Question

Under Section 203 of the Income Tax Act 1981, which form is used for giving certificate for income charged under the head Salary?
1. Form 16A
2. Form 16
3. Form 16AA
4. Form 15H

Answer 1

Correct Answer - Option 2 : Form 16

The correct answer is Form 16

•  Income from Salary: Salary is the payment paid to or payable to an employee in exchange for services performed to his employer under an express or implied contract of terms of service (letter of appointment).
• Form 16 is the Certificate issued for tax deducted at source from income chargeable under the head Salaries.

• Form 16 A - Form 16A is a TDS Certificate that contains all TDS amounts that have been actually deposited with the Income Tax Department.
   
• Form 16AA - Form 16AA is a TDS certificate only applicable to a resident individual whose total income includes salary income but excludes PGBP/ CAPITAL GAINS/ AGRICULTURAL INCOME, and he is not receiving any other income from which tax has been deducted at source by anyone other than his employer, and his salary income before deductions u/sec16 does not exceed Rs. 1,50,000/-.
   
• Form 15H - Form 15H is a self-declaration that elderly citizens aged 60 and up can file to decrease TDS (tax deducted at source) on interest received on fixed deposit (FD) and recurring deposit (RD) assets.