SECTIONS 190 TO 230
Collection and recovery of tax A
SECTION 190 l PAYMENT OF TAX BY DEDUCTION AT SOURCE
936. Challans for depositing tax deducted at source from incomes other than salary to the credit of Central Government – Counterfoils of each of the Challan Form Nos. 2 and 8 to be attached with statement/certificate of deduction of tax at source
1. The persons responsible for making payments of interest on securities, dividends, interest other than “interest on securities”, winnings from lotteries and crossword puzzles, winnings from horse races, payments to contractors and sub-contractors, insurance commission, and “other sums” are required, at the time of payment, to deduct income-tax at appropriate rates under sections 193, 194, 194A, 194B, 194BB, 194C, 194D and 195, respectively. The tax so deducted at source is required to be paid to the credit of the Central Government at RBI/SBI or a public sector bank authorised in this behalf, through a challan.
2. Two challan forms have been prescribed for payment of such tax deducted at source:
(1) Challan No. 2 (ITNS 39A) – For tax deducted at source on payments made to companies, and
(2) Challan No. 8 (ITNS 39) – For tax deducted at source on payments made to non-companies.
The challan forms have now been got printed with four counterfoils. The bank receiving the payment retains the first and second counterfoils for transmission to the Income-tax Department in the prescribed manner and returns the third and the fourth counterfoils to the taxpayer. Whereas the third counterfoil is to be retained by the taxpayer for his own record, the fourth counterfoil is meant to be attached by the taxpayer with the statement/certificate of the tax deducted at source in one of the forms prescribed in rule 37 of the Income-tax Rules.
3. However, in the Challan Form Nos. 2 and 8 which have been printed in 1977-78 (July 5, 1978) and 1979-80 (December 10, 1979), respectively, and are at present in supply for use by the taxpayers, it has been erroneously printed at the top of the fourth counterfoil that it would be attached with the “Return of income”. It is hereby clarified that the fourth counterfoil of each of the Challan Form Nos. 2 and 8 is meant for being attached with the statement/certificate of deduction of tax at source in one of the prescribed forms, viz.,Form Nos. 25, 26, 26A, 26B, 26BB, 26C, 26D and 27, as may be applicable and not with “Return of Income”.
4. It is, however, possible that during the current year some payments of such TDS may have been made in the old challan forms which had only three counterfoils. In such cases it would not be necessary for the taxpayer to attach any counterfoil with the statement/certificate of tax deduction at source. However, as the new forms have now been printed and are in supply at all places, it is expected that all tax deducted at source (other than TDS from salary) which is paid to the credit of the Central Government after March 31, 1981 will be paid only through the revised challan forms which have four counterfoils and the fourth counterfoil of all challans will be attached with the relevant statement/certificate of tax deduction at source.
Circular: No. 292 [F. No. 385/62/80-IT(B)], dated 5-2-1981.