Everything You Must Know Before the Deadline!

Today, March 17, 2025, is the final day to issue TDS certificates (Forms 16B, 16C, and 16E) for payments received during the most recent quarter. If you have withheld TDS on specific transactions, it is your responsibility to issue the relevant TDS certificates to the parties involved. Failure to comply may result in penalties and legal repercussions.

TDS Certificates: What Are They?

A TDS certificate serves as proof that tax has been withheld at source (TDS) and deposited with the government. The person deducting TDS must issue this certificate to the payment recipient.

The Three Crucial TDS Certificates Due Today

Form 16B (Section 194IA – TDS on Property Sale)

Who must issue it?

If you have purchased immovable property (except agricultural land) worth more than ₹50 lakh, you must deduct TDS at 1% and issue Form 16B to the seller.

Why is it important?

• Serves as proof that TDS has been deducted and deposited.
• The seller requires it to claim TDS credit while filing ITR.

Penalty for failure to issue:

₹100 per day of delay as per Section 272A(2)(g) of the Income Tax Act.

Form 16C (Section 194IB – TDS on Rent)

Who must issue it?

If you are an individual or HUF paying rent of ₹50,000 or more per month, you must deduct TDS at 5% and issue Form 16C to your landlord.

Why is it important?

• Confirms that TDS has been deducted on rent.
• Required by the landlord for tax adjustments while filing an income tax return.

Penalty for failure to issue:

₹100 per day of delay under Section 272A(2)(g). Additional fines and interest may also apply.

Form 16E (Section 194M – TDS on Payments to Professionals/Contractors)

Who must issue it?

If you, as an individual or HUF, make a payment of ₹50 lakh or more to a professional, contractor, or agency in a financial year, you must deduct TDS at 5% and issue Form 16E.

Why is it important?

• Ensures that TDS has been accurately deducted.
• Helps the recipient claim TDS credit.

Penalty for failure to issue:

₹100 per day of delay under Section 272A(2)(g). Additional interest and penalties may apply.

What Happens If You Miss the Deadline?

If you fail to issue the TDS certificate by March 17, 2025, you may face:

• A penalty of ₹100 per day for each delayed certificate.
• Financial and legal consequences for non-compliance.
• Problems for the recipient in claiming TDS credits.

How to Download and Issue TDS Certificates?

Follow these steps to download and issue your TDS certificates (Forms 16B, 16C, and 16E) before the deadline:

1. Log in to the TRACES website: https://www.tdscpc.gov.in
2. Go to "Downloads" → "Form 16B/16C/16E".
3. Enter the deductee's PAN and payment details.
4. Generate and download the TDS certificate.
5. Provide the certificate to the recipient (seller, landlord, or service provider).

Take Action Now!

Don’t delay! The deadline for issuing Form 16B, 16C, and 16E is today, March 17, 2025. Download and issue them now to avoid penalties. For assistance, visit myITRonline for expert help.

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