As we all are aware that the TDS return process will consider as incomplete until the Valid TDS certificate has been issued by the deductor. Now if we focus on the word Valid TDS Certificate, it means Form 16/ Form 16A issued by authenticated authority. As on the current date the TRACES have the authorisation to issue valid TDS certificate.

Now comes towards the due date for issuing TDS Certificate.

What are the Contents of a TDS Certificate?

The TDS certificate to be issued by the deductor/collector contains the following details:

(a) Valid PAN of the deductee;

(b)Valid TAN of the deductor/collector ;

(c) Challan Identification Number (CIN), which is a number generated by a combination of BSR code of the bank where tax is deposited, date of deposit and the challan serial number allotted bythe bank;

(d) Receipt number of the relevant quarterly statement of TDS (i.e., TDS return).

What is The Form of TDS Certificate and What Should Be The Frequency For Issuance of  TDS Certificate?

Every deductor has to issue a certificate to the deductee in respect of tax deducted by him. Such certificate is generally referred to as TDS certificate. TDS certificate is to be issued in following form:

  • Download TDS certificate (Form 16/16A/27D)(tdscpc.gov.in) bearing unique TDS certificate number and issue to the taxpayers within due date.
  • TDS certificate in Part A of Form 16 shall be generated only for those PANs that have been reported in Annexure II of 24Q statement for 4th Quarter. The deductors are, therefore, advised to ensure that they provide salary details of their employees employed for whole or part of the year in Annexure II of Quarterly TDS Statement for 4th Quarter.
Particulars Form No. Frequency of certificate issuance
TDS certificate in respect of tax deducted on salary Form No. 16 Annually
TDS certificate in respect of tax deducted on payments other than salary Form No. 16A Quarterly

Multiple payments can be clubbed in quarterly TDS certificate.

Due Date for Issuance of TDS Certificates and Penalty for non-compliance u/s 272A:

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.

FORM NO. PERIODICITY DUE DATE
Form 16–TDS on salary Annual By 31st  day of may  of the financial year immediately  following the financial year  in which the income was paid  and tax deducted
Form 16A-TDS on non salary quarterly Within 15 days from the due date  for furnishing the  statement /return of tax deducted at source

All the deductor  shall issue form 16 A  generated or downloaded from TIN  central system and authenticate the same either by using digital or manual  signature.

Important Note:

CBDT has revised the due date for filing TDS returns and issuing TDS Certificates for FY 2019-20 (Q4) for Government and Non-Government Deductors due to COVID-19 pandemic situation.

The Revised Dates has been given below:

Sl. No. Nature of compliance Revised Due Dates
(1) (2) (3)
1. Form 16 for TDS on salary during FY 2019-20 15-08-2020
2. Form 16A for TDS on income other than salary for Q4 of FY 2019-20 15-08-2020

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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26 Comments

  1. GANDHI MOHAN BHARATI says:

    TDS Certificate has been the biggest bug-bear. One has to fight to get it and even when we get it it does not tally with 26AS.Government; with hardly any time left to file ITR assessees are the sufferers. No amount of Court Rulings make CPC accept anything else except 26AS. Government has taken no notice of this suffering

  2. RAKESH KUMAR JAIN says:

    My TDS deductor bank deducted TDS on 17 Dec 2018 but it did not show in 26AS until first week of July 2019. How can I find out when did the bank
    deposit the TDS with Income Tax Department? Can FORM 16A show this Information? If bank has deposited TDS with IT Department after due date, will it pay penalty on it? Is there a penalty on late filing the TDS return? Within how many days of TDS, bank should deposit it with IT Department to avoid penalty & within how many days of depositing TDS with IT Department, should Bank File TDS return to avoid penalty?

  3. Ravi says:

    TDS Certficates for the 4th Quarter Dec 2017 to March 2018; are not available with the following Banks as of 1st June 2018.
    Cosmos Bank/ Bank of India /Punjab National Bank.
    They may not be available till 10th June, they say.
    ITR-2 requires TDS Certificate’s Unique number to be entered before it can be uploaded.
    Consequently, IT return delayed by the Banks.

