Issue of certificate for tax deducted at source under various provisions of the Income-tax Act-Unified Form No. 16-Effective from 1-4-1989-Regarding - Income Tax - 529/1989

Issue of certificate for tax deducted at source under various provisions of the Income-tax Act-Unified Form No. 16-Effective from 1-4-1989-Regarding Circular No. 529 Dated 13/3/1989 To All State Governments and Administrations of Union Territories. Subject: Issue of certificate for tax deducted at source under various provisions of the Income-tax Act-Unified Form No. 16-Effective from 1-4-1989-Regarding. Under the provisions of section 203 of the Income-tax Act, 1961, every person deducting tax in accordance with the provisions of sections 192 to 194, 194A, 194B, 194BB, 194C, 194D and 195 of the Income-tax Act is required to furnish a certificate to the effect that tax has been deducted, and to specify therein, inter alia, the amount deducted and any other particulars that may be prescribed. The certificate has to be furnished within the period prescribed under rule 31 of the Income-tax Rules, 1962, to the person to whose account credit is given or to whom payment is made or the cheque or warrant is issued, as the case may be. 2. So far different forms were prescribed under rule 31 for certificates of tax deducted under different sections of the Act. By notification No. S.O. 937(E) dated 10-10-1988*, however, old rule 31 has been substituted by a new rule which provided for a unified form to be issued in Form No. 16 in respect of tax deducted under all the aforementioned sections. Another important departure from the existing provisions is that the said certificate shall now be issued on a paper serially numbered and printed by the Central Government in book form and supplied for a nominal consideration to the person deducting tax at source on an application to be made by him in Form No. 17 to the Commissioner of Income-tax having jurisdiction over him in this regard. A copy of the aforesaid notification is enclosed* for information and guidance. This amendment shall come into force on 1-4-1989. 3. In this connection, attention is invited to the provisions of section 272A(2)(g) of the Income-tax Act according to which if a person fails to furnish a certificate as required by section 203 of the Income-tax Act, he shall pay, by way of penalty, a sum which shall not be less than Rs. 100, but which may extend to Rs. 200, for every day during which the failure continues. 4. These provisions may please be brought to the notice of all Disbursing Officers and State Undertakings under the control of the State Government. 5. In case any assistance is required, the Assessing Officer concerned and/or the local Public Relations Officer of the Income-tax Department may be approached for the same. (Sd.) V.K. Bhatia, Officer on Special Duty, Central Board of Direct Taxes. * See Income-tax (9th Amendment) Rules, 1988: [1988] 174 ITR (St.) 25.