TDS on Salaries - Income Tax Department

• The deductor is also to provide relevant information of
tax deduction and deposition vide book entry or challan
vide Annexure A and Annexure B of this new form 16.
• Besides the deductor is also required to specify the
following in Form No. 16
(a) valid permanent account number(PAN) of the
deductee ;
(b) valid tax deduction and collection account
number(TAN) of the deductor;
(c) (i) book identification number or numbers where
deposit of tax deducted is without production of
challan in case of an office of the Government;
challan identification number or numbers in
case of payment through bank.
(d) (i) receipt number of the relevant quarterly
statement of tax deducted at source which is
furnished in accordance with the provisions of
rule 31A;
(ii) receipt numbers of all the relevant quarterly
statements in case the statement referred to in
clause(i) is for tax deducted at source from
income chargeable under the head "Salaries".
2.7.2 Time limit for issue of <strong>TDS</strong> certificate
Subsequent to the Income-tax(6 th amendment) for deduction
made after 1/4/2010, such a certificate is now to be issued by 31 st
May of the financial year(F.Y.) immediately following the F.Y. in
which income was paid and tax deducted. For deductions made
prior to 1/4/2010 the Form 16 was to be issued by the 30 th of April.
w.e.f. 1.4.2010 in case of employment by more than one
employer, Part A of Form 16 pertaining to the respective period
of employment shall be issued by each employer and part B of
Form no 16 may be issued by each employer or at the option of
the assessee by the last employer.
(Part A of Form 16 pertains to tax deposited by book entry
while part B of Form 16 pertains to tax deposited through challan).
2.7.3 Statement of deduction of tax-Form 26AS
As per section 203AA the prescribed income-tax authority or
the person authorized by the such authority (as referred in section
200(3)) is required to deliver to the person from whose income-tax
has been deducted/paid a statement of deduction of tax in the
prescribed form. Such statement as per rule 31AB is to be furnished
in form no.26AS by the 31st July following the financial year during
which the taxes were deducted/paid ( also refer Notification no.
928 E dt. 30.6.2005 of CBDT )
2.7.4 Furnishing of details of perquisites and
profits in lieu of salary -
As per section 192(2C) every person responsible for paying
any income chargeable under the head salaries, shall furnish to the
employee a statement giving correct and complete particulars of
perquisites or profits in lieu of salary, provided to him and the value
thereof in :- [Relevant rule 26A (2)(b)]
(a) Relevant columns provided in Form No.16, if the amount of
salary paid or payable to the employee is not more than one
lakh and fifty thousand rupees, or
(b) In Form No.12BA :- if the amount of salary paid or payable to
the employee is more than one lakh and fifty thousand rupees
(as per notification no. S.O. 1062 dt. 04.10.2002 proforma for
Form 12BA has been provided).
Where the employer has paid any tax on non-monetary
perquisite on behalf of the employee as provided in section 192(1A),
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