Form 16A is a tax deduction certificate issued under section 203(1) of the Income Tax Act, 1961; provided by the tax (TDS) deductor to the recipient for payments received other than salary income. Form 16A gives a summary of TDS paid on behalf of the deductee for the quarter.
What you need to know
Income other than Salary received by an individual shall be subject to TDS based on the threshold limits and prevailing rates in force. Form 16A is essentially a TDS Certificate issued by, for eg: Banks for FD interest income, EPF for Provident Fund withdrawals, Listed companies for dividend income etc. It will be issued by the tax deductor on a quarterly basis, within 15 days of filing the TDS return.
Form 16A format
The primary details covered in the Form 16A format are:
- Name and address of the Deductor and Deductee
- PAN of the Deductor and Deductee
- TAN of the Deductor
- Relevant period i.e. Assessment Year of the certificate
- Particulars of TDS payment based on nature along with applicable Income Tax section number
- Tax deducted and remitted on behalf of Deductee to the government
- Bank remittance details (BSR Code of branch, Challan serial number, date of deposit)
When is Form 16A Required?
Form 16A is one of the fundamental inputs an individual needs to accurately file their Income Tax (IT) returns. Essentially, after the IT Return asks for details of Income under each head i.e. Salaries, House Property, Other Sources etc; the ITR Form would auto-calculate tax dues according to applicable slab and tax rates. This is where Form 16A comes into play as an evidence for taxes already paid. Taxes due can be set off against taxes paid; resulting in “Nil” taxes due.
To ensure proper tax credit is claimed, you must download Form 26AS from TRACES website and tie back the TDS entries in TRACES Form 16A to the TDS reflecting in Form 26AS.
Which types of payments under Form 16A attract TDS?
As per Section 206C of the Income Tax Act, certain non-salary incomes fall under the scope of TDS. Each category of income is subject to a different tax rate.
The common payments that attract TDS include:
- Dividends
- Rent
- Interest earned on bank deposits
- Winnings from lotteries or crossword puzzles
- Winnings from horse races
- Payments made to contractors
- Insurance commissions
- Payouts from National Savings Schemes (NSS)
- Payments to non-resident sportsmen or sports associations
- Repurchase of mutual fund units
- Compensation, commission, or brokerage
- Income from shares of an Indian company
- Income from foreign currency bonds
- Fees for technical and professional services
- Earnings of foreign companies covered under Section 196A(2)
- Income from units specified under Section 196B
How to Fill Form 16A?
Form 16A is provided by the Tax deductor to the recipient of income i.e. deductee. The Form 16A format may be downloaded from the Income Tax Website and filled in as follows -
- Provide Name and address of the Deductor and Deductee
- Fill the PAN and TAN of deductor, PAN of deductee
- Specify the period of tax deduction i.e. Assessment Year and quarter
- Input the amount paid, nature of payment and date of payment to the deductee
- Input the details of tax deducted and remitted
- Provide Bank challan-wise details of tax deposited on behalf of the deductee
- Furnish any other details as required
Sign and issue Form 16A to the deductee within 15 days from the date of filing TDS Returns for the quarter.
Also read - PF Withdrawal Form 31
Process to download Form 16A
After filing the TDS return for non-salary payments using Form 26Q, you can download Form 16A online.
Follow these steps to get Form 16A:
- Visit the official Income Tax website.
- Log in to the TRACES portal.
- Go to the ‘Downloads’ tab.
- Select ‘Form 16A’ from the options.
- Enter the required details.
- Click on ‘Go’ to generate and download the form.
Once downloaded, you can save the document and use it to complete the necessary compliance formalities.
What payments is Form 16A issued for?
The payments for which Form 16A would be applicable can be narrowed down by the process of elimination. This means Form 16A would be issued for all payments other than those specified below.
Form 16A will not be applicable for the following types of payment-
- Salary (Sec.192)
- Sale of Immovable Property (Sec. 194-IA)
- Property rental (Sec. 194-IB)
Form 16A: TDS Rates for applicable payments
| S.No | Section No. | Payment Type | TDS Rate | Tax Exemption Limit |
| 1 | 192A | Payout from premature withdrawal from EPF | 10% * | If payment is less than Rs. 50,000 |
| 2 | 194 | Dividend payout | 10% | Up to Rs. 2,500 in a FY (Individual) |
| 3 | 194DA | Life Insurance policy payout | 1% | If payment is less than Rs. 1 Lakh |
| 4 | 194F | Repurchase of units by Mutual Fund or Unit Trust of India | 20% | Not applicable |
| 5 | 194J | Professional or Technical service fee payout | 10% ** | Up to Rs. 30,000 during the FY (this limit applies for each type of payment) |
(*) 20% if PAN is not provided
(**) 2% if payment is made to a Call Centre Business
Also read - PF Fund withdrawal Form
What is the difference between Form 16 and Form 16A
Both Form 16 and Form 16A are TDS certificates issued under the Income Tax Act, but they serve distinct purposes. Here is a clear comparison:
| Parameter | Form 16 | Form 16A |
|---|---|---|
| Applicable income | Salary income only | All income other than salary — such as interest, rent, professional fees, and commission |
| Issued by | Employer to salaried employee | Any deductor — such as a bank, tenant, or company — to the recipient of non-salary income |
| TDS section | Section 192 of the Income Tax Act | Sections such as 194A, 194C, 194H, 194I, 194J, etc. |
| Frequency of issuance | Annually — on or before 15th June following the end of the financial year | Quarterly — within 15 days from the due date of filing the quarterly TDS return |
| Structure | Two parts — Part A (employer and employee details, TDS summary) and Part B (salary breakup, deductions, tax computation) | Single format — contains deductor and deductee details, nature of payment, TDS rate, and amount deposited |
| Common examples | TDS deducted on monthly salary by employer | TDS deducted by bank on fixed deposit interest, TDS on rental income, TDS on professional fees |
| Where to download | Employer or payroll portal | TRACES portal — generated by the deductor |
| Used for | Filing ITR, loan applications, visa processing, and income proof | Verifying TDS credits and filing ITR for non-salary income sources |
| Penalty for delay | Rs. 100 per day under Section 272A(2)(g) | Rs. 100 per day under Section 272A(2)(g) |
Note: As per the new Income Tax Rules 2026, Form 16 and Form 16A have been renumbered as Form 130 and Form 131 respectively, effective from Tax Year 2026-27.
Conclusion
We have now covered what Form 16A is, when it is issued, why it is important where it is to be used. TRACES Form 16A can be easily downloaded online from the Income Tax website. This tax deduction (TDS) certificate will prove a helpful tool to enable quicker and accurate filing of your annual Income Tax return.
If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 7.75% p.a.
Calculate your expected investment returns with the help of our investment calculators
| Investment Calculator | ||
| Fixed Deposit Interest Calculator | EPF Calculator | PPF Calculator |
| Recurring Deposit Calculator | Gratuity Calculator | |
