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:

For deduction of tax at source made on or after 1 April 2012 

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.

For deduction of tax at source made on or after 1 April 2011 but before 01.04.2012

Type of deductor Issue of TDS
certificate in Form
16A downloaded
from the TIN
Website
Authentication of
TDS certificate in
Form 16A
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)

 For deduction of tax at source made during financial year 2010-11  

Type of deductor Issue of TDScertificate in Form16A downloaded
from the TIN
Website
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.)

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0 responses to “Mode of Issue of TDS certificate in Form 16A”

  1. VARSHA says:

    Sir,

    we revised our Tds return of 26Q for Q1, Q2, Q3, Q4, due to invalid pan,

    after submitting return in 24th july, after 5 days we want download tds certificate of corrected pan, but message is show that Pan no. is not present in statement. what can we do?

  2. santosh kumarbharti says:

    Sir, check tds 16 2011-12 my pan no, AXLPB9725B and my name Santosh kumar bharti

  3. santosh kumarbharti says:

    Sir, chech 2011-12 tds my pan no.AXLPB9725B Santosh kumar bharti

  4. Darshana says:

    Dear sir,

    from 01.04.11 onwards the company (as deductor) has to generate TDS Certificate form 16A through NSDL.

    But, the TDS certificate is generated pan-wise & for invalid pan certificate is not get generated.

    So, if we have deducted TDS @20% on account of PANNOTAVBL (Pan Not Available), so for such deductee how to generate TDS Certificate form 16A

    Pls Reply……..,

  5. Darshana says:

    Dear sir,

    from 01.04.12 onwards the company (as deductor) has to generate TDS Certificate form 16A through Traces.

    But, the TDS certificate is generated pan-wise & for invalid pan certificate is not get generated.

    So, if we have deducted TDS @20% on account of PANNOTAVBL (Pan Not Available), so for such deductee how to generate TDS Certificate form 16A

    Pls Reply……..,

  6. Choudhary Shivanand Saket says:

    Dear Sir 

    We have downloaded TDS Certificate data of first Qtr of fin year 2011-2012 on 18/05/2012 and genrated the TDS certificate on same date whether any penalty will be lavied by income tax dept for late issuing of TDS Certificate to party.

    please answer——

  7. Choudhary Shivanand Saket says:

    Dear sir,

    from 01.04.11 onwards the company (as deductor) has to generate TDS Certificate form 16A through NSDL.

    But, the TDS certificate is generated pan-wise & for invalid pan certificate is not get generated.

    So, if we have deducted TDS @20% on account of PANNOTAVBL (Pan Not Available), so for such deductee how to generate TDS Certificate form 16A

    Pls Reply……..,

  8. cazi says:

    I would like to know what course of action i can take if my payer did not ask me for my PAN at the time of payment & deducted tax at the higher rate. Now he refuses to revise his TDS return or to give me a TDS certificate as he can not generate it online.

  9. Dhana says:

    Hi All,

    Please tell how to download form 16A for those who have not updated pan number while filing ETDS.

  10. EKNATH KATKE says:

    Dear sir,

    from 01.04.11 onwards the company (as deductor) has to generate TDS Certificate form 16A through NSDL.

    But, the TDS certificate is generated pan-wise & for invalid pan certificate is not get generated.

    So, if we have deducted TDS @20% on account of PANNOTAVBL (Pan Not Available), so for such deductee how to generate TDS Certificate form 16A

    Pls Reply……..,
    eknath_katke@rediffmail.com

  11. kavitha says:

    Dear Sir/Mam,

    Pls send form 16 & 16a for f y 2011-12

  12. ram babu says:

    instead of the above:

    the dept. should have asked the PAN Nos. of the deductees while depositing the amount in the banks. the banks in turn will generate a unique no. like PNR no. for rail reservations. that no. should contain MICR code of the bank, Tan No.+ Sl. no (on yearly basis – not on daily basis) This no. has to be provided to the deductee. In turn the deductee can verify the same just as we are verifying the status of the quarterly return submitted. Of course if he wants he can do by seeing 26AS also. As most of the deductees particularly employees and small time contractors are not used to register and verify through 26AS.
    Of course for The banks it may be time consuming they can charge @ 10/20 and the procedure of filing quarterly returns may be stopped.
    If the banks hesitate the same may be extended to Head post offices as they are exploring the opportunities for extra revenue opportunities.

  13. Anand Vardhan says:

    What shall be the procedure to claim credit of TDS before this circular came into existance i.e. for the earlier assessment years till A.Y. 2010-11.

  14. AJAY says:

    WHAT IS THE PROCEDURE TO DOWN LOAD FORM 16A FROM NSDL WEB SITE

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