Difference between TDS and Form-16
Difference between TDS and Form-16, Tax Deducted at Source and Form 16 are related to each other, but they are different concepts.
Tax is the tax amount that is deduct by the person responsible for making the payment (the deductor), at the time of making the payment, from the income of the person receiving the payment (the deductee). The TDS deducted by the deductor is deposit with the government on a monthly basis, and the deductee can claim credit for the TDS amount while filing their income tax return.
Form 16, on the other hand, is a certificate issue by the deductor to the deductee, which contains details of the TDS deducted and deposited by the deductor on behalf of the deductee, during the financial year. It is issue annually, on or before 15th June of the following financial year. Form 16 is categorize into two sections – Part A and Part B. contains details of the tax deducted and deposited by the deductor, as well as the PAN and TAN of the deductor and deductee. Part B contains details of the salary paid to the employee, as well as the deductions and exemptions allowed under the Income Tax Act.
In summary, TDS is the tax deduct by the deductor, while Form 16 is the certificate issued by the deductor to the deductee, containing details of the TDS deducted and deposited during the financial year.
to visit https://www.incometax.gov.in
