TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

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

Frequently Asked Questions (FAQ) on Form 16/16A

What is Form 16 / 16A?

It is the certificate of deduction of tax at source by any person in accordance with Chapter XVII-B of IT Act. Form 16 is issued on deduction of tax by the employer on behalf of the employee under section 192 of IT Act, 1961. Form 16A is issued if the deduction of tax is under any other provision of Chapter XVII-B of IT Act. These certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers u/s 203 of IT Act, 1961.

Is there any format for these certificates?

Form 16 / 16A are issued as per the provisions of Rule 31(1).

How are these forms generated?

These forms shall be generated by TDS CPC on processing the quarterly TDS / TCS statements filed by deductor. Deductor will have to raise a request for the same on TRACES. Deductor shall have the option to digitally sign the certificates.

What is the due date for the issue of these certificates?

Sr. No. Form Periodicity Due Date
1 16 Annual

By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted

2 16A Quarterly

Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A

What should I do if I am not getting Form 16 from TRACES?

Ensure that you have filed Form 24Q for Quarter 4 with Annexure II. It is mandatory to file Annexure II giving actual particulars for the entire financial year, as Form 16 is generated on the basis of information provided in Annexure – II.

How are the particulars of those employees who are employed with more than one employer in a financial year to be shown in Form 16?

The employee should declare previous salary and TDS details, if any, with the current employer and the same should be considered by the current employer while deducting TDS on salary and issuing Form 16.

What can I do if I am unable to get the TDS certificate (Form 16 / 16A)?

It is the duty of every person deducting tax to issue a TDS certificate. In spite of your request, if you are denied the certificate then there is a chance that the tax deducted has not been deposited by the deductor to the government account. Please inform the department (PRO or TDS section) which will then do the needful.

I have not received TDS certificate from my employer. Can I claim TDS deducted from my salary?

Yes. The claim can be made in your return. Department, however, will raise a demand which will not be enforced on you but on your employer.

If a deductee comes back stating that the original TDS certificate is lost, can a duplicate certificate be issued?

Yes. Deductor will have to issue the duplicate certificate.

Even if no taxes have been deducted from salary, is there any need for my employer to issue Form 16 to me?

Form 16 is a certificate of TDS and in your case it will not apply. However your employer must issue a salary statement.

If I am receiving my pension through a bank who will issue Form 16 or pension statement to me – the bank or my former employer?

The bank will issue Form 16.

Can deductor download Form 16 without being registered on TRACES?

No, only registered user (deductor) on TRACES can download Form 16 / 16A.

While submitting request to download Form 16 / 16A, deductor has entered details correctly in Part 1 and Part 2 in validation details screen, yet it shows error as ‘Invalid Details’ in Part 1 and Part 2. What should deductor do?

Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement.

I am unable to download Form 16 / 16A as the number of PANs for which Form 16 / 16A were submitted was higher, however the PDFs generated were less. What should I do?

Check the status of the PANs for which Form 16 / 16A has not been generated. These PANs might be with inactive status or not present in the TDS statement filed.

What is the password for opening Form 16 / 16A text file?

The password for opening Form 16 / 16A will be your TAN in capital letters, i.e., AAAA11111A.

Registered user on TRACES has updated the communication and address details on TRACES. However while downloading Form 16A, it shows a different address. How can deductor edit address details in Form 16A?

Details updated in ‘Profile’ section of your TRACES account will be saved only in TRACES and will not be updated in TAN database. To change details in TAN database, submit TAN change request form (Form 49B) at www.tin-nsdl.com.

Can I make any changes in the certificate generated by TDS CPC?

The certificates shall be generated in PDF format, therefore they are not editable. Deductor is thereby not permitted to make changes to these certificates. If any error is identified in the certificate, deductor will have to file a correction statement for the same.

Can Form 16 (Part A) / Form 16A be issued manually?

No. Only the Form 16 (Part A) / Form 16A downloaded from TRACES are considered as valid TDS certificates, as per CBDT circular 04/2013 dated 17th April, 2013.

What should I do in case company name is updated incorrectly in Form 16 (Part A) / Form 16A?

You need to check the respective quarterly statement and file a correction for the same. After filling correction, download Form 16 (Part A) / Form 16A.

How can I edit or add detail of authorized person in Form 16 / Form 16A?

Details of authorized person can be updated in ‘Profile’ section of deductor’s account in TRACES.

