Form 16A means a TDS (tax deducted at source) certificate that is issued by the employer on behalf of employees on the deduction of tax. Notably, the form contains details on TDS deducted and deposited with the government in the name of the deductee. Also, Form 16A features information related to the income other than salary.
In this article, we will discuss what is Form 16A and how you should get it.
Form 16A TDS Certificate Format
The Form 16A format can vary based on the deductor’s software and format which was prescribed by the IT (Income Tax) Department. Typically, Form 16A includes information like:
- Employee’s name, TAN and PAN
- Employer’s name and PAN
- TDS payment number
- Payment details
- Date of deposit and the deposit tax amount
Types of Payments for which Form 16A is Issued
Form 16A is issued for many other situations apart from TDS deductions that are made by employers.
- Professional service fees
- Brokerage or commission payments
- Interest payments
Significance of TDS 16A Form
Form 16A is important when a taxpayer has additional income sources apart from regular salary. It is useful in the following situations:
- Income Tax Return Filing
Details provided in Form 16A are important for filing income tax return. It helps taxpayers to report total income including income from non-salary sources.
- TDS Tracking
Form 16A provides a summary of TDS deducted. Form 16A helps individuals track the amount of money as part of tax deducted at source paid on non-salary earnings.
- Loan Applications
Form 16A also supports loan applications. Financial institutions need the document to verify an individual’s income and evaluate loan eligibility.
- Income Proof
Form 16A acts as proof of income as it shows individuals’ earnings from other sources. It is accepted as evidence of income by government agencies, financial institutions and other entities.
How to Get TDS Certificate Form 16A?
Form 16A can be downloaded from TRACES (TDS Reconciliation, Analysis and Correction Enabling System), a web-based application system. It is considered a valid TDS certificate and you can only generate Form 16A if you have a valid PAN.
Here’s the step-by-step procedure to download Form 16A:
Step 1: Log in on TRACES official portal. Enter your user ID, TAN, PAN, password and the captcha code.
Step 2: Under the ‘Downloads’ section, choose Form 16A from the dropdown menu.
Step 3: Pick the financial year and quarter for which you want to download the TDS certificate, the form type and PAN. Once selected, click on ‘Go’.
Step 4: The details with respect to the concerned person will appear on the screen and in Form 16A as well.Verify all the details thoroughly and click on ‘Submit’.
There are two ways to do KYC validation:
- With DSC (Digital Signature Certificate)
- The financial year, quarter and form type will appear on the screen. You need to click on the ‘Validate’ option.
- You need to enter the DSC password and click on the okay option. Select DSC and click on ‘Sign’.
- 2. Without DSC
For this, you need to enter details such as
- Token number of IT return filed for the financial year, quarter and form type
- Challan details, including challan serial number, challan amount, BSR code, and the date when the tax was deposited
- Enter PAN and TDS amount deposited against PAN
After entering all the required details, click on ‘Proceed’.
Step 6: After all the KYC details have been validated, a success message will appear on your device’s screen in addition to a request number. Form 16A can be accessed from the ‘Downloads’ section with the help of this request number. Form 16A can be downloaded when the status is ‘Available’. You need to wait for 24-48 hours after the status of the request is ‘Submitted’.
Step 7: Enter the request number/request date/select view all. If the status is ‘Available’, then click on the download option.
Step 8: Download TRACES Utility (this is an option wherein you can convert text file to PDF on the webpage. This can be done by downloading the TRACES Utility feature). Go to ‘Downloads’ and click on ‘Files Requested For Download’. Then select ‘Click Here’ and enter the captcha code on the next page.
Step 9: Click on TRACES PDF converter V 1.5 light version and download the utility for converting Form 16A to PDF.
Step 10: Steps to download Form 16A PDF:
- Open utility
- Browse and select the zip folder
- Enter TAN as the password for the input file
- Select the folder where you want to save the form
- When you click on ‘Proceed’, the PDF version of Form 16A will be saved in the folder
From this blog, we can gather that Form 16A is an essential document that allows taxpayers to compute and pay relevant taxes with much convenience. Form 16A is a very important document, so taxpayers are advised to read thoroughly about the generation, components and verification process. To get your hands on Form 16A, you need to reach out to the entity that has deducted TDS such as an agency, contractor, bank and financial institution.