Section 203 requires the DDO to furnish to
the employee a certificate in Form 16 detailing the amount of TDS and
certain other particulars. The Act stipulates that the Form 16 should be
furnished to the employee by 31st May after the end of the financial
year in which the income was paid and tax deducted. Even the banks
deducting tax at the time of payment of pension are required to issue
such certificates. Revised Form 16 annexed to Notification dated
31-5-2010 is enclosed. The certificate in Form 16 shall specify
(a) Valid permanent account number (PAN) of the deductee;
(b) Valid tax deduction and collection account number (TAN) of the deductor;
(c) (i) Book identification number or numbers
(BIN) where deposit of tax deducted is without production of challan in
case of an office of the Government;
(ii) Challan identification number or numbers (CIN*) in case of payment through bank.
(d) 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". The receipt number of the quarterly statement is of 8 digit.
It may be noted that under the new TDS procedure, the
accuracy and availability of TAN, PAN and receipt number of TDS
statement filed by the deductor will be unique identifier for granting
online credit for TDS. Hence due care should be taken in filling these
particulars.
Due care should be also be taken in indicating correct CIN/ BIN in TDS certificate.
If the DDO fails to issue these certificates to the person
concerned, as required by section 203, he will be liable to pay, by way
of penalty, under section 272A(2)(g), a sum which shall be Rs. 100/-for
every day during which the failure continues.
It is, however, clarified that there is no obligation to
issue the TDS certificate in case tax at source is not
deductible/deducted by virtue of claims of exemptions and deductions.
If an assessee is employed by more than one
employer during the year, each of the employers shall issue Part A of
the certificate in Form No. 16 pertaining to the period for which such
assessee was employed with each of the employers and Part B may be
issued by each of the employers or the last employer at the option of
the assessee.
The employer may issue a duplicate
certificate in Form No. 16 if the deductee has lost the original
certificate so issued and makes a request for issuance of a duplicate
certificate and such duplicate certificate is certified as duplicate by
the deductor.
Authentication by Digital Signatures:
(i) Where a certificate is to be furnished in
Form No. 16, the deductor may, at his option, use digital signatures**
to authenticate such certificates.
(ii) In case of certificates issued under clause (i), the deductor shall ensure that
(a) the conditions prescribed in para 4.6.1 above are complied with;
(b) once the certificate is digitally signed, the contents of the certificates are not amenable to change; and
(c) the certificates have a control number and a log of such certificates is maintained by the deductor.
Challan identification number (CIN) means the number
comprising the Basic Statistical Returns (BSR) Code of the Bank branch
where the tax has been deposited, the date on which the tax has been
deposited and challan serial number given by the bank.
• The digital signature is being used to
authenticate most of the e-transactions on the internet as transmission
of information using digital signature is failsafe. It saves time
specially in organisations having large number of employees where
issuance of certificate of deduction of tax with manual signature is
time consuming (Circular no. 2 of 2007, dated 21-5-2007)
