IT Notification: Procedure, format and standards for issuance of TDS Certificate Form 16 Part B through TRACES

IT Notification: Procedure, format and standards for issuance of TDS Certificate Form 16
Part B through TRACES

F. No. Pr. DGIT(S)/CPC(TDS)/Notification/Part-B Form16/2019-20
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems) New Delhi



Notification No. 09/2019

New Delhi, 06th, May, 2019

Subject: 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
through TRACES- reg.

Section 203 of the Income-tax Act.1961 (“the Act”) read with the Rule 31 of
the Income-tax Rules 1962 (“the Rules”) 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. The relevant
forn1 for TDS certificate in case of deduction under section 192 of Chapter
XVII-B of the Act is Forn1 No. 16 which is to be issued annually. TDS
Certificate in Form No 16 has two parts viz. Part A and Part B (Annexure).
Part A contains details of tax deduction and deposit and Part B (Annexure)
contains details of income.
2. Vide Central Board of Direct Taxes Notification No. 36/2019 dated
12.04.2019, ‘Pait B (Annexure) of Form 16’ and ‘Annexure II of Form no.
24Q’ in Appendix II to the Income tax Rules, 1962 have been amended.
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3. In exercise of the powers delegated by the Central Board of Direct
Taxes, under sub-rule (6A) of Rule 31 of the Income-tax Rules, 1962, the
Principal Director General of Income-tax (Systems) hereby specifies the
procedure, formats and standards for the purposes of generation and
download of certificates from “TDS Reconciliation Analysis and Cqrrection
Enabling System” or (https://www.tdscpc.gov.in) (hereinafter called TRACES
Portal), as below:


3.1 ISSUE OF PART b OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE MADE
ON OR AFTER 1st day of April, 2018:
All deductors (including Government deductors who deposit TDS in the
Central Govemrnent Account through book entry) shall be able to issue the
TDS certificate in Part B of Form No. 16 (by •gel1eraticm and download
through TRACES Portal) in respect of all sums deducted on_or after the 1st
day of April, 2018 under the provisions of section 192 of Chapter XVll-B
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 as
substituted vide Central Board of Direct Taxes Notification No. 36/2019
dated 12.04.2019. To ensure generation of accurate TDS certificate in Part
B of Form No. 16, the deductor(s) need to report correct data in Annexure
II of Form 24Q. The TRACES generated Form No. 16 shall have a unique TDS
certificate number.
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3.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:
The deductor, issuing the TDS certificate in Form No. 16 by downloading it
from the TRACES Portal, shall, before issuing to the deductee authenticate
the correctness of contents mentioned therein and verify the same either by
using manual signature or by using digital signature in accordance with
sub-rule (6) of Rule 31.


3.3 ‘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 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. The deductors who opt to authenticate
Part B of Form No. 16 manually will be provided with the download of the
Part B of Form No. 16 alongwith these item nos. 2(f) and 10(k) appearing at
the bottom of the Form. The deductor shall duly fill details, where
applicable, in item numbers 2(f) and 10(k) before furnishing of Part B
(Annexure) to the employee. The deductors who opt to authenticate Part B of
Form No. 16 using Digital Signature Certificate (DSC) will be provided with
the download of Part B of Form No. 16 without item nos. 2(f) and 10(k) and
therefore these details shall be required to be prepared by the employer
and issued to the employee, where applicable, before furnishing of Part B
to the employee.
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3.4 Sub rule (3) of Rule 31 of the Income tax Rules, 1962 prescribes the
time limit for issuance of Form 16 by the deductor to the employee.
Currently, Form 16 should be issued by 15’th June of the Financial Year
immediately following the financial year in which income was paid and tax
deducted.
4. This issues with approval of the Principal Director General of
Income-tax (Systems).
(Ravi Kant Choudhary)
JCIT (OSD) (CPC-TDS),
O!o the Pr. Director General oflncome-tax (Systems),
New Delhi

Source:
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