Friday, June 17, 2011

TDS Certificate in Form No. 16A to be generated from Tax Information Network (TIN) website

 A circular issued by the income tax authority under section 119 of the Income Tax Act 1961 on 13th May, 2011 which informs that TDS certificate in Form 16A should be generated and downloaded from the Tax Information Network (TIN) website for the TDS deduction made on or after 01st April, 2011. This is mainly for Companies including banking companies and co-operative societies engaged in banking business. For others it is optional for downloading TDS certificate in Form 16A from the TIN website.

TDS certificates are mainly in two types, one is to be issued quarterly
which is known as Form 16A for TDS for interest, contractors etc., and the other one is to be issued annually which is Form 16 and Form 16AA for TDS from salaries. Here the circular mentioned about Form 16A which is to be issued in large numbers for interest etc. This is mainly for avoiding the mismatch in e-tds records and form 16A. There may be mismatch with various reasons including data error etc. When the TDS certificate is downloaded from Income Tax (TIN) website the mismatch can be avoided and the chances of correcting the error is higher than issuing TDS certificate by the deducting company itself.

The department has already allowed the deductees to know their TDS details through online in Form No. 26AS. Those who wish to view their TDS details can register their names with PAN no in Income Tax website and can view the TDS details when the deductor submitted e-tds return. This will help to eliminate the mismatch and the above changes also help to avoid the mismatch in form 26AS and in Form 16A.

When the quarterly return system of TDS introduced by the Income Tax Authority, there was a plan to issue TDS certificate by the authority itself and now that plan is partially applying through this circular and we hope that slowly it will come in to effect completely. This is a good movement which is useful to the deductor and deductees and the things will be more convenient and also will be in time.

Regards
G.Srinivas

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