Did you know form-16 & Form-16A? written by CMA samir Biswal

Form 16

If you are salaried employee in an organization, then you will get the salary after deducting tax by the employer. This process is called as Tax Deduction at Source (TDS). Every company has to get the TIN.TIN is Tax Identification Number. This number is issued to person who is responsible to deduct Tax on payments made to employees.

At the end of financial year, company must issue a form 16 which contains the details about the salary earned by that employee and how much tax deducted. It will have details on each month. In simple terms Form 16 is details about the tax deducted by the employer in behalf of employee. The same will be paid to government by the company. Many people thing that getting the Form 16 alone is enough for the tax filing. Tax payer has to use the Form 16 to file the IT return every financial year end.

For example, if you have worked in two different companies in the same financial year, he must obtain the two Form 16 to file the IT returns.

Form 16A

The purpose of the Form 16 and 16A is the same except the issuing person. Form 16 is applicable only to the salaried employee. There is many other areas where TDS can be applicable like deducing the tax for interest earned by your Fixed Deposit in the Bank. Here bank is the person who deducts the tax. For every financial year they must issue a TDS certificate to the customer. They have to fill the Form 16A and hand over to the customer.

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This Article is written by CMA Samir Biswal. He can be reached at cmasamirbiswal@gmail.com

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