Nonetheless if the same exceeds this limit, the account holder must pay TDS on it. It must be noted that TDS is not applicable on the interest accrued on the savings account if the entire sum is less than Rs.10000. Revenues generated from units mentioned under Section 196b.Earnings of foreign companies mentioned under Section 196a(2).Income from the Indian company’s shares.Payments for repurchasing mutual fund units.Payouts to non-residing sportsmen or sports association.Winnings from a lottery or crossword puzzles.Typically, the following are included under the purview of TDS. It must be noted that each such income is subject to a different rate. Section 206C of ITA mentions non-salary earnings which attract TDS. Which Types of Payments Under Form 16A Attract TDS? Notably, the details contained in this certificate are also available in Form 26AS.

The rate of TDS depends entirely on the nature of non-salary income. It must be noted that the due date is usually the 15 th of a month and is followed by the due date for quarterly TDS returns. This certificate is issued every quarter.

is some of the details that are included. Form 16A serves as proof that TDS was deducted from income sources other than salary and provides essential details about the same.įor instance, income generated in the form of interest of fixed deposits, insurance commissions, rent receipts, securities, etc. According to the Income Tax Act, 1961, payments over Rs.30000 that are not entitled to exemptions are liable for TDS. What is Form 16A?Įssentially, Form 16A is a TDS Certificate and is issued by employers on deducting Tax at Source. This will come in handy in more than one way. To make the most of this particular document taxpayers should be aware of its components, generation and verification process, among others.

Form 16A is a vital document that helps taxpayers to compute and pay applicable taxes with greater convenience.

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