TDS Certificate : Form 16D Details

Form 16D is a TDS Certificate issued by a Payer for payment of a commission, brokerage, contractual fee, the professional fee under section 194M. It contains details of the nature of payment and TDS deducted on it. Section 194M has been applicable from the 1st of September 2019. Thus, Form 16D can be downloaded from FY 2019-20 onwards. The taxpayer can download Form 16 from the TRACES portal.

As per the section, if the payments to resident contractors and professionals exceeding INR 50,00,000 Lakhs during the Financial Year, the payer/deductor has to deduct tax at the rate of 5% from the sum payable to a resident payee/deductee.

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As per the Central Board of Direct Taxes (CBDT) notification, the due date of payment of TDS on payments to resident contractors and professionals is within a period of thirty days from the end of the month in which the payment has been made. Hence, Form 16D has to be issued 15 days from the date of issuance of Form 26QD.

For example, A professional payment of INR 65 Lakhs has been made in the Financial Year 2019-2020. The payment is made on the 15th of August. Hence, the tax deducted must be deposited with the government and Form 26QD should be filed on or before the 30th of September. Furthermore, the deductor should also issue the Form 16D TDS certificate by October 15.

Sample Form 16D

Details of Form 16D

  • Name and address of Deductor and Deductee
  • PAN/Aadhaar number of the Deductor and Deductee
  • Financial Year of Deduction
  • Transaction Details
  • Details of Tax Deposited
  • Challan Identification Number

FAQs

Who is responsible to deduct the TDS on payments to resident contractors and professionals under section 194M?

The Payer/Deductor being an Individual or a HUF (not liable to tax audit u/s 44AB) would have to deduct the TDS at the rate of 5% and deposit the same with the government by filing Form 26QD.

What is Form 26QD?

The Form 26QD is the challan-cum-statement for reporting the transactions liable to TDS on payments to resident contractors and professionals under section 194M of the Income-tax Act, 1961.

Is Form 16D different from Form 16A?

Form 16D is the TDS Certificate issued by a taxpayer i.e. payer to the deductee i.e. payee with details of nature of payment and TDS deducted on it u/s 194m.
Form 16A is the TDS Certificate issued by a deductor for non-salary payments like professional fees, brokerage, commission, interest, rent, contractual payment, etc. It contains details of the nature of payment and TDS deducted on it.

What is the due date of payment of TDS deducted on the payment made to the resident contractors and professionals u/s 194M?

The due date of payment of TDS on payment made to the resident contractors and professionals is within a period of thirty days from the end of the month in which the payment has been made. Moreover, the Form 16D has to be issued within 15 days from the date of issuance of Form 26QD.

What is the fee in Form 26QD and when is it applicable?

As per section 234E of the Income-tax Act, 1961 read with Rule 31A (4B) of Income-tax Rules, 1962, failure on part of deductor (Payer/Deductor) to furnish challan-cum-statement in Form 26QD electronically within 30 days from the end of the month in which the tax deduction is made will attract levy of fee for default in furnishing statement at the rate of INR 200 for every day to be paid by the deductor (Payer/Deductor).

Got Questions? Ask Away!

  1. Hey @Joe_Fernandes ,

    Thank you for reaching out to us!

    You need to keep in mind following dates for TDS Return filing:

    Penalty Under Section 234E is levied in case you miss out on filling TDS return on time. The penalty of INR 200 per day is levied on the taxpayer till the day on which return is filed. Provided that the amount of Penalty should not exceed the number of TDS payable.

    Hope this helps!