TDS Certificates to be issued According to according to Section 203 of the Income Tax Act read with the Rule 31 of the Income Tax Rules.
The Income Tax department in a circular dated 9.4.13 has declared that it has become mandatory for all deductors to issue the TDS certificates for deductions done on or After April 01, 2012 in Form 16/Form 16A downloaded from the TIN website according to Section 203 of the Income Tax Act, 1961 read with the Rule 31 of the Income Tax Rules, 1962.The certificates which are downloaded can be authenticated by digital or manual signatures. But, no option of using a digital signature is left to a deductor in case of issuing TDS certificate in Form No.16A.
The circular has made it mandatory for all deductors to issue TDS certificate in Form No. 16/16A.
Section 203 of the Income-tax Act 1961 along with Rule 31 of the Income-tax Rules 1962 provides furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee.
Rule 31 of the Income Tax Rules, 1962 deals with furnishing of certificate of tax deducted at source (TDS) by the Deductor to the person from whom it is deducted stating the prescribed particulars like amount of TDS, Permanent Account Number (PAN), Tax deduction and collection Account Number (TAN), etc. The forms for issuing the TDS certificate are Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provisions of Chapter 17BB of the Act. TDS certificate as provided in Form No. 16 has to be issued every year and that in Form No. 16A has to be issued after every quarter.
The circular has been issued to strengthen the administration of the issue of TDS and also for the proper administration of the Income Tax Act.
For deduction of tax at source made on or after 01.04.2012 every deductor including the government deductors who deposits TDS before the Central Government Account through book entry is under the obligation to issue TDS certificate in Form No. 16A giving a unique TDS certificate number for all sums deducted by them.
Issuance of verified TDS certificate in Form No. 16A by any deductor belonging to any category has to follow the TIN Central System. The deductor has to download such certificate from the TIN Central System and judge the authenticity of the contents stated therein before issuing of the said certificate.
The Director General of Income-tax (Systems) shall specify the procedure, form, etc. for the issuance of TDS certificate in Form No.16A downloaded from the TIN website. He shall be the supreme authority regarding the daily administration relating to the procedure, forms, etc. The certificate granted by any deductor issued by following the form stated by him shall only be treated as a valid TDS certificate.