Pagar Khata -Staff Payroll & Attendance Management
Do you have sources of income other than your salary? Are you worried about declaring income from other sources? Are you concerned about keeping your tax balance sheet clean? Follow along. This article will give you the answers to these questions and more. The above-mentioned topic is usually dealt with in Form 16 and Form 16A.
These forms are similar to each other as they relate to income. Let’s first clarify what each one is and then look at their differences. We will then get into how to generate Form 16A from the TRACES website.
Form 16A is a document issued by any payer who makes a payment to you and is liable to deduct TDS. All payments made by a taxpayer will be subject to TDS if they are above a prescribed threshold. The deductor of such TDS issues Form 16A.
It is due after the deductor files their TDS return every quarter. We'll look into how to download Form 16A later. A deductor is a person who has paid you in exchange for your services or goods after deducting TDS.
Most of the salaried class would be aware of Form 16 provided by every employer each financial year. Let’s briefly discuss what this Form 16 is all about. Form 16 is a document to certify your income from salary. It lists your taxable income, details of tax already deducted or TDS, your net pay among other items.
All employers are liable to provide an annual Form 16 as per provisions of Section 203 of ITA. Form 16 is only applicable where employee salary exceeds the taxable income threshold.
Note the difference, Form 16 is an annual activity, but Form 16A is a quarterly activity as per Section 203 of the Income Tax Act. The important thing to note is, payments over Rs.30,000 are liable for TDS and are not eligible for deductions.
So, what is the purpose of Form 16A? Form 16A lists income from sources other than your salary. It also lists the amount of TDS deducted for incomes like professional charges, rent, commission etc. Form 16A is helpful in the filing of income tax returns and a document of proof that you have paid your tax dues already by way of TDS.
Form 16A is due on the 15th day of the month in the quarter the TDS return is due for the deductor. Any deductor who has deducted TDS on your payment is liable to issue you a Form 16A. It is important to mention that the rate of taxation depends on the source of income other than salary. As an example, your income from property rent will be liable for taxation at a different rate than say your income from professional fees.
If you are wondering how to generate Form 16A online, you can download it from the Income Tax website. You can easily do so by using the TRACES app on the income tax website.
In the section below, we explain how to generate Form 16A online. We have laid down the process to follow to download Form 16A. However, let’s first get more details on Form 16A.
Form 16A includes the below important details among others -
The same details are available in Form 26AS. You can verify your Form 16A against your Form 26AS. Form 26AS contains all the TDS deducted whether it is from salary or otherwise.
If the payer claims to have deducted TDS from your payment, he is liable to issue you a Form 16A within 15 days of filing their TDS return. In cases where you have not received Form 16A from your deductor, you could check the same on the Income Tax portal with the help of the TRACES app.
TRACES(TDS Reconciliation Analysis and Correction Enabling System) is the Income Tax department app available at www.tdspc.gov.in
Other important facilities provided by TRACES for both deductors and taxpayers are -
Also available on TRACES is the AIR (Annual Information Report). AIR includes the record of transactions in cash, shares, property, mutual funds, bonds and credit cards. Taxpayers can view and download the AIR for their respective PAN from TRACES.
TRACES has replaced the previous paper-based correction system.
Also Read: How To Make TDS Payment Online?
Many taxpayers are mostly concerned about Form16 or Form 16A from the TRACES website, if not already provided by the employer or deductor. If you are wondering how to claim TDS from Form 16A, follow the below-mentioned steps to know how to download Form 16A from TRACES:
You will find the login page below.
Also Read: TDS Rate Chart For FY 2021-22
We hope you understood how to generate form 16A online. There are many software applications that help with Form 16 and Form 16A. Many are available on the cloud and others available to download and run. These software applications greatly improve the experience of preparing, reconciling and downloading tax-related documents like Form 16A.
How to authenticate Form 16A?
You can always verify Form 16A against Form 26AS which includes all taxes paid by you.
Do you need payslips for income tax returns using form 16A?
No, Form 16A is for income from sources other than your salary
What needs to be done if Form 16A does not match with Form 26AS?
There are several reasons for a mismatch between Form 16A and Form 26AS. A few of the reasons are - non-filing of the TDS return by the deductor, wrong TAN of deductor, wrong PAN among other reasons. You can approach the deductor to reconcile and revise the TDS return.
Is Form 16A mandatory if TDS has not been deducted?
No, Form 16A is applicable only when TDS has been deducted.
How many days should I wait for Form 16A after filing the TDS return?
They are typically issued within 15 days of filing TDS returns
Pagar Khata -Staff Payroll & Attendance Management