The government on Friday, June 25, extended deadlines for various income tax compliances. Taxpayers can make payments till October 31 with the additional amount of interest. The deadline for employers to furnish Tax Deducted at Source (TDS) certificate in Form 16 to employees too has been extended till July 31, from July 15, 2021. 

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The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, maybe furnished on or before 31st July, 2021.

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TDS certificate Form 16/16A: 

Form 16/ 16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employees. These certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers. 

The Income Tax Act, 1961 contains the provisions for Tax Deduction at Source. A Deductor is a person responsible for tax deduction at source on specified types of payments made by it. The tax so deducted has to be deposited in the government account. Deductor also has to report the tax deducted in a statement within the prescribed time. 

It is mandatory to file an electronic TDS statement for the following categories of Deductors: 

* Offices of the Government 

* Companies 

* Persons required to get their accounts audited u/s 44AB of the Income Tax Act, 1961 

* Deductors reporting more than 20 deductee records for any quarter in the financial year 

Form 16 has two components; Part A and Part B. 

Form 16 A includes 

Name and address of the employer 

PAN of employer 

PAN of the employee 

Tax Deduction Account Number (TAN) of the employer 

Period of employment with current employer 

Summary of tax deducted & deposited quarterly, which is certified by the employer. 

Part B (Annexure) of the certificate in Form No.16 shall be issued by the employer. If an assessee is employed under one employer during the year, Part 'A' of the certificate in Form No.16 issued for the quarter ending on 31st March of the financial year shall contain the details of tax deducted and deposited for all the quarters of the financial year. If an assessee is employed under more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No.16 pertaining to the period for which such assessee was employed with each of the employers. Part B (Annexure) of the certificate in Form No. 16 may be issued by each of the employers or the last employer at the option of the assessee. To update PAN details in the Income Tax Department database, apply for 'PAN change request' through NSDL or UTITSL. 

Form 16B includes 

Gross salary 

Allowances to the extent exempt under Section 10 

Total amount of salary received from current employer  

Deduction under Section 16