TDS certificates, also known as Form 16, 16A, 16B, and 16C, are documents issued in India by the deductor (the one withholding the tax) to the deductee (the person from whom the tax is deducted) whenever tax is deducted at source (TDS) on their income.

• Proof of Tax Deducted: These certificates serve as proof that the tax has been deducted from your income at source. This is crucial information for filing your income tax return.
• Claiming Tax Credit: The TDS certificate helps you claim the credit for the tax deducted at source when you file your income tax return. This can potentially reduce your tax liability or result in a tax refund.
• Types of TDS Certificates: There are four main types of TDS certificates:
  • Form 16: This is issued by your employer and reflects the TDS deducted on your salary income.
  • Form 16A: This is issued by any entity (other than your employer) that deducts TDS on payments they make to you, such as banks for interest on fixed deposits or rent payments.
  • Form 16B: This is issued for TDS deducted on sale of immovable property (land or building).
  • Form 16C: This is issued for TDS deducted on payment of rent by individuals or companies who are not liable to deduct tax under any other provision.

Who receives TDS certificates?

Anyone in India from whose income TDS is deducted is entitled to receive a TDS certificate from the deductor. This includes salaried individuals, freelancers, people earning interest income, etc.

When are TDS certificates issued?

TDS certificates are typically issued by the deductor towards the end of the financial year (March 31st) or soon after. You should receive them by the due date for filing your income tax return.