Downloading of TDS Certificates from TRACES made mandatory:

In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per Income Tax Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (herein after called TRACES Portal).

TDS Certificates downloaded only from TRACES hold valid:

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

Due Date for downloading and Penalty for non-compliance:

Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.

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0 responses to “Consequence of not Downloading TDS certificate from Traces Website”

  1. kamal gupta says:

    my DDO has never given us the TDS certificate generated from TRACES, atleast he should mail us , if not giving in paper form as banks are sending on mail.

  2. Brij singh says:

    As far as a tax payer, I understand both form 26AS & form 16 has the same information so even if one of these are issued after downloading to the tax payer , there is no problem. But it should be made mandatory on the part of tax deductor to issue the same to taxpayer and there should be very clear timeline for its issuance. The discrepancy if any in the amount of tax deduction should be the responsibility of deductor rather taxpayer.

  3. CA Arvind Jain says:

    This just another way of harassment and wastage of time in downloading……we are back office of govt department ….when we are putting all details they must facilitate to e mail tds certificate on our e mail ID……why need to download …when their is no change in data……its just way of collecting money….if someone forget to download even after timely payment and return….then another change of govt to take rs 100 per day……………….system of downloading sd be scrapped they should e mail to us ….after all they are taking processing fees from us.

  4. Ankit Kumar says:

    I agree with rule to make download necessary. bcoz in event of wrong filing of TDS return by deductor, taxpayer does not gets full credit of tax and demand is raised by department.

    In such a case Deductee will have a proof and could claim that it is Deductors fault.

    Moreover they are not mandating to issue TDS certificate in paper form.

    Moreover TDS in 26 AS can get removed in case deductor revises TDS return wrongly. Then TDS certificate be used as a proof of deduction.

  5. shailesh jhamad says:

    jab 26AS ready ha to phir Download ki kya jarurat ha ek taraf green earth and dusri aur kachre ka dher pahle ek paper me kam ho jata ab 1 certificate he 3-4 page ka hota ha

  6. Bhushan says:

    Dear Colleagues,
    No where it is given that you MUST PRINT! The requirement is only to download!!
    Yes I do agree that it needs further improvements, however I think it is proper on account of following points:

    1. TDS Certificates are generated only if you make payment and deposit of tds and also only after correct filing of TDS returns. So it ensures you comply with law.

    2. Secondly, deductee gets assurance about tds deducted has been credited to his Income Tax A/c.

  7. Sahul says:

    I do agree with both Mr. Kushal and Mr. Sreenivasa rao.

    Will any from IT Dept/Finance ministry clarify the need for downloading and issue of Form 16 / 16A, when 26AS is made available.

  8. uday says:

    Hard copy of the form 16 should scrapped.

  9. sridhara says:

    Everybody may not know how to see 26AS. In such cases, Tax payer will file return based on certificate issued by Deductor. If this certificate does not tally with 26 AS, the return becomes defective. Hence the insistence.

  10. Sreenivasa Rao N.G. says:

    Save paper….go digital…..why all this talk of economy on paper by various auhorities and later insisting to down load… what is the correlation of policy, procedure and their implementation? is it applicable only to Govt.

  11. Kushal Kumar says:

    Everything is available in 26AS then why it is compulsory to download form 16 from traces

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