Income Tax/ TDS :- 18 General Question Answers related to Form 16 or Form 16A

1-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.

2-Is there any format for these certificates?

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

3-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.

4-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

5-Due to non availability of PAN, tax has been deducted at higher rate. How can deductor provide Form 16 (Part A) / Form 16A without availability of PAN?

Valid PAN is mandatory for issuing Form 16 from TRACES. Correction statement is required to be filled to report the valid PAN for downloading Form 16 (Part A) / Form 16A.

6-What are the different matching statuses in Form 16 / Form 16A?

           Following are different matching statuses in Form 16 / Form 16A:

• U – Unmatched (Deductor has not deposited taxes or has furnished incorrect particulars of tax payment. Final credit will be reflected only when payment detail in bank matches with details of deposit in TDS/TCS statement)
• P – Provisional (Provisional tax credit is effected only for TDS / TCS statement filed by Government deductor. 'P' status will be changed to Final (F) on verification of payment details submitted by Pay and Account Officer (PAO))
• F – Final (In case of non-government deductors, payment details of TDS / TCS deposited in bank by deductor have matched with the payment details mentioned in the TDS / TCS statement filed by deductors. In case of government deductors, detail of TDS / TCS booked in Government accounts have been verified by Pay and Account Officer (PAO))
• O – Overbooked (Payment details of TDS / TCS deposited in bank by deductor have matched with details mentioned in the TDS / TCS statement but the amount is over claimed in the statement. Final (F) credit will be reflected only when deductor reduces claimed amount in the statement or makes new payment for excess amount claimed in the statement)

7-Tax has been deducted at the rate of 20% due to non-availability of PAN. How can I issue Form 16A?

PAN is mandatory to issue Tax deduction certificates.

8-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.

9-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.

10-I have worked with different branch offices during the financial year. How will information for Part B appear in my Form 16?

Part B information will be issued by the employer. TDS CPC will provide Form 16 containing only Part A details.

11-What are the guidelines for an employer to deduct TDS and issue Form16?

         Following are the guidelines for an employer to deduct TDS and issue Form 16:

• Make mandatory for all the employees to declare previous salary, investment proofs and TDS details, if any
• Employer has to consider the declaration before deducting TDS from salary
• Fill Annexure II for all employees who work or worked for any period of time during the current financial ye
• Issue Form 16 to all the employees
• It is the duty of an employee to provide valid PAN. If employee has worked with more than one employer in a financial year, employee should declare previous salary and TDS detail, if any, with the current employer

12-What are the details available in TDS certificate (Form 16 / 16A)?

• The details available are as below:
• Name / address / TAN of Deductor
• Name / address / PAN of Tax Payer
• Certificate Number
• Summary of payment made by deductor
• Summary of tax deducted at source in respect of tax payer
• Details of tax deducted and deposited in Central Government account through challan / Book Adjustment (in case of Government deductor)
• Details of tax deducted and deposited in Central Government account through challan (in case of Non-Government deductor)

13-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.

14-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.

15-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.

16-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.

17-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.

18-What is a certificate number?

Certificate number is present in Form 16 / Form 16A issued by Deductor.

New Circular regarding issuance of TDS Form 16

CIRCULAR NO. 04/2013

F.No 275/34/2011-IT(B) 

Government of India 

Ministry of Finance 

Department of Revenue 

Central Board of Direct Taxes 

New Delhi, the 17th April, 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 (Error! Hyperlink reference not valid., previously called TIN website. 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 CERTIFICATEIN 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 31st 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. 

-sd- 

(Anshu Prakash) 

Director (Budget) 

Central Board of Direct Taxes 

     

     Copy to: 

1. The Chairperson, Members and all other officers of the CBDT of the rank of Under  Secretary and above 
2. All Chief Commissioners of Income-tax (CCA) & All Directors General of Income-tax 
3. The Director (PR, PP & OL), Mayur Bhawan, New Delhi for printing in the quarterly tax  bulletin and for circulation as per usual mailing list (100 copies) 
4. The Comptroller and Auditor General of India (40 copies) 
5. All Directors of Income Tax, New Delhi; 
6. All CsIT (TDS) 
7. The Director General of Income-tax, NADT, Nagpur 
8. Guard file 

