Difference Between Form 16 and Form 16A

Form 16 & Form 16A

Hai friends we all know that Income Tax returns should be filed for every year. But before filing income tax returns, it is necessary to possess form 16, if working in an organisation or form 16A in case of payment other than salary. Both form 16 and 16A is a TDS certificate which clarifies us that tax deducted at source and remitted to income tax department.If there is a nil TDS then there is no need to file these forms. 

Form 16:

• Form 16 is for a person employed in an organisation,who draws monthly salary.
• The employer deducts some amount as tax before handling your salary to you.This concept is called TDS (Tax Deducted at Source).
• At the year end the employer is required to provide a detailed statement of salary payments and TDS deducted thereon.This statement is termed as Form 16.
• Form 16 is necessary because it acts as a salary proof and tax paid to the Government. Form 16 provides complete details about salary details of the employee along with necessary adjustments for the purpose of income tax. Form 16 is applicable for only salaried employees.
• In case if there is a person who worked at two different organisations the employee should file two form 16's before filing income tax returns.
• If there is no possibility of getting form 16 from the previous employer it is suggested to fill form 12B and submit it to your new employer. 
• The employer will take into account the previous salary you earned while deducting tax. You can also revise and submit if there are any mistakes in the submitted form 16. 
• However if there is no TDS no need to file form 16.

Now form 16 comes as Part A and Part B.

Part B is very much essential for filing IT returns....as it contains the information regarding the net amount taxable.....deductions...TDS amount on salary etc....

Form 16 A:

Form 16 A is for an employee who work as a professional for an organisation. This is used at various places. As in Form 16 the deductor has to issue Form 16 A to the person before filing his income tax returns.

Form 16A is also an important document that is in accordance with the rules and regulations laid down by Section 203 of the Income Tax Act for Tax Deducted at Source from the income other than Salary.

Form 16 A is issued in the following cases:

• For interest on securities and dividends.
• Interest other than interest on securities.
• Winnings from lottery and crossword puzzles.
• Winning from horse races.
• Commission,remuneration or prize on sale of lottery tickets.
• Fee for professional and technical services.
• Income of foreign companies referred to in section 196A(2).
• Income of foreign institutional investors from securities referred to in Section 196D.
• Payments to contractors and sub-contractors.
• Payments in respect of deposits under National Savings scheme.
• Income from units referred to section 196B.
• Payments on account of repurchase of units by Mutual Fund or Unit Trust of India.  

Conclusion

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.

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