Strange , but True.
The Learned Govt of India, officers of the TDS Dept have invoked a decade old rule… they are sending these emails, to warn the TDS deductors… saying that…
……you have not downloaded the TDS certificates… and so, probably not given to your contractors… hence… possibility of penalty is coming nearer
This rule was good in 1980’s and 1990’s, and maybe in early 2000-2010, when there was no 26AS , no AIS and when people used to plead their customer to release their TDS certificates
Crux of this message of the Govt of India
Download TDS certificates and give to your vendors, within 15 days or face penalties ??
TDS Reconciliation Analysis and Correction Enabling System
CPC (TDS) reminder to Deductors
CPC (TDS) reminder to Deductors
Date of communication : 29/03/2022
Dear Deductor (TAN – xxxxxxx ),
As per the records of Centralized Processing Cell (TDS), TDS Statements have been filed by you for Quarter 1 of Financial Year 2021-22; however, TDS Certificates Form 16A have not yet been downloaded in respect of this quarter, from the web-portal TRACES till 25th March 2022.
Immediate Attention: With reference to the above subject, you are requested to download the TDS Certificates, without any further loss of time.
Please also refer to the following provisions of the Income Tax Act, 1961 in this regard:
Downloading of TDS Certificates from TRACES made mandatory :
In this regard, your attention is invited to the CBDT circulars no. 03/2011 dated 13.05.2011, no. 01/2012 dated 09.04.2012 and 04/2013 dated 17.04.2013, on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or http://www.tdscpc.gov.in .
TDS Certificates downloaded only from TRACES hold valid :
In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.
Due Date for downloading and Penalty for non-compliance :
Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.
Assistance for downloading TDS Certificates from TRACES :
CPC (TDS) is committed to provide best possible services to you.
Please maintain updated email address and Contact Number on TRACES to receive regular periodic updates and guidelines from TRACES.
Fact number 1
Most of the companies are downloading this every quarter as per Rules
However, some might not be
On behalf of the MSME’s across India, We at I am SME of India, Request your honour , the Government of India, to amend the rules. In these times of online Annual information Summary and Form 26AS etc, there is no need of taking and giving TDS certificates
Request the Government to consider this submission above.
It will save precious Time, and Resources and of course hassle