When and how to furnish TDS Certificate under section 203 of IT Act

The certificate of deduction of tax at source ( TDS ) by any person in accordance with Chapter XVII‐B or the certificate of payment of tax by the employer on behalf of the employee under sub‐section (1A) of section 192 shall be in‐

  1. Form No. 16, if the deduction or payment of tax is under section 192; and
  2. Form No. 16A if the deduction is under any other provision of Chapter XVII‐B.

The TDS certificate referred above shall specify:

(a)   valid permanent account number (PAN) of the deductee;

(b)   valid tax deduction and collection account number (TAN) of the deductor;

(c)    book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government;

(d)  Challan identification number or numbers in case of payment through bank.

(e)   receipt number of the relevant quarterly statement of tax deducted at source ( TDS ) which is furnished in accordance with the provisions of rule 31A;

(f)     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”.

TDS Certificate under section 203 of IT Act

The TDS certificates in Forms specified shall be furnished to the employee or the payee, as the case may be, as per the periodicity specified in the corresponding entry below and by the time specified in the corresponding entry in column (4) of the said Table:‐

Sl. No. TDS Form No. 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 furnishings the statement of tax deducted at source under rule 31A.

If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the TDS 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.

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

Where a TDS certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates. In this case the deductor shall ensure that‐

  • the provisions of sub‐rule (2) are complied with;
  • once the certificate is digitally signed, the contents of the certificates are not amenable to change; and
  • The certificates have a control number and a log of such certificates is maintained by the deductor.

Explanation. For the purpose of this rule and rule 37D, challan identification number means the number comprising the Basic Statistical Returns (BSR) Code of the Bank branch where the tax has been deposited, the date on which the tax has been deposited and challan serial number given by the bank.

Now you can download TDS certificate form 16 and 16A from trace portal. You need to check above details to ensure that the certificate is correctly have all these details. Only downloaded TDS certificate can be issued. You can not prepare TDS certificate with all these details on your own as it use to be done long back.

After downloading TDS certificate you have to sign and give it to your employee or the deductee before the due date.

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