Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak T.U.L.I.P

A plan that works like a term plan, and Earns like ULIP Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Assured Pension

A plan that offers immediate or deferred stream of income Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What is the Difference between Form 16 and Form 16A?

Both Forms 16 and 16A are important documents for taxpayers and are indeed required for filing income tax returns. However, only Form 16 is directly used to calculate the amount of tax owed.

  • 20,034 Views
Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

Forms 16 and Form 16A are both crucial documents for filing your income tax return in India. They are both certificates of tax deducted at source (TDS), but they differ in the types of income they cover. There are other significant differences between Form 16 and 16A.

More than just a legal obligation, income tax is a powerful tool for building a thriving nation. By dutifully paying their taxes, citizens become active participants in nation-building. Forms 16 and 16A, issued by the government, serve as crucial pillars of this system, ensuring transparency and streamlining the tax filing process.

What is Form 16?

Form 16 is a significant document issued under the Income Tax Act of India, which serves as proof of tax deducted at source (TDS) from the salary of an employee by their employer. It is a certificate that contains details of the salary earned, the tax deducted, and other relevant information required for filing income tax returns.

For employees in India, the employer deducts income tax from their salary every month based on the applicable tax slab. These deductions are made under the provisions of the Income Tax Act 1961. Form 16 acts as a record of these deductions and provides employees with a summary of their taxable income and tax liability.

What are the Components of Form 16?

This Form 16 functions as a certification wherein the employer verifies details pertaining to the annual salary earned and the amount of TDS deducted. It comprises two sections, Part A and Part B.

Part A contains particulars about the employer and employee, such as names, addresses, PAN and TAN (Tax Deduction and Collection Account Number) details, the employment period, and specifics regarding TDS deductions and deposits made with the government. Part B outlines property tax with respect to the TDS deduction.

Issued by employers to salaried individuals, Form 16 serves as a confirmation when tax is deducted from the employee’s salary. It acknowledges that the deducted tax has been remitted to the income tax department. The employer must provide this certificate by June 15 of the relevant year.

What is Form 16A?

Form 16A is a TDS certificate issued by deductors to taxpayers, indicating the amount of tax deducted at source on income other than salary. It is a statement that serves as proof of the tax deducted and deposited with the government by the deductor. Form 16A primarily applies to individuals who receive income from sources such as interest, rent, commission, professional fees, etc.

What are the Components of Form 16A?

The primary components of Form 16A are as follows:

  • Employer’s name, PAN, and TAN
  • Employee’s name, PAN, and TAN
  • Payment details
  • TDS payment number
  • Date of deposit and deposited tax amount
  • These details are also available in Form 26AS

Did You Know?

Form 16 is mandatory for employers to provide to their employees, whereas Form 16A is mandatory for deductors to issue to individuals from whom TDS has been deducted.

Comparison of Form 16 and Form 16A

While Form 16 and 16A may appear similar, they serve distinct purposes. Some are as follows:

Features

Form 16

Form 16A

Purpose

Issued by the employer to salaried employees reflecting salary, deductions, and TDS details for the financial year.

Issued by the deductor (other than the employer) for non-salary payments, such as rent, professional fees, etc., reflecting TDS details for the financial year.

TAN (Tax Deduction and Collection Account Number)

Employer’s TAN

Deductor’s TAN

Types of Deductions

Deductions under Section 80C, 80D, etc., if applicable.

No deductions are mentioned.

Taxable Income Calculation

Reflects total salary income, deductions, and exemptions.

Only reflects the TDS deducted on non-salary income.

Use in Tax Filing

Form 16 is used as a primary document for salary income in tax filing.

Form 16A is used as supporting evidence for non-salary income in tax filing.

Part of the TDS Certificate

Part B of Form 16 is the TDS certificate.

Form 16A itself acts as a TDS certificate.

Final Thoughts

Form 16 and 16A are important documents that assist individuals in accurately assessing their taxable income and filing their income tax returns. While Form 16 primarily caters to salaried individuals, Form 16A is applicable to non-salary income earners. Understanding the differences between these forms is crucial for individuals to fulfill their tax obligations effectively. By referring to the table above, taxpayers can easily distinguish the purpose, applicability, source of income, deductions, and other key aspects related to Form 16 and Form 16A, ensuring compliance with tax regulations.

Key Takeaways

  • Form 16 is issued by employers for salaried employees, showing salary, deductions, and TDS details.
  • It is provided by deductors for non-salary payments, showing TDS details is used as supporting evidence for non-salary income in tax filing.
  • Form 16 uses the employer’s TAN, while Form 16A uses the deductor’s TAN.
  • Form 16 includes deductions under Section 80C, 80D, etc., while Form 16A does not.
  • Form 16A only reflects TDS on non-salary income, while Form 16 reflects total salary income, deductions, and exemptions.

Kotak Guaranteed Fortune Builder

Download Brochure

Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.

  • Guaranteed@ Income Benefit for upto 25 years
  • Flexibility to choose income period
  • Premium break for females on child birth or any listed specific illnesses
  • Life cover for the premium payment period
  • Enhance your life cover with rider offerings

ARN. No. KLI/23-24/E-BB/1201

T&C

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

- A Consumer Education Initiative series by Kotak Life

Kotak Guaranteed Fortune Builder Kotak Guaranteed Fortune Builder

Kotak Guaranteed Fortune Builder

Guaranteed Income for bright financial future

Invest Now
Kotak Assured Savings Plan Kotak Assured Savings Plan

Kotak Assured Savings Plan

Guaranteed Lumpsum returns for achieving life goals

Invest Now
Kotak Guaranteed Savings Plan Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan

Achieve your long-term goals and get life cover

Invest Now