Form 16 and 16A

Form 16

Form – 16 as we all know it is one of the most important forms, and is regularly used by us.  It is nothing but a certificate issued by an employer to an employee providing complete details of the Salaries & Wages earned, and the Exemptions and deductions applicable to the employee based on her / his salary structure as well as on the tax-deductible / tax-exemptible investments. If you are an employee of any organization, which means you are on any of the company’s payroll, you should receive your Form 16 by April 30 every year. The salary paid employee files her / his annual returns to the Income Tax Department, by submitting this form. Essentially, Form – 16 is a TDS (Tax Deducted At Source) Certificate issued by the employer to the employee.

Form 16A

On the other hand Form – 16A is issued by every person deducting tax, to the person whose tax has been deducted for every month or for a full financial year. In plain simple terms, Form – 16A is a form, which is provided by any organization that has obtained any form of services (Such as consultancy services etc.) From a particular vendor, and when the service provider invoices the service seeking organization, then the organization (That is the service seeking organization) deducts Tax, as per the taxation laws. Upon completion of this procedure, the service seeking organization deposits the tax thus deducted into the government treasury. To this effect, the organization, which has availed of the service, issues a certificate which consists of the Tax Thus Deducted (Which is also called as TDS or Tax Deducted at Source) to the service provider. The service provider – in turn – submits this to the income tax department while filing his income tax returns. A sample of  form 16 and form 16A both types of forms can be downloaded from the link provided in the below table in excel and word format as required