Section 203. (1)  Every person deducting tax in accordance with the foregoing provisions of this Chapter shall, within such period as may be prescribed from the time of credit or payment of the sum, or, as the case may be, from the time of issue of a cheque or warrant for payment of any dividend to a shareholder, furnish to the person to whose account such credit is given or to whom such payment is made or the cheque or warrant is issued, a certificate to the effect that tax has been deducted, and specifying the amount so deducted, the rate at which the tax has been deducted and such other particulars as may be prescribed.

Refer to the following provisions of the Income Tax Act, 1961 which are related to download of TDS certificate in time and consequence of late download of Certificate from the website http://www.tdscpc.gov.in (TRACES Portal). Downloading of TDS Certificates from TRACES made mandatory:   Refer to the CBDT circulars 04/2013 dated 17.04.2013, CBDT Circular No. 03/2011 dated 13-5-2011 and CBDT Circular No. 01/2012 dated 9-4-2012 on the Issuance of certificate for Tax Deducted at Source in Form 16A/16 as per IT Rules 1962.

So it is mandatory for all diductor’s to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or TRACES Portal. TDS Certificates downloaded only from TRACES hold valid: In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

Certificate of tax deducted at source is to be furnished within fifteen days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A(2)  which says

If any person fails—

(g) to furnish a certificate as required by section 203 or section 206C

he shall pay, by way of penalty, a sum of five hundred rupees for every day during which the failure continues:

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