4.6 Furnishing of Certificate for Tax Deducted (Section 203):
4.6.1 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.
4.6.2 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.
4.6.3 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.
4.6.4. 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)
4.6.5. Furnishing of particulars pertaining to perquisites, etc (Section 192(2C):
4.6.5.1 As per section 192(2C), the responsibility
of providing correct and complete particulars of perquisites or profits
in lieu of salary given to an employee is placed on the person
responsible for paying such income i.e., the person responsible for
deducting tax at source. The form and manner of such particulars are
prescribed in Rule 26A, Form 12BA and Form 16 of the Rules. Information
relating to the nature and value of perquisites is to be provided by the
employer in Form 12BA in case salary paid or payable is above
Rs.2,00,000/-. In other cases, the information would have to be provided
by the employer in Form 16 itself.
4.6.5.2 An employer, who has paid the tax on
perquisites on behalf of the employee as per the provisions discussed in
paras 3.2 and 3.3 of this circular, shall furnish to the employee
concerned, a certificate to the effect that tax has been paid to the
Central Government and specify the amount so paid, the rate at which tax
has been paid and certain other particulars in the amended Form 16.
4.6.5.3 The obligation cast on the employer under
Section 192(2C) for furnishing a statement showing the value of
perquisites provided to the employee is a crucial responsibility of the
employer, which is expected to be discharged in accordance with law and
rules of valuation framed there under. Any false information, fabricated
documentation or suppression of requisite information will entail
consequences thereof provided under the law. The certificates in Forms
16 and/or Rule 12BA specified above, shall be furnished to the employee
by 31st May of the financial year immediately following the financial
year in which the income was paid and tax deducted. If he fails to issue
these certificates to the person concerned, as required by section
192(2C), he will be liable to pay, by way of penalty, under section
272A(2)(i), a sum which shall be Rs. 100/- for every day during which
the failure continues.
