In this article I will be writing about Form 16 and Form 16A which is needed 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 difference. If you come across any doubts or queries regarding the Form 16 and 16A please post it in the comments section.
In simple words, form 16 is the proof for your income and tax paid to the govt. before filing the IT returns. Most of the banks prefer to have the form 16 for verification for find your income. So, it is very important for you to get the form 16 from your employer. If you have any doubts, please post it in the comments section. Please subscribe to our future articles here.
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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.
It is not compulsory to give the form 16 to the employees if there is no TDS deducted.
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
Download Sample Form 16
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. After receiving the form 16, file your income tax returns online. 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.
Subscribe to our future articles here.
August 28, 2012 at 6:01 pm
Thanks a lot for providing valuable information
October 18, 2012 at 2:58 pm
nice article n its really worthy. thanks.
plz clarify my below question.
1) if company not deducting any TDS then also company can issued the TDS Certificate i.e. Form 16 as “0″ Deduction (Coz our one employee asking for Form 16 to submit in Bank for loan document.
October 18, 2012 at 4:44 pm
One of my friend got Form 16 from private software company where he is working stating that the TDS deducted for the whole Assessment year is “0″ rs. Then he paid certain amount as tax to the govt.
August 30, 2012 at 10:30 am
thanxxxxxx..got it
August 31, 2012 at 10:42 am
All employees in Sikkim don’t have to pay tax.Be it govt or private employee. Will he have form no 16? please answer me asap.
August 31, 2012 at 10:42 am
All employees in Sikkim don’t have to pay tax.Be it govt or private employee. Will they have form no 16? please answer me asap.
September 13, 2012 at 6:29 am
Hi,
there is no TDS Deduction since i am in limit , can a form 16 issued with null return. bankers are asking it for loan
September 27, 2012 at 6:57 pm
Sai, You can ask for form 16 even if there is no tax payable.
September 27, 2012 at 6:20 pm
Sir,,,i have one doubt,,,i got my form 16 as a soft copy,,,how i can get its original???
September 27, 2012 at 6:54 pm
Deepa, Simply take a printout and get it signed and stamped from your enployer. Thats it…
October 14, 2012 at 7:58 pm
I have a question. I am working as a contract employee and I have been given the form 16A for the years 2010 to 2011 and 2011 to 2012, sorry I don’t remember the months. How can I claim my TDS from the govt with these forms? What should I do? I have no clue and I can’t afford a CA. Thanks, anne
October 15, 2012 at 4:49 pm
Hi,
I am a salaried Person, joined new institution from March 2012, At present i am in need of personal loan from Bank which is having my salary account.
My Question is – From which Institution should I claim Form 16 and how is the Bank going to assess my case for loan processing?
October 18, 2012 at 3:02 pm
Dear, Hi, Happy Navratri n Diwali!
nice article n its really worthy. thanks for article.
plz clarify my below question.
1) if company not deducting any TDS then also company can issued the TDS Certificate i.e. Form 16 as “0″ Deduction (Coz our one employee asking for Form 16 to submit in Bank for loan document.
October 23, 2012 at 5:52 pm
Can an individual get a Form 16 and Form 16A from the same company for the same time period?
October 23, 2012 at 10:37 pm
Greetings of the seasons all…
I’m still waiting for my answer. I still don’t know what to do with my form 16 A. Is there any website where I can file it? What steps should I take? Is it too late to file now? Can someone help me? Thanks.
November 13, 2012 at 3:13 pm
i am receiving Rs,165000 per annum its i am eligible for Form 16
November 19, 2012 at 11:11 am
i got placed in MNC , my father is working as a driver in corporation , he is a surety for me and he is an income tax payee, my question is ” which of these form is required to submit form 16 or 16a?”
November 20, 2012 at 2:13 pm
i have lost my form 16a original copy.how can i get it again..its very importent and urgent
December 6, 2012 at 8:52 pm
I am freelancer, now I gota job
December 6, 2012 at 9:06 pm
hi
I am a freelancer in software development worked for different startup companies. apart from freelancing I had business register in my name but my wife was operating the business. For FY 2011 – 2012 I haven’t received TDS certificate from the Companies as they didn’t had TAN No. I went ahead and filed IT Returns for Net Loss in business and Income from Freelancing. Now I got a job in MNC Company, but the current employer is asking for Form 16a. Please let me know how to convince the Employer
Thanks,
Anil
January 31, 2013 at 10:49 am
HI,
last year I worked in two diffrent compnies, i have got FORM 16 from one company(worked 8months) and I haven’t received another Form 16 due to some Issues from second company. however i have payslips whis tells me how much tax deducted from my salary.
