Have you got your TDS certificate? or if you are an employer/deductor, have you issued the TDS certificate on time. If you are looking for information on TDS certificates, Form 16 ( salary) or Form 16A (Non Salary), then you are in right place. You will find here complete information on it and you can also ask queries related to it.
MEANING OF TDS CERTIFICATE WITH EXAMPLE
Income tax is paid by the taxpayer to the government under income tax act 1961. Tax deducted at source (TDS) is a measure through which tax is collected when transaction of income is initiated. It is deducted by the payer of income for receiver of income.
For example Mr. X is an employee of M/s. ABC Ltd in FY 2015-16 Mr. X salary is Rs. 50,000.
M/s. ABC Ltd. pays Rs. 45,000 to Mr. X and deducts Rs. 5,000 as TDS.
There are different rates of TDS for different types of income. Click here to check the rate of TDS for FY 2015-16.
Now M/s. ABC Ltd. will deposit Rs. 5,000 as TDS to the Govt in the name of Mr. X. M/s ABC Ltd. will also give a TDS certificate to Mr. X certifying that Rs. 5000 TDS is deducted from Mr. X salary for FY 2015-16. This TDS certificate is downloaded by M/s ABC Ltd. from TRACES (website of Govt.) and given to Mr. X.
The TDS certificate are of two types. One is form 16 and other is Form 16 a.
Form 16 is given if the TDS is deducted for salary income. Form 16a is given if TDS is deducted for income other than salary. In the above example M/s ABC will give TDS certificate in Form 16.
Form 16 is given as TDS certificate for TDS deducted on salary income. Form 16 contains two parts, Part A and Part B. Part A of the Form 16 will have name and address of both employer and employee. It will have unique certificate no. on the top. Then it will have general information like PAN of the deductor, TAN of the deductor, PAN of the employee, assessment year and the period. Further it will have information related to TDS amount deducted and amount on which it has been deducted, quarter wise deduction. The TDS certificate ( form 16) will be signed by the employer.
This is how the part A of form 16 look like.
Part B of the form 16 is prepared by the employer itself and given to the employee. It is also called annexure to form 16. It includes the computation of tax details. With the help of Part B of the form 16 income tax return is filed for salaried persons.
Form No. 12BA is also attached to the form 16 which contains detailed list of all perquisites and profit in lieu of salary given to the employee.
Form 16 format
As an taxpayer you can always cross verify the information given in form 16 with the form 26as. Form 26as can be downloaded by logging in to your income tax account https://incometaxindiaefiling.gov.in/
Your employer should give you the form 16 (TDS certificate ) with in reasonable time.
Check here the TDS certificate download due date sec 203 and penalty for the employer. Employer should download the form 16 with time given by the income tax department.
Form 16A is given as TDS certificate for TDS deducted on income other than salary income. The content of form 16A is similar to part A of form 16. There are no parts in form 16A.
Check here the TDS rate chart for income other than salary for FY 2015-16.
Form 16A is also given by the tax deductor and content of the same can be cross verified with the form 26as.
Most of the information contained in the form 16A is available in the form 26as hence less people ask for form 16A now a days. But form 16 is necessary for a employee since the Salary break given there is not present in form 26as.
So suppose if have a FD with your bank and the bank has deducted TDS on it. The same you can check it with form 26as by logging in income tax website. You may avoid asking the bank for TDS certificate.
You can also avoid the TDS by requesting the bank in form 15G or form 15H if you estimate that your total income will not exceed the Gross total income will not exceed maximum amount not chargeable to tax.
Hope your most of the queries related to form 16 and form 16a are clear.
Password to open Form 16 A is TAN number in capital letters
Traces PDF converter utility is used in converting the text TDS certificate files into PDF. When we download TDS certificate from TRACES website, it is in text form. We need to convert it into PDF format by downloading the Traces PDF Converter Utility.
How to download Traces PDF Converter V1.3L Light Version ?
You need to Login to traces with your login ID, password and TAN No.
Then Click on “Requested Downloads” Under “Download” menu
In the end you will find a link to DOWNLOAD TRACES PDF CONVERTER UTILITY.
Then install it in your system, double click on the utility icon created on the desktop. Once the screen is opened, select the text file i.e TDS certificate 16/16A , select the DSC, if you want your signature to be Digitally signed. Give password and proceed to save the Certificate in PDF form.
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