Wednesday, October 29, 2014

TDS :- Importance of TDS Form 16 / 16A generated by TRACES

Friends,    There are too many deductors in India who deduct or collect  TDS or TCS and submit their statements timely.  But they do not know about that they should have to issue Form 16 or Form 16A with in prescribed time.  If they do not do accordingly, it attracts a penalty under the provisions of section 272A of the Act of Rs. 100/- per day for delay period.   However TDS (CPC) has also communicated to all deductors vide his communication  No./Date  3/21-June-2014 which is also given below :-

Dear Deductor,

As per the records of Centralized Processing Cell (TDS), the TDS Statements have been filed by you for different quarters for the Financial Year 2013-14. However, you have not yet downloaded TDS Certificates (Forms 16/ 16A) from our portal.
Please refer to the following provisions of the Income Tax Act, 1961 in this respect:

Downloading of TDS Certificates from TRACES made mandatory:
  • In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from "TDS Reconciliation Analysis and Correction Enabling System" or (hereinafter called TRACES Portal).
TDS Certificates downloaded only from TRACES hold valid:
  • In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.
Due Date for downloading and Penalty for non-compliance:
  • Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.
Assistance for downloading TDS Certificates from TRACES:
  • You can logon to our Portal and refer to our e-tutorials to download TDS Certificates.
For any further assistance, you can also write to or call our toll-free number 1800 103 0344.
CPC (TDS) is committed to provide best possible services to you.


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