‐sd‐

(Anshu Prakash) 

Director (Budget) 

Central Board of Direct Taxes

Form  16 from NSDL RPU 3.2 directly (Click Here)

Who will issue Form No. 16 Part A, Part B, Annexure A and Annexure B

                One of our employees is going to resign within a couple of days (most probably by July 10, 2012). He wants a certificate in Form No. 16 in respect of salary drawn during the financial year 2012-13 (i.e., from April 1, 2012 to July 10, 2012). This certificate he wants to submit to the new employer. My queries are –

1. What is the legal position pertaining to date of issue of Form No. 16 in such cases? Can the outgoing employee legally compel us to issue Form No. 16 at the time of resignation on July 10, 2012?
2. Can we issue Form No. 16 in the old format?
3. If old format is not permitted can we give information only in Part A and Annexure B? Can we ask outgoing employee to take the information in Part B from the new employer?

In respect of salary paid on or after April 1, 2012, certificate shall be issued in new Form No. 16. This form is divided in different parts (e.g., Part A, Part B, verification, Annexure A and Annexure B). 

· Part A contains information of employer and employee (like name and address of employer, PAN/TAN of deductor, name and designation of employee, PAN of employee). Besides, one has to disclose in Part A, assessment year, period of employment, address of CIT (TDS) and summary of tax deduction at source (like quarter wise information of receipt numbers of original quarterly TDS returns in Form No. 24Q, amount of tax deducted and amount of tax deposited or remitted). 

· In Part B, the employer/deductor will have to disclose the details of salary paid, other incomes, amount deductible under Chapter VI-A, tax payable and relief under section 89.

If an assessee is employed under more than one employer during the financial year, then how to generate new Form No. 16 is narrated by Note 1 appended at the end of the form which states as follows –

“If an assessee is employed under more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers. Part B may be issued by each of the employers or the last employer at the option of the assessee.”

Points raised in your query can be discussed as follows –

1.  For the service rendered during April 1, 2012 in July 10, 2012, salary certificate in new Form No. 16 can be issued on or before May 31, 2013. The outgoing employee cannot compel to get Form No. 16 at the time of resignation on July 10, 2012.
   
2. In respect of tax deducted on or after April 1, 2012, salary certificate cannot be issued in the old format of Form No. 16.
   
3. The old employer will give Form No. 16 in the new format. The information will be given in different parts of the form (i.e., Part A, Part B, Verification and Annexure B). If, however, the outgoing employee is interested, he can get the information in Part B on consolidated basis for the whole year. For this purpose, he will have to request the old employer and the new employer. On such request, the old employer will issue Form No. 16 without showing anything in Part B. The new employer will issue Form No. 16 and it will include consolidated data of salary of the entire year in Part B. In such a case, the old employer should give details of gross salary, allowances, deduction, etc., separately on a plain paper so that it can be given to the new employer for the purpose of calculating tax liability under section 192 and preparation of Form No. 16 (Part B).

etds-Form No 16 with Part-B from FVU

Friends,  NSDL has announced and published Form No 16 generation system.  It is only possible just after TAN registration.   FORM NO. 16 required the  following basic points.

1. PART A
2. Summary of Tax Deducted at source (Quarterly basis)
3. PART B
4. Annexure-A
5. Annexure-B

Generation of FORM NO. 16 through NSDL does not print PART-B of the FORM.    In case a deductor generate form no 16 through NDSL, he gets only PART-A, summary of tax deducted at source, annexure-A and Annexure- B.

To know Registration of TAN or Re-registration of  TAN (Click Here)

Read here to generate complete FORM No. 16 from FVU (Click Here)

Form 16 (TDS certificate for Salaried person) from NSDL

Friends,

              Excellent thought of NSDL.  Earlier only form 16A (Non-Salary) have been provided by NSDL.  It was awaited that when will NSDLl provide form 16 ?.   

              Yes,  Now, NSDL has provided system for generation of form 16 for salaried employees for TAN Registration holders.    One more benefit will be provided free by NSDL to their TAN Registration Holders.  The procedure for generating the Forms 16 are equal to Form 16A. 

How to generate Form 16 from .txt file . 

TDS certificate (Form 16 and 16A) is prepared and issued by the employer /deductor to the employee/deductee. TDS certificate can be downloaded from TIN website.