How can i File IT returns, do i need two form16′s or how can i get another one without consulting that company.
Regards,
Anil
February 2, 2013 at 10:51 am
Hello Friend,
What is form 26AS and whats the use of it???
Thanks,
Sudhir.
February 3, 2013 at 7:15 am
Hello Sudhir,
Form 26AS contains the data of the total TDS deducted on your income. It is an statement issued by Income tax dept. to all the tax payers.
Thanks,
Krishna
February 4, 2013 at 8:46 pm
in the month of feb and march 2012.I didn’t get salary i quit that co. and in the month of april 2013. i joined another co. So according to financial year i wan to know my tax deductions
February 5, 2013 at 5:46 am
Can you please look into your 26AS statement for the tax deductions.
Thanks,
Krishna
February 14, 2013 at 11:15 am
Suppose an employee leave the company before financial year end then will he get the Form16 from that company.
February 14, 2013 at 11:46 am
Hello Sankar,
Yes. You will get the Form 16 from your employer after completion of the financial year.
February 18, 2013 at 4:04 pm
thank for information to provided by you
February 19, 2013 at 2:56 pm
Thank you rajesh for the comments.
March 5, 2013 at 7:23 pm
Hi,My mother is 51 yrs old.TDS was deducted by the bank in the month of January-2013.Will it again be deducted by the bank at the end of the financial yr i.e in the march-2013.Are there any options to not get it deducted.What are the reasons for the deduction,is it refundable,she is not an employee.
March 6, 2013 at 2:46 pm
Hello Vijaya,
Have your mother submitted PAN card? If PAN care id not submitted 20% of the TDS will be deducted.
http://www.thinkplaninvest.com/2010/03/submit-pan-to-avoid-the-higher-tds-deduction/
If your mother is not having any other income, submitting the Form 15G would save the TDS.
http://www.thinkplaninvest.com/2009/08/what-you-should-know-about-form-15g-and-form-15h/
Hope this helps. Do you have any other doubts?
Thanks,
Krishna
March 7, 2013 at 7:54 pm
Hello Krishna,Thanks for replying.She submitted PAN num.For the last financial yr 2012-13,we she submitted the form 15G. She is a pension holder.She has FDs with that bank.Now the bank people are asking us to submit both forms 15G and 16A. Are both these required?How could we avoid this deduction for the coming financial yr 2013-14.
March 11, 2013 at 6:18 am
Hi,
Form 16A will be provided by bank. Ask them why they are asking for this.
March 7, 2013 at 2:08 pm
would u tell me the tax slab when TDS will be started to deduct?
March 11, 2013 at 1:17 pm
Please refer here:
http://www.thinkplaninvest.com/2013/03/union-budget-india-2013-14/
March 11, 2013 at 2:46 pm
Dear Krishna, My wife is working in a management school as a teacher. Income tax had deducted from May, 2012 to 1/2013 at Rs.1500/-p.m. During 2/2013, the remaining tax to be deducted from her salary was calculated and deducted in one lump sum. On verifying the TRACE web site, the form 26AS relating to her PAN, does not reflect the income tax deducted so far. Since the deducted was made every month from her salary, is it not necessary to send quarterly report to the Income tax department by the school. If it was sent will it reflect in the From 26AS till last quarter. How to check up the amount credited into the PAN account of the individual,in the first and second quarter of the year 2012.Kindly explain. I hope this query and the answer (expected from you) will be very useful for others also. Thank u.
March 11, 2013 at 3:02 pm
Hello Sankarasubramanian,
Than you for the queries.
The TDS amount should be shown in the 26AS statement. It is normal practice the companies would send the TDS to income tax dept. on quarterly basis. It is good if you can check with your school.
It is the only way to check your tax credit to the govt.
http://www.thinkplaninvest.com/2013/02/what-is-26as-statement/
If you have more questions, please reply here.
Thanks,
Krishna
April 19, 2013 at 11:41 am
i have a Fixed deposit in bank,what’s the profit of form 16 in my Fixed deposit? and whats that process of this ?
please reply asap