What is Form 16 and Form 16A?

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 TINTIN 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.

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Comments

    • parii says

      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.

      • sudheer says

        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.

  1. Deepa says

    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.

  2. Deepa says

    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.

  3. Sai gopal says

    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

  4. anne says

    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

  5. Ashsh says

    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?

  6. parii says

    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.

  7. anne says

    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.

  8. kalai says

    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?”

  9. Anil says

    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

  10. Anil says

    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

    • says

      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

  11. ram says

    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

  12. vijaya says

    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.

  13. R.Sankarasubramanian says

    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.

  14. monika says

    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

  15. says

    my present employer has deducted Rs.4300/in march as TDS and not giving me form 16-A.I wrote so many times but ignoring contineously.
    what should i do to get form 16-A & details of my deductions from my employer.

  16. wasudeo says

    I have an investment in senior citizen saving scheme in the nationalised bank. The account was opened on 6th October 12. The first quarterly interest was due on 6th Jan 13, Accoordingly it was credited to my a/c after deducting TDS. Next quarter’s interest was due on 6th April and was also credited to my a/c similarly.

    In the form 16A issued by the bank for the AY 2013-14, they have added the interest for the quarter 7th Jan to 7th April after deducting the tax. Actually the interst was credited to my a/c only on 7th April. Hence it actually becomes the income for the financial year 13-14 and would need to be accounted for in the AY 14-15.

    Result is that extra tax credit has ben given during AY 13-14. In the IT return form can I claim the tax credit only for AY 13-14? If so, would I be able to show the balance tax ( already credited during AY 13-14)
    as credited in advance for AY 14-15?

    Looking forward to an early reply

  17. says

    Dear sir,

    In the year 2012-2013, I had FDs in the nationalised bank on which total interest was 95,614 rupees,which is less than 10000 p. m. Out of 95,614 interst ,12,962 rupees TDS was deducted by the bank and notified me after deductions. Unfortunately my PAN was not with the bank .in march 2013 I submitted my Pan and form 15 H. I am not an income taxpayer and never filed as I own nothing like house, vehicle or a phone. I get a pension of 1500 rupees p. m. Other than my pension, I have no other income. My auditor is asking for form 16a from the bank to claim for income tax refund. But bank is not abe to generate as pan was not there when deduction was made. So is it possible to get back the deductio? I will be grateful to get a reply.
    Thank u
    Jayashree

  18. swaroop says

    Hello Sir,

    Since issuing of form 16 is not mandatory for those for whom there is no TDS, then how to show proof (say in a future date) that there was no tax deduction for us?

  19. rahul says

    hi one of my foreiner frnd, working in india more than a year, he dont hve pan card, now he is in his cotry but not geting visa to come back, cuz ambasy asking him to provide 16A… so my quition is can company provide him 16A without his pan card… n he is weeling to pay tax… what are the ways he can get 16 A … so that he can come back india n pay tax here…

    tahnk u

    • says

      Hello Rahul,

      This is for the interest income or any other income. Company can provide only form 16 not 16a. Please clarify if your question is correct. I don’t understand why they need form 16a?.

      Please reply back with more details, if he worked in a company and tax is deducted, then he should have pan card.

      Thanks,
      Krishna

  20. nilesh says

    Hi,

    i worked as a consultant in a company and i got form16 A certificate which shows amount could be refunded but how to extract refund amount, can anyone help please!!

  21. santhosh says

    Hi

    I am working in travels company I get My salary of Rs 15000 per month weather i have to file form 16 or please confirm what is the salary we should get to get form 16. Pls confirm

  22. kalpesh says

    My company is deducting my tax since two years but is not providing me any such detail. Now, I have doubt that they have not given any tax to government on my behalf. I want to now that if I demand for the same then is it possible for them to deposit it government for last two years and then give me certificate/form 16?

  23. KJ says

    Question on Tax Rebate of Rs.2000

    : Whether the tax credit of 2000 for two to five lacks taxable income, is to be reflected in FORM 16 for AY 2014-15 or not?

    If yes, then is form 16 format will be changed, as currently there is no space to indicate section 87A?

    Whether employer needs to consider the 2000 credit or employee has to claim it while submitting tax return?

    Please help.

  24. vinoth says

    I am applying for a loan ,
    Form my previous company i got a form 16 doc,
    In that first two pages are missing and in bank they are asking for those pages
    when i contacted my old company they said “if there is no tax deduction first two pages will not be generated from Income tax database it is a automated process not manual” so how to proceed with this situation please help me out .it is urgent

  25. Chandan Gandhi says

    I have joined a organization on 27th feb 2014. Its my first job. Do I have to get form 16 from employer and pay income tax for 31 days.

  26. Ved Prakash says

    Hi,

    I have got form 16 Part A & Part B. Is this the proof for my tax deduction? Is any need to now file e return or this certificate is sufficient? Please reply asap.

  27. rohit k.. says

    hi,

    i have been working in a pvt co.since 2 yrs,my co. deduct tax from my salary everymonth but the problem is that they do not deduct same amont as tds everymonth, sometime its very less amt sometime a big amt i am not clearly getting how much tds had been deducted till now ,till i am not sure how much tds is been deducted how can i file return and as i am new to tax and all i am also unable to calculate actual tds per month…kindly advice and help me out

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