Form 16A is basically a certificate that every employer of every organisation is required to maintain for their employees. It is a Tax Deducted at Source (TDS) certificate and it states all the sources of income of the taxpayer or the individual.
Form 16A is a Tax Deducted at source (TDS) certificate provided along with the Form 16. The Form 16 is only for salary income the Form 16A is applicable for TDS on income sources apart from salary. Form 16A will be issued by when TDS is deducted for fixed deposits, for TDS deducted on insurance commissions, on rent receipts, or any other income you may receive on which TDS is deductable.
Form 16A Format
The components and particulars that make up the Form 16A are:
- Name and PAN and TAN of the deductor - this can be the bank from where your TDS is deducted at source or insurance companies from where TDS is applicable, or any other person/place you receive income from and on which TDS is applicable.
- Name and PAN of the deductee - These details will be of the individual who is receiving the TDS benefits.
- Date of payment, amount of the payment, and the nature of payment.
- The receipt number of the TDS payments
All these details need to be mentioned in the Form 16A are required to be mentioned when filing Income Tax returns. The Form 16A is a TDS Certificate carrying all amounts of TDS nature being actually deposited with the Income Tax Department. When payments from non-Salary incomes are made, the deductor like - TDS Professional fees, Rent, Bank Interest payments to the IT Department they issue a "TDS Certificate"
How to Fill in the Form 16A?
While filling up the details in the Form 16A these points need to be followed:
- Enter the Deductor name and address, while filling in the address ensure to fill in their PIN number (Postal Index Number) as well.
- Fill in the TAN of the Deductor (this is an alphanumeric number with the first 4 digits in alphabets and 5 in digits and 1 in alphabets).
- You will also need to fill in the PAN of the Deductor this also is an alphanumeric number with the first 4 digits in alphabets and 5 in digits and 1 in alphabets).
- Enter the information of 4 acknowledgement numbers.
- The nature of payment is next, whether the payment is of contractual type, professional, etc.
- For all payments mentioned there are corresponding codes, enter those.
- Name of the deductee who’s TDS has been deducted.
- In the column PAN no. of the deductee, mention the PAN number of the deductee who’s TDS has been deducted.
- Enter the period in the Form, this will be for the financial year. As an example for this financial year the period will be: 1st April 2019 - 31st March 2020.
- After filling in all these details, you’ll now need to enter the TDS deduction details.
- The TDS amount mentioned in words.
The TDS Deductions Details will reflect the below:
- Slot No or S. No.
- Amount credited/ paid
- Date of credit or payment
- Tax deducted at source
- Education Cess
- Total tax deposited to the Income Tax Department.
- Cheque number or Demand draft number if any
- BSR code of the bank branch
- Date on which the tax was deposited in DD/MM/YY format
- Challan identification number/ transfer voucher
How to Get the Form 16A?
This document is generally issued by your deductor, this is issued for the present financial year and reflects the total earnings and total income taxes deducted for that financial year from other sources income apart from your salary. To get the Form 16A, you could download the Form from the online website of the Income Tax Department. The form is available on their website in a PDF format and a fillable form as well.
When is Form 16A Required?
When you file your Income Tax returns for a year with the Income Tax department, and you have Income from other sources apart from your salary that have the tax deducted at source (TDS), the Form 16A is required. Most banks and financial institutions use this document as a part of their verification process when you apply for a loan or any kind, be it a housing loan, consumer loan, vehicle loan, personal loan etc.