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Issuance of certificate for tax deducted

Posted @ April 8, 2015, 1:00 am under (Tax - General)

CIRCULAR NO. 04/2013
F.No 275/34/2011-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 17th April, 2013
 
Sub: Issuance of certificate for tax deducted at source in Form No. 16 in accordance with
the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the
Income-tax Rules 1962 -- regarding
 
1. Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax
Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by
the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS,
valid permanent account number (PAN) of the deductee, tax deduction and collection
account number (TAN) of the deductor, etc. The relevant form for such TDS certificate is Form
No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other
provision of Chapter XVII-B of the Act. TDS certificate in Form No. 16 is to be issued
annually whereas TDS certificate in Form No. 16A is to be issued quarterly. TDS
Certificate in Form No 16 as notified vide Notification No. 11/2013 dated 19.02.2013 has
two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and
deposit and Part B (Annexure) contains details of income.
2. With a view to streamline the TDS procedures, including proper administration of the Act,
the Board had issued Circular No. 03/2011 dated 13.05.2011 and Circular No. 01/2012 dated
09.04.2012 making it mandatory for all deductors to issue TDS certificate in Form No. 16A after
generating and downloading the same from “TDS Reconciliation Analysis and Correction
Enabling System” or (https://www.tdscpc.gov.in) (hereinafter called TRACES Portal)
previously called TIN website. In exercise of powers under section 119 of the Act, the Board has
now decided as following:-
2.1 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.
2.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:
The deductor, issuing the Part A of Form No. 16 by downloading 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 sub-rule (6) of Rule 31.
2.3 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.
2.4 ‘Part B (Annexure)’ of Form No. 16 shall be prepared by the deductor manually and
issued to the deductee after due authentication and verification alongwith the Part A of the Form
No. 16 stated above.
2.5 Sub rule (3) of rule 31of 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.
3.1 The 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.
3.2 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 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.
4. Hindi version shall follow.
-sd-
(Anshu Prakash)
Director (Budget)
Central Board of Direct Taxes
Copy to:
1. The Chairperson, Members and all other officers of the CBDT of the rank of Under
Secretary and above
2. All Chief Commissioners of Income-tax (CCA) & All Directors General of Income-tax
3. The Director (PR, PP & OL), Mayur Bhawan, New Delhi for printing in the quarterly tax
bulletin and for circulation as per usual mailing list (100 copies)
4. The Comptroller and Auditor General of India (40 copies)
5. All Directors of Income Tax, New Delhi;
6. All CsIT (TDS)
7. The Director General of Income-tax, NADT, Nagpur
8. Guard file
‐sd‐
(Anshu Prakash)
Director (Budget)
Central Board of Direct Taxes

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