Form 16 issued by the employer deducting the Tax Deducted at Source while making payment to a salaried employee. As per Section 203 of Income Tax Act, every employer/Company at the time of payment of Salaries shall deduct TDS at an average rate of tax computed from the Slab Rates in force for the respective financial year in which the payment is made on the estimated income of the employee/ salaried assessee. As per Section 203, every person deducting tax at source is required to furnish TDS Certificate to the payee to the effect that tax has been deducted along with certain other particulars. Even the banks are required to issue such TDS certificates for deducting tax at the time of payment. The TDS (Tax Deducted at Source) certificate has to be issued in ITR form 16 in the case of employees receiving salary income along with the pension.
Form 16 and Form 16A
The ITR Form 16 and Form 16A are TDS certificates that the employer’s issues to their employees as proof of the TDS. The Tax Deducted at Source certificate is a certificate of TDS by the employer to the employee specifying the prescribed particulars like TDS amount, PAN Card Form (Permanent Account Number), TAN (Tax deduction and collection account number), etc.
- The ITR Form 16 is the certificate or document that Employers in India issue to their salaried employees as proof of Tax Deducted at Source. The salaried personnel can then submit the forms while filing IT Returns in India.
Form 16 – Part-A
Part-A of TDS Certificate (Form 16) consists of details like,
- Name, PAN Card Form Number & Address of the Employee.
- Name, PAN Card Form Number, Address & TAN Number of the Employer.
- The AY (Assessment Year) for which the TDS (Tax Deducted at Source) has been deducted.
- Summary of Salary paid and the TDS deducted and deposited with the government.
- Acknowledgment Number of the TDS Payment deposited with Government.
Form 16 – Part-B
Part B of this ITR Form 16 (TDS Certificate) consists of details like,
- Detailed Salary particulars like Leave Travel Allowance, HRA (House Rent Allowance), Leave Encashment, Pension, Gratuity, Deductions claimed like Tax Saving FD, PPF, National Saving Certificate etc.
- The Total Income and the Total Tax on Salaries thereon.
- Surcharge and Education Cess if any.
- Tax Deducted under section 192(1A).
- Balance Tax payable/tax refundable.
Time Limit of Issuing TDS Certificate (Form 16): You have to apply within 15 days of filing the TDS Return (Form 24Q).
- The ITR Form 16A is a TDS certificate that should be issued by an employer which shows the amount of TDS, nature of payment, and the tax deposited with Income Tax department on income other than salaries.
Form 16A consists of,
- Name, TAN & PAN Card of the employer who deducts tax at source (TDS).
- Name, TAN & PAN Card of the employer who deducts TDS.
- The Amount Paid, nature, and the date of payment.
- Receipt Number of TDS payment.
Time Limit of Issuing TDS Certificate (Form 16A): You have to apply within 15 days of filing the TDS Return (Form 26Q).
The difference between ITR Form 16 & Form 16A is that the Form 16 reflects deductions made from the salary and is issued annually, and the Form 16A shows deductions on income other than salary and is issued quarterly.
Read More: Difference Between Form 16 and Form 16A
Penalty for not issuing TDS Certificates (Form 16 & 16A) on time
The penalty for not giving Income Tax Return Form 16 (TDS Certificate) Salary payment certificates will be TDS amount or Rs. 100/- per day whichever is higher.
How to download TDS Certificate – ITR Form 16 & 16A?
To download TDS Certificates through TIN website, follow the below steps.
- The deductor/employer has to register TAN with NSDL Website.
- The registered members would be allotted a Reference Number. This reference number is important, so it is better to note down this number.
- NSDL will also send an E-mail to the deductor informing the User Name, Password, Reference Number, etc.
- After confirmation, again visit the online portal www.tin-nsdl.com and login to TAN account using Username, Password, and TAN number.
- For every quarter, provide the details as asked by the website.
- NSDL will send a text file to your E-mail.
- This text file needs to be converted into a PDF file/TDS certificate (Form 16A). The conversion software provided in the NSDL website itself.
- After conversion, the TDS certificates will be saved automatically on the computer at the defined path.
- Take print out of the TDS certificate and check it.
- If found in order, affix signature and seal.
- Issue the TDS certificate to the deductees by either using the manual signature or digital signature.
Read More: Income Tax Filing Form 16
Due Date for downloading TDS certificates from Traces Online
It is important for the employer to issue TDS certificates after generating and downloading from TRACES Portal. If you fail to comply with the TDS Certificate, it will attract penalty under section 272A of the Income Tax Act. The Penalty for not issuing TDS Certificates (ITR Form 16) from Traces within Due Date is a sum of Rs. 100/- for every day during which the failure continues. The TDS Certificates downloaded from TRACES Portal only valid to file the IT Return. The Tax Deduction at source certificates issued in any form other than Online TRACES will not comply with the requirements as per the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time. Check out the Time Limit to Deposit TDS and TDS Certificate here.
Due Date to Download TDS Certificates Online – Income from salaries
|S.no||ITR Form||Period||Due Date|
|1.||16||Annual||31st day of May of the financial year immediately following the financial year in which the income Tax was paid and tax deducted.|
|2.||16A||Quarterly||Within 15 days from the due date for furnishing the statement of TDS under Rule 31A of Income Tax Act.|
Due date to Download TDS Certificates (Form No 16A -in case of Other than Salaries )
|Date of ending of quarter of financial year||Due Date of Filing TDS Return||Due Date for Issuing TDS certificates Form 16A|
|30th June||31st July of the financial year||Within 15 days from the due date for furnishing the statement of TDS.|
|30th September||31st October of the financial year||Within 15 days from the due date for furnishing the statement of TDS|
|31st December||31st January of the financial year||Within 15 days from the due date for furnishing the statement of TDS|
|31st March||31st May of the financial year immediately following the financial year in which the deduction is made”.||Within 15 days from the due date for furnishing the statement of TDS|
All employers have to issue TDS Certificates Form 16A within 15 days from the due date of furnishing the statement / TDS return for the respective financial year. Check out the Due Dates of Filing TDS Return Online and Issuing the TDS Certificates in Form 16A are mentioned above.