Source: TRACES

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Steps for requesting Form 16 / 16A

The steps for requesting Form 16 / 16A has been given below:

  • Login to TRACES as deductor and submit download request for Form 16 / 16A under ‘Downloads’ tab.
  • File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.
  • Text file will be provided containing details of all requested PANs.
  • User must convert this text file to PDF using ‘TRACES PDF Generation Utility’.
  • This utility will convert the text file into individual PDFs for each PAN.
  • Deductor can also opt to digitally sign the PDFs while converting.
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Payment of taxes – Do’s & Don’t’s

Taxpayers, deductors or collectors can pay direct taxes through Authorised Bank branches either physically, through ATM or through internet.

Type of Challans to be used for tax payments

Challan Description
ITNS 280 For depositing Advance tax, Self Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.
ITNS 281 For depositing TDS/TCS by company or non company deductee
ITNS 282 For depositing Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax and Hotel Receipt tax
ITNS 283 For depositing banking cash Transaction Tax and FBT
Form 26QB Payment of TDS on Sale of Property
Demand Payment Payment against CPC (TDS) raised demand (only for TDS on Sale of Property)

Do’s

1. Mandatory details required to be filled in challan

a) PAN/ TAN

b) Name and address of the taxpayer (for physical challans)

c) Assessment Year

d) Major Head, Minor Head

e) Type of payment 

2.  Use challan type 281 for deposit of TDS/TCS payments.

a) Quote the correct TAN, name & address of the deductor on each challan

b) Verify your TAN details from Income Tax Department web-site (www.incometaxindia.gov.in) prior to depositing TDS/TCS.

c)  Use separate challans to deposit tax deducted under each section and indicate the correct nature of payment code in the relevant column in the challan.

d) Use separate challans to deposit tax deducted for different types of deductees. 

3. For Non TDS/TCS payments use challan types 280/282/283 as applicable.

a) Quote the correct PAN, name & address on each challan used for depositing the tax.

4. Mention/verify the correct Financial Year and Assessment Year in the challan before tax payment.

5. Payment confirmation: – Ensure that the Challan Identification Number (CIN) has been provided on the counterfoil issued after successful payment of tax. Challan Identification Number (CIN) comprises of the following

a) Seven digit BSR code of the bank branch where tax is deposited

b) Date of Deposit (DD/MM/YY) of tax

c) Serial Number of Challan 

6. Verify the tax payment information submitted to the bank.

a) Details available on the TIN website www.tin-nsdl.com under the link “Challan Status Inquiry”

b) In case the details are not available then you may contact the bank branch where the tax has been deposited. 

7. In case the counterfoil issued by the bank has been misplaced, kindly contact the respective bank/branch for details regarding the same.

8. Rectification/Correction in the Challan:- For rectifying errors in a physical challan, taxpayer may approach the Bank. Prescribed timelines for the same are as per table below

Sr. No. Type of correction on challan Period for correction request (in days)
1 PAN/TAN Within 7 days from challan deposit day
2 Assessment Year Within 7 days from challan deposit day
3 Total Amount Within 7 days from challan deposit day
4 Major Head Within 3 months from challan deposit day
5 Minor Head Within 3 months from challan deposit day
6 Nature of payment Within 3 months from challan deposit day

 Click here for more details.

9. Please visit TIN website www.tin-nsdl.com for details on preparation and furnishing TDS/TCS statements.

Don’t

1. Do not use incorrect type of challan for payment of taxes.

2. Do not make mistake in quoting PAN / TAN.

3. Do not give PAN in place of TAN or vice versa.

4. Do not use a single challan to deposit tax deducted for corporate and non corporate deductees.

5. Do not use same challan for depositing various types of tax like advance tax, self-assessment tax etc.

6. Do not make mistake in the F.Y. and A.Y. to be indicated in the challan.

7. If you have multiple TANs for the same division filing TDS statements, do not use different TANs in different challans. Use one TAN consistently and surrender the others.

Source: TIN-NSDL

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Basic principles of TDS Compliance

The following are the basic principles of TDS compliance:

  1. Deduction/ Collection of Tax at Correct Rates
  2. Timely Deposit of Tax Deducted at Source
  3. Accurate Reporting of data related to tax deductions/ collections made
  4. Submission of TDS return within the due dates
  5. Verification and Issuance of TDS Certificates within time
  6. CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of etds filing, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
  7. User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
  8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action
  9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
  10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
  11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
  12. The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.
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