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TDS credit without TDS certificates in Form 16 or Form 16A

credit-of-tds-without-tds-certificates-in-form-16-or-form-16a,Credit of TDS without TDS certificates in Form 16 or Form 16A, TDS credit, Tax Deducted at Source, Form 16 TDS credit, Form 16A TDS credit, Salary TDS credit, TDS allowed, Form 16 for salaried employees

As we know we have to pay taxes on income earned during a year. Taxes may be paid directly through challan or by way of TDS. In case of TDS, tax on our behalf is paid by other person to the government and we get the credit of the tax so deducted. The tax is deducted out of income paid to us by the other person. The credit for TDS is claimed by us while filing the Income Tax Return or ITR on the basis of certificate given by the other person. This certificate is called TDS certificate in which the other person certifies how much amount of tax was deposited by the other person on our behalf.


In case of TDS from Salary income, the TDS certificate is issued in Form No. 16 whereas for other income, the relevant Form for issue of TDS certificate is Form 16A, 16B, etc.

Now a problem arises when the other person fails to issue TDS certificates to us. Can we claim credit for TDS that was deducted from our income and deposited into the government account. Do we need to pay taxes again on the same income which already suffered TDS?

It is explained with the help of an example. Suppose the details of income of an individual is as under-
Amount (in Rs.)
Income from Salary
Interest from Bank F.D.
Less: Deduction u/s 80C
 (-) 20,000
Total Income
Tax liability (Health & Education cess ignored)

The individual can pay the tax liability of Rs. 18,500/-
i)   out of his own pocket in cash or
ii)  by adjusting the same with TDS credit if any.

Suppose employer has deducted TDS of Rs 15,000 and the bank has deducted TDS of Rs. 5000/-. So total taxes paid by him by way of TDS is Rs. 20,000/-. Now suppose if the fails to get the credit of TDS due to non-receipt of TDS certificates, he has to pay tax of Rs. 18,500/- again. So ultimately his total payment of taxes stands at Rs. 38,500/- which is totally unjustified. You are paying the price for no fault of yours.

Can credit for TDS be claimed in ITR that was deducted from our income and deposited into the government account but TDS certificates in Form 16 or Form 16A etc. is not received?

To answer the above questions let us examine the legal provisions on the issue.

Section 203 of the Income Tax Act, 1961 casts an obligation on the person deducting the tax to issue a TDS certificate for the tax deducted in Form No. 16 or 16 A etc. depending on the nature of income. Rule 31 prescribes the time limit of issue of the TDS certificates. Normally, Form 16 is issued annually at the end of the relevant financial year in which tax is deducted whereas form 16A is required to be issued quarterly. Rule 31 was framed for the purpose of prescribing the time and manner of issuing TDS certificates as provided in Section 203 of the Income Tax Act, 1961.

Section 199 of the Act states that credit of TDS shall be given to the person from whom the tax was deducted as TDS is considered as a payment of taxes on behalf of that person. Rule 37BA of the Income Tax rules states that credit for tax deducted at source and paid to the Central Government shall be given to the person to whom payment has been made (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority. i.e. information as appearing in Form 26AS. Rule 37BA was framed for the purpose of giving credit as provided in Section 199 of the Income Tax Act, 1961.

Rule 12(2) of Income Tax Rules, 1962 provides an important provision which virtually gives answer to the question whether credit of TDS can be given without TDS certificates. The sub-rule 2 of Rule 12 provides that return of income required to be furnished in ITR 1 or ITR 2 or ITR 3 or ITR 4 or ITR 5 or ITR 6 or ITR 7 (covered all the prescribed ITRs) shall not be accompanied by –
  1. a statement showing the computation of the tax payable (i.e. Computation Sheet) or,
  2. proof of the tax, if any, claimed to have been deducted or collected at source (i.e. TDS Certificates) or,
  3. proof of the advance tax or tax on self-assessment, if any, claimed to have been paid (Challans) or,
  4. ………..
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Since the ITRs are required to be filed online without any documents as per Rule 12 and certificates and TDS claimed in ITRs is matched online with Form 26AS, therefore, the TDS Certificate is a document for record purpose only. If the TDS claimed is reflecting in the online Form 26AS TDS credit will be allowed even if the person does not possess the TDS certificates by virtue of Rule 37BA.

Therefore, after analyzing the above legal provisions it can be concluded that Credit of TDS without TDS certificates in Form 16 or Form 16A will be allowed if claimed in ITR on the basis of TDS amount reflecting in Form 26AS.

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