Due dates for issue of TDS Certificate
|Friday, 22nd January 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under sec 194-IA in the month of December 2015.|
|Monday, 22nd February 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under section 194-IA in the month of January 2016.|
|Tuesday, 22nd March 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under sec 194-IA in the month of February 2016.|
|Friday, 22nd April 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under section 194-IA in the month of March 2016.|
|Sunday, 22nd May 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under section 194-IA in the month of April 2016.|
|Wednesday, 22nd June 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under Sec 194-IA in the month of May 2016.|
|Friday, 22nd July 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under Sec 194-IA in the month of June 2016.|
|Monday, 22nd August 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under sec 194-IA in the month of July 2016.|
|Thursday, 22nd September 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under section 194-IA in the month of August 2016.|
|Saturday, 22nd October 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under section 194-IA in the month of Sept 2016.|
|Tuesday, 22nd November 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under sec 194-IA in the month of October 2016.|
|Thursday, 22nd December 2016||Due date for issue of TDS (Tax Deducted at Source) Certificate for tax deducted under Sec 194-IA in the month of Nov 2016.|
These are the Due dates to Download TDS. Check out the Due Date for downloading Form 16A, and also check TDS Certificate Download due date and Form 16 Due date. Due Dates for Downloading TDS certificate is essential to avoid late payment of TDS. Get the list of Due dates for
Download TDS Certificates ( Form No 16 – In case of Salaries )
All employers shall issue the Form No 16 PART A, by generating and subsequently downloading through Online TRACES Portal, in respect of all sums deducted on or after the 1st day of April 2012 under section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number. The Form No. 16 Part B shall be prepared by the employer manually and issued to the deductee after due authentication and verification along with the Form No. 16 Part A stated above.
TDS Certificate Verification
- Visit TDS online portal www.tdscpc.gov.in or click the direct link given below.
- Click on ‘Verify TDS Certificate.’
- The web page was showing ‘Online Verification of TDS Certificate’ will be displayed.
- Enter ‘TAN of Deductor,’ ‘PAN Card Form of Tax Payer,’ ‘TDS Certificate Number,’ ‘TDS Amount Deducted as per Certificate (Rs.)’.
- Select ‘Financial Year’ and ‘Source of Income’ and click on Validate.
- You can also view the TDS/TCS Credit on the web page of ‘Tax Payer View of TDS / TCS Credit (from FY 2007-08 onwards)’.
- To know whether your Collector/Deductor has filed Quarterly TDS/TCS Statement and provided your PAN Card Form, provide details like,
- PAN Card form of Deductee, TAN of Deductor, Financial Year, Quarter, and Type of Return.
- Finally, click Go to view TDS/TCS Credit.
FAQ’s of TDS Certificate Form 16, Form 16A
I think you still have a lot of questions in your mind, Let’s check out the solution for every doubt you have TDS Certificate Form 16. Let us have a look at the following questions to Understanding Form 16.
What is Form 16?
Form 16 is a TDS Certificate issued under section 203 of the Income Tax Act 1961, for tax deducted at source from the salary of an employee. The TDS amount is deducted from the salary of the employee by the organization /employer. Form 16 also known as a Salary Certificate since it also contains Salary components and all details of salary paid by the employer as well as tax deducted from the salary. TDS Form 16 is issued by the company even when there is no tax deduction from the salary of the employee.
Am I Eligible for Form 16?
All the salaried assessees are eligible to get TDS Form 16 from their employers/Companies. If the employer deducts TDS from the salary of an employee, then he must issue Salary Certificate Form 16 to the employee.
How to Get Form 16 from the Previous Employer?
You can also get Form 16 for any previous year. The employee can contact his/her employer to issue you the TDS Form 16. Provisions of Income Tax Act make it mandatory for an employer to issue Form 16 to his employee if TDS has been deducted from his salary.
How to Get TDS Form 16 Online?
Why is Form 16 required?
Form no 16 is essential due to its utility in Income Tax e-filing in India. Since TDS form 16 is a complete record of income earned and taxes paid during the respective financial year. TDS Certificate Form 16 is also accepted as an income proof in various transactions like loan processing etc.; The Online Form 16 can be used to verify the taxes are deposited into the government account by comparing the amount as per Form 26AS. This is proof that correct taxes are deducted from salary and deposited with the government.
How to download Form 16 Online?
ITR Form 16 issued by the employer in hard copy as well as soft copy. Nowadays you can also get digitally signed Form 16 issued to employees via emails. These Form no 16 can be downloaded and used in Income Tax Return e-filing online.
When does employee receive Form 16?
Income Tax Return Form 16 is issued by the employer by 31st of May of the financial year. However, this due date to download Form 16 may varay from one company to the other. Some companies may issue it sooner or later.
What if the employer does not issue Form 16?
If the employer does not issue Form no 16 then you may refer to your Form 26AS online. Form 26AS contains details of tax deducted from your payments and deposited in the taxation department of India. If however, you cannot access IT Form 16, or it does not reflect any TDS payments then the employee must demand your Form no 16 from your employer.