TDS certificate will be sent on registered e-mail ID as well as will be available for download on successful confirmation of KYC for the particular Financial Year and Quarter (any relevant quarter of the particular Financial Year in case of Form 16). The nomenclature of the file will be as under:

Form 16A: TAN_AY_Quarter_Form16A Reference Number_Part of file_of_Part of file.

Form 16: TAN_AY_Form 16 Reference Number_Part of file_of_Part of file.

For example: File name for Form 16A/ Form 16 will be

Form 16A: MUMA12345E_201112_Q1_FORM_16A_0000001717_00000001_0001_OF_0001.zip Form 16: MUMA12345E_201112_FORM_16_0000001717_000000001_0001_OF_0001.zip

In case transactions are large in numbers, then the Form 16/ Form 16A file will be split in the size of 2MB.

Click here to download PDF converter utility (To convert Form 16/16A text file to PDF file).

On clicking the above link 'PDF Converter Utility.exe' will be downloaded, after unzipping the exe below, two PDF converter utilities will be extracted in the 'PDF Converter Utility' folder.
PDF Converter Utility_SHA1 and PDF Converter Utility_SHA2
Note: System software requirements of the SHA2 (Secure Hash Algorithm) utility are more stringent as compared to SHA1 utility. Users are required to upgrade the system software on their machines to the pre-requisites specified for the SHA2 utility by March 31, 2012. After March 31, 2012, the support for SHA1 utility will be discontinued.
Configurations required for PDF Converter Utility_SHA1
Java 1.6 and above
Configurations required for PDF Converter Utility_SHA2
JRE version : SUN-java 1.6_update29 or higher version (32 bit) and Windows XP SP3, Vista Windows 7, Windows 2003 with patch for SHA-2, Windows 7.
Utility once downloaded can be used for converting PDF file as and when required for all future files.
Procedure to convert zip file to PDF file:
1.   The following software can be used for extraction of zip files:
	1.1   WinZip version 9.0 and above
	1.2   WinRaR version 3.90 and above
	1.3   7-Zip version 4.65 and above
2.   Import extracted text files through PDF converter utility.
3.   To open 'PDF converter utility' double-click on 'Start_PDF_Utility.bat'. Utility will open as shown below.
4.   Input File Name with Path:
	Click on browse and select the Form 16/16A input file; in case of multiple files select all the files
5.   Output File Path:
	Specify the path where 'PDF' file should be generated by the utility on completion of validation. The path can be same as the input file path or different. Do not specify any filename, provide the file path only.
6.   Digital Signature of PDF:
	6.1. E-Token: To select DSC from e-Token, click on e-Token, provide the name of e-Token (default eToken) and provide the password in the field 'E-Token Password'. Password is case sensitive.
	6.2. Import DSC (.pfx file): To select .pfx file, click on 'Import DSC (.pfx file)' again click on browse and select the Digital Signature Certificate (DSC) and provide the DSC password in the field 'Digital Certificate Password'. Password is case sensitive. Click on 'Detect Certificate'.
	6.3. DSC from Browser: To select DSC installed in browser, click on 'DSC from Browser' it will display DSC installed in browser. select the DSC through which you want to sign the PDF digitally.
7.   Undo Selection: To deselect the DSC, click on 'Undo Selection'.
8.   Provide Details to be Printed on TDS certificate
	8.1  Full Name: Provide full name of responsible person to be printed on TDS certificate.
	8.2  Designation: Provide designation of responsible person to be printed on TDS certificate.
	8.3  Father's Name: Provide father's name of responsible person to be printed on TDS certificate.
	8.4  Place: Provide place of the responsible person to be printed on TDS certificate.
	8.5  Date: Provide date to be printed on Form 16A PDF. Date should be in dd/mm/yyyy format.
9.   PDF File:
	In case the input file is valid, utility will generate the folder (folder name will be TAN_FORM16_AY_Date for Form 16 and TAN_FORM16A_AY_Quarter_Date for Form 16A) which contains PDF of all the deductee PAN present in input file. Naming convention of PDF file is PAN_FORM16_AY.pdf for Form 16 and PAN_FORM16A_AY_Quarter.pdf for Form 16A.