Why TDS Certificate is important?

The primary aim of TDS is to make tax collection from the source of income itself. This concept follows as the person (here identified as "deductor") who is liable to make a certain payment to any other person (here identified as "deductee") shall deduct tax from the amount before giving it to the deductee. Let’s look more into TDS Certificate and its importance.

What is TDS Certificate?

The deductor issues a TDS certificate to the deductee, and it varies based on the income on which tax is deducted. The types of TDS certificates are:

FORM 16:

• This certificate is for TDS on salary payment.
• The due date is May 31.
• It is issued on a yearly basis.

Form 16 A:

• This certificate is for TDS on Non-Salary Payments.
• The due date is 15 days from the due date of return filing.
• It is issued on a quarterly basis.

FORM 16 B:

• This certificate is for TDS on the Sale of Property.
• The due date is 15 days from the due date of return filing.
• It is issued on every transaction.

FORM 16 C:

• This certificate is for TDS on Rent.
• The due date is 15 days from the due date of return filing.
• It is issued on every transaction.

The TDS certificate download can be done through the income tax portal by filling in the required details such as "TAN of Deductor", "PAN of Tax Payer", "Financial Year", etc.

Benefits of TDS Certificate:

• TDS certificate shows the tax deducted in Form 16 and Form 16A. Form 16 is issued in respect of salaried income annually, and Form 16A is issued in respect of non-salaried income quarterly.
• On the basis of the TDS certificate, the taxpayer can claim the credit and the refund (if there is any)
• TDS certificates can be used to check the details of the TDS amount deposited with the Government by comparing it with Form 26AS. The TDS deduction is shown in Form 26AS after filing the return.
• In the case of Scrutiny Assessment, individual needs to show a TDS certificate to the IT department as proof of tax deduction.
• Such a certificate is of utmost use for salaried individuals, as it is required to file an ITR return. The details of deductions claimed individuals under sections 80C, 80D, 80G up to 80U are also reflected in Form 16.

Who issue the TDS Certificate?

Section 203 of the Income-Tax Act is the provision stating the “Certificate for tax deducted”. The section provides that:

• Every person who is deducting tax in accordance with the applicable provisions of the Act
• Shall issue a certificate in this regards 
• To the person on whose income the tax is deducted 
• Within the stipulated period 
• The certificate shall specify the deducted amount, the deduction rate, and other particulars.