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TDS Certificate Issue

About of Service

Purpose

  • Proof of Deduction: TDS certificates act as proof that the tax has been deducted at source and deposited with the government.
  • Claim Tax Credit: Allows deductees to claim the deducted tax as credit against their total tax liability.
  • Compliance: Ensures that deductors comply with tax laws and regulations.

Types of TDS Certificates

  • Form 16: Issued for TDS on salaries, showing detailed salary and tax information.
  • Form 16A: Issued for TDS on payments other than salaries (e.g., interest, rent, professional fees).
  • Form 16B: Issued for TDS on the sale of property.
  • Form 16C: Issued for TDS on rent payments under Section 194-IB.

Details Included

  • Deductor's Information: Name, address, and TAN.
  • Deductee's Information: Name, address, and PAN.
  • Payment Details: Amount paid and nature of payment.
  • TDS Details: Amount deducted, rate, and date of deduction.
  • Challan Details: Challan Identification Number (CIN) and date of deposit.

Issuance Timeline

  • Form 16: By 15th June of the following financial year.
  • Form 16A: Quarterly, within 15 days of the due date for filing the TDS return.
  • Form 16B: Within 15 days of filing Form 26QB.
  • Form 16C: Within 15 days of filing Form 26QC.

Penalties for Non-Issuance or Delay

  • Late Penalty: ₹100 per day for each day the certificate is not issued, up to the TDS amount.
  • Legal Consequences: Additional penalties and possible prosecution under the Income Tax Act.

Correction and Reissue

  • Correction: Revised certificates can be issued if there are errors.
  • Reissue: Duplicates can be issued if the original is lost or damaged.

Digital Issuance

  • Electronic Format: Can be issued electronically with a digital signature.
  • TRACES Portal: Deductors can generate and download certificates, and deductees can verify them.

Compliance and Record Keeping

  • Record Maintenance: Deductors must maintain records of issued TDS certificates.
  • Audit Compliance: Ensures compliance during tax audits and assessments.

Practical Importance

  • Loan and Visa Applications: Required for financial and legal processes.
  • Tax Planning: Helps in accurate tax planning and filing of returns.

By issuing TDS certificates accurately and timely, deductors help ensure compliance with tax regulations, and deductees can efficiently manage their tax liabilities and credits

Uses and Benefits
  • . Purpose of TDS Certificates Proof of Tax Deduction: TDS certificates serve as proof that tax has been deducted at source and deposited with the government. Claim Tax Credit: Deductees use TDS certificates to claim the deducted tax as a credit against their total tax liability. Compliance with Regulations: Issuing TDS certificates is a statutory obligation for deductors, ensuring compliance with income tax laws.
  • Types of TDS Certificates Form 16: Issued for TDS deducted on salaries. It contains detailed information about the salary paid and taxes deducted. Form 16A: Issued for TDS deducted on income other than salaries, such as interest, rent, and professional fees. Form 16B: Issued for TDS deducted on the sale of property. Form 16C: Issued for TDS deducted on rent payments under Section 194-IB.
  • . Details Included in TDS Certificates Deductor's Information: Name, address, and TAN (Tax Deduction and Collection Account Number). Deductee's Information: Name, address, and PAN (Permanent Account Number). Details of Payment: Nature and amount of payment subject to TDS. TDS Details: Amount of TDS deducted, rate of TDS, and date of deduction.
  • Issuance Timeline Form 16: Must be issued annually by 15th June of the following financial year. Form 16A: Must be issued quarterly within 15 days of the due date for filing the TDS return. Form 16B: Must be issued within 15 days of filing Form 26QB. Form 16C: Must be issued within 15 days of filing Form 26QC.
  • Penalties for Non-Issuance or Delay Penalty for Delay: A penalty of ₹100 per day for each day the certificate is not issued, subject to a maximum amount equal to the TDS amount. Legal Consequences: Non-issuance can lead to further penalties and prosecution under the Income Tax Act.

