Form 16A: Income Tax Certificate for Non-Salary Payments

Most salaried people would be aware of Form 16. It appears annually and creates a lot of problems around it. While Form 16 is a TDS certificate for your salary, its cousin - Form 16A, is an equally important document. Let's deeply dive into what it is, where to get it, and how to fill it.

Form 16A- An Introduction

Simply put, Form 16A acts as documentary proof of Tax Deducted at Source (TDS) for other income sources besides salary. What are these sources? Well, some examples are the interest on your bank account, interest on fixed deposits, rent from property, etc. These incomes get Tax deducted at the source, which is present in the list of Form 16A.

Format of Form 16A

Form 16A contains details such as name, TAN, PAN of the employer, title, TAN and PAN of the employee, payment details, TDS payment number, deposit date, and tax amount deposited.

Importance of Form 16A

The requirement for Form 16A arises when you file your income tax return. Form 16A declares the income for the year from other sources than the salary. Since TDS has already been subtracted from the amount paid out, this must also show so you do not end up paying extra Tax. 

Details needed to fill Form 16A

The Form 16A applies to all amounts received from other sources besides the salary for which TDS has been deducted. You need this form to file your Income Tax returns correctly. Details for filing Form 16A are the Deductor's name and address, PAN, TAN, Deductee's name and address. 

How to fill out Form 16A

The process to fill Form 16A is as follows:

Provide the employer's name, address, and PIN.

Provide the employer's TAN. This is an alphanumeric code. The first four are alphabets, followed by five digits, and the last is an alphabet.

Fill in the employer's PAN, which is also an alphanumeric code.

Choose the payment type.

Enter the codes for the payment.

Enter the employee's name. Enter the PAN number of the employee in the respective column.

Provide the current financial year.

Provide the TDS deduction amount.

Difference between Form 16 and Form 16A

Every taxpayer should have a crystal clear idea of Form 16 and 16A as there is much confusion about their purposes. Form 16 is a certificate stating the information of Tax deducted at source from taxable income from salary. Form 16A is a certificate expressing the points of Tax deducted at source apart from salary.

Conclusion

After going through this blog, you can quickly learn that filling an ITR is very hectic and time-consuming, but with Eazybills, you can easily trace your Tax Deducted at Source (TDS), file your ITR and other taxation-related work, and live a tension-free life. Through Eazybills, you can quickly fulfill your social responsibility as a responsible citizen by paying your taxes to the government.