Form No 16 for TDS on salary : Income Tax provisions

By | June 20, 2018
(Last Updated On: June 20, 2018)

Form 16 income tax

Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source on salary

Form 16 income tax

It if The certificate of deduction of tax at source or the certificate of payment of tax by the employer on behalf of the employee under sub-section (1A) of section 192 of income tax act (salaries).

Download the Format of Form 16 income tax

Download Format of Form 16 Part A from Traces online

It is compulsory to issue Form 16 Part A by downloading from income tax department website TRACES.

How to Download Form 16 (TDS Certificate) from Traces : by Deductor for salary

Form 16 to be issued by banks also

Even the banks deducting tax at the time of payment of pension are required to issue such certificates.

Form 16 income tax : issue procedure by Deductor / Employer

As per Circular 04/2013 dated 17-04-2013 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 it through TRACES Portal and after duly authenticating and verifying it, 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. ‘Part B (Annexure)’ of FormNo. 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.

To issue form 16 TDS return in form 24Q to be filed by Deductor / Employer

Employer / deductor has to quarterly file TDS statement in Form 24Q.TDS certificate (Form16) would be generated for the deductee only if Valid PAN is correctly mentioned in the Annexure II of Form 24Q in Quarter 4 filed by the deductor. Moreover, employers are advised to ensure in Form 16 that the status of “matching” with respect to “Form 24G/OLTAS” is ‘F’. If the status of matching other than ‘F’, kindly take necessary action promptly to rectify the same. It is pertinent to mention here that certain facilities have been provided to the deductors at website including online correction of statements (Form 24Q).

Form 16 income tax Should specify followings

(a)valid permanent account number (PAN) of the deductee;
(b)valid tax deduction and collection account number (TAN) of the deductor;
(c)(i) book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government;
(ii) challan identification number or numbers in case of payment through bank;
(d)(i) receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31A;
(ii) receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for tax deducted at source from income chargeable under the head “Salaries”.

Time for Furnishing Form 16 income tax

Form 16 Should be Furnished by the Employer annually to the employee by 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted.

Form 16 income tax in case Employee Worked with two or more employer

If an assessee is employed by 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 and Part B may be issued by each of the employers or the last employer at the option of the assessee.

Duplicate Form 16 income tax can be issued if original Form 16 Lost

The deductor may issue a duplicate certificate in Form No. 16  if the deductee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the deductor.

Form 16 income tax can be signed digitally by Employer /Deductor

Where a certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates.

  • once the certificate is digitally signed, the contents of the certificates are not amenable to change.
  • The certificates have a control number and a log of such certificates is maintained by the deductor.

Failure to issue Form 16 income tax by Deductor / Employer

If the DDO/ deductor fails to issue these certificates to the person concerned, as required by section 203, he will be liable to pay, by way of penalty, under section 272A(2)(g), a sum which shall be Rs.100/- for every day during which the failure continues.

When Form 16 income tax is not Issued

It is clarified that there is no obligation to issue the TDS certificate in case tax at source is not deductible/deducted by virtue of claims of exemptions and deductions.

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Form No 16 for TDS on salary : Income Tax provisions

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