Difference Between Form 16 and Form 16A Explained

Form 16 and Form 16A are essential documents for filing the tax return. While both these files have similarities, they also differ in many parameters, which confuse first-time taxpayers. Hence, it is imperative that individuals know the difference between Form 16 and 16A.  However, before delving deep into the comparison, you must know about Form and 16A.

Stay tuned to learn everything about Form 16A and Form 16 and their differences!

Form 16 is the salary TDS certificate. Through this certificate, the employer clarifies the break-up of salary earned by an individual in a financial year and the amount of Tax deducted at source (TDS).

According to section 203 of the Income Tax Act, employers issue Form 16 to their employees. Form 16 is also known as a salary certificate.

Form 16 is received by an employee when an employer has deducted his TDS and has deposited it to the Government.  [Source]

If the individual earns a salary that will make their total income taxable in a financial year, it will undergo tax deduction at source under section 192. 

If employees work in multiple companies in a financial year, they will get different Form 16 from each employer.

Form 16 is a certificate that declares the Government has received the applicable tax. This certificate has two parts. Part A and Part B. 

Part A of Form 16 shows the details of the employer, employee, and the summary of amounts paid and TDS deducted.. Part B consists of the break up and details of salary paid such as gross salary, DA, HRA, etc. 

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Subsequently, you must know the difference between Form 16 and Form 16A. But before that, let’s learn about Form 16A in detail. 

Form 16 is issued every year by 15th June.

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Similar to Form 16, Form 16A is also a TDS certificate.  Whereas Form 16 is applicable for only salary income, Form 16A concerns income from sources other than one’s salary, such as return on investment on mutual funds, fixed deposits and other capital incomes.

Form 16A contains information such as name and address details of deductee or deductor, Challan, PAN or TAN details, etc. Further, it has information related to income earned by individuals, tax deducted at source and amount deposited with the Government.  

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From the above piece, you have gained a clear knowledge about both Form 16 and Form 16A. So, let’s focus on the parameters that can help individuals to identify Form 16 and 16a difference.