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26As and TDS u/s206AA

Started by subbufca, July 31, 2012, 01:23:09 PM

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CBDT  prescribed in May 2011 that  Company/ banks  TDS deductors have to mandatorily issue TDS certificate in Form 16A with unique certificate number as downloaded from TIN site . One of my client despite informing PAN to his  public sector bank where he has FDs , deducted TDS @ 20% u/s206AA (for FY 11-12) and the explanation was that concerned  staff omitted to feed the same in their system .Over and above  The bank  issued Form 16A prepared manually  rather than downloading it from TIN site and says the same has not been implemented in their branch and says that they are " helpless" as these are taken care at their Corporate office  . Unless tax is reflected in 26AS department generally do not give credit.  My request for valuable views are  (a) is it possible to for bank to get  Form 16A from site where TDS is made u/ s206AA (b)what best recourse is available to the client  to get the credit (c) whether CBDT is aware of these difficulties of assessee for none of his fault  who is put to trouble and deductor remain spectator after starting the trouble  .Pls share


It is better you first check that whether TDS has been deposited and reflect in 26AS of your client through e-filing site


There have been cases where i have gone to the bank of my client to getthe same and rectification rturn to be fled by the bank branches. It has beeninformed that  the activity has been outsourced  to a CA firm and they will  wait for many nore mistakes to be pointed out so that the rectification can be done.as "the CA charges seperately for every rectification."


Thanks a lot . This is what I explained to the deductee . Since the error started from the data uploaded by deductor, he only can file rectification - but till such time ,what best the ordinary deductee can do ??
With warm  Regards


He can also show the manually issued TDS certificate and request the AO to keep the demand, if any, in abeyance as per sec. 205 of IT ACt. Further, if your client case is refund one, please file a grievance petition or approach the ombudsman in this regard.


make your client write the letter himself. as a professional if you write , it will not be possible to enter the ITO building .


Thanks a lot for the practical tips


       You can file rectification online and it might be that the case is then referred to the concerned ITO. Then it would be too easy to get the refund or get the demand cancelled if any by presenting the certificates received from the bank. Now the ITO cannot deny your claim. Whereas if the case is not referred to ITO by the CPC then you may yourself approach the concerned ITO. It's obvious your client wont go for this and you only have to help him out n represent him before the ITO.


The TDS certificate holder can claim credit for the TDS certificate in his Return of Income. The AO at the time of assessment questions the TDS certificate's authenticity and he will then write to the 'Deductee' for confirmation of the TDS certificate. Since the deductor is a banker they have to reply and they will take corrective action. If they will take AO can initiate action under the law


Hello Mr. Subbufca,

Please refer CIRCULAR NO. 03 /2011 (I presume you would have).

As per circular, BCDT is aware of mismatches between 16A/26AS.

The deductor being a bank falls under 4.1.1(a) of the circular, in effect they should be able to download 16A from TIN Site and affix digital / manual signature.  In your case, if the bank can do with signing manually on the downloaded 16A certificate.

Ans. to b. It is form 16A which forms the basis of claiming credit. The duly signed 16A by bank should authenticate the same.  26AS is not material for claiming TDS benefit. It is clearly stated so in circular vide 4.2.(i) and Point 6.

So your client should request bankers to issue such a downloaded certificate duly signed. If there is an error in data uploaded, the deductor has to rectify the mistake and thereafter be able to generate the TDS certificate.

Hope this helps.