What is form 16 & 16A?

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
    What is form 16 & 16A?
    If you are employed in an organization, you will obviously receive a salary after your employer deducts the tax. The process is called tax deduction at source.
     

    Form 16 is needed for the purpose of filing returns, as it will help you file your salary income.

    Form 16 is very necessary as it acts as salary proof and tax paid to the government. At the end of the every financial year, the employer provides you form 16.

    The Form 16 provides complete details of the salary details of the employee along with necessary adjustments for income tax. Form 16 is applicable for only salaried people.

    In case, if you have worked in two different organization in a single year than you have to obtain two diffferent Form 16s from the two companies in order to file the IT returns.

    However, it is not compulsory to give the form 16 to the employee if there is no TDS deducted.

    Form 16A

    This form is for non salaried employee who work as a professional for an organization. This is used in various cases where tax is deducted.

    Say for example, interest earned on bank fixed deposits, will results in tax being deduced at source, subject to the interest income being over Rs 10,000. In such cases each financial bank issues TDS certificate to the customers.

    Form 16A is issued in cases like interest on securities, winning lottery or horse race, fees earned from professional or technical services etc.

    GoodReturns.in

    Read more about: tax form 16
    Story first published: Thursday, January 31, 2013, 11:46 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more