Issue of certificates for tax deducted at source under the various provisions of the Income-tax Act--Introduction of unified Form No. 16, effective from April 1, 1989--Regarding - Income Tax - 555/1990

Issue of certificates for tax deducted at source under the various provisions of the Income-tax Act--Introduction of unified Form No. 16, effective from April 1, 1989--Regarding. Circular No. 555 Dated 22/2/1990 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, 195 and 196A of the Income-tax Act, 1961, 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. As per rule 31 of the Income-tax Rules, 1962, the certificate of deduction of tax at source under section 203 is required to be furnished in Form No.16 effective from 1st April, 1989. The relevant rule and Forms were published by Gazette Notification No.S.O.937(E), dated 10th October, 1988 {See Income-tax (Ninth Amendment) Rules, 1988: 174 ITR (St.) 25. Subsequently, these were circulated by the Board by Public Circular No.529 [File No.275/3/89-IT(B)], dated 13th February, 1989 (See [1989] 176 ITR (St.) 239). 2. Representations have been received from the public and tax deductors that owing to shortage of the new tax deducted at source certificate Forms (Form No.16), the certificates in respect of tax deducted at source could not be issued by the tax deductions in the said form in many cases and the certificates issued in the old form are not being accepted by the Assessing Officer for affording credit for tax deducted. This has put the assessees to considerable difficulty. In view of this, it has now been decided by the Board that the certificates in respect of tax deducted at source in the new Form No.16 need not be insisted upon in respect of returns for the assessment year 1989-90 and that such certificates issued in the old form may also be accepted by the Assessing Officers. It may, however, be noted that the credit for tax deducted at source will be given by the Assessing Officers only after ensuring the genuineness of the certificates. (Sd.) B.E. Alexander, Under Secretary, Central Board of Direct Taxes.