Difference between Form 16 and Form 16A Last Updated : 11 Jul 2020

Both Form 16 and Form 16A are of paramount importance when filing tax returns. While there are similarities between both, there are also differences that need to be understood in order to file accurate tax returns.

Form 16 and Form 16A, are documents used by income earning persons as part of the process of filing Income Tax Return in India. The Income Tax Act of 1961 and the Income Tax Rules of 1962 are the governing laws of the Income Tax Department of India.

Both Form 16 and Form 16A are proofs of tax deductions at source (TDS) provided by employers to their employees. This is usually applicable towards things such as, winning from a lottery or crossword puzzle; winnings from a horse race, etc.

So what is the difference between Form 16 and Form 16A?

EXPLANATION It is a certificate under Section 203 Income Tax for tax deducted at source from income chargeable under the head of ‘salaries’. It is a certificate under Section 203 Income Tax for tax deduction at source for income other than salary.
ELIGIBILITY Anyone who earns a steady and regular income in the form of salary. Anyone who is either self-employed or a professional with document qualification degree.
APPLICABLE TOWARDS Interest on securities, dividends, interest other than interest on securities, etc. Issued against rent, commission, professional charges, building, plant, machine hired, commission agents, etc.
COMPRISES OF Proof of income, details of tax paid by employer on behalf of employee, PAN and TAN of employer, PAN of employee, acknowledgement of amount of tax paid, education cess and surcharges. Name, TAN, PAN of employer; Name and PAN of all employees. Amount paid and nature of payment, receipt number of TDS payment.
ONLINE VERIFICATION Can be verified online Can be verified online

What is TAN?

TAN or Tax Deduction and Collection Account Number, in India, is a 10-digit alphanumeric number. It is issued to persons who are expected to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961.

What is PAN?

PAN or Permanent Account Number is a code that identifies Indians, especially the ones who pay Income Tax diligently. It is a unique; 10 character alphanumeric identifier. It is issued to all judicial entities that are identifiable under the Indian Income Tax Act of 1961.

News About Form 16 & Form 16A

  • File your IT Returns and Form 16 in 5 Minutes with Hello Tax App

    File your IT returns in 5 minutes, claims Hello Tax app by a Delhi based entrepreneurship firm Angle Paisa. This app is now available on Google Play Store for Android users, the iOS version will be available soon. Currently this is app is free for use for the first year and may start to charge for the service in the future. This app will help salaried individuals with their income file their tax return within 5 minutes, making it hassle free and keeping the taxpayer’s details confidential. There is an option even for Form 16 where the users straight away can upload it. The app claims to reduce time taken for filing returns, by doing it with a more efficient and effective filing process and also facilitate the same at minimum price.

    25 September 2015

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