Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

[Rule 31]- Forms and Time limit of Issue of TDS Certificate

The person responsible for deducting the TDS is required to issue a certificate in the prescribed forms to the employee/payee on account of tax deducted at source.

[Rule 31]- Forms and Time limit of Issue of TDS Certificate
[Rule 31]- Forms and Time limit of Issue of TDS Certificate

(1) [Rule 31(1)]- Prescribed Forms for TDS

 

(i) For TDS on salary Form No. 16. Form No. I2BA (statement of the value of perquisites and profit in lieu of salary)
(ii) If the deduction is under any other provision of Chapter XVII-B except section 194-IA and 194-IB Form No. 16A
(iii) For TDS on purchase of immovable property as per section 194-IA Form No. 16B
(iv) For TDS under section 194B Form No. 16C
(v) For TDS under section 194M Form No. 16D

 (2) [Rule 31(2)]- What should Certificates Specify ?

The certificates in Form 16 or 16A shall specify: —

(a)        valid permanent account number (PAN) of the deductee;

(b)        valid tax deduction and collection account number (TAN) of the deductor;

(c)      (i)           book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government;

(ii)          challan identification number or numbers in case of payment through bank.

(d)     (i)           receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31A;

(ii)     receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for tax deducted at source from income chargeable under the head Sa1aries”.

(3) [Rule 31(3)]- Time Limit for issue of Certificate for TDS

 

SL No. Form No. Periodicity Due date
(1) (2) (3) (4)
I. 16 Annual By 15th day of June of the financial year immediately following the financial year in which the income was paid and tax deducted
2. 16A Quarterly Within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A. In other words, certificate in Form No. 16A should be issued within the time limit specified as under:

Quarter ending :   In case all deductors other than covered under sections 192, 194-IA and 194-IB
30th June 15th August
30th September 15th November
31st December 15th February
31st March 15th June
3 16B Monthly Within 15 days from the due date for furnishing the challan-cum-statement in Form No. 26QB after generating and down-loading the same from the web portal specified by the DGIT (System) or person authorized by him.
4 16C Within 15 days from the due date for furnishing the challan-cum-statement in Form No. 26QC under rule 31A after generating and downloading the same from the web portal specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him.
See also  [Section 193]- TDS from Interest on Securities

 

(4) [Rule 31(4)]- Form No. 16 in case the assessee is employed by more than one employer

If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers and Part B may be issued by each of the employers or the last employer at the option of the assessee.

Form 16 has been again revised by Notification No. 36/2019, dated 12.4.2019.

Such Form 16 has the following two parts:

(1)     Part A is a certificate under section 203 of the Income-tax Act, for tax deducted at source on salary.

(2)          Part B gives the details of salary paid and other income and tax deducted.

Issue of part A of Form No. 16 for deduction of tax at source made on or after 01.04.2012:

All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading through TRACES Portal, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number. [Circular No.4/2013, dated 17.4.2013]

Authentication of TDS Certificate in Form No. 16

The deductor, issuing the Part A of Form No. 16 by down-loading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents mentioned therein and verify the same either by using manual signature or by using digital signature in accordance with Rule 31(6).

In other words, Part A of Form No. 16 shall be issued by all the deductors, only by generating it through TRACES Portal and after duly authenticating and verifying it.

Part B (Annexure)’ of Form No. 16 shall be prepared by the deductor manually and issued to the deductee after due authentication and verification along with the Part A of the Form No. 16 stated above.

Rule 3 1(3) of the Rules sets the time limit for issuance of Form 16 by the deductor to the employee. Currently, Form 16 should be issued by 31st May of the financial Year immediately following the financial year in which income was paid and tax deducted.

See also  [Section 201]- Consequences of failure to Deduct TDS or pay TDS

The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of download of Part A of Form No. 16 from the TRACES Portal and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for download of Part A of Form No. 16 in electronic form.

It is further clarified that Part A of Form No. 16 issued by the deductors in accordance with this circular and as per the procedure, formats and standards specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) and containing Unique Identification Number shall only be treated as a valid compliance to the issue of Part A of Form No. 16 for the purpose of section 203 of the Act read with rule 31 of the Rules. [Circular No. 4/2013, dated 17.4.2013]

Issue of TDS certificate in Form No. 16A

The issuance of duly verified TDS certificate in Form No. 16A, by the deductor of any category shall be only through TIN Central System. The deductor shall therefore, download such certificate from the TIN Central System, verify the correctness of the contents mentioned therein and authenticate the correctness of the contents before issue of the said certificate.

Authentication of TDS certificate in Form No. 16A

(i)      The deductor, issuing the TDS certificate in Form No. 16A by downloading from the TN website shall authenticate such TDS certificate by either using digital signature or manual signature.

(ii)     Where the deduction has been done between 1.4.2011 and 31.3.2012 and the deductor being other than a company/bank or banking institution / a co-operative society engaged in carrying the business of banking and who do not issue the TDS Certificate in Form No. 16A by downloading from the TIN website shall authenticate such TDS certificate in Form No. 16A by manual signature only.

The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of issuance of TDS certificate in Form No. 16A which is downloaded from the TIN website and shall be responsible for the day-to-day administration. In relation to the procedure, formats and standards for issuance of TDS certificate in Form No. 16A in electronic form.

It is further clarified that TDS certificate issued in Form No. 16A by the deductors in terms of para 1 read with para 2 above and in accordance with this circular along with procedure, format and standards specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall only be treated as a valid TDS certificate in Form No. 16A for the purpose of section 203 of the Act read with rule 31 of the rules.

See also  [Section 195]- TDS on Payment to a Non-Resident

(5) [Rule 31(6)]- Form 16 can be issued by using digital signatures

(i)      Where a certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates.

(ii)        In case of certificates issued under clause (i), the deductor shall ensure that—

(a)          the provisions of rule 31(2) are complied with;

(b)     once the certificate is digitally signed, the contents of the certificates are not amenable to change; and

(c)      the certificates have a control number and a log of such certificates is maintained by the deductor.

(6) [Rule 31(5)]- Issue of duplicate TDS certificates

The deductor may issue a duplicate certificate in Form No. 16 or Form No. 16A if the deductee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the deductor.

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