Form 16 vs. Form 16A: What’s the Difference?

Introduction

The primary difference between Form 16 and Form 16A is that Form 16 serves as proof of TDS deducted on salary income, whereas Form 16A serves as proof of TDS deducted on income from sources other than salary.
Both forms are essential TDS certificates issued under the Income Tax Act, but they fulfil different purposes. Understanding this distinction is important for accurate and hassle-free tax filing.

Many taxpayers often get confused between Form 16 and Form 16A, making it necessary to clarify their roles. Form 16 relates specifically to salary income, while Form 16A applies to other taxable payments such as interest, professional fees, rent, and more. Recognising this difference helps ensure correct documentation and compliance, ultimately resulting in smooth and error-free income tax return filing.

This article provides the key information needed to differentiate between Form 16 and Form 16A. Auriga Accounting pvt. ltd. further simplifies the process by offering expert assistance for seamless TDS return filing!

What is Form 16?

Form 16 is a TDS certificate issued by an employer to an employee under Section 203 of the Income Tax Act, 1961. It provides a detailed summary of the salary earned and the Tax Deducted at Source (TDS) on that salary during a financial year. This certificate acts as proof of tax deduction and is a key document required while filing income tax returns.

Uses of Form 16

Proof of salary income: Shows a complete record of your annual salary structure.
TDS verification: Confirms that the employer has correctly deducted and deposited TDS with the government.
Income tax return filing: Helps in accurate computation and filing of your ITR.
Loan applications: Banks and financial institutions use it to evaluate income and creditworthiness.
Visa applications: Some countries require proof of income, and Form 16 serves as valid documentation.

What Are the Contents of Form 16?

Form 16 is divided into two parts—Part A and Part B—each containing specific details.

Part A

1. Employer and Employee Details

Name and address of the employer
Employer’s TAN (Tax Deduction and Collection Account Number)
Employer’s PAN
Employee’s PAN

2. Summary of TDS Deducted and Deposited

Quarterly breakup of TDS deducted and deposited

3. Acknowledgement Number of TDS Payments

Details of the challans or receipts for TDS deposited

Part B

1. Detailed Salary Structure

Basic salary
Allowances
Perquisites
Profits in lieu of salary

2. Deductions Under the Income Tax Act

Section 80C (PPF, EPF, LIC, etc.)
Section 80D (medical insurance)
Other deductions such as 80E (education loan interest), 80G (donations), etc.

3. Taxable Salary Calculation

Total taxable salary after applying eligible deductions

4. Computation of Tax Liability

Detailed calculation of tax payable
Tax relief under Section 89 (if applicable)

5. TDS Summary

Total TDS deducted and deposited with the government

What is Form 16A?

Form 16A is a TDS certificate issued under Section 203 of the Income Tax Act, 1961, for income other than salary. It is provided by entities such as banks, insurance companies, or other payers when they deduct tax at source on income like interest, commission, rent, professional fees, and more.

Uses of Form 16A

Proof of TDS deduction: Confirms that tax has been deducted from non-salary income sources.
Income tax return filing: Essential for accurately calculating and filing your ITR.
Loan applications: Used by financial institutions to verify income and assess creditworthiness.
TDS tracking: Helps monitor TDS deducted from various income sources.
Proof of income: Serves as evidence of income from sources other than salary.

Contents of Form 16A

Form 16A contains detailed information about both the deductor and deductee, as well as the TDS deducted.

1. Deductor Details

Name of the Deductor: Entity or individual who deducted the tax.
Address of the Deductor: Official address of the deductor.
TAN (Tax Deduction and Collection Account Number): Unique identification issued to the deductor by the Income Tax Department.

2. Deductee Details

Name of the Deductee: Individual or entity whose TDS has been deducted.
Address of the Deductee: Official address of the deductee.
PAN (Permanent Account Number): Unique identification issued to the deductee by the Income Tax Department.

3. Summary of Payments

Nature of Payment: Type of income (e.g., interest, commission, rent, professional fees).
Amount Paid/Credited: Total amount paid or credited to the deductee.

4. TDS Details

Receipt Number of TDS Payment: Unique number issued for each TDS payment.
Date of Payment/Credit: Date when the income was paid or credited.
Amount of Tax Deducted and Deposited: Total TDS deducted and deposited with the government.
Date of Deduction: Date when TDS was deducted.
Rate of Tax Deducted: Applicable TDS rate for the payment.

5. Verification

Deductor’s Verification: Declaration by the deductor confirming the accuracy of the information provided.

Differences Between Form 16 and Form 16A

The following table highlights the key differences between Form 16 and Form 16A based on various criteria:

Criteria	Form 16	Form 16A
Type of Income	TDS on salary income	TDS on income other than salary (e.g., interest, rent, professional fees)
Issuer	Issued by the employer	Issued by entities or individuals who deduct TDS on non-salary payments
Details Included	Part A: Employer & employee details, TDS summary, TDS payment acknowledgement Part B: Detailed salary breakup, deductions, taxable salary, tax computation, TDS details	Deductor & deductee details, nature of payment, amount paid/credited, TDS details (receipt number, date, amount deducted, TDS rate)
Periodicity	Issued annually at the end of the financial year	Issued quarterly
Relevance for Filing ITR	Used by salaried individuals for filing income tax returns	Used for filing returns on income from non-salary sources
Nature of Deductor	Employer-employee relationship	Any deductor-deductee relationship (e.g., bank-customer, client-professional)
Verification	Employer’s declaration and signature verifying accuracy	Deductor’s declaration and signature verifying accuracy
TDS Return Form Reference	Not typically referenced in TDS return forms	Referenced in TDS return forms such as Form 24Q and Form 26Q
TDS Payment Acknowledgment	Includes employer’s TDS payment acknowledgement	Includes deductor’s TDS payment acknowledgement

About the Author

Ravi

Ravi is an experienced legal writer who transforms complex legal concepts into clear, actionable insights. He guides entrepreneurs in understanding their legal obligations, enabling them to build confident, compliant, and sustainable businesses.

January 8, 2026