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ITR Filing: How many types of TDS certificates are there, what is their use?

Generally, companies issue Form 16 to the employees by the first and second week of June. This means that the employees who have received Form 16 can file income tax return. Form 16, Form 16A and Form 16B are all certificates of Tax Deducted (TDS) on income from different sources

The last date to file Income Tax Return ( ITR ) for the financial year 2022-23 is nearing. For taxpayers with income from salary whose accounts do not require audit, the ITR filing deadline is July 31. Companies have started issuing Form 16 to their employees. Generally, companies issue Form 16 to the employees by the first and second week of June.

This means that the employees who have received Form 16 can file Income Tax Return. Form 16, Form 16A and Form 16B are all certificates of Tax Deducted ( TDS ) on income from different sources. However, their purposes and uses are different.

What is Form 16?

This is a certificate of Tax Deducted at Source (TDS). It is also called salary certificate. Companies issue this certificate to all their employees. It contains the details of tax deducted (TDS) by the company (employer) in a financial year. The employer pays the salary to the employee every month. If the employee’s total income is taxable, then the employer calculates his tax and after deducting it every month, pays the salary to the employee. Form 16 is a very important document for people earning from salary.

Form 16 contains many types of information. These include PAN, TAN and name and address of the employer. This includes PAN, name and address of the employee. It also contains the details of TDS amount and the details of depositing it with the government.

What is Form 16A?

This applies to income other than salary. For example, the bank may deduct tax on the amount of interest you pay on fixed deposits. Similarly, Form 16A is issued for tax deducted at source on income from other sources like rent, insurance commission. It contains the name and address of the employee. It has PAN. There are details of tax deducted and deposited.

What is Form 16B?

Form 16B is the certificate that states the tax deducted (TDS) on the sale of real estate. It mentions that the TDS amount of the buyer has been deposited with the Income Tax Department. The person buying the immovable property is required to deduct TDS @ 1% of the amount paid to the seller. It is the responsibility of the buyer to deposit 1% of the amount with the Income Tax Department and provide Form 16B to the seller.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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