ring
TDS-Provisions-of-the-Income-Tax-Act

TDS Certificate

TDS Certificate

TDS or Tax Deduction at Source refers to a tax collection methodology under income tax law. Any person who is required to deduct tax at source and has deducted TDS must issue a TDS certificate. TDS certificate helps the assessee to claim the applicable tax credit, along with the applicable refunds. This article mentions the different types of TDS certificates.

TDS Deductor

Any person who is engaged in the deduction of TDS is required to issue a TDS certificate. To deduct TDS, a deductor must first obtain TAN registration. Presently, TAN registration is provided along with company registration automatically.

Types of TDS Certificate

TDS certificates are of two types namely, Annual TDS Certificate and Quarterly TDS Certificate.

Annual TDS Certificate

Annual TDS certificate is issued to employees for TDS on Salary. The TDS certificate issued by employers to employees is also known as Form 16. Form 16 should contain details pertaining to the TDS deducted by an employer from salary and the details of TDS deposited with Government. Taxpayers should note that Form 16 or need not be issued for employees whose total income is less than Rs 2,50,000, as TDS would not be applicable in such cases.

Quarterly TDS Certificate

Quarterly TDS certificates are issued for deduction of TDS on income other than salary and are issued in Form 16A. For instance, the quarterly TDS certificate is issued by banks when TDS is deducted on interest earned by the depositor on fixed deposits.

Due Date for Issuing TDS Certificate

As per the provisions of the Income Tax Act, TDS certificate must be issued by employers to an employee within 15 days of filing their fourth-quarter TDS returns. Hence, Form 16 must be issued within 15 days of filing the fourth quarter TDS returns. The due dates for issuing Form 16A are listed below:

  • For first-quarter of 1st April to  30th June – 15th August
  • For second-quarter of 1st July to 30th September – 15th November
  • For third-quarter of 1st October to 31st December – 15th February
  • For fourth-quarter of 1st January to 31st March – 15th June

Digital Signature

Deductors can digitally sign the TDS certificate using a digital signature certificate. A verified digital signature on a TDS certificate will be supported by a checkmark, in contrast to the unverified one which bears a question mark.

Penalty for Not Issuing TDS Certificate

If a deductor fails to issue TDS certificate within the specified date, he/she will be levied with a penalty of Rs 100 per day for each certificate. The amount of penalty will not exceed the TDS amount for the quarter.

Cross-Verification of Details

The TDS certificate should be verified with Form 26AS. Form 26AS is an annual record which contains details of deduction. Form 26AS can be used to facilitate the cross verification of details stated in the TDS certificate with that of Form 26AS. In the event of any mismatch, the concerned taxpayer must approach the deductor for rectification of the same.

Other Related Guides

Form 2C Form 2C - Income Tax Income tax Form 2C is a return for persons not liable to file income tax return u/s 139(1) or residing in such areas or who at a...
2018 Due Dates for Company – MCA and Income ... 2018 Due Dates for Company - MCA and Income Tax Return All companies registered in India must file MCA annual return and income tax return each year,...
EFiling Income Tax EFiling Income Tax Efiling income tax or electronic income tax filing is submitting income tax returns online. Efiling income tax return is convenien...
Form 27EQ Form 27EQ - Income Tax Quarterly statement of collection of tax at source under section 206C of the Income‐tax Act for the quarter ended(June/Septemb...
Important LLP Compliance Important LLP Compliance - Due Date & Penalty An LLP is a form of legal business entity that gives the benefits of limited liability but allows i...

Post by Sreeram Viswanath

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.

User

Hi there,

Online We are available online!