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.
also read:
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.
December 13, 2011 at 11:39 pm
is there compulsary to issue form 16 A if there is no transaction or no. of deductees is 0.
December 13, 2011 at 11:41 pm
hi,
is there compulsary to issue form 16A if there is no transaction in that quarter or no. of deductees is 0.
December 15, 2011 at 12:47 am
hi,
can u please provide me how to write an application to company to issue form 16 to me asap, thanxs
December 19, 2011 at 4:34 am
Does one needs to pay tax on provident fund withdrawal amount? Is the tax calculation on entire withdrawal amount or is it on some portio of it? What if the withdrawal is from a five year old PF account, then also do we need to pay the tax?
December 19, 2011 at 5:46 am
Excellent post.Thanks for the information.
December 21, 2011 at 4:06 am
Hello Sir,
I am an Ex- Airman.I have applied for Education Loan for my Child’s Education. Now bank is asking for Form 16 for last three years. I got only two .Kndly sugest wot to do?
January 3, 2012 at 5:54 am
Hi Sir,
I just want to confirm whether i have to submit employee tax proof form or not as my monthly salary is 17,000 and I have started working with the current organisation from 06-Dec-2010. The last day for the form submittion in my company was 30-Dec-2011. If i have to submit than where can i submit the form.
Thanks & Regards
Shalini
January 3, 2012 at 11:57 am
Hi, I’m a self-employed professional (Graphic Designer). I work online & most my income usually comes from my clients residing outside india. Now, how & from where can i obtain Form 16A? Thanks
January 9, 2012 at 1:24 am
we are not having salaried account ,we are taking the salary by hand, so there is no bank statements,we can apply for home loans or not,
we are eligible persons or not.
please give the suggestions for this information.
January 10, 2012 at 2:43 am
Hi Sir
I have just joined a new company and getting rs. 48000/= per month salary in hand, i have an investment of rs. 32000/= only, can you please tell me that how much tax will be deducted from my salary at the end of financial year.
January 10, 2012 at 9:16 pm
i am working on contract for a reputed company. So, form 16 A applicable for me. But when should I get form 16 A. Kindly help me out asap.
January 17, 2012 at 12:36 am
Is Form 16 is mandatory to avail Home loan? What is the purpose of form 16 for the bankers?
January 19, 2012 at 10:55 pm
Hi,
I have joined a new company.
and here they are asking for form 16 and form 16a,i have given them form 16 from my previous employer but from where to get/produce form 16 a.
please suggest.
January 19, 2012 at 10:56 pm
Hi Sir,
I have joined a new company.
and here they are asking for form 16 and form 16a,i have given them form 16 from my previous employer but from where to get/produce form 16 a.
please suggest.
January 30, 2012 at 6:23 am
Hi,
i have one doubt regarding form16,if am not submit any tds and other proofs then company can provide form 16 it means am not submit any rental documents and etc.if am not submit any documents company will cutt off my salary so i can get that form 16.
February 9, 2012 at 3:25 am
Hello Sir,
I join in company in June 2010. So I have only 1 year means 2010-2011 form 16. I want to take home loan. For home loan, bank people asked me to take form 16 for last 2 years. But problem is that I dont have this year form 16. So is there any provision that I can get form 16 for this year? Or is there any document which I can use form 16 for this financial year?
Thanks,
Prashant
February 9, 2012 at 10:42 pm
Hi Friends,
Im working for an orgztn from 1yr.Now i want to apply for home loan.Earlier to dis year i used to work in US, but due to personal reasons i left the job and returned back to india.I was in search of job for around 11months then i got a job. Can anyone tell me wether HDFC issues me home loan on submitting 1year FORM16? r shud i submit w2 form of US where i worked for 2yrs.
Will i get loan if there is a gap in employment.Please give ur valuable answer. Finally, will hdfc check these form 16 and w2?
February 12, 2012 at 7:44 am
Respected Sir,
I am working as govt. employee in education department. It is great to read your information about form 16 and 16A. It clear my confusion against this topics.. So again I . thanks to your organization to for doing wonderful job..
February 13, 2012 at 3:25 am
Hi,
This is ramesh Kumar,atleast give answer some of those questions.
February 23, 2012 at 2:43 am
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March 1, 2012 at 11:51 pm
I,
Thanks for the post.
Can you please guide me in following.
I joined a new company in september last year. Previous to that I was working in a company from June 2011-August 2011, and my Salary was 2,40,000/-
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 March,2012. Also I have joined the new company telling I have a higher salary than actual.Currently 2.8 lakhs.I am worried , please help
Thanks in advance
vijay
March 5, 2012 at 12:37 am
Can I get a home loan without form 16, as my ex employer is not ready to provide it and has wound up the company.
