What is the difference between Form 16 and Form 16a?
Form 16 is a certificate issued by your employer which is like a salary certificate for the financial year. Form 16 lists the annual salary the company paid to you as an employee and the amount of tax deducted at source or TDS during the financial year. The best way to understand the difference between Form 16 and Form 16 A is to consider Form 16 as your salary TDS certificate and Form 16A as TDS certificate on income from sources than a salary. So virtually any income you receive on which TDS has been deducted is listed in Form 16A.
Form 16 and Form 16A, are documents used by salaried and self-employed as part of the process of filing Income Tax Return in India.
From 16 is a certificate under Section 203 Income Tax for tax deducted at source from income chargeable under the head of ‘salaries’. Form 16A is a certificate under Section 203 Income Tax for tax deduction at source for income other than salary.
Anyone who earns a steady and regular income in the form of salary can use Form 16. Form 16A can be used by those who are either self-employed or a professional with document qualification degree. Form 16 will have income information, details of tax paid by employer on behalf of employee, PAN and TAN of employer, PAN of employee, acknowledgement of amount of tax paid, education cess and surcharges. Form 16A will have details such as name, TAN, PAN of employer, Name and PAN of all employees, amount paid and nature of payment and receipt number of TDS payment.
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