Wednesday, April 20, 2011

New form 16 and 16 A Excel and provision related Forms

(A) Tax Deduction Certificate For Salaried Employees(form 16)

In respect of Tax deducted at source,or tax paid ,on or before 31.03.2010 ,every employer must issue a certificate of deduction of tax at source to every employee from whom tax has been deducted.(section 203).

(1) Form No16 AA(in pdf):Resident Individual having Income from salary before deduction u/s 16  < Rs.150000

(2) Form No 16(in pdf):All employee not covered Under (1) above.

No Form 16 required if NIL tax deducted :The above Forms are TDS deduction forms so if Nil tds has been deducted then above forms are not required to be issued .

Banks releasing Pension to pensioners is also bound to issue Form 16 if TDS has been deducted By the bank(circular 761,13.01.1998)


Time limit: Certificate should be given with in one month from the end of the close of the Financial year.For FY 2009-10,last date is 30.04.2010.

Form 12BA(in PDF): Form 12BA is required to be attached with form 16 if salary is more than 150000 and perks has been provided to the employees ,stating detail and value of the perquisites provided to the employee.If employer fails to furnish this form where ever required without reasonable cause,he shall be liable to penalty at the rate of 100 for every day during which the failures continues.

Digital signature: digital signature on Form 16 by employer is allowed (circular 2/2007 dated 21.05.07)

Quoting Etds Acknowledgment number in form 16: on form 16 ,AD number for etds returns of   all the quarter is required to be filled ,but for last quarter etds return , due date is 15 June ,where as due date for form 16 is 30 April .So department has clarified that if Etds Return has not been filed for the last quarter on the issue date of Form 16 ,then fill "not available as the last quarterly statement is yet to be furnished" against the relevant column of the form 16.

Penalty for Failure to issue Form 16(section 272A):Employer shall be liable for a penalty t the rate of 100 for every day during which failure continues,if delay is without reasonable cause.Total penalty under section 272A,200(3),203,206,should not exceed the amount of tax deductible at source.

Issue of Duplicate Form:If the original certificate is lost then the payer can issue the duplicate certificate on simple paper and not on the form 16.Moreover the assessing officer before giving credit on the basis of the duplicate TDS form shall get confirmation of TDS payment from Deductor and shall also obtain an indemnity Bond from the assessee -employee(letter FNO1(54)-63/TPLdated 18-05-1963.


(B) Tax deduction form For non -salary deduction (FORM 16A in Pdf )

Tax deducted before 1.04.2010,deductor must issue TDS certificate on Form 16A .

Time Limit:where the tax has been deducted on amount credited in payee account as on the date of closing of Financial year accounts ,then such certificate is required to be issued within one week after the expiry of 2 months from the date on which tax is deducted.

For example if tax is deducted on 31.03.2010 then tds certificate is required to be issued by 7 June,2010

In any other case certificate is required to be issued with in a period of one month from the end of the month during which credit has been given or sums have been paid.

For example TDS certificate for the month of Jan,2010 is required to be issued by 28 Feb ,2010.

However if more than one form is required to issued during the year then on request of deductee consolidated TDS form can be issued within one month from the end of financial year.

rules regarding penalty & duplicate form issue and acknowledgment number in form 16A are same as given in  form 16.

And most important point is that on both the forms correct "PAN"of the deductee  is must.




Read more: New Form 16 and Form 16 A Excel & provision related to Forms. | SIMPLE TAX INDIA-TDS RATE INCOME TAX RATE

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