When one person makes payment to another then according to the income tax rules a portion of the total payment is to be payed to the Income Tax Department as tax. This tax is called Tax Deducted at Source or TDS. The Person who makes the payment is called the Deductor and the person who receives the payment is called the Deductee. It is the deductor who makes the payment to the Income Tax Department and issues a TDS certificate. Form 16A is a certificate issued by the Income Tax Department stating the Tax Deducted at Source (TDS), the mode of payment and if the payment has been made to the Income Tax Department or not. This form is issued if the payment is non-salaried. Rent, bank interest etc require a 16A certificate.
Form 16A is issued under the Section 203 of the Income Tax Act, 1961. The form contains the following particulars
- Name, TAN No. and PAN No. of the Deductor.
- Name and PAN No., of the Deductee.
- Nature of payment
- Amount paid
- Date of payment
- Receipt No. of the payment.
These details are mentioned in the form 16A and need to be furnished at the time of Income Tax Return filing. Given below is a sample copy of form 16A.