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Form 16 and Form 16A are crucial for taxpayers due to their essential role in determining the payable tax amounts. They come in handy while filing Income Tax Returns. One can get confused between the two hence it is essential to understand the difference between the two that will help you to file returns smoothly. In this article, we shall discuss the main difference between the two forms.
Table of Contents
Form 16 is a certification that provides the essential information which is used to file ITRs. Employers issue this certificate to their employees according to Section 203 of the Income Tax Act.
It is also called salary certificate. Form 16 comprises of details related to salary paid in a financial year. It lays down how much TDS is deducted from the salary of the employee. This form is only issued when the annual income of an employee exceeds the tax exemption threshold and is liable for TDS.
Form 16 has two broad parts called Part A and Part B. This document includes details such as:
Form 16A is also certificate of TDS, and it is issued by employers every quarter according to Section 203 of the Income Tax Act 1961. The form provides a fair idea of the TDS amount deducted on non-salary income sources such as rent, professional charges etc.
The 15th day of the month is the due date and is succeeded by quarterly TDS return due date. Here the TDS rate depends on the type of income arising sources other than salary.
The components of Form 16A include details such as:
These details can also be fetched from Form 26AS.
There are certain significant differences between these two forms. We have discussed some of the major differences in the table made below.
Relation between Form 16 and Form 26AS
Both these forms may look similar, but Form 26AS is used for verifying the details provided under Form 16 and its components, along with the information about deductions from salary and other income sources.
Both Form 16 and Form 16A are vital forms for taxpayers under the Income Tax Act. It helps in verifying crucial income details and also helps to know the TDS rate and the amount of TDS deducted. One can use the income data and TDS in Form 16 and Form 16A to file ITR and calculate and pay your tax. Apart from the differences there are certain similarities between the two forms, such as both forms are provided under the same section (203 of the Income Tax Act 1961), and both forms can be downloaded online and verification of both can also be done online. For smooth filing experience, taxpayers should be abreast of this information.
Read our article:Filing ITR Online without Form 16: Step by Step Procedure
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
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