Why Form 16 (Part A and B) Is Important for Salaried Employees?
The next time you receive your salary slip, check if TDS or Tax Deducted at Source has been deducted from your monthly income. As per the Income Tax Rules, TDS is a mandatory deduction that the employer has to subtract from your salary if your annual income exceeds Rs 2.5 lakhs.
Once this amount has been deducted, it is the responsibility of the employer to pay the amount to the Income Tax Department on its due date. Now, how would you, the employee know if the deducted amount has been deposited with the department?
This is why Form 16 is issued. Form 16 for a salaried employee acts like a statement of income that you have earned from your employer and the tax paid by your employer by deducting from the employee and depositing on your behalf to the Government. This certificate will include all information with respect to your salary and income for a particular financial year.
Also, point to note, if you are applying for a credit card, loan, or even a visa for international travel, Form 16 acts as proof of income.
If you are thinking about how to download Form 16, you can download it from TRACES or TDS Reconciliation Analysis and Correction Enabling System.
Types of Form 16
When it comes to Tax deduction at source, you must know how many types of Forms can be issued. There are three types of Forms: Form 16, Form 16A, and Form 16B. However, Form 16 itself has two parts of annexures that are categorized as Form 16 Part A and Form 6 Part B.
Form 16 Part A will have the following details:
- Certificate Number
- Last Updated date
- Name and Address of the Employer
- Name and Address of the Employee
- PAN of the Deductor
- TAN of the Deductor
- PAN of the Employee
- Employee Reference number if any
- CIT (TDS) address
- Assessment Year
- Period with the employer
- Quarter-wise summary of the amount paid or credited and the Tax deducted at Source
- Details of Payment either through Book adjustment or through bank challan.
Form 16 Part B Annexure will hold the below details:
- The initial part will hold all the details like Part A of Form 16.
- Details of the salary paid as well as any other income source will be mentioned
- Allowances that are exempt under Section 10
- Deductions under Section 16
- Deductions under Chapter VI-A
- The final calculation of the income received less deductions will give the Net Tax Payable or if there is a refund.

Form 16A
Income received from other sources also forms a part of the taxable income. This income can be in the form of interest from savings accounts, interest received from fixed deposits, commission, rent, etc. As a recipient, when this income is credited to you, TDS will be deducted.
Just like Form 16, this TDS certificate will have the details of the deductions done on the income. The certificate will be issued by the deductor.
Form 16A comprises similar details like Form 16 including the name and address of the deductor, Name, and address of the deductee, PAN and TAN of the deductor, and PAN of the deductee.
This is followed by a summary of payment and the details of the TDS deducted with respect to the deductee. You will also see the details of the payment done which is followed by the verification and certification.
Form 16B
Apart from salary income and income received from other sources, TDS is also deducted from the income that is received from the sale of immovable property. This can include land- in full or part, buildings, and flats. The only exception is that TDS will not be deducted from the sale of agricultural land.
However, TDS will only be deducted for any property that has a sale or purchase value of more than Rs 50 lakhs. This deduction will be shown in Form 16B.
Like Form 16 and Form 16A, Form 16B will also have a certificate number and last updated date, which will be mentioned on it.
Other details will include:
- The name and address of the deductor, that is the name of the Transferee will be mentioned. This will be the person who is purchasing the property.
- Name and address of the deductee, which is the transferor. This is the individual selling the property.
- PAN of both parties will be mentioned along with the assessment year.
- The summary of the transaction will be the details of the sale i.e Amount paid for the property, unique acknowledgment number, and the date of payment.
- Next will be the TDS amount deducted, along with the challan details.
- Following the payment details will be the deposit details including the Bank identification details, date of deposit, and amount.
- The verification details will be mentioned at the end along with the signature of the person responsible for the deduction of tax.
Difference between Form 16, Form 16A and Form 16B
The difference between Form 16, Form 16A, and Form 16B is below:
Sr No | Form 16 | Form 16A | Form 16B |
---|---|---|---|
1 | Form 16 is a certificate that denotes the income earned through a job or service by an individual in a particular financial year | Form 16A is the certificate issued for an individual for income earned through other sources | A certificate that is issued for income earned on the sale of immovable property is Form 16B |
2 | Form 16 is issued by the employer who deducts TDS from the salary of an employee | Form 16A is issued by financial institutions or a person who will deduct tax on any income other than salary | Form 16B is issued by the transferee to the transferor of immovable property. |
3 | This applies to salaried individuals whose taxable income exceeds Rs 2.5 lakhs per annum. Even if there is no TDS deduction in your income, you can still ask your employer to download Form 16 for you. | Any individual who earns income through interest dividends, commission, rent, etc, needs to get Form 16A. This will be issued to you by the financial institution where you have deposits or investments; or by the individual who pays you rent or commission after deducting TDS | Only when there is a sale of property other than agricultural land, TDS will be deducted, provided the value of the property is more than Rs 50 lakhs. If you have sold a property for more than Rs 50 lakhs and since TDS has been deducted, you will need to ask the purchaser to pay the TDS and download Form 16B for you. |
4 | Form 16 is issued annually | Form 16A is issued every quarter. | Form 16B is issued based on the transaction. |
Frequently Asked Questions
What are the due dates for Form 16A certificates?
Form 16A is issued every quarter. The due date to file the TDS return is the last day of the month following the quarter in which the TDS is deducted.
Who is eligible to receive Form 16A?
If an individual earns income other than salary, and if TDS is deducted from the earnings, he/she is eligible to receive form 16A. This income can be in the form of rent, commission, dividend earned, interest on fixed deposits, earnings from mutual funds, etc. The person or financial institution who is deducting the TDS will have to issue you Form 16A
What is Form 16A for salaried employees?
Form 16A for salaried employees is the deduction of tax at source done on income received other than salaries received. This can be in the form of bank interest, commission, professional fees, etc.
What is Form 16B for salaried employees?
To know what Form 16B means, you will first have to see if there is any tax deducted at source on the sale of immovable property. If the value of the property is more than Rs 50 lakhs, the TDS will be applicable and it will be deducted by the transferor. After the TDS has been deposited with the government, the deductee or the transferor will have to issue Form 16B.