TDS Certificate: The most pressing task for salaried employees these days is to file ITR before 31st July. It is obvious that there will be a lot of confusion regarding this. Today we will tell you how many types of TDS certificates are there.
For the financial year 2022-23, it is necessary for the honest taxpayers of the country to file income tax return by 31 July 2023. If you are a salaried employee, you must have Form 16 to file ITR.
By now you should have received Form 16 from your company, but if Form 16 has not been received, then you should collect Form 16 from your company as soon as possible and file ITR. If you file ITR then you must have heard about Form 16, Form 16A and Form 16B.
Today we are going to tell you about the difference between these three forms and who is eligible for which form.
What is Form 16?
Form 16 is a certificate of Tax Deduction at Source (TDS), also known as “Salary Certificate”. The company gives this form to the employee working here. This form contains all the details of deductions made by the employer in a financial year.
PAN, TAN, name and address of the employer in Form 16; PAN, name and address of the employee; Details like TDS details and deposits with the government are included.
What is Form 16A?
Form 16A levies TDS on income other than salary. Suppose your bank will deduct tax on any income that is eligible for such deduction, which includes interest income from FDs, rent, insurance commission and other types of income.
Name and address of the employer in Form 16A; Permanent Account Number (PAN) of the employee; Tax Deduction Account Number (TAN) of the employee; Contains a summary of quarterly taxes deducted and deposited.
What is Form 16B?
Form 16B is a certificate for TDS deduction on sale of immovable property, in which the TDS amount of the buyer is deposited with the Income Tax Department.
The buyer has to deduct TDS at 1 per cent on the amount paid to the seller at the time of sale of the immovable property. The buyer is bound to pay 1 per cent tax to the Income Tax Department and give Form 16B to the seller.
Form 16B contains details of tax computation, total amount paid/deposited, exemption/deduction claimed, any other income.
