+91 8800022202
business@tiwariv.com

TDS Certificates

Home / TDS Certificates

TDS Certificates

Tax Deducted At source (TDS) certificate is provided or issued by the deductor(the person who deducts the tax) to the deductee(person from whose tax is deducted). TDS (Tax Deducted At Source) is a document that serves as proof that tax has been deducted from an individual's income at the source of payment. In India, this is particularly for salaried individuals whose employer deducts tax from their salary and deposit it to the government on their behalf.

Various types of TDS certificates:

  • 1. Form 16 (for TDS on salary)
  • 2. Form 16A(for TDS on NON salary payments)
  • 3. Form 27D(on the sale of goods and services)

TDS Certificates:

  • 1. Annual TDS Certificate - Form 16, issued to employees.
  • 2. Quarter TDS Certificate - Form 16A issued to deductee's

Due dates to issue TDS certificates:

According to income tax act 1961, employer must issue TDS certificates within 15 days after they file their quarterly TDS returns.
Form 16 must be given within 15 days of the 4th quarter report of TDS being filed. Following points for submitting Form 16A:

  • 1 April to 30 June (1st quarter) - 15 August
  • 1 July to 30 September( 2nd quarter) - 15 November
  • 1 October to 31 December( 3rd quarter) - 15th February
  • 1 January to 31 March ( 4th quarter) - 15 June

Here are some key purposes of the TDS Certificate:

  • 1. Proof of tax deduction
  • 2. Filing income tax return
  • 3. Reconciliation of tax liability
  • 4. Verification
  • 5. Claiming tax credit
  • 6. Record keeping etc.

Penalty for non - issuance of TDS Certificates:

If the deductor fails to issue TDS certificate by the deadline, he/she would be fine Rs 100 per day delay for each certificate . But the penalty amount not exceed the amount of TDS for the quarter.
These certificate are important for filing your income tax returns and claiming any excess tax deduction as a refund.
     Overall, TDS certificates play a crucial role in the tax compliance process for both individuals and businesses.