What is Form 16A ?
Form 16A is a certificate of tax deduction at source (TDS) by an employer which shows the amount of tax deducted at source, nature of payment, and the tax deposited with the IT department on income other than salaries. Form 16 is usually issued annually. It holds the information required to prepare and file the income tax return.
Components of Form 16A
- Name, TAN and PAN of the employer who deducts tax.
- The date on which the tax was deducted from the salary
- Receipt No. of TDS payment.
- Summary of the salary paid to the employee.
- The date on which tax deposit in the account of the government is made.
How HR teams use this term
HR teams usually use Form 16A when they write policies, explain employee communication, review payroll or leave records, or keep employee data clean in an HRMS.