Form 16A- The TDS Certificate Other Than Salary

A deductor issues Form 16A for the TDS certificate, a quarterly statement concerning the nature of payments, the amount of TDS, and the deposited TDS payments to the Income Tax department. It includes brokerage, interest, professional fees, contractual payment, rent, etc. 

Unlike Form 16, which concerns salary structure, Form 16A of income tax deals with TDS from:

• Receipts from a business or profession

• Rental Receipts from a property or rent

• Sale Proceeds from Capital Assets

• Additional sources

Form 16A Format

Form 16A consists of the following important elements:

• Deductor's Information- This would comprise necessary information concerning the individual who should make the payment. The data would include elements such as the Name and Address of the Deductor.

• Deductee's Information- This section would comprise the name and address of the individual and earnings.

• Deductor's Unique Identification- This section would consist of the PAN and TAN of the Deductor.

• Deductee's Unique Identification- This section would consist of the PAN of the Deductee.

• Total amount due to the Deductee- This section would comprise the total payments made to the Deductee.

• Deducted Amount- This would indicate the amount paid to the Income Tax Department and is calculated based on the Deductee's income.

• Amount paid to the ITD- This section would comprise the details of the payment made to the Government concerning the Deductee.

Importance of Form 16A

Form 16A plays a crucial role while filing Income tax returns, especially when the employee has other sources of income other than salary. Here are the key parameters highlighting the importance of Form 16A:

• Filing of Income tax returns- The information in Form 16A helps employees file Income Tax returns correctly. It assists employees in reporting their total income, including salary and other sources.

• Tracking of TDS- It helps every individual to keep an eye on Tax deducted at source (TDS) on their income. It provides a summary of TDS deducted at source.

• Income Proof- This form works as proof of an individual's total earnings from other sources. Government agencies and financial institutions widely accept this source.

• Loan Applications- This form is essential in supporting the loan applications. Financial intermediaries often require a record of the assets and liabilities of an individual to check their loan repayment guarantee.

How to download the PDF of Form 16A

Form 16A is the certificate of Tax deduction at source and issued on behalf of the employees. These certificates provide details of TDS for various transactions between the Deductor and the Deductee. It is statutory to issue these certificates to taxpayers.

Here are the steps for Form 16A download pdf:

• logs in to TRACES (by Deductor)

• Go to the Downloads tab

• Select Form 16A

• Enter the details and click on go ​​

The procedure to download Form 16A is hectic and time-consuming. You can opt for the service of Eazybills, where specialized staff will help you fill out forms and TDS tracking.

Difference between Form 16, Form 16A, Form 16B

Form 16, Form 16A, and Form 16 B are all certificates of TDS on your income from various sources. However, all three differ in purpose, eligibility, and applicability. It is essential to remember these differences while filing an ITR.

• Form 16- The most common financial document all working employees come across while filing their Income Tax Returns (ITR). It is a TDS certificate on salary if it is above 2.5 lakhs per financial year. 

• Form 16A- It is a TDS certificate on income other than salary, like returns on investment, returns on fixed deposit, etc. Financial institutions are bound to issue Tax Deducted at Source certificates at a rate specified by the Government. 

• Form 16B- It is the TDS certificate on the sale of property. According to the rules of the Government of India, any person who purchases a property like a building or land is liable for Tax Deducted at Source. 

Conclusion

This article covers all the crucial details regarding Form 16A; we hope you find this article helpful. You can read our website blogs for further information about ITR GST. 

If you need assistance, feel free to connect with Eazybills.