The Income Tax Department in order to overcome the challenge of mismatch between TDS claim as per TDS certificate and the TDS as per NSDL database, has now initiated a facility in the Tax Information Network website (TIN Website) which will enable a deductor to download TDS certificate in Form No.16A from the TIN Website based on the figures reported in e-TDS statement filed by him. As both Form No.16A and Form No.26AS will be generated on the basis of figures reported by the deductor in the e-TDS statement filed, the likelihood of mismatch between Form No.16A and Form No.26AS will be completely eliminated.
CBDT has issued circular under which issue of TDS Certificate in Form 16A in digital form by downloading from TIN shall be compulsory for companies,banks,co-opeartive societies involved in banking , while for other deductors it will be optional.. Here is the excerpt of the Circular NO. 03 /2011 dt 13th May, 2011
(i) For deduction of tax at source made on or after 01/04/2011:
(a)The deductor, being a company including a banking company to which the Banking Regulation Act,1949 applies and any bank or banking institution, referred to in section 51 of that Act or a co-operative society engaged in carrying the the business of banking, shall issue TDS certificate in Form No.16A generated through TIN central system and which is downloaded from the TIN Website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2011 under any of the provisions of Chapter-XVII-B other than section 192.
(b) The deductor, being a person other than the person referred to in item (a) above, may, at his option, issue TDS Certificate in Form No.16A generated through TIN central system and which is downloaded from the TIN Website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2011 under any provisions of Chapter-XVII-B other than section 192.