It is necessary to assure its credibility after you have obtained a TDS certificate. There is another means of checking the document, apart from verifying the digital signatures on the TDS certificates obtained by you. An individual can acquire five kinds of TDS certificates in a fiscal year and that are:
Types of TDS certificates
Form 16: For tax withheld on salary income from your employer
Form 16A: For tax deducted from a bank on interest earned from FDs
Form 16B: Issued to the seller by the buyer of an estate for tax deducted at source (TDS) on payment paid to the seller for the estate.
Form 16C: Provided to the owner by a tenant for tax deducted at source on a monthly rent in excess of Rs 50,000.
Form 16D: Provided by the individual/HUF for tax deducted during the fiscal year for payment to contractors or specialists over Rs 50 lakh.
Why it is mandated to verify the validity of TDS certificate?
Any deductor is mandated to subtract tax under the Income-tax Act shall submit a TDS return with specifics of the deductee and the amount of tax withheld by the deductor to the Income-tax department. Accordingly, it is necessary to provide a TDS certificate in Form 16 Sections A and B for basic salary or Form 16A for revenue other than wage to the deductee. The deductor is allowed to provide the TDS certificate by accessing it from the TRACES portal. Accordingly, it is necessary to provide a TDS certificate in Form 16 Sections A and B for basic salary or Form 16A for revenue other than wage to the deductee. The deductor is allowed to provide the TDS certificate by accessing it from the TRACES portal.
By downloading it from TRACES, the department made it compulsory for employers to submit Part-B of Form 16. Therefore, any third party application for the granting of a TDS certificate cannot be used by the deductor. Check if it has the TRACES logo after you have obtained a TDS certificate. TRACES serves as TDS Reconciliation Analysis and Correction Enabling System of the IT Department. The TRACES portal also helps check the validity and digital signature of the TDS certificate obtained by you, in contrast to downloading Form 26AS. You can even verify the validity of the TDS certificate on the TRACES website in case you have any concerns regarding the TDS certificate you have provided, The department has established a service to verify TDS certificates in order to review bogus TDS certificates issued by deductors. Therefore, before seeking a tax credit on the grounds of it, each taxpayer must use this feature to verify the TDS certificate. While downloading Form 26AS via the TRACES website, a taxpayer can verify the TDS certificate provided by its deductor by specifying the below listed specifics:
- TDS certificate number
- Assessment year
- TAN of the deductor
- Income source
- Amount of TDS withheld as per certificate
Procedure to authenticate the validity of TDS certificate
In order to validate the validity of TDS certificate follow the below pointed steps, and you are done:
Step 1: Visit www.incometaxindiaefiling.gov.in and sign in to your account using the required credentials i.e. User ID (here User ID is your PAN), password, and captcha code.
Step 2: Now select the 'View Form 26AS (Tax Credit)' option under the My Account' menu.
Step 3: Now you will be redirected to the TRACES portal where you need to navigate to the 'View/Verify Tax Credit' tab and select the 'Verify TDS certificate' option.
Step 4: Specifics such as TAN of the Deductor, Assessment year, TDS amount deducted per certificate, TDS certificate number, Source of Income must be entered. Except for the source of income, all of these specifics are included on your TDS certificate.
Step 5: Click on 'Validate' and you are done.
Note: In case the TDS certificate issued to you is correct, the same effect will be seen on the portal respectively. That being said, if the portal indicates that the TDS certificate is not legitimate, the tax deductor must be consulted and a legitimate TDS certificate requested.