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Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
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.
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.
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.
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.
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.
The primary components of Form 16A are as follows:
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.
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. |
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.
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Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999