Mandatory filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES

If tax at source has been deducted by you on various payments / credits but no TDS Statements have not been filed by you as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandatory filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

1. Mandatory filing of TDS Statements:

You are advised to refer to Section 200(3) of the Act, read with Rule 31A, which reads as follows:

  • Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:
    • Statement of deduction of tax under section 192 in Form No. 24Q;
    • Statement of deduction of tax under sections 193 to 196D in-
      • Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
      • Form No. 26Q in respect of all other deductees.

It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

2. Implications of Non/Late filing of TDS Statements:

  • For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees (employees / vendors) for claiming the amount of tax already deducted from the payments made to them besides generating correct TDS Certificates for them.
  • For Deductors: In case of default on account of Non / late filing of TDS Statements, a fee shall also be levied on the deductor u/s 234E of the IT Act which reads as under:

Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

3. Issuance of TDS Certificates downloaded from TRACES:

CBDT circulars 04/2013 dated 17.04.2013, CBDT Circular No. 03/2011 dated 13-5-2011 and CBDT Circular No. 01/2012 dated 9-4-2012 refer to Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from TDS Reconciliation Analysis and Correction Enabling System or ( called TRACES Portal).

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time. The TDS Certificates can be downloaded by registering yourself with TRACES Portal.

You are accordingly advised to file TDS Statements and also get Registered on TRACES Portal, if not done already.

For any assistance, you can write to or call  toll-free number 1800 103 0344.


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