March 5, 2012 at 6:23 am
When salary of employee not taxable for Income tax i.e, his/her income are below basic exemption limit than TDS is to be deducted or not?
March 5, 2012 at 7:28 am
Hi Vivek,
Form 16 can be issued only after the financial year. You have to show the previous years IT returns for the income proof. Apart from the you need salary slips.
Thanks,
Krishna
March 5, 2012 at 7:31 am
Hello Vijay,
If the company not having the TAN, then they can not deduct the TDS and can not issue the Form 16. Please resolve it with the new employer. They can not force you to submit those details. It is your responsibility to submit the IT returns.
Thanks,
Krishna
March 5, 2012 at 7:38 am
Hello ravindranath,
Form 16A would not be issued for a company employee.
Thanks,
Krishna
March 5, 2012 at 7:41 am
Hello Andy,
It is not compulsory that everyone need form 16, if you are self employed then there is no way for you to get the form 16. In that case, it is very important for you to submit the income tax returns and show that as proof for your income.
Thanks,
Krishna
October 20, 2012 at 2:36 pm
Thanks Krishna for your kind support.
March 9, 2012 at 1:30 pm
Your article is very informational! My question is:
If a business is newly setup and do not have turnover above 60 lac, does it means they do not hold TIN no. and are not eligible for TDS in their employee’s salary?
March 15, 2012 at 12:39 am
HOW TO KNOW MY FORM 16A HAS CALMED FOR IT RETURNS OR NOT.I HAVE BEEN COURIERED FORM 16A TILL NOW THERE IS NO RESPONSE, HOW TO IT IS FILED OR NOT.
March 15, 2012 at 3:51 am
Hello k.sujai kumar,
What is your question?
It is not very clear.
Thanks,
Krishna
March 15, 2012 at 5:58 am
I am currently employed but do not have Form 16 of last two years as i was studying for exams
How can I get Home loan ?
Mahesh
March 17, 2012 at 2:34 am
Hello Sir,
I am applying for home loan and bank requires last 3 years IT Returns ( Form 16 ). However the problem here is i have worked for 3 different companies in my last 3 years.
First company ( 2 Years ), my salary was 10K and they don’t use to deduct any tax as such.
Second company ( 6 months ) – This company has given me Form 16.
Third company ( 9 Months ) – Still waiting for my Form 16 of this Financial Year.
My Question is :
1.Will i get Form 16 from my first company, even though any TAX was not deducted?
2.Will Bank accept this explanation while sanctioning a home loan for me?
Please advise, i am confused?
Thanks,
Shashi
March 18, 2012 at 1:15 am
One of my friend in the financial year 2010-2011 has income from two sources i,e.income received from a co. as a commission vide TDS i,e form 16a and subsequently joined a public ltd co. and received salary vide TDS i,e Form 16.
Advise how to show profit in business & profession head.
March 18, 2012 at 5:52 pm
HI All,
I have updated with new post which has some more details missed on this post.
http://www.thinkplaninvest.com/2012/03/what-is-form16/
Thanks,
Krishna
March 23, 2012 at 5:36 am
ITS MY SECOND YEAR WORKING WITH NHA BUT STILL I HVNT RECEIVED MY FORM-16A, DUE TO WHICH I CANT FILED INCOME TAX RETURNS OF 2010-11 AND IF TRENDS GO LIKE THAT THIS WOULD BE REPEAT THIS YEAR WHT SHOULD I DO TO GET MY FORM-16A
March 26, 2012 at 6:43 am
Hi! i am a primary teacher,and in my annual income does not applicable for income tax.Although should i fill up any form.If yes how? please suggest me in details.
thanks
March 27, 2012 at 1:53 am
I am working in a Govt. project for last 12 years.My mode of appointment is on contract not permanent. I am getting consolidated salary in which they deduct PT of Rs 200/- and 2% IT. Till two years back i use to get form 16. Since last one year my employeer is issuing me form16a. Is it correct?
April 13, 2012 at 2:50 pm
Hi Guys,
Currently am getting 3.47CTC per annum, and up to february 2012 i got 2.8CTC salary per annum. How can i get Form16 from my Emplyoyer (HSBC) for IT Returns. To whome could i reach and ask for Form16. when can i apply for IT Returns.
April 15, 2012 at 10:23 pm
Many thanks for the time you have taken to write a very basic tutorial.We have many advanced level tutorials but I found none which were basic to teach like a novice like me.
Thanks again sir.
May 16, 2012 at 11:19 pm
Is it necessary to obtain form 16 from the NSDL site in case of a private ltd. co.
