What is Form 16? How is it different from Form 16A?

  • Form 16 refers to the Salary TDS certificate that you get from your employer. It is issued annually. Being a salaried employee in India, if your taxable income exceeds the threshhold exemption limit, your employer might be deducting certain income tax amount from your salary. The employer has to deposit this tax with the income tax department.
    Simply stated, Form 16 is an acknowledgement of the total tax deducted on your salary and deposited by your employer during a particular financial year.

    It is divided into 2 parts:
    Form no. 16 - Part A: It shows quarter wise details of Tax deducted and deposited and other relevant details like PAN & TAN of deductor and PAN of employee etc.
    Form no. 16 - Part B: It shows the break-up of your income like your salary, exemptions, deductions, other income etc.

    For a salaried individual, Form 16 is an important pre-requisite for filing the Income tax return. So, if income tax has been deducted by your employer, don't forget to collect your TDS certificate on time.

    Difference between Form no. 16 and Form no. 16A:

    Form 16A is different from Form 16. Form 16A is a non-salary TDS certificate. If you have income from sources other than salary like you are a freelancer, a service provider or even if you have interest income etc. you shall be issued Form 16A from the tax deductor. e.g You might have seen that banks provide Form 16A for the tax deducted and deposited on the interest income that you have earned during a financial year.
    e.g. If you are salaried and also have bank interest income. You will get Form16 (Salary) from your employer and Form 16A (Non-salary) from bank.
    Hope this clarifies you!