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NRI Income Tax & Compliance

TDS Certificate Form 16A For NRIs: TDS on Indian Income

autohr img By Shubham Jain | 12 Aug, 2025
Form 16A

Form 16A is a TDS certificate which outlines the tax deducted and deposited to the government of India by the deductor on income or payments made to the individual other than salary. Such costs include rent, interest, professional fees, etc. Form 16 is issued under section 203(1) of the Income Tax Act 1961.

The person who deducts the TDS is known as the deductor. In a nutshell, Form 16 is a tax deduction certificate that gives an overview of the TDS paid on behalf of the deductee for a certain quarter.

In this blog, we will explore what Form 16A is, its importance for NRIs, and the details included in Form 16, among other topics.

What is Form 16A?

If you are a non-resident Indian or an Indian resident earning any income in India, such as rent, capital gains, interests, and more. In that case, it is essential to understand how tax is deducted at source and reported to the government of India. Form 16A is one such important document for NRIs and Indian residents, as it provides proof that the taxes have already been deducted at source.

Form 16A acts as a TDS certificate, which is issued by the person deducting the tax (TDS) every quarter. Form 16A differs from Form 16, which is issued annually to salaried employees. In contrast, Form 16A applies specifically to payments such as interest, professional fees, rent, and more.

What is the Format of Form 16A?

The details mentioned below are primarily covered in the Form 16A Format:

  • Full Name and address of the deductor and deductee.
  • PAN details of the deductor and deductee.
  • TAN of the deductor.
  • The relevant period is the assessment year of the certificate.
  • Particulars of the tax deducted at source payment, as per the nature, align with the applicable Income tax section number.
  • Tax is deducted and remitted on behalf of the deductee to the government of India.
  • Details of the bank in which the amount has been remitted, including the BSR Code of the branch, the Challan serial number, and the date of deposit.

When is the Requirement of Form 16A?

Form 16A is a document that taxpayers need to file their Income Tax Returns accurately. When a taxpayer files its ITR, the tax will be calculated on their total income now if the taxpayer does not claim the TDS mentioned in Form 26AS and Form 16A. The taxpayer might end up paying twice on the same income for which the TDS has already been deducted and paid to the Income Tax Department on behalf of the taxpayer. Therefore, having Form 16A is essential because it acts as a valid proof and saves the taxpayer from getting taxed twice. 

However, a taxpayer must ensure that the Form 26AS is always matched with Form 16 and 16A. In case of a mismatch, get it corrected by the concerned deductor because with mismatched details, the tax credit isn't given while filing IT return.

For the taxpayer to ensure proper tax credits are claimed, they must file Form 26AS via the TRACES website.

How To Fill Form 16A?

As we already know, Form 16A is provided by the tax department to the recipient of the income that is the deduction. The Form 16A can be downloaded from the official income tax website and is filled out as follows:

  • Fill in the name and address of both parties, that is, the deductor and the deductee.
  • Fill in the PAN and TAN of the deductor and just the PAN of the deductee.
  • Enter the period of tax deduction, that is, the assessment year and the quarter.
  • Now enter the amount paid, the payment nature, and the date of payment to the deductee.
  • Enter the details of the tax deducted and remitted to the Government of India.
  • Provide the bank challan-wise details of the tax that has been deposited on behalf of the debtor.
  • Fill in all the other required details.

The deductor then must sign and issue the Form 16A to the concerned deductor within 15 days from the date of filing the TDS return for the respective quarter.

What Types of Payments Does Form 16A Cover?

Form 16A would be issued for all types of payment other than the ones mentioned below:

  • Form 16A will not be applicable for Salary payments, sale of immovable property payments, or property rental payments.

Form 16A: TDS Rates For Applicable Payments

Serial Number Section Number Payment Type TDS Rate Tax Exemption Limit
1 192A Payment from a premature withdrawal from the EPF. 10% Payment is less than Rs 50,000.
2 194 Dividend Payout. 10% Up to Rs 2,500 in a financial year (individual)
3 194DA Life Insurance Policy Payout. 1% Payment is less than Rs 1 Lakh
4 194F Repurchase of Units by a mutual fund or unit trust of India. 20% Not Applicable (NA)
5 194J Technical or professional service fee payout. 10% Payment up to Rs 30,000 during the financial year (this limit applies to each type of payment)
  • A TDS rate of 20% applies if a PAN card is not provided.
  • A TDS rate of 2% is applicable only if the payment is made to a call center business.

