Deductor's Details
State the name, address, PAN, and TAN of the deductor.
A step-by-step guide for understanding and uses of the TDS certificate.
*Free & Easy - no hidden fees.
Form 16A under the Income Tax Act, 1961, is a very vital document, mainly concerned with TDS. It is issued by the deductor to the deductee concerning payments made other than salaries, namely, interest, rent, professional fees, etc. This certificate lays down transparency and compliance about deductions of tax and is hence very important from the point of view of filing taxes correctly.
Under the Income Tax Act, 1961, specifically for payments more than Rs. 30,000.00, the deductor should deposit the TDS with the government.
Proof of tax deducted on non-salary income. This document is issued by the deductor to the deductee and is used as evidence for tax deductions.
Usually issued by financial institutions, employers, or contractors to those people or entities from whom tax has been deducted.
This TDS certificate is valid as a claim of tax credit when filling your income tax return and should be treated as evidence of tax paid by you.
This document is considered to be significant in filing proper ITRs, as this evidence to the TDS deductions.
It proves that the TDS has been correctly deducted and deposited and thus is useful for tax compliance.
This document can be shown whenever proof of income is required; mostly in cases of applying for a loan or any such related financial service.
Maintained by the individual regarding the source of various incomes to keep tabs on tax deductions to avoid discrepancy against the GST credit.
GST Invoice
Requirements for invoice templates in GST.
GST Billing Benefits
Advantages & benefits of the new tax system.
GST Bill of Supply
Requirements for composition scheme documents.
GST Billing Software
GST features in online billing software.
STEP 1 :
Access the website of the Income Tax Department.
STEP 2 :
Use the details there in to log into the TRACES account.
STEP 3 :
Click on the 'Downloads' menu from prefabricated options.
STEP 4 :
From a list of abundant options, select 'Form 16A'.
STEP 5 :
Enter the required information, such as PAN and Financial Year.
STEP 6 :
Finally, click the 'Go' option to download the Form 16A finally.
This can be further used in many places, such as filing tax and applying for a loan.
Form 16A has been structured to include the following information, which is very important to both the Deductor and the Deductee:
The name, PAN, and TAN, GST Tax Deduction and Collection Account Number, of the person deducting the tax.
This also contains the name and PAN of the individual or entity to whom the income has been paid.
This section includes details of the payments, the amount that was paid, the date on which it was paid, and TDS that was deducted.
Every TDS payment is allotted a number and such a number is known as Challan Identification Number. It can be used to track the payment in future.
The date on which the TDS was actually paid to the account of the Government and the amount so paid
Form 16A is one very integral component in tax compliance and has a couple of features that make it very necessary:
The form is available on the TRACES Portal for easy access by any and all taxpayers.
The form includes the PANs of both the deductor and the deductee for avoiding errors in tax records.
While Form 16 was for salary income, Form 16A covers TDS on interest, rent, professional fees, and so on.
This helps in reconciling the TDS that has been deducted by the statement filed by the deductor for perfecting the tax credit.
It provides valid, legally recognized proof for a deduction of TDS on non-salary income.
Stay compliant with ease! Access Form 16A now for accurate TDS details and seamless tax filing.Managing your Tax Deducted at Source (TDS)
can be challenging, but with Form 16A, the process becomes simple and clear.
*Free & Easy - no hidden fees.
Though both Form 16 and Form 16A are forms for the category of TDS, they differ from each other and have different usages as well:
| Criteria | Form 16 | Form 16A |
|---|---|---|
| Eligibility | Salaried individuals | Professionals, self-employed, non-salaried |
| Issuer | Employers | Financial institutions, tenants, banks |
| Income Type | Salary income | Non-salary income (rent, commission, etc.) |
| Issuance Frequency | Annually | Quarterly |
| Relevant Law | Section 192 of Income Tax Act | Section 203 of Income Tax Act |
Form 16A is issued for various types of income where TDS is applicable. These are given below:
● Dividends: Shares held in a company generate dividend income, from which TDS is deducted.
● Interest on Bank Accounts: Most of the interest earned from your savings or fixed deposits attracts TDS.
● Payments to Contractors:When paying for contractual work, TDS is deducted from the payment value.
● National Savings Scheme:TDS on interest gained on Government Savings Scheme.
● Rent: The TDS that has been deducted on the rent paid to the owner.
● Income with Regard to Shares:TDS on dividend payable in respect of any security of an Indian company.
● Winnings from Lotteries and Puzzles: Tax deducted by the winner of the lottery or for any other similar kinds of income.
● Commission or Brokerage: The commission or brokerage earned is subject to TDS deduction.
● Fees for Technical and Professional Services: TDS on fees for professional services rendered.
● Insurance Commission: TDS on commission from insurance agents.
The proper filling of Form 16A is of prime importance for the reason that it holds the key to compliance under the taxation laws:
State the name, address, PAN, and TAN of the deductor.
State up to four acknowledgment numbers of previous TDS filings.
Name and PAN of the deductee.
State the financial year for which TDS has been deducted.
The date, amount, and the section under which the tax was deducted on account of TDS.
Free training & support
60K Happy Customers Worldwide
Serious about Security & Privacy*Free & Easy - no hidden fees.