Under the income tax law, whenever any person deducts TDS while making payment to another person, the deductor is required to issue a certificate evidencing the tax deducted at source.
Form 16 is a TDS certificate for salary payments while Form 16A is a certificate issued for all forms of payment (other than salary) for which TDS is deducted.
For example, every bank issues Form 16A when TDS is deducted by them on interest payments against fixed deposits held by a person. Similarly, a freelance professional will be issued a Form 16A if the clients have deduction tax on payment made to such freelance professional. Form 16A is also issued for TDS deductions on various other forms of payment such as commission payment, rent payment etc.
This certificate also has details of name and address of deductor/deductee, PAN/TAN details, and details of TDS deducted and deposited. The nature of income on which TDS is deducted is also specified in Form 16A.
See below to identify whether your Form is 16 or 16A.
Let’s have a clearer look on the differences between Form 16 and Form 16A.