Issue of TDS Certificate mandatory or optional?


What is the consequence of employers ignoring to issue of TDS Certificates?


For any person deducting TDS within provisions of Income Tax at the time of making any payment in relation to any TDS specific activity has to issue a certificate to the effect for which the tax has been deducted. TDS Certificate defines particulars of the amount or rate of tax deducted with all other necessary detailing.

For employers deducting TDS from employee salary or deducting under Section 192, an obligation for the issue of a TDS Certificate under Section 203(2) has been prescribed, which should be issued on a mandatory basis.

In case, no TDS to be deducted from the income of the employee, the employer can avoid the issue of TDS Certificate or Form 16 to the employee.

To obtain TDS Certificate from the employers deducting TDS is a right of an employee. However, the employee to claim the TDS Certificate from the employer can go through legal means if he refuses to issue after deducting TDS.
On deduction and submission of TDS to government, it is the duty of the employer to issue a TDS Certificate to the employee stating all the particulars of tax deducted. For employers failing to issue a TDS certificate, a penalty of Rs 100 /per day of default under Section 272A(2(g)) has been prescribed.

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