May 24, 2012 at 5:20 am
I worked in a software organization from April 2011 to Jan 2012 whether I am eligible for getting Form 16 from my employer. Please reply me soon.
May 31, 2012 at 1:18 am
I have a query on Form 16A. I am working for a corporate and i am getting FOrm 16 with reqd details like Salary, deduction,. TDS, etc. But my brother works for a small company and the employer has provided FORM 16A this time. The happening was like for every 3 month the employer provided a 16A form with a 10% deduction as TDS.
Say for example
April 11 -June 11 – 45000 (salary) and 4500(Tax)
July 11 – Sep 11 – 60000 (salry) and 6000 (tax)
Oct 11 – Dec 11 – 55000( Salary) and 5500 (tax)
Jan 12 – Mar 12 – 70000 (salary) and 7000 (Tax)
That is for 230000 salary they have dedcution 23000 tax. As per Male tax exmption we are eligible for 1.8L. For the rest 50000, he should have deduction 5000 (without investment proofs).
Kindly let me know how we can file the IT returns and get the refund? Is this the similar way like Form 16 or Will Form 16A has special norms?
June 17, 2012 at 1:45 am
Dear Sir,
From AY 2012-12, giving details of Form16A is Mandatory.
When Data is already available in the form of Form 26AS, why seperate data in form 16A is required? If Form 26AS is available to Deductee online, why form 16A is also not available online without waiting for Deducter to provide Number??
June 19, 2012 at 12:49 am
hai.am working in private company as a salary person from 2005 to till date.my salary is 11000 gross.so am eligible for claime form 16?can i ask my company to issue form 16?
June 19, 2012 at 12:55 am
hai.am working in private company as a salary person from 2005 to till date.my salary is 11300 gross.so am eligible for claime form 16?can i ask my company to issue form 16?my company deducting ESI 198rs,PF 780rs & professional tax 150rs.
June 19, 2012 at 1:56 am
Hello Anand,
Have you paid any tax to the company. If your answer is Yes, then you can ask for the Form 16 from the company. Otherwise there is no need for you to get the Form 16.
Please read this article, you will understand the use of Form 16.
For the future article subscribe here:
http://www.thinkplaninvest.com/subscribe/
Thanks,
Krishna
June 21, 2012 at 5:22 am
I am confused. Because I am working in a Software company on Contract Basis. Every month i am paying the tax. I want to know whether i am applicable to collect the Form16 of Form16A. Please Provide the Correct Information on My email Id:
k.shashi1983@gmail.com
June 21, 2012 at 5:32 am
Yes. Your consultancy must provide the form 16 to you.
June 22, 2012 at 1:41 am
Hi Krishna,
Thanks for your all valuable replies,
I do have a query, I have NO knowledge about form16 and TDS
I am a salaried employee, I had a deduction in my salary in the month Jan to March 2011,
About 1100 each month as, 3300/- as TDS and after I did not get a form 16 from my employer
And now this year they have started deducting, my salary from last month (April 2012) as 1300/-
And they have sent a mail asking to send the savings of mine like, NSC, insurance, rent receipts etc.,
I have asked them when to submit, they are saying IT returns will be done in the month of Oct 2012
You give us all the documents we will have it in our records and we will do it in Oct 2012.
And they are not giving me form 16.
Kindly suggest me what should I do
Thanks
Anitha
June 22, 2012 at 2:38 am
Hello Anitha,
Thank you for reading my blog. After reading your question, I can understand that you don’t have any idea about the tax planning. I will provide brief overview on the system:
1. Form 16 – Issued by your employer after the financial year ends. It is proof for the tax payment. if you have not received ask your employer. It is issued only once in a year.
2. You can reduce you tax by investing on the certain sections provided by the income tax act. Under section 80C(It is where you can invest on Insurance Premium, NSC, PPF,PF,Mutual Funds, etc) you can invest Rs.100000.
In the start of financial year (April), you have to submit the declarations (what are you planning to invest. that means the whole year your plan for the investment). Based on the declarations, company will deduct the tax.
In the month of December, you need to submit the actual proof for the investments. If you have not invested as declared in the start of the year, they will cut more taxes in last three months of the financial year.
I hope this provides basic idea on the tax planning. Also read some of my older posts to understand the tax planning.
http://www.thinkplaninvest.com/2012/03/highlights-of-union-budget-for-2012-13/
http://www.thinkplaninvest.com/2009/03/tax-planning-for-2009-part-1/
http://www.thinkplaninvest.com/2009/04/tax-planning-for-2009-part-2/
Thanks,
Krishna
June 22, 2012 at 3:05 am
Thanks Krishna for your immeidate response
here my question is they have already deducted sum of 3300/- in the year 2011, jan, Feb and March 2011,
for 2011 deductions, I cann’t submit the declarations now right?
for the amount which they have deducted in the name of TDS, for that I should get the form 16 now for the year 2011 right?
