Form-16 Online – Manually prepared Part-A Form-16 not valid
Part A of Form-16 for Income Tax Deductions – Manually prepared Form-16 not valid from 2012-13 – Employer should generate TDS Certificate online
In respect of Form-16 issued by an Employer to the employee (certifying the income tax deductions made and the income of the employee during a financial year), a major change has been made by income tax department. A simplified summary of this new procedure is as follows.
Income Tax deductions for the income from Salary is covered by Section 192 of the Income Tax 1961
We all know Section 192 of the Income Tax Act, 1961 deals with Income Tax deduction from Salaries in respect of Salaried Class Employees, while income tax deductions from income other than salary are covered by provisions of Chapter XVII-B of the Act.
Consolidation of income tax deductions from Salary (Part-A) and income from Salaries (Part-B) is given in a form of certificate Called “Form-16” by an employer.
This is the certificate of income tax deductions from income other than salary, issued by the person who is deducting the relevant income tax deductions from the income of an Assessee.
TDS certificate in FORM-16A generated through Income Tax Department Website (https://www.tdscpc.gov.in/) is Mandatory:
As per Circular No. 03/2011 dated 13.05.2011 and Circular No. 01/2012 dated 09.04.2012 TDS certificate in Form No. 16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” (https://www.tdscpc.gov.in/) is mandatory. In other words, manually prepared Form-16A is not valid.
Now, Part-A of Form-16 generated through Income Tax Department Website has been made Mandatory:
As per Circular No: 04/2013 dated 17.04.2013, Part-A of Form-16 which is a statement of Income Tax deducted from the salary of an employee by the employee for making payment to Income tax department has to be generated only through TRACES Portal (https://www.tdscpc.gov.in/) of income tax department. In other words, Part-A of Form-16 prepared manually is not valid.
However, Part-B of Form-16 which is the statement of income of an employee can be prepared by employers themselves.
This procedure of generating online Part-A of Form-16 will be applicable for the income deductions made on or after 01.04.2012.
Full Text of Income Tax Circular No: 04/2013 dated 17.02.2013 is as follows.