November 6, 2013

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir/Madam,

Timely Issue of TDS Certificate to Customers

It has been brought to our notice that, some banks are not providing TDS Certificate in Form 16A to their customers in time, causing inconvenience to customers in filing income-tax returns timely.

2. The matter has been examined and with a view to protect interest of the depositors and for rendering better customer service, banks are advised to provide to their customers from whose income tax has been deducted at source, TDS Certificate in Form 16A. Banks are advised to put in place systems that will enable them to provide Form 16A to the customers within the time-frame prescribed under the Income Tax Rules. Banks should avoid waiting till the last moment.

3. This advice is issued under Section 36 (1) (a) of the Banking Regulation Act, 1949 (10 of 1949).

Yours faithfully,

(Rajesh Verma)
Chief General Manager

More Under Fema / RBI


  1. Umesh Prabhudesai says:

    When the last instalment of TDS is deducted by 31st march, by the Banks, why should they take till May end to reflect that in form 26AS?
    Who has allowed them that date?
    Can the RBI Authorities not specify a limiting date for reflecting the TDS in form 26AS, by 15th April? When things are computerized, why should it take this long?
    If end of May is given as last date for reflecting the TDS in form 26AS, how will the certificates be issued by Banks in form number 16, before that?
    Does this huge delay , not cause huge inconvenience to all the customers?
    Who is to look after the helpless customers at mercy of the banks?

  2. Umesh Prabhudesai says:

    The TDS is deducted on Salary /Pension and the Interest of Fixed deposits by the Banks as per the rules. The last installment deducted for the financial year by 31st March.
    But the TDS certificates are not issued even by end of April or May…It causes lots of inconvenience to all those who need to file IT returns in time.It is requested the matter be looked into and issue instructions to all Banks for strict compliance to issue TDS Certificates by end April for the TDS deducted during year ending 31st March.

  3. vswami says:

    Bankers – In The US !
    ‘Mindboggling’: Federal Judge Slams DOJ Refusal to Jail Bankers


    This latest report from across the border, it is noted,goes to sadly belie the impression generally obtaining in, beides elsewhere,in our country – amongst the stakeholders. The referernce is to the seemingly ingrained belief that,- the judiciary can , in any event, be relied on as the last refuge for successfully seeking redressal of all genuine grievances, not only aginst the individual bank management,but also the concerned duly empowered governmental authorities (e.g. in INdia, the Finance Ministry and the RBI)

    < May be contd.

  4. CA. Subhash Chandra Podder says:

    Good steps taken by RBI, But date has not been notified . Direct the Bankers to sent those TDS. certificates in form 16 A by April 30/ May 31 st every year to the depositors addresses by Registered Post/ Speed post.
    CA. Subhash Chandra Podder, FCA

  5. venkat says:

    It is not so much the non issue of l6A forms but the TDS being not reflected in 26AS form. It is the 26AS form with which the incometax officers rely on completely.

  6. vswami says:

    Impromptu >

    The RBI’s purported ‘advice’ is too mild to be persuasive enough for its constituents to ‘pull up their socks’ and strictly follow it. To be precise, any delay beyond the prescribed time limit will clearly be a violation of the mandate of the tax rule, and by itself should invite the penal consequence as per the law. As such, if at all the RBI was sincere, what it should have done on its part, as a regulatory authority, is to issue clear-cut directions to the effect that, in case of delay the erring bank, in addition to the penal consequence it might face, also have to face a separate action by the RBI/its Ombudsman, if and when complained of, on the ground of its having failed to protect the customer’s right and interest, thereby rending itself guilty of a breach of faith and trust, also for ‘insufficient’ /deficiency in service, in disregard of the code of ethics/ conduct already in place. Also provide for imposing a liability to appropriately and adequately compensate the customer for the otherwise easily avoidable delay, causing inconvenience of its own kind. For reasons commonly known, the buck does not there; in other words, any such directions ought to cover not only the obligation related to taxation but also all other like areas as well. The office of the Ombudsman must be adequately strengthened on healthy lines, for accomplishing the desired outcome in public interest.
    In the context herein, it might be appropriate to bring to focus the commonly aired and grieved about the lately growing indiscipline, recalcitrant and irresponsible behaviour /misdemeanour even among the highly paid officers of the PSBs, not to mention the topmost brasses, in failing to provide reasonable good service, to the utter discontent/dismay of the customers. It is hightime that the RBI realises that it owes it to the banking customers to strive its best and bring about a change for improvement on a war footing , before it is hopelessly late.

    (To be edited/elaborated, if and when time amd mind permits)

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