Income Tax: Know about Form 16A before filing ITR for 2016-17

With just six days in hand, documents needed to file Income Tax Return (ITR) must be ready by now. If you are still waiting for the last day, then better not to. 

While you are reading about ITR forms, do not get confused between Form 16 and Form 16A. 

What is Form 16A?

Form 16A is a tax deducted at source Certificate. While Form 16 is for only salary income, Form 16A is applicable for TDS on Income Other than Salary. 

The Form 16A is certifies the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department. Form 16-As are issued when payments are non-Salary. TDS Professional fees, Rent, Bank Interest payments are accompanied by a Form 16A.

Most of the times, Form 16A is issued to taxpayer by a bank. 

This can be explained with an example. For instance, a Form 16A shall be issued to you when a bank deducts TDS on your interest income from fixed deposits, for TDS deducted on insurance commission, for TDS deducted on your rent receipts, in fact, when TDS is deducted on any other income you receive that is liable for such deduction, ClearTax explained. 

This certificate also has details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.

All details that are there in Form 16A are available on Form 26AS. This can be used to file your return.

How form 16A is different from form 16?

While From 16 is for anyone who earns a steady and regular income in the form of salary, Form 16A is for anyone who is either self-employed or a professional with document qualification degree.

Form 16 is applicable on Interest on securities, dividends, interest other than interest on securities, etc. While Form 16 A is issued against rent, commission, professional charges, building, plant, machine hired, commission agents, etc.

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