Aug26
2020Under Section 203 of the Income Tax Act, 1961 mandates that the employer has to deduct TDS. After deducting the TDS, the employer has to issue certificates. These certificates are Form 16 and Form 16A that are issued to the deductees as a proof of the same.
Tax Deducted at Source (TDS) is a type of tax deducted from the income as per the specified percentage (%).TDS is deducted by the employer.
The TDS return process will be considered as incomplete until the Valid TDS certificate has been issued by the deductor. If we focus on the word Valid TDS Certificate, it means Form 16/ Form 16A issued by authenticated authority. As on the current date the TRACES have the authorization to issue valid TDS certificate.
Types of TDS certificates:
Form 16 | For salary income (issued annually) |
Form 16A | For non-salary income (issued quarterly) |
Validity of a TDS Certificate:
What are the Contents of a TDS Certificate?
a. Valid PAN of the deductee;
b. Valid TAN of the deductor/collector ;
c. Challan Identification Number (CIN), which is a number generated by a combination of BSR code of the bank where tax is deposited, date of deposit and the challan serial number allotted bythe bank;
d. Receipt number of the relevant quarterly statement of TDS (i.e., TDS return).
Issuance of TDS Certificate:
Form No. | Particular | Frequency of Certificate Issuance |
Form No. 16 | TDS certificate in respect of tax deducted on salary. | Annually |
Form No. 16A | TDS certificate in respect of tax deducted on payments other than salary. | Quarterly |
Note: Multiple payments can be clubbed in quarterly TDS certificate.
Due Date for Issuance of TDS Certificates
Form no. | Periodicity | Periodicity | Due date for FY 2019-20 |
Form 16 | TDS on salary | Annual | 15th August 2020 |
Form 16A | TDS on payment other than salary | Quarterly | Within 15 days from the due date for furnishing the statement /return of tax deducted at source. |
Note: All the deductor shall issue form 16A generated or downloaded from TIN central system and authenticate the same either by using digital or manual signature.
Penalty for Non-Compliance u/s 272A:
Revised Due Dates for FY 2019-20:
The Revised Dates has been given below:
TDS Form | Revised Due Dates |
Form 16 for TDS on salary during FY 2019-20 | 15-08-2020 |
Form 16A for TDS on income other than salary for Q4 of FY 2019-20 | 15-08-2020 |