Important points to remember while issuing TDS Certificate of Tax Deducted at source to the Tax Deductee/Payee – Sec. 203 and rule 31.

All the deductor must remember important points while issuing TDS Certificate of Tax Deducted at source to the Tax Deductee/Payee – Sec. 203 and rule 31.

Certificate of tax deducted at source shall specify:
1. Valid permanent account number (PAN) of the deductee.
2. Valid tax deduction and collection account number (TAN) of the deductor.

• book identification number(s) where deposit of tax deducted is without production of challan in case of an office of the Government,
• challan identification number(s) in case of payment through bank,
• receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31 A,
• 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”,

3. In respect of cases where Salaries exceeds Minimum threshold limit in Form No. 16

• The certificates issued in Form No. 16 can be issued under Digital Signature by virtue of Circular No. 2/2007 dated 21/05/2007

4. Due Dates by which certificate is to be submitted to the payee:

• Other Payments – Form No. 16A – within one month from the end of the month in which payment is made or where more than one payment is made in a year at the request of the payee with in one month from the end of the financial year.

5. Where tax is deducted before the 1st day of April, the provisions of this rule shall apply as they stood immediately before their substitution by the Income tax (Amendment) Rules.

Posted in: eTDS/TCS Returns Tips,TDS Calculations