TDS certificate is to be issued by each deductor who is deducting tax and furnished to the person from whose income / payment the tax has been deducted. The certificate should specify amount of tax deducted and rate at which it has been deducted.
TDS certificate is generated in TRACES on the basis of details provided by deductor in the quarterly TDS return. TDS certificate will be generated for deductee records with valid PAN (PAN present in the Income Tax Department database) in TDS statement
What are the types of TDS Certificates?
There are two types of TDS Certificates:
- Salary Certificate (Form 16)
In case of Salaries, the certificate should be issued as Form 16 containing details of tax computation as well as tax deducted and paid. This refers to the details submitted in Form 24Q by deductor.
Part A of Form 16 which contains details of tax deducted and deposited by the employer can be downloaded from TRACES by deductor. A single Form 16 certificate will be issued for a given TAN, Financial year and PAN.
- Non-Salary Certificate (Form 16A)
In case of Non-Salaries, the certificate should be issued as Form 16A containing details of tax deducted and paid. This refers to details submitted by deductor in Form 26Q and 27Q.
A single Form 16A certificate should be issued for a given Financial Year, Quarter, TAN and PAN. The Form 16A should contain details from both Form 26Q and 27Q for all sections (Nature of Payment).
How can I download Form 16 / 16A?
Deductors / collectors will have to register on TRACES to download Form 16 / 16A. After logging in to your account, click on ‘Form 16’ or ‘Form 16A’ under ‘Downloads’ menu. You can submit download request for maximum of 10 PANs at a time or do a bulk download for all PANs under the TAN for a particular Financial Year / Quarter.
Text file containing details of all requested PANs will be available in ‘Requested Downloads’ under ‘Downloads’ menu. User must pass the text file through TRACES PDF Generation Utility (which can be downloaded from TRACES) to create Form 16 / 16A PDFs for each PAN.
How can I download TRACES PDF Generation Utility?
TRACES PDF Generation Utility can be downloaded from TRACES in the following manner:
- Without logging into TRACES
Click on ‘Deductor’ tab in the top navigation bar and click on ‘Download PDF Generator’ under Quick Links.
- After logging into TRACES
Click on ‘Requested Downloads’ under ‘Downloads’ menu. Link to download the utility is provided on this screen.
The utility must be unzipped and installed on to your desktop. Clickhere to know more about the utility.
How do I use TRACES PDF Generation Utility to convert Form 16 / 16A text file into PDF?
After installing the utility on your desktop, double-click on the utility and open it. Select the text file for Form 16 / 16A downloaded from TRACES. Enter password for the text file and select the path where the output PDF files have to be saved.
If you want to digitally sign the Form 16 / 16A PDF files, select the digital signature and click on ‘Proceed’. The utility will convert the text file into PDF files for each PAN and save it in the selected output folder.
Is it mandatory to digitally sign Form 16 / 16A?
No, it is not mandatory to select digital signature while converting the text file into PDF as Form 16 / 16A can also be signed manually after printing.