What is Form 16A and How can I Get form 16A Online?

Knowing the difference between Form 16, Form 16A and 16B is vital. Here’s looking at it in more detail.

Form 16

This is the most common form that all the salaried employees know about. Form 16 serves as the certificate of TDS for your salary. Still most of the people are not even know what is Form 16? and how it actually works. In case there is someone who might not have enough idea about the form 16 or the taxation than that might be a bit of a trouble. It is always a good choice to know about the legal process so that there are no issues later on. Moreover, an amount of tax is often refunded at the end of the year if the total income earned falls below the particular slab of the income tax return. This is the tax certificate that is generated to employees who earn more than Rs. 2.5 lakh in a financial year. In case the employee switches his or her job during the given financial year then he or she would be given a separate form 16 for each of the employer provided they get a salary which is above the threshold of Rs. 2.5 lakh.

Form 16A

In many cases, it has been seen that a salaried employee can have other sources of income apart from the salary that he or she gets. This can be in the form of returns that he got from the investment made on mutual funds, fixed deposits, bonds etc. Many of these investment returns have income tax associated with it, and that is when form 16A is generated for you. The income tax rates on these investments are determined by the government and are revised on a time to time basis, hence it becomes mandatory for the financial institutions to deduct the tax and generate the concerned form.

There are a few things to keep in mind while claiming returns. Now, it has to be related to the slabs and the interest rates set by the government. Whether be a salaried person or not it is very important for one to understand the process and have a detailed idea about the form and its usage.

Also if you are paying a rent of more than Rs. 50000 per month for any building or land, then you would need to generate a form 16 A to the landowner so that at source the tax can get deducted and get deposited with the account of the central bank. Also, the form 16 A is needed to be generated by the employers in case the employee is earning a commission by selling insurance products.

In order to get it online, sign in to Cleartds.com. On the dashboard, you will find TDS return Deductor. Here, click on “Work on this Return”. A message saying “Import from TRACES” will be displayed at the bottom. Click on it and click on “Request for Form-16A”.Keep your TRACES username and password with you.

Form 16B

In case if you sell any immovable property like building or land, other than agricultural land, then an income tax would be deducted at source from the income that has been generated by selling the property. The certificate that is needed to certify this TDS which would be deposited by the buyer of the property with the department of income tax is known as form 16B.

As per the government of India rules, if a property is purchased from any transferor of residence, then tax is needed to be deducted at sources on the consideration or the amount that is paid. In case of purchase of any immovable property, TDS is mandatory to get deducted. So, one should have an idea about the forms and always try to claim the amount which can be refunded at the end of the financial year.