Mumbai, Nov 7 (KNN) The Reserve Bank of India (RBI) has asked banks to put in place systems to enable timely issuance of Tax Deducted at Source (TDS) certificates to their customers.

TDS certificate is a certificate of tax deduction of source (TDS) by the deductor to the deductee specifying therein the prescribed particulars like amount of TDS, permanent account number (PAN), tax deduction and collection account number (TAN) etc.

“It has been brought to its notice that some banks are not providing TDS Certificate in Form 16A to their customers in time, causing inconvenience to customers in filing their income-tax returns,” RBI said in its letter to the Scheduled Commercial Banks.

"The matter has been examined and with a view to protect interest of the depositors and for rendering better customer service, banks are advised to provide to their customers from whose income tax has been deducted at source, TDS Certificate in Form 16A," it added.

Further, the notification said, “Banks are advised to put in place systems that will enable them to provide Form 16A to the customers within the time-frame prescribed under the Income Tax Rules, it added. Banks should avoid waiting till the last moment."

TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. (KNN/SD)