Penalty for Non Issue of TDS Certificate in Form 16A from TRACES

Notices for the penalty for late issuance of TDS certificate (Rs. 200 per day of default) is now being issued by the TRACES. (Even though the same provision was in force since long, application was not that much strict as it is now). TDS certificate in Form 16 is to be issued annually whereas TDS certificate in Form 16A is to be issued quarterly. Last date for issuance of the TDS certificate (Form 16A) for Quarter 3 of FY: 2013-14 is 31st January, 2014. Failure to issue TDS certificate within the time allowed, attracts penalty of Rs. 100/- per day of default (Sec 272A(2)(g)). However, penalty will not exceed the amount of tax deductible or collectible, as the case may be. About TDS Certificate: TDS certificate is a certificate of tax deduction of source (TDS) by the deductor to the deductee specifying therein the prescribed details. TDS Certificate for the tax dedcuted u/s 192 is to be issues in Form 16 and for other tax dedcution Form 16A is to be issued.

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