Clarification regarding discontinuance of Form No. 16B

1. Under the provisions of section 203 of the Income-tax Act, 1961, every person deducting tax in accordance with the provisions of sections 192 to 194, 194A, 194B, 194BB, 194C, 194D and 195 of the Income-tax Act is required to furnish a certificate to the effect that tax has been deducted, and to specify therein, inter alia, the amount deducted and any other particulars that may be prescribed. The certificate has to be furnished within the period prescribed under rule 31 of the Income-tax Rules, 1962, to the person to whose account credit is given or to whom payment is made or the cheque or warrant is issued as the case may be.

2. So far different forms were prescribed under rule 31 for certificates of tax deducted under different sections of the Act. By Notification No. SO 937(E), dated 10-10-1988, however, old rule 13 has been substituted by a new rule which provides for a unified form to be issued in Form No. 16 in respect of tax deducted under all the aforementioned sections. Another important departure from the existing provisions is that the said certificate shall now be issued on a paper serially numbered and printed by the Central Government in book form and supplied for a nominal consideration to the person deducting tax at source on an application to be made by him in Form No.17 to the Commissioner having jurisdiction over him in this regard. This amendment shall come into force on 1-4-1989.

3. In this connection, attention is invited to the provisions of section 272A(2)(g) of the Income-tax Act according to which if a person fails to furnish a certificate as required by section 203 he shall pay, by way of penalty, a sum which shall not be less than Rs. 100, but which may extend to Rs. 200, for every day during which the failure continues.

Circular : No. 529, dated 13-2-1989

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Category : Income Tax (24907)
Type : Circulars (7450) Notifications/Circulars (29834)

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