AMIT BAJAJ ADVOCATE

CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011

has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process.

Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules.

Where TDS is deducted without PAN @ 20% by the deductor companies, in such cases the deductee can apply for PAN and provide the same to his deductor afterwards and then can ask for form 16A [Which the deductors are bound to issue under rule 31(3)] in which case the deductor companies will be able to issue form 16A only after revising their TDS returns by including the PAN of such deductee in  TDS return, thus even such assesses will be able to get right credit of their TDS claim and get the refund of their excess TDS, if any.

Thus the abovesaid circular certainly will help the right claim of TDS to every assessee and consequently speedy refunds.