Income Tax is the tax which is levied on the profit or we say income earned during a financial year by the end of the year the tax is paid by the estimate taken from the last year. As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax return (ITR). This tax is imposed on every Individual, Hindu Undivided Families, Companies, partnership firms or any sole proprietors or any other artificial juridical person. This tax is imposed on everyone with the different amount according to the income they have earned in the financial year and in which category the person falls the amount of tax is defined which is made on the basis of the age of the individual which are normal, Senior citizen and super senior citizen. This is imposed under the Indian Income Tax act, 1961 and it is a part department of Revenue under the Ministry of Finance, Government of India moreover this is the main source of funds that the government uses in activities and serving the public and help in developing the nation.
There are many different forms filled for the income tax return that represents different income earned from different ways like from household activity or any other way for making it ease in filling the Income tax return filing
Form 16 and 16A are filled by income earning person for the proof of the Tax Deducted at Source that is provided by the employers to the employees, the difference arises in the source of the income earned. It comprises of Proof of income, details of TDS paid by the employer on employee’s behalf, employer’s PAN and TAN cards, employee’s PAN card, acknowledgement of the amount of tax paid, education cess and surcharges.
Form 16 is the proof of the Tax Deducted at Source from the income under the section of income of the Salaries. Anyone who have a steady and continuous income in form of salary. It includes Interest on securities, Dividends, and every other interest or similar. Form 16A is the Certification of the Tax Deducted at Source from the income under the section 203 other than salary that is like from lottery and awards. Anyone who is either self-employed or a professional with document qualification degree. It includes Rent, Commission, Professional charges or similar. IT comprises of Name, TAN, PAN cards of the employer; Name and PAN card of all employees, nature of TDS payment, the amount paid and receipt number.
But in both the cases approval is to be taken online only, hence there is a very little difference between the form 16 and 16A but both are used for filing Tax Deducted at Source on the income earned.
This article has been contributed by Simran Setia, Content Writer, LegalRaasta- an online platform for income tax return filing, Patent registration, GST registration, llp registration, copyright registration etc.
Looking for good home made food at office? Try TinMen Prices start at just 70 RS per meal.