  4. Bikash Behera says:

    Sir,
    If deducter have not applyed tds certificate from Q1 & Q2 but have applied Q3 before due date than what will be the solution. If Penalty will be charged than how deductor can avoid penalty

  5. Pawan Kumar Gupta says:

    Is it possible for an income tax payer to download Form 16A, in case one does not get Form 16A from a deductor?
    Only due to lack of Form 16A certificate number a person like me is unable to file return early.

  6. manojkmodi says:

    You have justified reason to explain the meagre delay of one day.
    However, you may write an email to TRACES for improving the procedure and not to hold the returns for 7 days in such cases.

  7. Manoj says:

    I filed the return on 15/07/2015 and the return was under process for 7 days till 22/07/2015.
    After that an intimation was received that return is put on hold for 7 days as there are PAN mistakes in return, which actually was not, as there is general procedure to hold the return stating wrong PAN for deductees whose PAN was not available and TDS @20% was deducted on same.
    Now when return was not processed by TRACES for next 7 days then request for Form 16A cannot be made until 29/07/2015.
    Now on on 30/07/2015 when return was processed without default thereafter request for Form 16A was made on same day.
    Form 16A was not made available on the same day but on 31/07/2015, and then I downloaded the same for issuing Form 16A to deductees.

    Will it constitute default on part of deductor to download Form 16A within due date from TRACES or will it be ignored.

    Kindly suggest?

  8. CA B. P. JAJU says:

    If tds is deducted and tds return is filed within due date, if there is credit shown in Form 26AS, then downloading of 16/16A should not make mandatory

  9. VSM says:

    DEAR SIR FINANCE MINISER ,

    KINDLY REMOVE SECTION 44AD, IT IS A VERY HARSH SECTION THERE IS NO MEANING TO ENHANCE AUDIT LIMIT FROM 40LACS FROM (1983) TO 1 CRORE (2014). FOOLISHNESS UPON FOOLISHNESS KINDLY REDUCE THE BURDON OF WORK OVER CA’S THEY ARE JUST LIKE A SETTING MASTER AND MENOVERING OF DATA PLAYER JUST REDUCE THEM AND THEIR WORK,

  10. Raman says:

    The penalty for not filing TDS return within due dates is quite arbitary. TIN facilitator are not even 1% interested in filing TDS return despite charging hefty amounts from the business men like Rs. 2000.00 per quarter against Rs. 70 charged by the NSDL. I am providing my CA complete details including Data entry etc in the software provided by NSDL and still they are reluctant to file returns. Who will pay charges for that. There is another process by purchasing e-signature but that too is a lengthy process.

  11. Ganesh says:

    They also make delay in releasing returns for the assessment years which results in assessee paying interest u/s.234B from April till the release of ITR forms.

    Simply talking, 90% of Department personnel’s work are shifted to assessees with a threat in the form of penalties and late fees.

    Are they going to bring any section to harass the department personnel for delay in refund issues to the assessees??

  12. Bhavesh Popat says:

    What is the intention of finance ministry to apply new section 234E & 272A and other come soon section attract for penalty/fees ?
    A salaried person working hard in all months to serving his family needs & businessmen invest his money/time for contribution in development as paying huge tax regularly,it is sufficient for developing India (infrastructure & Policies) but not sufficient for corruption!
    If tax Payer has already to pay all taxes & their interest,then only delay of few days/months for submission of returns and other formalities the huge penalty attract it is unjustified in nature.
    If It is Justified, Then first imposed PENALTY/FINE/FEES TO THOSE ELECTED MEMBERS OF NAGARPASIAD/VIDHANSABHA/LOKSABHA IN ALL SECTORS, WHO ARE NOT COMPLETE THEIR MANIFESTO/PROJECTS/NEEDFUL NECESSITY OF GENERAL PUBLIC WITH IN THEIR ELECTED PERIOD (1/3/5 YEAR). Govt.ALSO UNABLE TO REACH THEIR SCHEMES IN ALL STATES & PERSON TO PERSON IN HIS PERIOD OF PROJECT. THEN WHY SUCH TAX PAYER ARE RESPONSIBLE?
    SO MANY TOWNS & VILLAGES IN MAHARASHTRA WHERE THEIR IS NO TIN-CENTER, AND GENERAL TAX PRACTITIONER FACE INCONVENIENCE TO FILING. SO PLEASE TRY TO FIRST OPEN TIN- CENTER IN MAX, TOWNS.
    IF GOVERNMENT WANTS TO COLLECT DATA OF TDS PAID & THEIR DETAILS, BEST WAY IS LOGIN FROM RESPONSIBLE PERSON OF TAN HOLDER ALONG WITH DIG. SIGNATURE AND UPLOADED DATA IN xml file DIRECTLY ON TRACES SITE (i.e. Income tax return filed without any costing but in stipulated time) IT MAY BE POSSIBLE FOR ALL AND ESSAY WAY TO COLLECT DATA QUICKLY.