What is the Difference Between Form 16 and Form 16A?

Many people tend to confuse Form 16 and Form 16A, as they both are TDS certificates. The employer issues Form 16 (Part A and B) to the person earning a salary, and Form 16A is issued for the deduction of tax for other heads of Income.

Apart from Form 16 and Form 16A, there are also other Tax deduction certificates for specified persons, which are Form 16B for payments that come from the source of the sale of an immovable property, and Form 16C is issued for housing rental payments.

When Form 16A is Received?

As we know, Form 16A TDS certificate is issued every quarter after the taxpayer files their TDS return. The deadlines are as follows:

  • Form 16A should be issued by August 15 for the income earned between April and June.
  • Form 16A should be issued by November 15 for the income earned between July and September.
  • Form 16A should be issued by February 15 for the income earned between October and December.
  • Form 16A is issued by June 15 for the income earned between January and March.

Track the date so you do not miss your Form 16A.

Common Challenges NRIs Face With Form 16A

Below are the challenges that NRIs face with Form 16A.

Incorrect PAN Entry: If the deductor fails to enter the PAN details correctly, Form 16A will not be correctly generated.

Delayed Issuance: Some deductors delay issuing Form 16A, as required by the instructions, necessitating follow-up with the deductor.

Mismatch with Form 26AS: Form 26AS must be monitored regularly to spot and fix discrepancies early.

Why Form 16 is Important for NRIs

Be it Indian residents or non-resident Indians (NRIs), Form 16A is important for individuals for several reasons. Among which are mentioned below:

  1. Form 16A TDS Certificate serves as valid proof that taxes have been deducted at the source on Indian income.
  2. Form 16A TDS Certificate is an essential document for claiming tax credits while filing your Income Tax return in India.
  3. Form 16A helps NRIs avoid double taxation, which would otherwise be impossible if you are a citizen of both India and the country where you reside.
  4. Form 16A is important if, as an NRI, you wish to claim the refund if excess TDS is being deducted.
  5. Form 16A maintains compliance with Income Tax regulations.

Get Expert Assistance With Form 16A

Form 16A is a TDS certificate, which is essential for non-resident Indian (NRIs) earning non-salary income in India. Staying organized with the tax deducted at source ensures that your income earned in abroad is handled accurately, and the next tax filing process went by smoothly.

However, a single error or missed deadline can bring the entire ITR filing process to a halt. Therefore, an NRI must take guidance from an NRI tax expert while filing their ITR and working with forms that will facilitate a smooth ITR filing process. Savetaxs, a leading NRI taxation firm, has been helping NRIs for decades now with taxation and consultancy services. Our team of experts brings 30 years of experience in handling NRI taxation cases with utmost precision, which is apparent in our satisfied client base.

Connect with us today and leave your stress behind. With Savetaxs, you'll experience the best tax services for NRIs in India, where stress, penalties, errors, and hassle are miles apart.

Note: This guide is for informational purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult with either a Chartered Accountant (CA) or a professional Company Secretary (CS) from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

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Frequently Asked Questions

No matter what your source of income is, we've got you covered. There’s a plan for everybody!

Form 16A is a certificate of tax deduction at source, and this certificate is issued by the employer or the deductor on behalf of the employee or deductee, outlining the tax deducted at source for the quarter.
The form is issued by the employer or deductor in the current financial year.
Form 16A is mostly required in situations where the taxpayer has a different or additional source of Income other than their salary.
Yes, Form 16A is required for filing ITR.
Yes, NRIs can also receive Form 16A.
The major difference between Form 16 and Form 16A is that Form 16 is only for salary income, whereas Form 16A is for tax deducted at source on Income other than Salary.
Yes, NRIs receive Form 16A for the income earned in India
Yes, Form 16A is required by NRIs when filing Indian tax returns.
Yes, an NRI can download Form 16A online.
Yes, Form 16A is valid for claiming DTAA benefits.