This is tax filing season. Form 16 is the income tax form filed by salaried professionals.
So, what is form 16A? Where do I get it?
If you are a USA resident IRA has mandated it to file your taxes earned across the globe. if the bank is based out of USA say for example CITI bank, you will get 1099 from citi on your annual income say even NRI fixed deposits(both NRO, NRE interest earned) and this will be automatically sent to IRS. this income is automatically added as your total income tax and deduction of interest paid on this total income is applied and we pay net income tax
Say you make 75K, interest earned on NRO fixed deposit (in case of an Indian resident) is $15000. Say you paid $3000 as taxes in India. Now total US income tax
75000+15000-3000 - $82000
Now, you fall in 28% income tax bracket rather than 25% income tax bracket
So, what is Form 16A?
In case of non-US banks form 16A is to be collected from your Indian banks wherein you hold NRI deposits(NRO, NRE) and submit it to IRS if needed. This form is used to file income tax returns in India as well
So, what is form 16A? Where do I get it?
If you are a USA resident IRA has mandated it to file your taxes earned across the globe. if the bank is based out of USA say for example CITI bank, you will get 1099 from citi on your annual income say even NRI fixed deposits(both NRO, NRE interest earned) and this will be automatically sent to IRS. this income is automatically added as your total income tax and deduction of interest paid on this total income is applied and we pay net income tax
Say you make 75K, interest earned on NRO fixed deposit (in case of an Indian resident) is $15000. Say you paid $3000 as taxes in India. Now total US income tax
75000+15000-3000 - $82000
Now, you fall in 28% income tax bracket rather than 25% income tax bracket
So, what is Form 16A?
In case of non-US banks form 16A is to be collected from your Indian banks wherein you hold NRI deposits(NRO, NRE) and submit it to IRS if needed. This form is used to file income tax returns in India as well