  13. K Srivatsan says:

    SIR

    Actually our so called intellectual Mr. FM has complicated our entire IT and tds system. There are so many easy ways to get the TDS credit in favour the concerned assessee instead of this present complicated one. These people are making rules while sitting in A/c room without analysing the practical problems faced by the business people & those who are working in govt. department. As the payment of Govt. employee salary & TDS is remitted through treasury, they could not follow this procedures, as they know nothing about these.
    And these people are getting demand notice from IT department without doing any fault on their part. And these people are wandering in between IT office & treasury to solve their problem.

    Before making the rules they should understand the purpose of etds & its effect. After all the main purpose of etds return is only to give credit to the concerned parties within the time limit. But the present system is very ridicules (Now courtsy TCS) & getting complicated day by day.
    In the present system, to get credit
    1. We should pay tax first,
    2. Second, filing of etds
    3. Third, Registration in traces (very complicated & ridicules one -courtesy-TCS)
    4. Fourth – Providing all the details including payment & challan details etc., (Asking details each & every process for security purpose is very ridicules & we cant understand their intention- may be to prove their(TCS) intellectual skill-)
    5. And finally last but not least, downloading of 16A & its process.

    So our main intention is to give credit to the assessee thats all. We can solve this without any complication. Just we should change our present system to this.

    1. Challan format ( 281 )should be changed so that it should contain the following
    1). TAN, 2). Total TDS amount 3). ADDRESS OF DEDUCTOR (By default it should appear after entering the Tan), 4). PAN 5). Date of Payment 6). Amount of Payment 7). TDS for resepective parties 8) int. 9). Salary particulars etc.,

    Small deductors can directly fill these details (applicable field) in challan while paying the tax .
    For others these challan can be in excel format so that we can download it like ITRs. And after filling all the details (applicable) it can be converted into the appropriate format, so that it can be used for paying the tax. And the treasury should remit tax through banking mode only and not by book adjustment.

    And while paying the tax amount the deductor will get secret no/password through sms & email.

    For downloading the Form 16A just we should go to traces site or anyother site (as we dont have any problem with the name -traces or tcs – but the registration should be simple., like Pan registration)

    just go to site & download 16A by using password/secret no.And the same can also be automatically forwarded to the assessee efiling mode & 16A can be downloaded alongwith 26as by the assessee.

    If the deductor is not able to fill any field such as pan,date of deduction etc., at the time of paying the tax, they can fill/alter this field in traces site by using the secret no/password within 30days from the date of paying the tax without paying any addtional fee. And from 31days to 60 days, it can be altered by paying applicable fee and the fee amount can be increased after 60days.

    As secret no/password is to be kept by the deductor, there is no need to worry about the secrecy or anything.

    K.Srivatsan
    Advocate, Corporate & Tax consultants

  14. vivek says:

    What government actually wants from a business man. Why are they making this TDA a herculian task. Every one is now under pressure of coping with last dates every day for some or the other reason. A day is not far when all businesses will be closed because of these cumbersome formalities.

  15. murali says:

    SIR

    We as professionals want our clients to comply with peovisions of the various statutes
    At the same time we require the cooperation from the Department as well in providing the facility for bulk up loading of form 16 A & other related issues

    CA R MURALI
    COIMBATORE

  16. C P CHUGH says:

    TDS CPC has been promptly reminding of various obligation to the tax deductors but when it comes to their they fail more often. There were many cases where bulk file for form 16A was not available at their portal on 30th Jan, due date for issuance of TDS Certificate in most of the cases. I have taken certain screen shots showing non-availability and also would like to suggest that all Professionals must posses such screen shots. Initiation of Penalty for non-issuance is going to be a realty earlier than expected and then these would be of immense help.

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