Please clarify me
Thanks
Anitha
June 22, 2012 at 3:47 am
Hello Anitha,
A financial year starts from April – March. Declarations has to be for this period. You can not do it for the previous years.
In your case, for 2011-12 (previous financial year) you have to get the Form 16. For the current financial year (2012-13) submit the declaration for investments.
Thanks,
Krishna
June 22, 2012 at 3:50 am
Thanks Krishna, for this year what is the last date to submit documents?
Thanks
Anitha
June 22, 2012 at 4:00 am
Hello Anitha,
There won’t be any last date for this. Your company would have a cut off date for every month for processing the payroll. If you submit the documents before that, it will be reflected in the salary. But, you act soon to avoid losing more tax.
Thanks,
Krishna
June 22, 2012 at 4:08 am
ohhh, actually they have already started deducting from my slary, from last month April 2012
But I asked them that I will give my documents, they are saying that the tax returns will be paid in the month of oct 12 not now
I guess they are cheating me!!!!!!!!!
June 22, 2012 at 4:34 am
Hello Anitha,
They are not cheating!!
Please follow the steps i have told. It is your responsibility to submit the documents and avoid tax.
Thanks,
Krishna
June 22, 2012 at 4:46 am
Hi Krishna,
In order to submit documents I should also get my last year’s form 16 right
but they are not giving me
any way thanks a lot for your suggestion
lets see what to do
Thanks
Anitha
June 22, 2012 at 4:48 am
HI Krishna,
Sorry to disturb you with many queries!
can you tell me how file my IT returns now
whom to contact and how to do
Thanks
Anitha
June 22, 2012 at 4:50 am
Hi Krishna,
Sorry to disturb you with lot of queries
I have all my saving documents with me
How to file IT returns and how to do
can you please tell me
Thanks
Anitha
June 22, 2012 at 10:06 am
To submit the documents no need of from 16 for the previous yer.
Income tax returns can be done through online. If you need more help, please write it here.
Thanks,
Krishna
June 22, 2012 at 8:47 am
Dear Sir,
As i am earning 30k per month during 2011-2012.but my company was not deducted any amount other than pf and professional tax. Now i had applied for Home loan in Hdfc. The bank asking form 16… pls guide me what to do and any other way/instant way to get it.
Thank you,
Regards
Durai
919886788858
June 22, 2012 at 10:36 am
Hello Durai,
They will give the form 16 when there is any deduction for the tax.
Please ask your company.
Thanks,
Krishna
June 23, 2012 at 7:41 am
HOW TO FILE INCOMETAX IN ONLINE.
June 23, 2012 at 7:50 am
Hello Durai,
There are many websites offering the online filling of IT returns.
One of them is:
http://www.taxmunshi.com/partner/tpi
Thanks,
Krishna
June 24, 2012 at 3:38 am
hi sir,
i have working as agent for telecom company ,they are issuing form 16A every year..in the the mentions more then one lack per annul as TDS paid to the government
my questions is why They r paying that much of TDS to the Government ? they mentioned my pan number as Pan of deductee ..so please help me and clarify abt TDS.is there any chance for me to clime that amount from the Government?
June 24, 2012 at 3:40 am
hi sir
are you clarify doughs about service tax ?
June 25, 2012 at 5:28 pm
What is your doubt on service tax?
Thanks,
Krishna
June 25, 2012 at 5:25 pm
Hello Raj,
Since you are agent, I hope you are getting the commission as the income. TDS has to be deducted for the commission income. Also it s 10% fixed. Are thy deducting more?. You can no avoid this deduction.
Thanks,
Krishna
June 26, 2012 at 3:58 am
i am getting 6000 sal for month means 72 k for year, can i eligible to form 16 and one more thing is that i have completed my 1 year getting sal of 6k then i able to apply for form 16 for get that last 1 year form16 tax deduction ?
June 26, 2012 at 6:17 am
Hello Deepak,
For 6000 per month, you need not pay any tax. There is no need for the form 16.
Thanks,
Krishna
June 29, 2012 at 2:30 am
Hello Krishna
I am a salaried employee, from APR 2012 and this is my first earning. As i have submitted deceleration form at the beginning of financial year, tax is not being deducted from my pay.
My query is that do I have to submit Form 16?
If I have to, then for which financial year and when(i.e in next year or this year)?
Thanks,
Avinash
June 29, 2012 at 2:47 am
Hello Avinash,
You need not submit form 16 to any one. Your company has to provide form 16 to you at the end of financial year.
Thanks,
Krishna