Guide to TDS Certificate Form 16A: Issuance, Time Limits, and Benefits

Form 16A is a certificate issued in India that provides details about the Tax Deducted at Source (TDS) on income other than salary. 

This TDS certificate is primarily issued by the deductor (like banks or companies) to the deductee (the taxpayer) when tax is deducted on various payments, such as interest, rent, or professional fees.

Understanding Form 16A is essential for taxpayers to ensure accurate tax filings and to claim the TDS credit effectively.

When TDS certificate Form 16A Issued?

Form 16A is typically issued on a quarterly basis by the deductor after tax has been deducted and reported to the tax authorities. 

Here’s a general timeline for when it is issued:

• For the First Quarter (April – June): Issued by July 31
• For the Second Quarter (July – September): Issued by October 31
• For the Third Quarter (October – December): Issued by January 31
• For the Fourth Quarter (January – March): Issued by May 31

The deductor must furnish the TDS return for each quarter in form 26Q to generate the Form 16A.

Taxpayers can obtain this certificate from the deductor.

Why was Form 16A issued?

Form 16A is applicable to several types of payments that attract TDS (Tax Deducted at Source). 

Here are the main categories of payments for which Form 16A is issued as a TDS certificate:

• Bank interest (e.g., fixed deposits)
• Interest on loans and advances
• Rent paid for residential or commercial property exceeding specified limits.
• Payments to professionals like doctors, lawyers, and consultants.
• Payments made to agents for sales or service commissions
• Payments made to contractors and sub-contractors for services rendered.
• Certain types of dividends that exceed the threshold limit.
• Payments for technical or consultancy services.
• Winnings from lotteries, game shows, or similar contests.
• Payments made under specific circumstances as defined by the Income Tax Act.

The TDS rates for these payments can vary based on the type of payment and the status of the payee (individual, company, etc.).

Form 16A helps the taxpayer claim credit for the tax deducted while filing their income tax returns.

Form 16A serves as a proof of the tax deducted from the income other than salary. For salary income, the employer will issue Form 16 to the employee as TDS certificate for tax deduction on salary.

What form 16A contains?

Form 16A contains several important details regarding the Tax Deducted at Source (TDS) on payments other than salary. 

Here are the key components included in Form 16A:

• Deductor Details such as Name, Tax Deduction and Collection Account Number (TAN) and PAN (Permanent Account Number) of the deductor (the entity or person deducting TDS).
• Deductee Details such as Name, PAN, and Address of the deductee (the taxpayer).
• Nature of payment (e.g., interest, rent, professional fees), Amount paid to the deductee and tax amount deducted.
• Period for which tax has been deducted (quarterly breakdown).
• Challan number and date of deposit of tax with the government.
• Bank branch details where the tax was deposited.
• Acknowledgment number for the TDS return filed.
• The assessment year for which the TDS is applicable.

Form 16A serves as a certificate for the deductee to claim credit for the tax deducted while filing their income tax return. It is essential for ensuring accurate tax compliance and reconciliation.

Difference Between Form 16, Form 16A and Form 16B

Form 16, Form 16A, and Form 16B are all tax-related certificates in India, but they serve different purposes and are applicable to different types of income. Here’s a breakdown of the differences.

Form 16 is Issued as a TDS certificate for salaried individuals. It is relevant for tax deducted at source on salary payments.

Form 16A is issued for TDS on income other than salary. It is relevant for various payments such as interest, winning from lottery and crossword puzzles, rent, professional fees, and other specified incomes.

Form 16B is issued for TDS on the sale of property. It is applicable specifically for transactions involving the sale of immovable property where tax is deducted.

Summary Table

Each form plays a distinct role in the taxation process, ensuring proper reporting and compliance for different types of income.

Frequently Asked Questions (FAQs)

How to get Form 16A?

If you are a taxpayer (deductee), the easiest way to get Form 16A is to request it from the entity that deducted tax from your payment (e.g., bank, company, or individual). 

Keep in mind that Form 16A is issued quarterly, so you may need to check with the deductor for the relevant quarter. Deductor can download form 16A from the trace portal.

You can cross-verify the TDS details with Form 26AS and AIS available on the Income Tax e-filing portal, which consolidates all tax deducted against your PAN.

Can ITR be filed using Form 16A without payslips?

Yes, you can file your Income Tax Return (ITR) using Form 16A without payslips, as Form 16A provides details about the Tax Deducted at Source (TDS) on income other than salary.

Form 16A is issued for various non-salary income types, such as interest, rent, or professional fees. It shows the amount paid and the tax deducted, which is essential for reporting your income and claiming tax credit.

You will report the income as shown in Form 16A in the appropriate sections of your ITR.

The tax deducted will also be reflected in the TDS schedule of your ITR.

Payslips are specifically relevant for salary income, which is documented through Form 16. For filing based solely on Form 16A, payslips are not needed.

Can Form 16A be issued to an employee for whom tax has never been deducted?

No, Form 16A cannot be issued to an employee.

Form 16A is specifically used to certify the TDS deducted on payments other than salary. It is issued by the deductor (like a company, bank, or individual) to the deductee (the taxpayer).

If no TDS has been deducted from any payments made to an individual (including salary), there will be no basis for issuing Form 16A.

Employees typically receive Form 16, which is a certificate for TDS on salary. If an employee’s salary is structured in a way that no TDS is applicable (due to low income or exemptions), they may not receive Form 16.

What are the similarities between Form 16A and Form 26AS?

Form 16A and Form 26AS both serve important roles in the context of Tax Deducted at Source (TDS) in India, but they do so in different ways. 

Here are the key similarities between the two:

• Both forms provide information about the TDS deducted from payments made to taxpayers, ensuring transparency in tax compliance.
• Both can be used to reconcile TDS details. Taxpayers can cross-check the TDS amounts reported in Form 16A with those in Form 26AS to ensure accuracy. There should not be any mismatch.
• Both forms are crucial for filing Income Tax Returns (ITR). Form 16A provides specific TDS details related to various payments, while Form 26AS consolidates all tax deductions against a taxpayer’s PAN.
• Both forms serve as proof of tax deducted and deposited with the government, which can be claimed as tax credit by the taxpayer when filing their returns.
• Both forms specify the assessment year for which the tax has been deducted and is applicable.
• Both forms contain information about the deductor, such as the name and PAN, which helps identify the source of the TDS.

While Form 16A is specific to tax deductions on various non-salary payments and is issued by the deductor, Form 26AS is a consolidated tax statement available for taxpayers, summarizing all tax deducted from their income.