(Q1.)What is Form 16 / 16A?
- It is the certificate of deduction of tax at source in accordance with Chapter XVII-B of Income Tax Act, 1961.
-Form 16 is issued on deduction of tax by the employer on behalf of the employee under section 192 of Income Tax Act, 1961.
-Form 16A is issued if the deduction of tax is under any other provision except sec 192 of Chapter XVII-B of Income Tax Act, 1961.
-These certificates provide details of Tax Deducted at Source (TDS) / Tax Collected at Source (TCS) for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers u/s 203 of Income Tax Act, 1961 (Q2.)Is there any format for these certificates?
- Form 16 / 16A is issued as per the provisions of Rule 31(1).
(Q3.)How are these forms generated?
- These forms are generated by TDS CPC on processing the quarterly TDS / TCS statements filed by deductor. Deductor will have to raise a request for the same on TRACES. Deductor shall have the option to digitally sign the certificates.
(Q4.)What is the due date for the issue of these certificates? - Due date for the issue of these certificates are as under:-
| Sr. No. | Form | Periodicity | Due Date |
| 1 | 16 | Annual | By 31st day of May of the Financial Year immediately following the financial year in which the income was paid and tax deducted |
| 2 | 16A | Quarterly | Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A |
(Q5.)Due to non-availability of PAN, tax has been deducted at higher rate. How can deductor provide Form 16 (Part A) / Form 16A without availability of PAN?
- Valid PAN is mandatory for generation of Form 16(Part A)/16A from TRACES. Correction statement is required to be filed to report the valid PAN for downloading Form 16 (Part A) / Form 16A. Further, Transaction based report is available with a summary of transactions in respect of Non Resident of India Deductees who's PAN could not be reported in TDS/TCS Statement due to non-availability of PAN.
(Q6.)What are the different matching statuses in Form 16 / Form 16A?
- Following are different matching statuses in Form 16 / Form 16A:
U-Unmatched (Deductor has not deposited taxes or has furnished incorrect particulars of tax payment. Final credit will be reflected only when payment detail in bank matches with details of deposit in TDS/TCS statement)
P-Provisional (Provisional tax credit is effected only for TDS / TCS statement filed by Government deductor. 'P' status will be changed to Final (F) on verification of payment details submitted by Pay and Account Officer (PAO)
F-Final (In case of non-government deductors, payment details of TDS / TCS deposited in bank by deductor have matched with the payment details mentioned in the TDS / TCS statement filed by deductors. In case of government deductors, detail of TDS / TCS booked in Government accounts have been verified by Pay and Account Officer (PAO)
O-Overbooked (Payment details of TDS / TCS deposited in bank by deductor have matched with details mentioned in the TDS / TCS statement but the amount is over claimed in the statement. Final (F) credit will be reflected only when deductor reduces claimed amount in the statement or makes new payment for excess amount claimed in the statement. (Q7.)What should I do if I am not getting Form 16 from TRACES?
- Please ensure that you have filed Form 24Q for Quarter 4 with Annexure II. It is mandatory to file Annexure-II giving actual particulars for the entire financial year, as Form 16 is generated on the basis of information provided in Annexure-II.
(Q8.)How are the particulars of those employees who are employed with more than one employer in a financial year to be shown in Form 16?
- The employee should declare previous salary and TDS details, if any, with the current employer and the same should be considered by the current employer while deducting TDS on salary and issuing Form 16.
(Q9.)I have worked with different branch offices during the financial year. How will information for Part B appear in my Form 16?
- Part B information will be issued by the employer. TDS CPC will provide Form 16 containing only Part A details.
(Q10.)What are the guidelines for an employer to deduct TDS and issue Form16? - Following are the guidelines for an employer to deduct TDS and issue Form 16:
- Make mandatory for all the employees to declare previous salary, investment proofs and TDS details, if any.
- Employer has to consider the declaration before deducting TDS from salary.
- Fill Annexure II for all employees who work or worked for any period of time during the current financial year.
- Issue Form 16 to all the employees whose TDS was deducted.
- It is the duty of an employee to provide valid PAN. If employee has worked with more than one employer in a financial year, employee should declare previous salary and TDS detail, if any, with the current employer
(Q11.)What are the details available in TDS certificate (Form 16 / 16A)?
- The details available are as below:
Name / Address / TAN of Deductor
Name / Address / PAN of Tax Payer
Certificate Number
Summary of payment made by Deductor
Summary of tax deducted at source in respect of Tax Payer
Details of tax deducted and deposited in Central Government account through challan / Book Adjustment (in case of Government deductor)
Details of tax deducted and deposited in Central Government account through challan (in case of Non-Government deductor) (Q12.)What can I do if my deductor denies to issue the TDS certificate (Form 16 / 16A)?
- It is the duty of every person deducting tax to issue a TDS certificate. In spite of your request, if you are denied the certificate then there is a chance that the tax deducted has not been deposited by the deductor to the government account. Please inform the department (PRO or TDS section).
(Q13.)I have not received TDS certificate from my employer. Can I claim TDS deducted from my salary?
- Yes. The claim can be made in your ITR. however, Department will raise a demand which will not be enforced on you but on your employer.
(Q14.)If a deductee comes back stating that the original TDS certificate is lost, can a duplicate certificate be issued?
- Yes. Deductor can issue the duplicate certificate.
(Q15.)Even if no taxes have been deducted from salary, is there any need for my employer to issue Form 16 to me?
- Form 16 is a certificate of TDS, in case no TDS was deducted, there is no need for your employer to issue Form 16 to you. Further, your employer must issue a salary statement.
(Q16.)If I am receiving my pension through a bank who will issue Form 16 or pension statement to me - the bank or my former employer?
- The bank will issue Form 16.
