Introduction

Tax Deducted at Source (TDS) ensures that a portion of tax is collected at the time income is earned. To help taxpayers claim this deducted tax while filing their Income Tax Returns (ITR), the Income Tax Department mandates the issuance of TDS certificates.

The two most commonly issued certificates are:

• Form 16 – for salary income

• Form 16A – for non-salary income such as professional fees, rent, commission, and interest

This guide by Bisways Consulting Group explains the difference between Form 16 and 16A, when they are issued, what information they contain, and how taxpayers can verify them online.

What Is Form 16? (Salary TDS Certificate)

Form 16 is issued by an employer to an employee when TDS is deducted from salary under Section 192.

Key Components of Form 16

Form 16 has two parts:

Part A – TDS Summary

• Employer and employee details

• PAN and TAN numbers

• Period of employment

• Total TDS deducted and deposited

• Quarterly TDS return acknowledgement numbers

Part B – Salary Breakdown

• Basic salary, allowances, and perquisites

• Deductions under Section 80C, 80D, etc.

• Taxable salary after deductions

• Relief under Section 89(1) (if applicable)

• Total tax liability and TDS deposited

Part B – Salary Breakdown

What Is Form 16A? (Non-Salary TDS Certificate)

Form 16A is issued for non-salary payments where TDS is deducted under various sections such as:

• Section 194C – Contractor payments

• Section 194J – Professional fees

• Section 194I – Rent

• Section 194H – Commission or brokerage

• Section 194A – Interest income

Key Features of Form 16A

• Contains details of the payment made and TDS deducted

• Issued quarterly

• Applicable to individuals, firms, companies, and professionals

• Downloaded only from the TRACES portal for accuracy

Difference Between Form 16 and Form 16A

When Are These Certificates Required?

You will need Form 16 or 16A for:

• Filing Income Tax Returns (ITR)

• Matching TDS with Form 26AS

• Avoiding tax notices

• Proof of tax deduction

• Bank loan processing

• Salary and income verification

How to Verify Form 16 and 16A?

Both forms can be verified using the TRACES portal.

Steps:

• 1. Visit https://www.tdscpc.gov.in

• 2. Go to “Verify TDS Certificate”

• 3. Enter:

• • Certificate number

  • TAN

  • PAN

  • Assessment year

  • Total TDS

• 4. Submit to verify authenticity

Common Issues Taxpayers Face

• Form 16 issued without Part B

• Mismatch with Form 26AS or AIS

• Non-receipt of Form 16A from banks or clients

• Wrong PAN or incorrect TDS entry

• Deductor depositing TDS late or not filing TDS returns

These issues may result in ITR mismatch, leading to demands or delays in refunds.

Why These Certificates Are Important

• Serve as proof of TDS deposited with the government

• Essential for preparing accurate tax returns

• Help avoid duplicate or excess tax payments

• Provide clarity on income details

• Ensure tax compliance and transparency

Conclusion

Form 16 and Form 16A are key documents for salaried individuals, professionals, landlords, and businesses. While Form 16 summarises TDS on salary, Form 16A captures TDS on all other income sources. Verifying these certificates ensures accurate tax filing and avoids common errors or mismatches.

Bisways Consulting Group provides complete support in TDS reconciliation, ITR filing, Form 16/16A verification, and end-to-end tax compliance for individuals and organisations.