CBDT issues Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 through TRACES

May 09, 2019 | by Avantis RegTech Legal Research Team

The Central Board of Direct Taxes (CBDT) on May 06, 2019, has issued the Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules, 1962 which stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc. through TRACES.

Vide Central Board of Direct Taxes Notification No. 36/2019 dated April 12, 2019, 'Part B (Annexure) of Form 16' and 'Annexure II of Form no. 24Q' in Appendix II to the Income tax Rules, 1962 have been amended.

Therefore, CBDT specifies the procedure, formats and standards for the purposes of generation and download of certificates from "TDS Reconciliation Analysis and Correction Enabling System" or (https://www.tdscpc.gov.in) (TRACES Portal), as below:

Issue of Part B of Form No. 16 For Deduction of Tax At Source Made on or After April 01, 2018:

All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall be able to issue the TDS certificate in Part B of Form No. 16 (by generation and download through TRACES Portal) in respect of all sums deducted on or after April 01, 2018, provided that the relevant TDS statement for the fourth quarter i.e. Form 24Q is furnished alongwith duly filled in Annexure II of Form 24Q.

Authentication of TDS Certificate in Form No. 16:

The deductor before issuing the TDS certificate in Form No. 16 to the deductee, shall authenticate the correctness of contents mentioned therein and verify the same either by using manual signature or by using digital signature.

'Part B (Annexure)' of Form No. 16 item nos. 2(f) and 10(k):

The item nos. 2(f) and 10(k) in Part B (Annexure) of Form 16 required to be filled-in by the deductor manually and shall be made available at the bottom of the TRACES generated Form 16 (Part B) and the deductor shall duly fill details, where available, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.

Currently, Form 16 should be issued by June 15th of the Financial Year immediately following the financial year in which income was paid and tax deducted.

[Notification No. 09/2019]

Click here to download the Notification.


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