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Description

SR. No

Form No.

Certificate issued by the employer in respect of tax deducted at source (TDS) from income chargeable under the head “Salaries”

1

16

Certificate issued by deductor for tax deducted at source in respect of income other than “Salaries”

2

16A

Certificate issued by purchaser of immovable property for tax deducted at source in respect of purchase of immovable property

3

16B

Certificate issued by lessee for tax deducted at source in respect of payments of rent to the lessor

4

16C

Annual Tax Statement of the person prepared by Income tax Department wherein credit of all the taxes paid by the person can be seen

5

26AS

Declaration under sub-sections to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax.

6

15G and H

Application for Allotment of Permanent Account Number (PAN) [In the case of Indian Citizens/Indian Companies/Entities incorporated in India/Unincorporated entities formed in India]

7

49A

  Form No. 16: Certificate of TDS for salaried individual taxpayers

What is Form No. 16?

 

  • The employer deducts tax on the income from salary paid to an employee. The employer is required to deposit such TDS into a Government Account and furnish a statement of TDS to the Government.

  • The employer is also required to furnish the details of such income and TDS deducted to an employee in a prescribed manner. Such a manner is prescribed as Form No. 16.

  • The employer is required to furnish details of TDS to an employee in Form No. 16 before 31st May of the F Y immediately next Financial Year.

  • This statement in Form No. 16 is very important for an employee to furnish his Income tax returns and he must examine each column and the details furnished by the employer in such columns and fields.

  What are the components and structure of Form No. 16?

  • Form No. 16 is having two (2) parts i.e. Part A and Part B.

  • The Part A comprises of the details of the tax deposited by the employer to the Government Account.

  • If the employer is a Government or a Government undertaking, the payment is made by it via book entry and identified through Book Identification Number (BIN) and if the employer is other than Government and semi-Government bodies, the payments are done through Challans and identified via Challan identification Number (CIN).

The part A of the Form No. 16 is as follows:

  • The part A of Form No. 16 is to be automatically generated by the employer from TRACES portal of Income tax Department. This Part A has the unique number (Certificate Number) generated from this portal.

  • Look for this in Part A

    • Your PAN must be mentioned correctly

    • TAN of the deductor/employer must be mentioned correctly

    • Book Identification Number (BIN) must be correct

    • Challan Identification Number (CIN) must be correct

Part B of the Form 16 contains the details about the salary incomes and deductions claimed by the employee and his/her tax liability on such income. This is extremely important since it is used by employee to file his/her Income tax return.

It looks like this:

  • This form No. 16 Part B contains entire details in case you are filing ITR-1. Therefore, you need to understand it perfectly.

  • The income shown in Form 16 is an aggregate of your pay-slips

  • This must match with the 26AS statement of yours

  • This must contain all the deductions that you told your employer before he deducted your tax

  • In case of any discrepancy, you must contact your deductor and get the amended Form 16

This is the standard format of Form 16, however many organizations issue customised forms as per their requirements and specifications. However, the required basic details are same.

  Frequently Asked Questions on Form 16

I have lost my Form No. 16. What to do?

 

  • Your employer may issue you a duplicate Form No. 16

I have worked with more than one employer in one year. Will I get two Forms 16?

  • Part A of the Form 16 contains details about TDS deposit by an employer and Part B contains details about incomes of the employee. You will be issued two Part A forms and in respect of Part B, you must have shared the details of incomes received by you earlier from earlier employment and such details will be incorporated by latest employer in Part B and only ONE part B will be issued to you.

I have not received Part A of the Form 16. What to do?

  • Part A of the Form 16 is generated by an employer from TRACES portal of the Income Tax Department and can only be generated if an employer has deposited the requisite amount of TDS with the Government Account. There is a possibility that he may not have deposited your TDS into Government Account. You need to follow up with your employer otherwise you may not get credit for prepaid taxes and your ITR may shown tax as payable.

  Form 16A : Certificate of TDS for non-salaried receipts

  • In case of incomes other than salaries, the person who pays ou that income is required to deduct income tax (TDS) from such income. This deduction is done at a rate prescribed in Income tax Act.

  • After such deduction, the deductor deposits such amount of tax deducted into the Government Account.

  • After depositing this amount into the Government Account, the deductor is required to issue you the certificate of TDS. This certificate is issued in Form 16A.

  • This Form 16A is issued in case of incomes like interest, professional fees, commission and brokerage etc.

It looks like this:

  • The incomes reported in Form 16A are reflected in Form 26AS prepared by the Department, therefore, when your income is reported in form 26AS, you must report the same in your ITR filed for that assessment year.

  • Unlike in Form 16, this Form 16A does not have Part A and part B.

  • This Form 16A must be generated only on TRACES portal of Income tax Department.

  Form No. 16B : Certificate of TDS in respect of immovable property transaction

  • This form is generated and issued in transactions of sale and purchase of immovable property like land, building or land and building, constructed space, shops, gala etc., but does not include agricultural land.

  • Once the payment is made by the purchaser to the seller, he must generate challan in form 26QB and generate Form 16B on TRACES and issue the same to the seller.

  • This form 16 is to be generated ONLY on TRACES and can only be generated if the payments of TDS are made by the purchaser.

  • It neither needs nor contains TAN but is issued on the basis of PAN of both the parties.

  • See Sample

Form No. 16C– TDS Certificate for TDS on rent

  Form No. 16C is a certificate of TDS on payments of rent by an individual or HUF

  • If you are an individual or an HUF and you pay rent in amount of more than Rs.50,000/- to another person, then you are required to deduct tax on such rent payment at the rate of 5% of such an amount

  • Such TDS is not needed to be deducted at every time you pay rent, but in the last month of a financial year OR in the last month of tenancy if the tenancy doesn’t last till end of the financial year.

  • After deduction, this TDS is to be paid to the Government Account within 30 days from last of the month in which tax is deducted

  • After its deduction the TDS is to be paid and challan in form 26QC is generated from TRACES portal

  • The Challan in form 26QC is to be used for generating TDS certificate in Form 16C

Form 16C looks like this