When it comes to online filing of income tax, it becomes focal to ensure that Form 16 is maintained with the assessee for simplifying the return filing procedure. Form 16 is also known as Salary TDS Certificate. The TDS certificates have to be issued within the prescribed time in the prescribed forms as under:
- Form No.16 : For salaries (Salary TDS Certificate)
- Form No.16A : For all other payments (TDS Certificate)
But we will discuss about Form No.16 (Salary TDS Certificate) only. A further insight in of Form 16 has been furnished below:
What is form 16?
- Form 16 is a documentary proof for the purpose of filing online return and is available for all people belonging to the salaried class.
- The Form 16 represents a complete analysis of the income details of an assessee along with necessary adjustments for income tax (Tax Deducted at Source). However, it is only applicable for people who belong to the salaried class.
- In other words you can say it is the proof of tax payment which we have paid advance to employer and employer has paid it to the Government on our behalf.
Why it is used for?
- Form 16 is used only as a proof for people’s accuracy while filing online income tax returns. Since, the form carries all information with respect to the salary of a person along with various tax deductions; it becomes easier for the assessee to file his return on the basis of furnished data in Form 16.
- One can also use Form 16 for personal verification purpose by way of matching the TDS details mentioned in the form with Form 26AS such that there are no disparities in the amount mentioned in the two forms.
Why Form 16 is so popular?
- Popularity of Form 16 mainly comes in from the ease which it provides to the assessee with its pervasiveness. Since every single detail with respect to income of the assessee is mentioned in the form along with provisions and tax deductions, the task of filing online income tax becomes very simple.
- Additionally, the validity of Form 16 can also not be questioned as it not generated by the employees themselves. Rather, it is furnished to them by their employers as a statement of income that justifies their current salary.
From where I have to obtain form 16?
- Form 16 is usually provided by the employer themselves. When people collect their salary, they are also furnished with this form that depicts their distribution of salary and other adjustments such as TDS (Tax Deducted at Source).
- If the same phenomenon does not exists, then make sure you contact your employer and ask for Form 16 at the earliest. You may also take assistance from professionals if desired so.
Time-Limit for Issue of Form 16
Form 16/16A Certificate Time Limit
|Type of Payment||Form 16/16A||Time Limit|
|Salary Payment||Form 16||within 15 days of filing of 4th quarter TDS return|
|Payment other than salary||Form 16A||within 15 days of filing of quarterly return|
Due Dates for Form 16/16A
|Period (Quarterly)||Due Dates|
|1st April to 30th June||15th August|
|1st July to 30th September||15th November|
|1st October to 31st December||15th February|
|1st January to 31st March||15th June|
Penalty for Not Issuing TDS Certificate
The penalty of Rs.100 per day for each certificate delayed. The amount of penalty can not exceed the TDS amount for the quarter.
Issue of Duplicate form 16
If TDS certificate is lost, the person deducting tax at source may issue a duplicate certificate as follows:
- Duplicate in form no.16 can be given after downloading from TRACES portal.
- In case of tax deduction other than salary duplicate form no. 16A can be given after downloading from TRACES Portal.
What should I do if employer is not giving form 16?
The employer has time-limit to issue form 16/ TDS certificate. There may arise a situation where people may not be provided with their Form 16 by their employers. When this situation persists, it should be understood that though, the employer has deducted TDS from the salary of their employees but has not submitted the same with the IT Department. Under such context, firstly check your Form 26 AS, which should also have details with respect to your TDS. If the other form also is clueless about your TDS deduction, then it is time to demand the same from the employer and if the same is still denied, then one can sue his employer for the same.
How to Download Form 16/16A?
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.
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.
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.
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.
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.
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.
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.
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.
Can deductor download Form 16 without being registered on TRACES?
No, only registered user (deductor) on TRACES can download Form 16 / 16A.
While submitting request to download Form 16 / 16A, deductor has entered details correctly in Part 1 and Part 2 in validation details screen, yet it shows error as ‘Invalid Details’ in Part 1 and Part 2. What should deductor do?
Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement.
I am unable to download Form 16 / 16A as the number of PANs for which Form 16 / 16A were submitted was higher, however the PDFs generated were less. What should I do?
Check the status of the PANs for which Form 16 / 16A has not been generated. These PANs might be with inactive status or not present in the TDS statement filed.
What is the password for opening Form 16 / 16A text file?
The password for opening Form 16 / 16A will be your TAN in capital letters, i.e., AAAA11111A.
Registered user on TRACES has updated the communication and address details on TRACES. However while downloading Form 16A, it shows a different address. How can deductor edit address details in Form 16A?
Details updated in ‘Profile’ section of your TRACES account will be saved only in TRACES and will not be updated in TAN database. To change details in TAN database, submit TAN change request form (Form 49B) at www.tin-nsdl.com.
Can I make any changes in the certificate generated by TDS CPC?
The certificates shall be generated in PDF format, therefore they are not editable. Deductor is thereby not permitted to make changes to these certificates. If any error is identified in the certificate, deductor will have to file a correction statement for the same.
Can Form 16 (Part A) / Form 16A be issued manually?
No. Only the Form 16 (Part A) / Form 16A downloaded from TRACES are considered as valid TDS certificates, as per CBDT circular 04/2013 dated 17th April, 2013.
What should I do in case company name is updated incorrectly in Form 16 (Part A) / Form 16A?
You need to check the respective quarterly statement and file a correction for the same. After filling correction, download Form 16 (Part A) / Form 16A.
How can I edit or add detail of authorized person in Form 16 / Form 16A?
Details of authorized person can be updated in ‘Profile’ section of deductor’s account in TRACE