Form 16 Signing Software Form 16 Save Trees, Go Paper Less Form-16

Digitally Signed Form 16


Income Tax Depatment had received representations untill 2006-07 from some companies having a large number of employees. The representations indicated that, the issuance of TDS certificates with manual signatures are becoming very time consuming.  So, the request, therefore, was that the Department should allow the employers to use their digital signatures to authenticate TDS certificates instead of signing the certificates manually. 

The requirement of enclosing TDS certificates with the Income Tax returns was dispensed from Finance Act 2007.  The TDS certificates are now issued only for the purpose of personal record of the deductees [subject to the condition that they may be required to produce the same, on demand, during the assessment].  The TDS claim made in the Income Tax Return is also required to be matched with the e-TDS returns furnished by the deductors. If found mistake, department may also ask deductors to verify the total TDS claimes by the party with their e-TDS returns.

Digital signatures are allowed to sign any documents in the country through Information Technology Act, 2000, under necessary guidelines. Digital signatures are also considered to be failsafe.  CBDT therefore, decided to allow the deductors, as an option, to use their digital signatures and authenticate Form No.16.  However, there is no information regarding digitally signing of Form 16A / 27D.

The deductors will have to ensure that Form No.16 bearing digital signatures have a Control No. [Automatically generated for Saral TDS and Saral PayPack users] with log to be maintained by the employer (deductor). 

In such case, Deductor should sign Form 16 with either a Class 2 or Class 3 [Know more on classes of Digital Signature] Digital Signature in the name of Authorised Signatory for signing Form 16.

More information is available in the CIRCULAR NO. 2/2007, DATED 21/5/2007

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