Form 16A is a TDS (Tax Deducted at Source) certificate issued for non-salary income, such as freelance payments, professional fees, interest earnings, rent, and commission. It is provided by the payer (deductor) to the payee (deductee) when TDS has been deducted under various sections of the Income Tax Act.

This form includes:
PAN & TAN details of both deductor and deductee.
Amount paid and TDS deducted for the specific transaction.
Challan details confirming the tax deposit to the government.

For businesses managing contract workers, consultants, gig employees, and vendors, Form 16A issuance ensures tax compliance, prevents disputes, and simplifies ITR filing for recipients. Organizations leverage HRMS and payroll automation tools to track TDS deductions, generate Form 16A seamlessly, and streamline tax reporting.