23rd May 2011

Dear All,

Please note that CBDT has issued a circular (Circular No.03/2011 dated 13th May 2011), making it mandatory to issue Form 16A downloaded through TIN (www.tin-nsdl.com) website, for specific category of deductors. This is applicable from 2011-12 Financial year onwards. (Optional for financial year 2010-11)

APPLICABILITY

This is applicable mandatorily to Companies including, a banking company to which the Banking Regulation Act,1949 applies, Any bank or banking institution, referred to in section 51 of that Act, A co-operative society engaged in carrying the business of banking. (However it remains optional for other category of deductors.)

DIGITAL SIGNING OF FORM 16A

Further, it is also clarified that, Digital signing of Form 16A shall be allowed in case, Form 16A is generated through TIN website data. Deductor at his option can authorize form 16A either through Digital signature or manual signature. (However, for Form 16A, NOT generated using TIN website data shall be authorized through manual signature only.)

HOW TO DOWNLOAD FORM 16A DATA

Deductor should follow the "TAN Registration" login, from where currently consolidated TDS file is given for download. It is a free online verified facility provided by NSDL. Once the request is placed, a zip file containing the data will be sent over email within 48 hours. Requisite TDS software would be made available with the provision to generate Form 16A from such data downloaded from NSDL website. (NSDL has also give a Java based utility to generate such Form 16A at the same login area.)

Copy of circular is attached herewith for your immediate reference.

Regards,

R. Muralidharan