What is Form 16A?

The Form 16A is a TDS Certificate certifying the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department. Form 16-A are issued when payments are non-Salary. TDS Professional fees, Rent, Bank Interest payments are accompanied by a Form 16A.

Difference between Form 16 and Form 16A: Form 16 is the certificate using which the employer certifies how much tax was deducted at the source for a salaried employee and the total amount that was deposited as Income Tax. Whereas, Form 16A is to certify the TDS amount for non-salary earnings of an individual.

Who will issue Form 16A: It is issued by the deductor that could be your bank or your employer or any other deductor. Form 16 A is issued by the bank when TDS is deducted from your income in respect of interest on FD, insurance commission, rent receipts or any other income earned.

TDS stands for ‘Tax Deducted at Source’ TDS works on the concept that every person making specified type of payments to any person shall deduct tax at the rates prescribed in the Income Tax Act at source and deposit the same into the government’s account.

Penalty for non issuing TDS Certificate: The income tax department has set time limits for issuing of TDS certificates (Form 16 and 16A) by the deductors. Failure to issue TDS certificates by due date can result in penalty of Rs 100 per day of delay per certificate,