Navigating the labyrinth of taxation in India often requires deciphering a multitude of documents, and among the most critical are Form 16 and Form 16A. These seemingly innocuous pieces of paper hold the key to ensuring that your income and tax liabilities are in sync with the law. In this comprehensive guide, we’ll take you on a journey through the intricacies of Form 16 and Form 16A, breaking down their significance, issuance, verification, and potential consequences of non-compliance.
In this article, we’ll explore the distinct realms of Form 16 and Form 16A, uncovering their roles in the Indian tax landscape. We’ll delve into the due dates for their issuance, unveil the step-by-step process for downloading them, discuss the protocol for obtaining duplicate TDS certificates, and shed light on the penalties that could be incurred for the non-issuance of these essential documents.
Furthermore, we’ll wrap up with a succinct overview of important points pertaining to Form 16 and Form 16A, ensuring that by the time you’ve read this guide, you’ll be well-versed in everything you need to know about these vital TDS certificates. So, let’s embark on this journey of understanding and demystifying Form 16 and Form 16A, unraveling the complexities and ensuring you’re well-equipped to navigate the world of Indian taxation.
Form 16 and Form 16A
A TDS (Tax Deducted at Source) certificate is a document issued to a person who has deducted tax on payments made to another person. The TDS certificate is issued under the provisions of the Income-tax Act, which requires certain persons to deduct tax at source before making payment to the recipient. In this tutorial, we will understand the TDS certificate issued in Form 16 and Form 16A.
Page Contents
Form 16
Where the employer has deducted tax under Section 192 from the employee’s salary or tax has been deducted by the specified bank under Section 194P from the total income of the senior citizen, then the employer/specified bank is required to issue TDS certificate in Form 16.
The TDS certificate is divided into two parts – Part A and Part B. Part A provides information on the tax that has been deducted, while Part B includes details related to the employee’s salary, such as allowances, deductions, rebates, etc. For tax deducted under Section 194P, Part B also includes details on the senior citizen’s pension, interest income, as well as any deductions, rebates, etc. that may have been allowed.
The deductor is required to verify the contents of Part A and Part B of the TDS certificate before issuing them to the deductee. This authentication can be done either manually or digitally using a signature. The deductor shall ensure that once the certificate is digitally signed, the contents of the certificates are not amenable to change, the certificates have a control number, and he maintains a log of such certificates.
Further, the employer shall provide information relating to the nature and value of perquisites separately in Form No. 12BA if the salary paid or payable is above Rs. 1,50,000. In other cases, the information would have to be provided by the employer in Form No. 16 itself.
In case of more than one employer
In case an employee has worked or is currently working with multiple employers in a financial year, each employer is obligated to provide Part A of Form 16 for the duration the employee was employed under them. The employee can choose to receive Part B from either each employer or the last employer.
Due date for issue of certificate in Form 16
Form 16 is required to be issued by the employer up to 15th June of the financial year immediately following the financial year in which the amount was paid and tax has been deducted.
Steps to download Form 16
Step 1 Visit TRACES (www.tdscpc.gov.in)
Step 2: Login using the User ID, Password and TAN.
Step 3: Go to Downloads>Form 16.
Step 4: Select the Financial Year, enter PAN and click ‘Add’. After the PANs are reflected in the window, click ‘Go’. A maximum of 10 PANs can be added to this screen. To generate TDS Certificate in bulk, in the lower section of ‘Bulk PAN Download’, select Financial Year, and click ‘Go’.
Step 5: On the next screen, the details to be printed on Form 16 will be displayed. Verify the details and click ‘Submit’.
Step 6: Select the option for DSC-based validation or Normal Validation.
Step 7: After submission of the request, a successful message with a reference number will appear on the screen.
Step 8: Go to Downloads>Requested Downloads.
Step 9: Enter the request number generated on submission of the request (Step 7) and click ‘Go’. The filing status of Form 16 will be displayed. Select the row and click on ‘HTTP download’.
Step 10: Download the TRACES PDF Generation Utility. To view the PDF version of the downloaded Form 16, TRACES PDF Generation Utility can be used to extract the same. Different utilities must be downloaded for Form 16-PART A and Form 16-PART B.
Step 11: Enter the captcha and click on ‘Submit’ to download the utility
Step 12: Click on the link to start the download
Step 13: Extract the utility, browse the form 16A Zip file and affix the DSC to sign the certificates digitally.
Step 14: Form 16–PART A shall be generated.
Step 15: Extract the PART–B utility, browse the Form 16–PARTB Zip file and affix the DSC to sign the certificates digitally.
Step 16: Form 16-PART B shall be generated.
Form 16A
If tax has been deducted under any provision other than Section 192, Section 194-IA, Section 194-IB, Section 194M, Section 194P, and Section 194S (for specified persons), then the deductor is required to issue a TDS certificate in Form 16A. This TDS certificate shall be downloaded from the website of TRACES. Deductors shall authenticate these certificates using either a digital or manual signature.
