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What Is Form 16A? - Know How To Get It And Fill It In

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What Is Form 16A? - Know How To Get It And Fill It In

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Most salaried people would have heard of Form 16. It appears once a year and creates a lot of flutter around it. While Form 16 is a TDS certificate for your income from salary and takes all the fanfare, its cousin - Form 16A, is an equally important document. Let’s take a deep dive into what it is, where to get it and how to fill it.

What is Form 16A?

Simply put, Form 16A acts as documentary evidence of Tax Deducted at Source (TDS) for income sources other than salary. What are these sources? Well, some examples could be, the interest on your bank account or fixed deposits, rent received from property, capital gains from equity or other funds, etc. All of these incomes get tax deducted at the source, which is then listed in Form 16A.

What is the importance of Form 16A?

The need for Form 16A arises when you file your income tax returns. Just like you use Form 16 to ensure all your salary income and deductions tally, similarly, Form 16A is used to declare the income for the year from sources other than the salary. Since TDS has already been deducted from the amount paid out, this needs to be reflected too, so you do not end up paying excess tax. Moreover, many lending institutions ask for Form 16 and Form 16A together in order to process your loan application. Hence, it is recommended to archive this document on a yearly basis.

What is the Form 16A format?

While there can be a few variations in the Form 16A shared by different organizations and issuers, the format more or less remains the same and contains:

  • Name of the tax deductor, address, and its PAN and TAN. The deductor is the source from where you have received the income with TDS, such as a bank, NBFC, insurance company, brokerage firm etc.
  • Your name, address, and PAN. In this transaction, you will be referred to as the deductee.
  • Nature of the transaction, overall amount, tax deducted, and the final amount paid out.
  • A unique reference/receipt number for each TDS payment.

Where to get Form 16A from?

By default, Form 16A is issued by the deductor and shared with you over email. If you have not received so, you should contact the deductor immediately. However, it is not a show-stopper either. Many banks and other financial institutions have a provision to download Form 16A anytime by logging in to your account. Furthermore, the TDS information at a collective financial year level can also be downloaded from the Income Tax Department web page. Here it is known as Form 26AS and contains all details of payments made and TDS deducted for salary as well as other sources for the financial year. Basically, Form 26AS functions as a combined Form 16 plus Form 16A information repository. To download it, you need to follow these simple steps:

  • Log in to the Income Tax e-Filing portal; https://eportal.incometax.gov.in/ 
  • In the main menu bar, locate ‘e-File.’
  • In the drop-down menu of ‘e-File’, choose ‘Income Tax Returns’ and then ‘View Form 26AS.’
  • You will see a pop-up window asking your permission to take you to the TRACES website. Click on ‘confirm’ to proceed. 
  • On the TRACES page, you will see the link to ‘View Tax Credit (Form 26AS)’, click on it to access your Form 26AS

How to fill in Form 16A?

Here are some helpful tips to help you fill in the Form 16A appropriately:

The following information needs to be entered pertaining to the tax deductor:

  • Name
  • Complete physical address along with PIN code.
  • TAN number (Tax Deduction and Collection Account Number).
  • PAN number (Permanent Account Number).
  • TDS acknowledgement numbers.

Then information needs to be entered regarding the type of payment, such as interest on FD, fees for professional services, gains on policy redemptions etc.

  • Each of the common payment types has a designated code which is clearly listed. You will need to enter the respective code to identify the payment type.

Personal information, i.e. information of the TDS deductee, needs to be entered, including:

  • Name 
  • PAN number
  • Specify the financial year (FY) for which the form is being filled. Note that the current FY starts from 01 Apr of the current year to 31st Mar of the next. 

Upon entering all the prerequisite information that identifies the deductor, the deductee and the nature of the amounts paid/received, you will need to fill in the specific TDS deduction details. These will include:

  • The total amount received by the deductee.
  • The date of payment of the amount.
  • Surcharges.
  • Education cess.
  • Total tax deducted at source for the specific deductor.
  • Confirmation of tax deposited to the Income Tax department.
  • Bank reference number if payment is received by IMPS/RTGS.
  • Cheque or DD number if payment is made through physical mode.
  • Basic Statistical Return Code (BSR Code) of the bank branch through which tax payment was made.
  • The date on which the tax was deposited.
  • Challan Identification Number (CIN) as found on the tax payment receipt.

Conclusion

The Form 16A is applicable for all amounts received from sources other than the salary, for which TDS has been deducted. You require this form to file your Income Tax returns correctly. Based on your existing tax slab, you may either be required to pay additional tax or even be eligible for a refund (in case more TDS has been deducted than warranted by your tax slab). In either case, you can rest at ease with the knowledge that you have done your civic duty as a responsible citizen by paying your taxes to the government.

FAQs

1. How can I get Form 16A?

Form 16A is issued by the deducting authority (like a bank or an insurance company) and shared with you on a periodical basis. They also provide you with the option to download Form 16A through their website or mobile app (as the case might be). Another option is to contact the customer care of the organization to request your Form 16A, if not received on time. 

Alternatively, you can download Form 26AS, which gathers data from multiple sources and contains information regarding payments made to you and tax deducted at the source, much akin to Form 16A. The detailed steps for this have been provided in an earlier section of this article.

2. What is the difference between Form16 and Form 16A?

While both these forms contain information regarding payments made out to you and the TDS deducted therein, the primary difference between the two is that Form16 is for regular salaried employees, while Form 16A is for self-employed people, contractual/freelance professionals, or those who are receiving any income from sources other than their salary. 

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