Issue of form 16a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2012
Dear Sirs,
Is it mandatory for a non-company deductor(Say Trust)to issue Form-16A from TIN only. If yes, then what happens if it had issued manually through old method prior to 01.04.2011. It will attract penalty ? Please guide

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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28 April 2012 YES.
Prior to 01.04.2011 all deductors can manally issue TDS certificate.
No penalty will atract as it is optional.

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2012 Sir, I could not asked the question in right manner. My question is after 01.04.2012 we have filed all the TDS returns before due date and given TDS certificate manually but before due date. Now we are issuing TIN generated Form-16A . My question is if we have given TDS certificate after 01.04.2012, will it attract penalty. Only the fault is that we could not know that we have to give TIN generated Form-16. Please reply sir

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 ### Issuance of Form 16A and Compliance with TIN Requirements

#### **1. Requirement for Form 16A Issuance**

**As of April 1, 2011**, it became mandatory for deductors, including non-company deductors such as trusts, to issue Form 16A generated through the TIN (Tax Information Network) system. The Form 16A generated from TIN is essential for ensuring that TDS certificates are in line with the data filed in the TDS returns.

**Key Points:**
- **TIN Form 16A:** Form 16A generated from the TIN system includes the details of TDS deducted and is electronically linked to the TDS returns filed with the authorities. It helps in ensuring accuracy and reduces discrepancies.
- **Manual Issuance:** Issuing Form 16A manually before April 1, 2011, was acceptable, but after this date, the Form 16A should ideally be generated through the TIN system.

#### **2. Penalty for Manual Issuance After April 1, 2012**

If Form 16A was issued manually after April 1, 2012, even though TDS returns were filed before the due date, there are certain considerations:

**2.1. **Compliance and Penalty:**
- **Regulations:** The regulations require that Form 16A be issued through the TIN system after April 1, 2011. Failure to comply with this requirement might attract penalties.
- **Penalty Risk:** If Form 16A was issued manually after the deadline of April 1, 2012, and it was not in accordance with the prescribed format, there is a risk of penalty. The penalty can be imposed for non-compliance with the TDS certification rules.

**2.2. **Remedial Actions:**
- **Issuance of TIN Form 16A:** To rectify the issue, you should generate Form 16A from the TIN system and issue the corrected certificates to the recipients.
- **Communication:** Inform the recipients of the TDS certificates about the updated Form 16A generated from TIN to ensure they have accurate documentation for their records.
- **Penalty Appeal:** If a penalty is imposed, you may appeal against it, explaining that the issue was due to a lack of awareness and that corrective actions were taken promptly.

#### **Steps for Compliance:**

1. **Generate TIN Form 16A:** Log in to the TIN website and generate the Form 16A for the relevant period.
2. **Issue Corrected Form 16A:** Distribute the TIN-generated Form 16A to the recipients to replace any manually issued forms.
3. **Maintain Records:** Ensure that all TDS-related records are updated and maintained properly for compliance and audit purposes.

By following these steps and ensuring compliance with TIN-generated Form 16A requirements, you can address any discrepancies and avoid potential penalties.