Form 16 & Form 16A – Provisions of Income Tax Act, 1961

Form 16 & From 16A - Provisions of Income Tax Act, 1961A certificate of tax deduction at source or TDS has to be issued by the deductor to the deductee specifying there in the prescribed particulars such as;

  1. amount of tax deducted
  2. Permanent Account Number ( PAN ) of the Deductee
  3. Tax Deduction and Collection Account Number ( TAN )of the Deductor

Prescribed Forms as per IT Act

Relevant forms for TDS certificate has been prescribed by the IT department. Form 16 is prescribed in cases of deduction under section 192 of the IT act (i.e. when taxes are deducted from salary of the employees) and 16A has been prescribed when tax has been deducted under any other provision of IT act, 1961 (i.e. cases other than salary).

Issue Timing

Form 16 in the case of salary employee has to be issued every year before the date as prescribed by the income tax department (At present the date is 31st May of the Financial year following the financial year in which income was paid and tax deducted). 16A has to be issued by the deductor to the deductee every quarter

Recent Updates

Form 16 has to be issued as prescribed by the IT department. It has two parts i.e. PART A and PART B. Part A contains details of tax deduction and deposited by the employer and Part B contains details of employee’s income.

All deductors including Government deductor shall issue Part A of form 16 by generating and subsequently downloading from “TDS Reconciliation Analysis and Correction Enabling System” in respect of all sums deducted on or after the 1st day of April 2012. The form 16 shall have a unique TDS certificate number.

It is the responsibility of the deductor to authenticate the correctness of the contents mentioned in the downloaded form 16 and verify the same either by using manual signature or by using digital signature in accordance with sub-rule (6) of Rule 31.

Part B of the form 16 has to be prepared by the deductor manually and issued to the deductee after due authentication and verification along with the PART A of the form 16.