What is Form 16/Form 16A - How does it help?

A TDS certificate is a document issued by the deductor to the deductee. Here, the deductor is someone who deducts tax at the source of the payment, while the deductee is the person who receives the tax-deducted payment.

However, there are two types of TDS certificates issued by the deductor -

  1. Form 16: It is issued by an employer to all its employees, incorporating details of the tax deductions made by the employer in the given financial year.
  2. Form 16A: It is issued in all other cases besides salary.

To under these two certificates, consider the following example -

  • Mr. Hemant works as a salaried employee at a reputed company in Mumbai. The tax deductions of his salary are at 15 percent. The company will thus provide him with Form 16 describing the amount of salary paid to him and the tax deducted from it.
  • In another case, if Mr. Hemant was a working professional who receives professional fees from a company that is subjected to TDS, then he will be provided with Form 16A.

How can you use Form 16 to your advantage?

  1. Help in filing Income Tax Return
  2. Proof of Income
  3. Document stating how your tax was computed and check any anomalies
  4. One place document to see all your tax-saving investments
  5. Loan assessment and approval
  6. Visa issuance
  7. On switching jobs: Helps the next employer compute your tax liabilities on the basis of what your previous employer has already deducted
  8. Since it is a document of the tax credit, you can check for any overpaid taxes, which will help you in claiming refunds. 

FAQs on Form 16

  1. How is Form 16 generated?

The TDS CPC is responsible for the generation of Form 16 on the basis of the quarterly TDS and TCS statements processing. A deductor will be required to raise a request for the same on the TRACES website.

  1. When are the due dates for the issuance of Form 16 and Form 16A certificates?

Form 16 is issued annually and is supposed to be issued by the 31st of May. On the other hand, Form 16A is issued quarterly and is issued within 15 days from the due date of furnishing the statement of tax deducted at source as per rule 31A.

  1. Can I get a duplicate Form 16 certificate if I misplace the original one?

Yes, you have to get in touch with your deductor to get the duplicate certificate issued

  1. If I am a pensioner, who will issue my Form 16?

If you are a pensioner, the bank through which you are receiving your pension will issue Form 16. Your previous employer will not be issuing Form 16 in this case.

  1. Can I download my Form 16 certificate without enrolling myself on the TRACES website?

No, you have to be a registered user on the TRACES website to be able to download your Form 16 and Form 16A.

  1. How can I get Form 16?

You will need to contact your employer in order to receive Form 16 are an employer, it is compulsory for you to issue Form 16 to employees. 

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