i used to issuing form 16A for deductees.
Please tell me that which receipt no i used for this Original receipt no. or revised receipt no.Thanks
BhaskerJune 7th, 2010 at 5:14 am -
Manoj Reddy said:
Hi,
Is ths form 16 applicable to all the employess, employees who earn less than 1,60,000?
My straight question is iam working in a private company from past two years , now iam in third year and for the second year my CTC was Rs 1,50,000 /-
When i asked my HR to issue form 16, she replied“In our organization, Form-16 will be given only if there is any TDS in the last financial year.”
Is there any rule that only employees who are earning more than Rs 1,60,000/- per annum should have their tax returns?
Please give some clarity in this.
June 20th, 2010 at 10:02 pm -
ANUSHA said:
Where we will show interest on repayment of housing loan in Form16A while preparing it fro the employee.we are the employers.how we ll show tell me
July 2nd, 2010 at 2:57 am -
Sakshi said:
Hii
I have been out of country for past 1year.have recently joined a new org in India …should i have to file the IT return .kindly suggest
July 6th, 2010 at 4:43 am -
krishnas said:
July 6th, 2010 at 7:47 pm
-
Sunaina Arora said:
Form 16 is clear but form 16A is not clear to me. Can you please elaborate it much?
July 12th, 2010 at 9:59 pm -
krishnas said:
HI Sunaina Arora,
Form 16 is provided by your employer for the tax deduction at source (TDS). Form 16A is provided by any other institutions deducted the tax in the form of TDS has to issue Form 16A. For example, you are working as an agent for a bank, they provide you the commissions for the sales. In that case they will deduct the tax and give you the money. At the end of year, they will give you Form 16A with the details of tax deducted on your commissions.
I hope this clears your doubts.
Thanks,
KrishnaJuly 12th, 2010 at 10:15 pm -
Amit Das said:
Hi,
I have lost my form 16 of 2009 and 2008 and my office system has also been corrupted. Now I want to apply for home loan. How can I get my form 16 of last two years and file the returns. Is it possible to get home loan with just 2010′s form 16? please advice.Regards,
Amit DasJuly 16th, 2010 at 12:03 am -
krishnas said:
Hello Amit Das,
You have to get the Form 16 from your employer. Nowadays most of the banks asks Form 16 to avail the loans. It is the evidence for your income. You can not file the IT returns for two years.
Thanks,
KrishnaJuly 16th, 2010 at 9:36 am -
Ambarish said:
Dear krishnas,
Actually I have joined my org on Nov 2009….and have got my Form 16 from my company also…….
I want to know:-
a) Is there any last day to file returns of the previous year?
b) Whether I need the help of a CA or an Income Tax Consultant to file my return…or is it easy enough for a layman to file return online himself…???
c) What are the benefits of filing return…in terms of availing home loans, auto loans, etc???
d) Also could you please suggest the best way of saving tax?…….my ctc is 4.76pa
Thanks in advance
Ambarish
July 18th, 2010 at 5:20 am -
sachin said:
mera english achha nahi hai. mujhe hindi mai form 16 ke bare mai batao.mera 2 saal ka tds certificate hai (form 16) usmai mera salary Rs.8.000 hai aur usmai company mera TDS Rs.800 cut hota hai har mahine.to yeh Rs.800 cut hota hai woh mujhe agar maine (form16) TDS certificate bhar diya to mujhe woh paisa milega kya?aur woh kab tak milta hai ?aur mera ek friend hai woh mujhe bola ki mai tera TDS bhar deta hoon mujhe sirf TDS certificate ka zerox aur 2 alag alag bank ka statment ka zerox 1 yrs ka de de.mai bhar deta hoon uske liye woh mere se Rs.1,500 le raha hai.itna paisa usko dena sahi hai kya??????aur yeh sab procedure mujhe karna hai to kaise karna hoga aur iska form16 bharne ka office kihdar hai mumbai mai????????pls mujhe reply do?????plssss help me !!!!!!!!!
July 18th, 2010 at 11:44 pm -
yogesh said:
my employer has given me form16A and has deducted TDS of total 8000 from the total credit of salary of 80,000 for fy09-10 i have no other investments or any thng else in that financial year so which ITR form should i fill????ITR-1 or ITR-4 if ITR_1 then the details of tax deduction should be entered in tax deducted at source other than salary or not???and will the 80,000 come under income chargable under the head salary or income chargable under the head other sources.???reply fast….
