Know everything about Form 16 & 16A of Tax Deducted at Source
Let’s discuss the importance of one of India’s most crucial paperwork for taxes. Under section 203 of income tax deducted at source, there are three different types of forms that are filed. Form 16, Form 16A, and Form 16B, are the three different kinds of forms which is been filed.
Form 16 is an income tax form that organizations use to tell their employees about the taxes deducted. The proof filing of income tax returns by the employer to the government is known as Form 16. If an employee exceeds the limit decided by the government then the employer needs to deduct a certain amount from the employee’s salary as a form of TDS (Tax Deducted at Source). Employees can claim Form 16, from the employer.
Form 16A is used for the deduction of the income other than salary. Income earned as a form of commission, Interest, mutual funds, and dividends, which are non-salary income, and are subjected to the TDS deduction.
|Form 16||Form 16A|
|It is a certificate for the employee on the tax deducted on there salary.||A TDS certificate is generated for the income earned from other sources, which is not considered a salary.|
|This one only implicates to the salaried employee||Applicable to any individual who has earned income from mutual funds, commission, or any other kind of income except salary.|
|This certificate is generated by an employer for employee||This is generated by a person or institution|
|It is issued yearly||It is issued annually or quarterly|
|Employers can deduct TDS if employee salary exceeds 2,50,000 in a financial year||TDS must be deducted from the income earned if the limit exceeds 50,000.|
Ans. The data of TDS and income will help taxpayers at the time of filing for income tax returns and for calculating tax for the income.
Ans. Form 16 is one of the most necessary documents for salaried individuals to file their income tax returns.
Ans. Form 16 is only used by salaried people, whereas Form 16A is used by anyone with income that isn’t in the form of a salary.
Ans. For every financial year Form 16 is been issued by an employer to the employee.
Ans. Every quarterly Form 16A is been generated, and the due date for Form 16A is every 15th of the month.
At the time of tax calculation Form 16 and Form 16A is useful, it will be useful for the smoothly filing of an income tax return. With knowledge of Form 16 and Form 16A, taxpayers will be capable of understanding their importance and applying them appropriately.