Every person deducting tax at source is required as per Section 203 to furnish a certificate to the payee to the effect that tax has been deducted along with certain other particulars. This certificate is usually called the TDS certificate. Hence, it is important to verify the validity of the TDS certificate. An individual receives 4 types of TDS certificates in a financial year. They are as Form 16, 16A, 16B, and 16C.
While a Deductor can download TDS Certificate from TRACES, the Deductee can verify the details of the TDS Certificate from TRACES. It is important to understand how this entire process works.
- The deductor makes the payment to the Deductee after deducting TDS under relevant section (194C, 194J, 194H, 194IA, 194I, 194A, 192, 194IB)
- Therefore, deductor deposits the TDS with the Income Tax Department
- Hence, the deductor files the relevant TDS Return Form (24Q, 26Q, 27Q, 27EQ)
- Deductor issues a TDS Certificate to the Deductee (Form 16, Form 16A, Form 16B, Form 16C, Form 16D)
- Deductee claims the TDS credit while filing the Income Tax Return
Steps to Verify TDS Certificate on the TRACES Portal
Time needed: 5 minutes.
- Log into your Account.
- Select the option from the dashboard
Navigate to the “My Account” drop-down list on the dashboard and select the “View Form 26AS” Option.
- “Confirm” option
Click on the “Confirm” to move to the TRACES portal.
- Agree and Proceed
Agree to the terms by clicking on the check-box and click on the “Proceed” option when the pop-up appears.
- Select the “Verify TDS Certificate” Option
From the “View/Verify Tax Credit” drop-down list on the dashboard select the “Verify TDS Certificate” option
- Fill in the details
Thus, we move to the verification page of the TDS Certificate. Enter the following details in their respective fields:
– TAN of Deductor
– TDS Certificate Number
– Assessment Year
– Source of Income
– TDS Amount Deducted as per the Certificate (INR)
- Click on the “Validate” option.
Hence, once the required details have been entered, click on “Validate”
If the TDS certificate received by you is valid, then the website will show the same result. However, if the website shows that the TDS certificate is not valid, then you must contact the tax deductor and ask for a valid TDS Certificate.
Yes, the tax credit, in this case, will be reflected in your Form 26AS and, hence, you can check Form 26AS and claim the credit of the tax accordingly. However, the claim of TDS to be made in your return of income should be strict as per the TDS credit being reflected in Form 26AS. If there is any discrepancy in the tax actually deducted and the tax credit being reflected in Form 26AS, then you should intimate the same to the deductor and should reconcile the difference. The credit granted by the Income-tax Department will be as per Form 26AS.
To check whether TDS is deposited by Deductor or not, the Deductee can select either of the following options:
1. Verify details of TDS Certificate from the ‘Verify TDS Certificate’ option available at TRACES
2. Download Form 26AS from TRACES
3. Download Form 26AS from your account on incometaxindiaefiling.gov.in