July 22nd, 2010 at 9:15 am -
yogesh said:
my employer has given me form16A and has deducted TDS of total 8000 from the total credit of salary of 80,000 for fy09-10 i have no other investments or any thng else in that financial year so which ITR form should i fill????ITR-1 or ITR-4 if ITR_1 then the details of tax deduction should be entered in tax deducted at source other than salary or not???and will the 80,000 come under income chargable under the head salary or income chargable under the head other sources.???reply fast……
July 22nd, 2010 at 9:16 am -
krishnas said:
Hello yogesh ,
You have to file the ITR-I
Thanks,
KrishnaJuly 22nd, 2010 at 6:35 pm -
Priya said:
Hi,
I got form16A from my employer, but have some confusions mentioned below.
Actual total salary recieved in FY 2009-2010 is 202000. But in the form16a, its is 156000(salary for 3 months is not included). Except the first three months, they deducted tax of around Rs1800 monthly.So total refund is around 15000. When i checked Form26As from income tax site, It shows my employer had paid only 11000 as tax.
For all above issues i contacted employer and they said first three months of salary is not included in Form16A, because those months tax was not deducted. So can i put my total salary as 202000 in ITR-1 when form16A has 156000? or is it like that, i can put only amounts given in form16A, because that is the only proof? If i put actual salary of 202000 only i am taxable(i dont have any deductions).July 23rd, 2010 at 2:15 am -
Priya said:
Hi,
Also they said, at income tax site, it shows tax paid 11000 because I have given PAN card number on november-09 only. so tax paid till november is not updated in form26AS. so where does this money gone? Can i still calim for refund of Rs15000? Because thts what shown in form16A as TDS and they have taken it from salary?July 23rd, 2010 at 2:30 am -
yogesh said:
hii every one. i like to clear out that if form 16A is issued it means you have to fill ITR-4 and not ITR-1 krishna you have told wrong since the TDS decucted by the employer is with respect to income from professional and technical services which comes under sec 194J if you see 26AS.and there is no provision for filling TDS details in ITR-1 so fill ITR-4 only if u want confirm it from a CA also.
July 23rd, 2010 at 4:02 am -
mc jayaprakash said:
is there any rule employe without taking one year salary employer can issue nil form 16 please advise
July 23rd, 2010 at 6:20 am -
Ambarish said:
Dear Krishna,
You still have’nt replied to my earlier post.
Kindly do so ASAP.
Regards
July 29th, 2010 at 3:10 am -
venkat said:
hi,
can i file my form16A of financial year 2008-2009 is not signed and posted to it office can i file it for 2009-2010 finacial yearso can i file it now can you please help me out.
July 30th, 2010 at 12:30 am -
Rajesh said:
Sir
I have form 16 for this year(2010-11) as well for last year(2009-10).
But i dint submit the last year form16. Can i submit it along with this year.Both (2010-11 & 2009-10) If so whether any fine applicable or not.Thanks
RajeshJuly 30th, 2010 at 3:28 am -
Sudhanya said:
Hi Krishna,
The company I am working was formed 1 year ago. Neither I have a PF account nor they provide Form-16. My income is 15,000/month and I want to take a home loan jointly with my wife.
The bank people are asking for PF statement and Form-16. Since I don’t have PF account (or Form-16), nor I come under tax, is that make me ineligible for the bank loan? Is their a way I can provide any other supportive document?
Any suggestion or help will be appreciated.
Thanks
SudhanyaAugust 17th, 2010 at 4:01 am -
S.Sundaramurthi said:
Very Very useful information….thanks…a lot…
August 27th, 2010 at 8:42 am -
S.Sundaramurthi said:
…thanks…a lot…
August 27th, 2010 at 8:43 am -
rajesh said:
Hi,
I am rajesh kumar, i want to open demat acc. bt i dnt hav pan card.
So, can i give form16 instaed of pan card.August 31st, 2010 at 2:41 am -
yogesh said:
hi rajesh , you can not open a demat account without a pan card as it is mandatory.you can apply for a pan card which will be delivered to you within 20 working days and then u can open a demat account…. and this will also be usefull for any other financial investment such as mutual fund,fixed deposit,demat account,etc.if u r looking for a low brokerage in demat account i can offer u lowest based on your trading needs i.e default plan will be .03paise for intraday and .30 for delivery which can further be reduced…… kindly reply if intrested
August 31st, 2010 at 4:21 am
[...] you are a salaried person, you will get the Form 16 from your employer to file the IT returns. Form 16 is the form which shows the details of your [...]
[...] fixed deposit is taxable and will be deducted by the bank. Very financial year banks will issue the Form 16A with the details of the tax deducted at source(TDS). You have attach the TDS certificate with the [...]