LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Issue of TDS Certificate in Form 16A

Muralidharan (Self Employed) (1034 Points)

05 March 2011

Dear Members

The IT department vide circular dated 31st May 2010 has amended the TDS rules. Accordingly revised Form 16 and Form 16A has been notified.

As per the amended rules TDS Certificate for Non-Salary cases has to be issued on Quarterly basis. This has become a tedious process for the accounts personnel of the deductors.

Kindly advise whether we can still continue to issue TDS Certificate Annually for Non-Salary cases after the end of the financial year. Will the issue of the certificate annually would be viewed very seriously by the department. What are the consequences a deductor has to face from thedepartment including the penalty.

with regards

R. Muralidharan

Reply
Follow
Share

1 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 05 March 2011

if the client is of regular nature , i.e getting payment in regular mode and u r deducting TDS then u can obtain a request from party to issue TDS certificate annually,

but if the client is not of regular nature . i.e they have done business on incidental basis, then u have to issue them quarterly basis, ( this is to facilate them to cross chek the correctness of TDS deducted and credited in their account, and if erros are found then they can request you to rectify the same in time)