Know Your TDS Proofs: Form 16 for Salary, Form 16A Explained Clearly

As tax season approaches, it's important for every taxpayer to be familiar with Form 16 and Form 16A. These are essential documents that act as proof that tax has been deducted at source (TDS) and deposited with the government on your behalf. While both forms serve the same purpose, they apply to different types of income.

What is Form 16?

Form 16 is issued by your employer if you are a salaried employee. It is essentially your salary TDS certificate. This form helps you understand how much tax was deducted from your salary and how much was paid to the government.

Form 16 includes:

• Certificate number and TRACES watermark (ensures it’s authentic)
• Frequency of the certificate
• PAN of the employee and TAN of the employer
• Salary details
• Deductions claimed under sections like 80C, 80D, etc.
• TDS deducted and deposited

Note:

• Part A of Form 16 is the TDS summary.
• Part B provides a detailed salary breakup and deductions.
• Only forms downloaded from the official TRACES portal are considered valid.

What is Form 16A?

Form 16A is similar but applies to non-salary income. It is issued by deductors such as banks, companies, or other entities who deduct TDS on interest income, professional fees, commission, or rent.

Form 16A includes:

• Certificate number and TRACES watermark
• Periodicity of the certificate
• PAN of the payee and TAN of the payer
• Nature of payment
• Amount paid and tax deducted

Note: Just like Form 16, only TRACES-downloaded certificates are valid for Form 16A as well.

In short, understanding and verifying Form 16 and Form 16A is a small step that can save you a lot of hassle later. Keep these documents safe and make it a habit to review them every financial year.