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What is Form 16?

Form 16 is a certificate that provides details on income tax deducted at source (TDS) from a salaried employee and passed on to government authorities. It is issued by an employer to an employee each year, inevitably simplifying the process of filing Income Tax Returns (ITR).

Form 16 also serves as proof that your employer has deposited the TDS amount with the government. This, in turn, helps the government avoid fraud. Any salaried individual who earns over the minimum threshold of ₹2.5 lakh is eligible for Form 16. Banks and other financial institutes view Form 16 as proof of income and the document can be used to avail a higher limit on a credit card, approve home/car loans, etc.

ON THIS PAGE: Types of Form 16 | Difference between Form 16, 16A & 16B | How to download Form 16 Part A | How to download Form 16 Part B | How to download Form 16B | FAQs

Types of Form 16

There are three different kinds of Form 16 — Form 16, Form 16A and Form 16B — each of which are certificates of tax deducted at income source. Form 16 has two components — Part A and Part B. However, you must not confuse Form 16 Part A and B with Form 16A and Form 16B.

  • Form 16

Part A of Form 16 includes the name, address, PAN, and TAN of the employer as well as the name and address of the employee. This part also details the period of employment and the value of income tax that has been deducted.

Additionally, Form 16 Part B contains the detailed salary break-up. It also lists the deductions that are allowed under the income tax regulations. It is important for an employee to cross-check that all details mentioned in both parts of Form 16 are accurate.

  • Form 16A

Form 16A categorically specifies TDS on interest earned on fixed deposits, mutual funds, insurance commission, etc. The name/address of the employee/employer is also included here. The PAN and TAN details of a deductor are mentioned too.

  • Form 16B

Form 16B verifies the quantum of tax deducted at source while making any property purchase above ₹50 lakh. The TDS amount listed on Form 16B is given by the buyer to the Income Tax department. This is basically a TDS certificate for all tax deducted at source on an immovable property sale. While many people believe that Form 16B is for salary, that is incorrect.

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

Form 16, Form 16A, and Form 16B are crucial documents that employees require while filing their ITR. However, there are still many contrasting details in the various forms. Here, we look at the differences between Form 16, Form 16A, and Form 16B:

Form 16

Form 16A

Form 16B

A TDS certificate for employees highlighting income earned through salary

A TDS certificate for employees on income other than head salary

A TDS certificate on income earned from the sale of property

Applicable only to salaried income earned by employees

Applicable to income earned on interest, dividends, commission, mutual funds, etc. A common misconception is that you require Form 16A for salaried employees

Applicable to income earned from sale of a building or land (other than agricultural land)

Issued by an employer to an employee to legitimise lawful TDS

Issued by an institution or person who deducts tax on income earned apart from salary

Issued by a deductor (the buyer of land/property) to a seller to verify TDS applicable on sale

Issued on a yearly basis (annually)

Issued every three months (quarterly) or annually

Issued based on the number of transactions

Eligible for employees who earn over ₹2.5 lakh

Eligible for those whose income (apart from salary) exceeds a certain threshold

Eligible for each transaction that exceeds ₹50 lakh.

Frequently Asked Questions

  • ✔️What are the due dates for Form 16 and Form 16A certificates?

    Form 16 needs to be issued by the employer every year before June 15. However, in the wake of the COVID-19 crisis in India, this year’s deadline has been extended till July 31, 2021.

    Meanwhile, Form 16A is issued by the deductor after the end of a quarter in which TDS was deducted. The due date for Form 16A is 15 days from the date of filing of TDS returns by the deductor.

  • ✔️What does Form 16 indicate?

    Form 16 is a document that proves that income tax has been deducted at source (TDS) for a salaried employee. It is issued from the employer to an employee.

  • ✔️Can I download Form 16 in PDF format?

    Yes. The Form 16 PDF format can be downloaded from the https://www.incometaxindia.gov.in website.

  • ✔️What is Form 16 and 16A?

    Form 16 and Form 16A are TDS certificates which confirm that tax has been deducted at source. With Form 16 and Form 16A, filing income tax returns becomes a lot easier for employees. Know more about how to fill form 16 in detail.