Form 16A generally contains the following information:
(a) Permanent Account Number (PAN) or Aadhaar of deductee
(b) Tax Deduction and Collection Account Number (TAN) of the deductor
(c) Book Identification Number if tax is deposited by the Govt. Office without production of challan
(d) Challan Identification Number in case of payment through bank
(e) Receipt Number of the TDS Statement furnished in Form 26Q or Form 27Q or Form 26QF
Due date for issue of certificate in Form 16A
Form 16A is required to be issued by the deductor on a quarterly basis within 15 days from the due date of furnishing the statement of tax deducted at source in Form 26Q or Form 27Q. For Quarters 1, 2, 3, and 4 the due date for issue of the TDS certificate shall be August 15, November 15, February 15, and June 15 (of the next financial year), respectively.
Steps to download Form 16A
Step 1: Visit TRACES (www.tdscpc.gov.in)
Step 2: Login using the User ID, Password and TAN.
Step 3: Go to Downloads>Form 16A.
Step 4: Select the Financial Year, Quarter, Form Type, enter PAN and click ‘Add’. After the PANs are reflected in the window, click ‘Go’. A maximum of 10 PANs can be added to this screen. To generate TDS Certificate in bulk, in the lower section of ‘Bulk PAN Download’, select Financial Year, Quarter, Form Type and click ‘Go’.
Step 5: On the next screen, the details to be printed on Form 16A will be displayed. Verify the details and click ‘Submit’.
Step 6: Sign using the digital signature certificate.
Step 7: After submission of the request, a successful message with a reference number will appear on the sc reen.
Step 8: Go to Downloads>Requested Downloads.
Step 9: Enter the request number generated on submission of the request (Step 7) and click ‘Go’. The filing status of Form 16A will be displayed. Select the row and click on ‘HTTP download’. The file for Form 16A will be downloaded.
Step 10: Download the TRACES PDF Generation Utility. To view the PDF version of the downloaded Form 16A, TRACES PDF Generation Utility can be used to extract the same.
Step 11: Enter the captcha and click on ‘Submit’ to download the utility
Step 12: Click on the link to start the download
Step 13: Extract the utility, browse the form 16A Zip file and affix the DSC to sign the certificates digitally.
Step 14: Form 16A shall be generated.
Duplicate TDS Certificate
The deductor may issue a duplicate certificate if the deductee has lost the original certificate and makes a request for the issue of a duplicate certificate. This certificate should be certified as ‘Duplicate’ by the deductor.
Penalty for non-issuance of TDS Certificate
Where a person, who has deducted tax at source, fails to issue a TDS Certificate, he shall be liable for payment of a penalty of Rs. 500 per day under Section 272A.
Important Points on Form 16 and Form 16A
1. The TDS certificate shall be downloaded from the website of TRACES (https://www.tdscpc.gov.in) after processing of the TDS Statement.
2. Where the employer has deducted tax under Section 192 from the employee’s salary, then the employer shall issue a TDS certificate to the employee in Form 16.
3. The TDS Certificate in Form 16 has two parts – Part A and Part B. Part A of the certificate contains the details of tax deducted from salary. Whereas Part B contains the details of the salary and various allowances, deductions, rebate, etc. claimed or allowed to the employee.
4. The certificate can be verified either by using a manual signature or a digital signature.
5. The employer shall provide information relating to the nature and value of perquisites in Form No. 12BA if the salary paid or payable is above Rs. 1,50,000. In other cases, the information would have to be provided by the employer in Form No. 16 itself.
6. Form 16 is required to be issued by the employer up to 15th June of the financial year immediately following the financial year in which the amount was paid and tax has been deducted.
7. Form 16A is required to be issued by the deductor on a quarterly basis within 15 days from the due date of furnishing the statement of tax deducted at source in Form 26Q or Form 27Q. For Quarters 1, 2, 3, and 4 the due date for issue of the TDS certificate shall be August 15, November 15, February 15, and June 15 (of the next financial year), respectively.
8. Where a person, who has deducted tax at source, fails to issue a TDS Certificate, he shall be liable for payment of a penalty of Rs. 500 per day under Section 272A.
9. Where tax has been deducted under any provision, not being Section 192, Section 194-IA, Section 194-IB, Section 194M, Section 194P, and Section 194S (in case of a specified person), the deductor shall issue a TDS Certificate in Form 16A.
10. Form 16A generally contains the following information:
a) Permanent Account Number (PAN) or Aadhaar of deductee
b) Tax Deduction and Collection Account Number (TAN) of the deductor
c) Book Identification Number if tax is deposited by the Govt. Office without production of challan
d) Challan Identification Number in case of payment through bank
e) Receipt Number of the TDS Statement furnished in Form 26Q or Form 27Q or Form 26QF
