1-What is Form 16 / 16A?
- It is the certificate of deduction of tax at source by any person in accordance with Chapter XVII-B of IT Act.
- Form 16 is issued on deduction of tax by the employer on behalf of the employee under section 192 of IT Act, 1961.
- Form 16A is issued if the deduction of tax is under any other provision of Chapter XVII-B of IT Act.
- These certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers u/s 203 of IT Act, 1961.
2-Is there any format for these certificates?
Form 16 / 16A are issued as per the provisions of Rule 31(1).
3-How are these forms generated?
These forms shall be generated by TDS CPC on processing the quarterly TDS / TCS statements filed by deductor. Deductor will have to raise a request for the same on TRACES. Deductor shall have the option to digitally sign the certificates.
4-What is the due date for the issue of these certificates?
- Sr. No. Form 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
for furnishing the statement of tax deducted
at source under rule 31A
5-Due to non availability of PAN, tax has been deducted at higher rate. How can deductor provide Form 16 (Part A) / Form 16A without availability of PAN?
Valid PAN is mandatory for issuing Form 16 from TRACES. Correction statement is required to be filled to report the valid PAN for downloading Form 16 (Part A) / Form 16A.
6-What are the different matching statuses in Form 16 / Form 16A?
Following are different matching statuses in Form 16 / Form 16A:
- U – Unmatched (Deductor has not deposited taxes or has furnished incorrect particulars of tax payment. Final credit will be reflected only when payment detail in bank matches with details of deposit in TDS/TCS statement)
- P – Provisional (Provisional tax credit is effected only for TDS / TCS statement filed by Government deductor. 'P' status will be changed to Final (F) on verification of payment details submitted by Pay and Account Officer (PAO))
- F – Final (In case of non-government deductors, payment details of TDS / TCS deposited in bank by deductor have matched with the payment details mentioned in the TDS / TCS statement filed by deductors. In case of government deductors, detail of TDS / TCS booked in Government accounts have been verified by Pay and Account Officer (PAO))
- O – Overbooked (Payment details of TDS / TCS deposited in bank by deductor have matched with details mentioned in the TDS / TCS statement but the amount is over claimed in the statement. Final (F) credit will be reflected only when deductor reduces claimed amount in the statement or makes new payment for excess amount claimed in the statement)
7-Tax has been deducted at the rate of 20% due to non-availability of PAN. How can I issue Form 16A?
PAN is mandatory to issue Tax deduction certificates.
8-What should I do if I am not getting Form 16 from TRACES?
Ensure that you have filed Form 24Q for Quarter 4 with Annexure II. It is mandatory to file Annexure II giving actual particulars for the entire financial year, as Form 16 is generated on the basis of information provided in Annexure – II.
9-How are the particulars of those employees who are employed with more than one employer in a financial year to be shown in Form 16?
The employee should declare previous salary and TDS details, if any, with the current employer and the same should be considered by the current employer while deducting TDS on salary and issuing Form 16.
10-I have worked with different branch offices during the financial year. How will information for Part B appear in my Form 16?
Part B information will be issued by the employer. TDS CPC will provide Form 16 containing only Part A details.
11-What are the guidelines for an employer to deduct TDS and issue Form16?
Following are the guidelines for an employer to deduct TDS and issue Form 16:
- Make mandatory for all the employees to declare previous salary, investment proofs and TDS details, if any
- Employer has to consider the declaration before deducting TDS from salary
- Fill Annexure II for all employees who work or worked for any period of time during the current financial ye
- Issue Form 16 to all the employees
- It is the duty of an employee to provide valid PAN. If employee has worked with more than one employer in a financial year, employee should declare previous salary and TDS detail, if any, with the current employer
12-What are the details available in TDS certificate (Form 16 / 16A)?
- The details available are as below:
- Name / address / TAN of Deductor
- Name / address / PAN of Tax Payer
- Certificate Number
- Summary of payment made by deductor
- Summary of tax deducted at source in respect of tax payer
- Details of tax deducted and deposited in Central Government account through challan / Book Adjustment (in case of Government deductor)
- Details of tax deducted and deposited in Central Government account through challan (in case of Non-Government deductor)
13-What can I do if I am unable to get the TDS certificate (Form 16 / 16A)?
It is the duty of every person deducting tax to issue a TDS certificate. In spite of your request, if you are denied the certificate then there is a chance that the tax deducted has not been deposited by the deductor to the government account. Please inform the department (PRO or TDS section) which will then do the needful.
14-I have not received TDS certificate from my employer. Can I claim TDS deducted from my salary?
Yes. The claim can be made in your return. Department, however, will raise a demand which will not be enforced on you but on your employer.
15-If a deductee comes back stating that the original TDS certificate is lost, can a duplicate certificate be issued?
Yes. Deductor will have to issue the duplicate certificate.
16-Even if no taxes have been deducted from salary, is there any need for my employer to issue Form 16 to me?
Form 16 is a certificate of TDS and in your case it will not apply. However your employer must issue a salary statement.
17-If I am receiving my pension through a bank who will issue Form 16 or pension statement to me - the bank or my former employer?
The bank will issue Form 16.
18-What is a certificate number?
Certificate number is present in Form 16 / Form 16A issued by Deductor.