The Central Board of Direct Taxes (CBDT) has issued Circular No.3/2011 dated 13 May 2011 & vide CBDT CIRCULAR NO-01/2012 dated 9th April, 2012 dealing with the TDS certificate to be issued in Form 16A for taxes deducted at source from FY 2010-11 as per the provisions of the Income-tax Act, 1961 (the Act) other than Section 192. Vide the said circular, the CBDT has provided guidelines on the issue of the Form 16A and the manner of authentication of the same (i.e. digital or manual). We have briefly summarised the implications of the aforesaid circular in the table below:
ISSUE OF TDS CERTIFICATE IN FORM NO . 16A
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 TDS certificate in Form No. 16A generated through TIN central system and which is downloaded from the TIN website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2012 under any of the provisions of Chapter-XVII-B other than section 192. In other words, the issuance of duty verified TDS certificate in Form No. 16A, by the deductor of any category shall henceforth by only through TIN Central System. The deductor shall therefore, download such certificate from the TIN Central System, verify the correctness of the contents mentioned therein and authenticate the correctness of the contents before issue of the said certificate.
AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16A
The deductor, issuing the TDS certificate in From No. 16A by downloading from the TIN website shall authenticate such TDS certificate by either using digital signature or manual signature.
|Type of deductor||Issue of TDS
certificate in Form
from the TIN
TDS certificate in
|Company (See Note 1)||Mandatory||Digital Signature OR Manual Signature|
|Other than above||Optional||Manual Signature mandatory (Option to sign digitally if theTDS certificate issued is downloaded from the TIN website)|
|Type of deductor||Issue of TDScertificate in Form16A downloaded
from the TINWebsite
|Authentication ofTDS certificate inForm 16A|
|Company (See Note 1)||Optional||Manual Signature (See Note 2) mandatory (Option to sign digitally if theTDS certificate issued is downloaded from theTIN website)|
|Other than above||Optional||Manual Signature mandatory (Option to sign digitally if theTDS certificate issued is downloaded from theTIN website)|
By making it mandatory for company deductors from FY 2011-12 to issue Form 16A by downloading it from the TIN website, an attempt has been made to minimise the errors in the eTDS statements filed by the deductors and eliminate the differences between TDS certificate and Form No 26AS (which contains TDS details of the deductee based on the eTDS statements filed by the deductors). This will ease the process of granting TDS credit correctly to the deductee.
Note 1 – Company including a banking company to which the Banking Regulation Act, 1949 applies and any bank or banking institution, referred to in section 51 of that Act or a cooperative society engaged in carrying the business of banking.
Note 2 – The circular specifies that in case the TDS certificate issued in Form 16A is downloaded from the TIN website, the deductor has an option to sign digitally. It further specifies that for ‘other deductors’, in case the TDS certificate issued is not downloaded from the TIN website, then the TDS certificate has to be authenticated by manually signature only. Though the circular does not specify the manner of authentication of TDS certificate for ‘company deductors’ who do not issue certificate in Form 16A downloaded from TIN website, inference can be drawn from the manner specified in the circular for ‘other deductors’ and accordingly in such cases of TDS certificate in Form 16A not downloaded from TIN website, the ‘company deductors’ may authenticate using manual signature.
(Article was First Published on 19.05.2011 and Republished with Amendments on 17.04.2012.)