TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

Issuance of Form No. 16 (TDS Certificate for Salary)

Form No. 16 has to be issued annually by an employer (deductor) to its employees (deductee) in case of deduction made under section 192 (Salaries). It is to be noted that Form No. 16 should be issued by 31st May of the financial year immediately following the financial year in which income was paid and deducted.

Form No. 16 has two parts viz Part A and Part B.

  • Part A: It contains the details of tax deduction and deposit.
  • Part B: It contains the details of the income.

As per the Circular No. 04/2013 dated 17th April 2013, it is now mandatory for all employers (including government deductors who deposit TDS in Central Government Account through book entry) to issue the Part A of Form No. 16 to their employees by generating and subsequently downloading the certificate from the TRACES  website.

Part B of the Form No. 16 shall be prepared manually by the employer and will be issued to the employee.

One can use TDSMAN software to generate both Part A and Part B of Form No. 16.

TDSMAN is also integrated with the TRACES website and helps downloading Part A of Form No. 16 from the software itself. The software takes care of all the data that is to be sent to the TRACES website for the authentication of the deductor.

Further, users can view the lists of requests done to the TRACES website with the option of downloading the requested file from the TDSMAN software itself.

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Guidelines for reporting TDS transactions not exceeding / exceeding threshold limit in quarterly TDS statements

Guidelines for reporting TDS transactions not exceeding / exceeding threshold limit in quarterly TDS statements (as issued by Directorate of Income Tax – Systems). 

Below guidelines may be referred, if deductor wishes to report the transaction in the quarterly TDS statement where no tax is deducted as threshold limit (as per the provisions of the Income tax Act) of amount paid/credited to deductee has not exceeded in the initial quarter (s) but has exceeded in subsequent quarter. 

1)    Flag “Y” may be selected in the field of ‘Reason for non deduction/ lower deduction/ higher deduction’ to highlight transactions where TDS is not deducted as the threshold for deducting tax has not exceeded.

2)    Threshold flag can be quoted only  against the following section codes in corresponding challan details:
193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I, 194J, 194LA

3)    Following approach may be referred for reporting threshold transactions in quarterly statements:

In case there is no deduction of tax in the first two quarters of a F.Y. where the prescribed rate of deduction as per Income Tax Rules is 10%. In the third quarter the threshold limit exceeds.

Approach 1:

The deductor may report those transactions in the respective quarterly TDS statements with zero rate of deduction (‘0.0000’), zero tax deducted/ deposited (‘0.00’) and amount paid in the respective quarters with threshold flag. The deductor will mention the prescribed rate of deduction, the amount paid in the third quarter, tax deducted/ deposited (deductee) on the total amount paid till that quarter. The same is represented as follows:

Pertaining to quarter Reporting Quarter PAN Rate of deduction Date of payment* Amount paid (Rs.) Date of deduc-tion Amount deducted (Rs.) Amount deposited (Rs.) Reason for non deduction /lower deduction
Q1 Q1 PAN1 0 Q1 1,00,000 0 0 Threshold flag Y present
Q2 Q2 PAN1 0 Q2 1,00,000 0 0 Threshold flag Y present
Q3 Q3 PAN1 30 Q3 1,00,000 Q3 30,000.00 30,000.00 No flag present

*The deductor must report the actual date of payment irrespective of the manner of reporting

Approach 2: 

The deductor may report all transactions in the quarter in which the threshold has exceeded, represented as follows: 

Pertaining to quarter Reporting Quarter PAN Rate of deduction Date of payment* Amount paid (Rs.) Date of deduction Amount deducted (Rs.) Amount deposited (Rs.) Reason for non deduction /lower deduction
Q1 Q3 PAN1 0.0000 Q1 1,00,000 0 0 Threshold flag Y present
Q2 Q3 PAN1 0.0000 Q2 1,00,000 0 0 Threshold flag Y present
Q3 Q3 PAN1 30.0000 Q3 1,00,000 Q3 30,000.00 30,000.00 No flag present

*The deductor must report the actual date of payment irrespective of the manner of reporting

Approach 3: 

The deductor may report all transactions in the quarter in which the threshold has exceeded, represented as follows: 

Pertaining to quarter Reporting Quarter PAN Rate of deduction Date of payment* Amount paid (Rs.) Date of deduction Amount deducted (Rs.) Amount deposited (Rs.) Reason for non deduction /lower deduction
Q1 Q3 PAN1 10.0000 Q1 1,00,000 Q3 10,000.00 10,000.00 Threshold flag Y present
Q2 Q3 PAN1 10.0000 Q2 1,00,000 Q3 10,000.00 10,000.00 Threshold flag Y present
Q3 Q3 PAN1 10.0000 Q3 1,00,000 Q3 10,000.00 10,000.00 No flag present

*The deductor must report the actual date of payment irrespective of the manner of reporting

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Solution to the error “0 PDF files generated successfully” while generating TDS certificates

While generating Form 16 / 16A, if you are getting a message “0 PDF files generated successfully”, please download the updated version of the PDF converter utility 1.3L.

Procedure to Download and install utility:

  • Download the PDF Generation Utility by logging in to TRACES. 
  • Click on ‘Requested Downloads’ under ‘Downloads’ menu and then click on ‘TRACES PDF Generation Utility’ link.
  • Unzip and save the utility on your desktop.
  • Double-click on the utility (exe) and click on ‘Run’.
  • Utility will be installed on your desktop.

Alternatively you can download the latest PDF Convertor Utility from TDSMAN website


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Booklet on Permanent Account Number (PAN)

This booklet has been brought out for the first time under the Tax Payers Information Series. It is an attempt to help the taxpayers who want to apply for PAN and to explain to them the importance of PAN in their day to day functioning.

 The book contains the following topics :-

1. What is PAN?

2. Evolution of PAN in India.

3. Who must have a PAN?

4. Financial transactions where quoting of PAN is mandatory.

5. What are the documents which can be submitted as proof of identity and proof of address?

6. FAQ on PAN.

Download Booklet on Permanent Account Number (PAN) Released by CBDT

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