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Is there any provision to punish the Tax Deductor when will not issue TDS certificate (Form 16/16A) within time as per Income Tax Act, 1961.

For non compliance of each and every part mentioned above, there is a separate penalty and consequences under the Income Tax Act-1961.

For non issuance of TDS Certificate within a prescribed time, penalty is imposable u/s 272A (2) @ Rs. 100/- per day during which the failure continues. However, the amount of penalty cannot exceed the amount of tax deductible/deducted.

For non filing of TDS Return also, there is a penalty provision of Rs 100 per day.

Without Quarterly TDS Return being filed by the Deductor, you will not be entitled for the Tax Credit in respect of TDS done from payment made to you.

In your case, you should have been issued the TDS Certificate within the prescribed time by the Tax Deductor. However, there is a general grievance that in many cases the Tax Deductor do not issue TDS certificate despite the fact that many requests & reminders are given by the Deductees for such issue of certificates. In such cases,

Deductee can follow the following approach:
Write a letter to the Deductor incorporating:
  • The details of payments done to you and the tax deducted there from.
  • Provision of Section 203 which requires the Deductor for issue of tax certificate within one month from the date of tax deduction
Keep the proof of letter issued to the Deductor

If despite this, the certificate is not issued, write a letter to Joint Commissioner or Addl. CIT of TDS wing who has jurisdiction over the Deductor mentioning the detailed facts elaborated above.

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