What is Form 16 and Form 16A?

August 28, 2009

Income Tax

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 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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422 Responses to “What is Form 16 and Form 16A?”

  1. nikhil Says:

    is there compulsary to issue form 16 A if there is no transaction or no. of deductees is 0.

    Reply

  2. nikhil Says:

    hi,
    is there compulsary to issue form 16A if there is no transaction in that quarter or no. of deductees is 0.

    Reply

  3. pinky Says:

    hi,

    can u please provide me how to write an application to company to issue form 16 to me asap, thanxs

    Reply

  4. ruchika Says:

    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?

    Reply

  5. sainath Says:

    Excellent post.Thanks for the information.

    Reply

  6. prem Says:

    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?

    Reply

  7. Shalini Says:

    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

    Reply

  8. andy Says:

    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

    Reply

  9. kavita Says:

    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.

    Reply

  10. Ashutosh Verma Says:

    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.

    Reply

  11. ravindranath d Says:

    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.

    Reply

  12. Ranga Says:

    Is Form 16 is mandatory to avail Home loan? What is the purpose of form 16 for the bankers?

    Reply

  13. swati Says:

    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.

    Reply

  14. swati Says:

    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.

    Reply

  15. chotey Says:

    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.

    Reply

  16. Prashant Says:

    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

    Reply

  17. sunil Says:

    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?

    Reply

  18. Kawaljit singh Says:

    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..

    Reply

  19. Ramesh Says:

    Hi,

    This is ramesh Kumar,atleast give answer some of those questions.

    Reply

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  21. Vijay Says:

    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

    Reply

  22. Vivek Kapoor Says:

    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.

    Reply

  23. Nishat Parveen Says:

    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?

    Reply

  24. krishnas Says:

    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

    Reply

  25. krishnas Says:

    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

    Reply

  26. krishnas Says:

    Hello ravindranath,

    Form 16A would not be issued for a company employee.

    Thanks,
    Krishna

    Reply

  27. krishnas Says:

    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

    Reply

  28. Kary Says:

    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?

    Reply

  29. k.sujai kumar Says:

    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.

    Reply

  30. krishnas Says:

    Hello k.sujai kumar,

    What is your question?
    It is not very clear.

    Thanks,
    Krishna

    Reply

  31. Mahesh Says:

    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

    Reply

  32. Shashi Kiran Says:

    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

    Reply

  33. arvind kumar Says:

    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.

    Reply

  34. krishnas Says:

    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

    Reply

  35. VIMAL Says:

    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

    Reply

  36. bipen gurung Says:

    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

    Reply

  37. Shrinivas Says:

    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?

    Reply

  38. ravi kumar marasu Says:

    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.

    Reply

  39. Rushabh Says:

    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.

    Reply

  40. Puneet Agarwal Says:

    Is it necessary to obtain form 16 from the NSDL site in case of a private ltd. co.

    Reply

  41. Kishore Says:

    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.

    Reply

  42. Consult Says:

    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?

    Reply

  43. Rahul Krishna Agarwal Says:

    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??

    Reply

  44. anand Says:

    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?

    Reply

  45. anand Says:

    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.

    Reply

    • krishnas Says:

      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

      Reply

    • krishnas Says:

      Yes. Your consultancy must provide the form 16 to you.

      Reply

      • Anitha Says:

        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

        Reply

        • krishnas Says:

          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

          Reply

          • Anitha Says:

            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

            Reply

            • krishnas Says:

              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

              Reply

              • Anitha Says:

                Thanks Krishna, for this year what is the last date to submit documents?

                Thanks
                Anitha

                Reply

                • krishnas Says:

                  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

                  Reply

                  • Anitha Says:

                    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!!!!!!!!!

                    Reply

                    • krishnas Says:

                      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

                    • Anitha Says:

                      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

                    • Anitha Says:

                      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

                    • Anitha Says:

                      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

                    • krishnas Says:

                      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

  46. DURAI Says:

    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

    Reply

  47. DURAI Says:

    HOW TO FILE INCOMETAX IN ONLINE.

    Reply

    • krishnas Says:

      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

      Reply

      • Raj Says:

        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?

        Reply

  48. deepak Says:

    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 ?

    Reply

  49. Avinash Says:

    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

    Reply

    • krishnas Says:

      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

      Reply

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