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Difference between
Form 16 and Form 16A

Form 16 and Form 16A are vital for

taxpayers as they play an integral role in
determining the payable tax amounts. They
are also quite essential for 몭ling income tax Save up to Rs.46,800 on taxes
returns. It is because of their almost similar
Check out the top tax-saving funds with the
purpose that taxpayers often confuse
highest returns in the past 3 years
between the two documents. 

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Nonetheless, to make the most of their use
and to ensure a smooth tax 몭ling experience
taxpayers should 몭nd out the point of
difference between Form 16 and Form 16A
and their purpose. 

What is Form 16?

Form 16 is a certi몭cation that comprises

information that is used to 몭le Income Tax
Returns. Employers issue this certi몭cate to
their employees as per Section 203 of the
ITA. 

It is also referred to as a salary certi몭cate.

Typically, Form 16 consists of details related
to the salary paid in a particular 몭scal year. 

Additionally, it states how much TDS has

been deducted from the salary of said
employee. This little detail is a major point of
difference between Form 16 and 16A.

Notably, such a form is only issued when an

employee’s annual income exceeds the tax
exemption threshold and is liable for TDS.

Contents of Form 16
Typically, Form 16 comprises two broad
parts, namely Form 16 Part A and Form 16
Part B. In general, this document includes
details like –

Proof of income

PAN and TAN details of the employer

PAN details of employee

Tax paid on employee’s behalf 

Payment acknowledgement number

Education surcharge and cess

What is Form 16A?

Form 16A is a certi몭cate of tax deducted at

source and is issued by employers every
quarter as per Section 203 of the Income Tax
Act, 1961. Notably, payouts above Rs.30000
are liable for TDS and cannot claim
deductions. 

The document offers a fair idea of the

amount of TDS deducted on non-salary
income sources like rent, professional
charges, commission, etc. 

Typically, the 15th day of a month is the due

date and is succeeded by quarterly TDS
return due date. Notably, the rate of TDS, in
this case, is dependent on the type of
income resulting from sources other than
salary. 

What are the Components of

Form 16A?
It includes details like –

Employer’s name, PAN and TAN

Employee’s name, PAN and TAN

Payment details

TDS payment number

Date of deposit and deposited tax amount

These details are also available in Form

26AS. 

With that being said, let’s proceed to 몭nd out

the fundamental difference between 16 and
16A.

Difference between Form 16

and Form 16A
This comprehensive table below highlights
the most fundamental differences between
Form 16 and Form 16A. 

Parameters  Form 16 Form 16A

Description  Form 16 is a Form 16A is a

certi몭cate stating certi몭cate
 the details of tax stating the
deducted at source details of tax
from taxable salary deducted at
income.  source from
non-salary
earnings. 

Eligibility  Salaried individuals Self-employed

with regular income. or other
professionals. 

Issuer The employer issues This TDS

this TDS certi몭cate. certi몭cate is
issued by
몭nancial
institutions,
banks,
tenants, etc.

Issued It is issued against It is issued

against salaried employees. against non-
salaried
employees.

Frequency of It is issued annually  It is issued

issuance  quarterly

Applies to Form 16 applies to Form 16A is

dividends, interest applicable to
on securities, etc.  rent,
professional
charges,
commission
agents, hired
machinery,
etc. 

Components  Income proof Employer’s

 bank and
Employer’s PAN
TAN details
details
Employee’s
Employer’s TAN
PAN
details
Tax paid
Employee’s PAN
details TDS
payment
Tax paid 
receipt
Payment number
acknowledgement

Education cess

Surcharges

Abiding law Section 203 of the Section 203 of

Income Tax Act that the Income
is concerned with Tax Act that is
TDS on chargeable concerned
earnings.  with TDS on
non-salary
earnings. 

Relationship Only the TDS details All details

with Form of Form 16 are contained in
26AS
available in Form Form 16A are
26AS. available in
Form 26AS. 

Veri몭cation  Form 16 can be Form 16A can

veri몭ed on the online be veri몭ed on
portal. the online
portal.

Hence, judging by the difference between

Form 16 and Form 16A, it is evident that
both forms are vital for taxpayers. 
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