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Charges Structure & Our Scope of Work

Additional Disclosure

  1. Details of Deductor (Payer):

    • Provide complete details of the deductor, including name, address, TAN (Tax Deduction and Collection Account Number), and PAN (if applicable).

  2. Details of Deductee (Recipient):

    • Include details of the deductee, such as name, address, PAN (Permanent Account Number), and status (individual, company, etc.).

  3. Nature and Amount of Payment:

    • Specify the nature of income on which TDS is deducted (e.g., salary, interest, contractor payments) and the corresponding amount.

  4. Rate of TDS:

    • Mention the rate at which TDS has been deducted, as per the provisions of the Income Tax Act and relevant sections.

  5. Periodicity:

    • State the period or financial year for which the TDS certificate is issued, covering all transactions within that period.

  6. TDS Calculation Basis:

    • Provide details on how TDS was calculated, including any exemptions, thresholds, or deductions considered.

  7. Certificate Number and Date:

    • Assign a unique serial number to each TDS certificate issued and specify the date of issuance.

  8. Verification and Authentication:

    • Certify the accuracy and completeness of the information provided in the TDS certificate, signed by an authorized signatory of the deductor.

  9. Mode of Payment:

    • Indicate the mode of payment through which TDS has been remitted to the government (e.g., online payment, cheque, demand draft).

Terms & Conditions

Documents & Detail Required

  1. Details of Deductor (Payer):

    • Name, address, and TAN (Tax Deduction and Collection Account Number) of the deductor.
    • PAN (Permanent Account Number) of the deductor, if applicable.

  2. Details of Deductee (Recipient):

    • Name, address, and PAN (Permanent Account Number) of the deductee.
    • Status of the deductee (individual, company, etc.).

  3. Nature of Payment:

    • Description of the nature of income on which TDS has been deducted (e.g., salary, interest, contractor payments).

  4. Amount of Payment:

    • Total amount paid or credited.
    • Amount on which TDS has been deducted.
    • TDS deducted and deposited to the government.

  5. Rate of TDS:

    • Rate at which TDS has been deducted, as per the applicable provisions of the Income Tax Act.

  6. Periodicity:

    • Financial year or period for which the TDS certificate is issued, covering all transactions within that period.

  7. Verification and Authentication:

    • Certification by an authorized signatory of the deductor verifying the accuracy and completeness of the information provided in the TDS certificate.

  8. Certificate Number and Date:

    • Unique serial number assigned to each TDS certificate issued.
    • Date of issuance of the TDS certificate.

  9. Mode of Payment:

    • Details of the mode through which TDS has been remitted to the government (e.g., online payment, cheque, demand draft).

  10. Rectification and Corrections:

    • Provision for rectification or corrections in case of any errors or discrepancies identified after issuance of the TDS certificate.

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OUR REVIEW

FAQ'S

What is a TDS Certificate?

: What is a TDS certificate? A: A TDS certificate is a document issued by the deductor to the deductee, showing the amount of tax deducted at source (TDS) and deposited with the government.

Types of TDS Certificates

: What are the different types of TDS certificates? A: Form 16: For TDS on salaries. Form 16A: For TDS on payments other than salaries, like interest, rent, and professional fees. Form 16B: For TDS on the sale of property. Form 16C: For TDS on rent payments under Section 194-IB

Issuance Timeline

When should TDS certificates be issued? A: Form 16: By 15th June of the following financial year. Form 16A: Quarterly, within 15 days of the due date for filing the TDS return. Form 16B: Within 15 days of filing Form 26QB. Form 16C: Within 15 days of filing Form 26QC.

4. Details Included in TDS Certificates

What information is included in a TDS certificate? A: Deductor's name, address, and TAN. Deductee's name, address, and PAN. Payment amount and nature. TDS amount, rate, and date of deduction. Challan Identification Number (CIN) and deposit date.

How to Generate TDS Certificates

: How are TDS certificates generated? A: TDS certificates are generated and downloaded from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal by the deductor.