CIRCULAR NO
4/2013, Dated: April 17, 2013
Sub:
Issuance of certificate for tax deducted at source in Form No. 16 in
accordance with the provisions of section 203 of the Income-tax Act,
1961 read with the Rule 31 of the Income-tax Rules 1962 -- regarding
1. Section 203 of
the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the
Income-tax Rules 1962 (“the Rules”) stipulates furnishing of
certificate of
tax deduction at source (TDS) by the deductor to
the deductee specifying therein the prescribed particulars such as
amount of TDS, valid permanent account number (PAN) of the deductee,
tax deduction and collection account number (TAN) of the
deductor, etc. The relevant form for such TDS certificate is Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provision of Chapter XVII-B of the Act. TDS
certificate in Form No. 16 is to be issued annually whereas TDS
certificate in Form No. 16A is to be issued quarterly. TDS Certificate
in Form No 16 as notified vide Notification No. 11/2013 dated
19.02.2013 has two parts viz Part A and Part B (Annexure). Part A
contains details of tax deduction and deposit and Part B (Annexure)
contains details of income.
2. With a view to
streamline the TDS procedures, including proper administration of the
Act, the Board had issued Circular No. 03/2011 dated 13.05.2011 and
Circular No. 01/2012 dated 09.04.2012 making it mandatory for all
deductors to issue TDS certificate in Form No. 16A after generating and
downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or ( https://www.tdscpc.gov.in) (hereinafter called TRACES Portal), previously called TIN web-site. In exercise of powers under section 119 of the Act, the Board has now decided as following:-
2.1 ISSUE OF PART A OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE MADE ON OR AFTER 01.04.2012:
All
deductors (including Government deductors who deposit TDS in the
Central Government Account through book entry) shall issue the Part A of
Form No. 16, by generating and subsequently downloading through TRACES
Portal, in respect of all sums deducted on or after the 1st day of
April, 2012 under the provisions of section 192 of Chapter XVII-B.
Part A of Form No 16 shall have a unique TDS certificate number.
2.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:
The
deductor, issuing the Part A of Form No. 16 by downloading it from the
TRACES Portal, shall, before issuing to the deductee authenticate the
correctness of contents mentioned therein and verify the same either by
using manual signature or by using digital signature in accordance with
sub-rule (6) of Rule 31.
2.3 In other words
, Part A of Form No. 16 shall be issued by all the deductors, only by
generating it through TRACES Portal and after duly authenticating and
verifying it.
2.4 ‘Part B (Annexure)'
of Form No. 16 shall be prepared by the deductor manually and issued to
the deductee after due authentication and verification alongwith the
Part A of the Form No. 16 stated above.
2.5 Sub rule (3)
of rule 31of the Rules sets the time limit for issuance of Form 16 by
the deductor to the employee. Currently, Form 16 should be issued by 31
st May of the financial Year immediately following the financial year in
which income was paid and tax deducted.
3.1
The Director General of Income-tax (Systems) shall specify the
procedure, formats and standards for the purpose of download of Part A
of Form No. 16 from the TRACES Portal and shall be responsible for the
day-to-day administration in relation to the procedure, formats and
standards for download of Part A of Form No. 16 in electronic form.
3.2
It is further clarified that Part A of Form No. 16 issued by the
deductors in accordance with this circular and as per the procedure,
formats and standards specified by the Director General of
Income-tax (Systems) and containing Unique Identification Number shall
only be treated as a valid compliance to the issue of Part A of Form No.
16 for the purpose of section 203 of the Act read with rule 31 of the Rules.
4. Hindi version shall follow.
F.No 275/34/2011-IT(B)
(AnshuPrakash)
Director (Budget)
Central Board of Direct Taxes
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