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In this blog will Discuss what is Form 16 & Form 16A- TDS certificates & its Differences.
First, will Discuss,
What is Form 16…
- Form 16 is your salary TDS certificate or simply “It is an Acknowledgement issued by your employer to you when TDS is deducted on your Salary”.
- If your income from salary for the financial year is more than the basic exemption limit prescribed by the Finance Ministry, then your employer will deduct TDS on your salary and deposit it with the government in the form of TDS Returns.
- If you have income from other heads kindly inform your employer for considering your total income for TDS deduction.
- If your income is below the basic exemption limit your employer will not deduct any TDS and may not issue you this form 16.
- This Form 16 is a certificate, contains the Total gross Salary & TDS deduction details happened in that Financial Year.
Parts of Form 16
It has two parts, Form 16 (Part A and Part B).
Form 16 (Part A) will have information about the employer & employee (Name & address, PAN & TAN details, the period of employment, details of TDS deducted & deposited with the government). This Certificate will be issued by TRACES-CPC (IT Department).
The Form 16 (Part A) will include:
- TAN of the employer.
- Employee PAN.
- Employer PAN.
- TDS deducted by the employer.
- Financial year & assessment year.
- The employee Details like (Name, Address & Email Id).
- The employee Details like (Name, Address & Email Id of the employer).
Form 16 (Part B) includes details of salary paid, other incomes, deductions allowed, tax payable etc. This certificate will be issued by your Employer.
The Form 16 (Part B) will include:
- Taxable salary of the employee.
- TDS by the employer.
- Complete deductions under sections 80C.
- Savings (EPF, NSC, Life insurance premiums, PPF etc..,).
- The aggregate of the section 80C.
- Income from any other Source.
- Tax refund or any payables due.
- Details of all the companies worked in that FY.
Now, will Discuss Form 16A…
Form 16A is also your TDS certificate or simply “It is an Acknowledgement issued by the company when TDS is deducted other than your Salary category”.
For example – Simply a Form 16A shall be issued to you by a company when you provide any service & raise any invoice, against that invoice TDS will be Deducted & Form 16A will be issued by them.
Which Form is Important for us?
Both the forms are important, and it is required at the time of filing your Income Tax Returns.
This Form 16/16A will give the exact details of TDS deducted & your savings, Based on this you’ll file your Income Tax Returns.
Difference between Form 16 and 16A
Form 16 and Form 16A are the Acknowledgement/Receipt of tax deducted at source (TDS) that is issued by the employer to his employees/Service provider.
We have listed some important difference between the Two forms in the below table for you.
Hope, From the above explanation you’ve got some useful information about Form 16/16A -TDS certificates & its importance & Differences.
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Author: SRINIVASAN VENKATESH
The author is a Digital marketer & also worked as a TDS (Tax Deducted at Source) Operations Manager, He has more than 4 years of Experience in TDS Processing & Uploading, also has experience on TDS Default Clearance which raised by Income Tax Department (Reflected in TRACES).
He was also handled a Project of “Entire Employees PAN Database Error identification & Rectification” for Murugappa Group (Various units like EID Parry (India) Ltd, Parry Agro Industries Ltd, Murugappa Holdings Ltd etc.., ), Which helped them to avoid huge Tax Defaults & due to this project the company saved a lot of amount.
He worked as a TDS Consultant in the PVT Firm in Bangalore, Handled Corporate Clients Like South Western Railway (Bangalore Division), Karnataka Traffic Police (Bangalore Division), Karnataka Power Corp (KPTCL), Bangalore Electricity Company (BESCOM), Gulburga Electricity Company (GESCOM) Mphasis, Axiss Dental, LifeStyle International, State Bank of India, UCO Bank, Food Corporation of India (Chennai & Bangalore), Life Insurance Corporations & Govt Institutions in Karnataka & Tamil nadu.
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