Proposal For Certain Amendments In Rule 30 And 31 In Relation To Time And Mode Of Payment Of TDS And Filing Of Statement Of TDS Under The Provisions of Section 200

Section 200(1) read with Rule 30 prescribes guidelines and procedure in relation to the time and mode of payment of tax deducted to the credit of the Central Government.

Similarly, Section 200(3) read with Rule 31A prescribes guidelines and procedure in relation to filing of Statements for such tax deducted at source.

Having considered the provisions in this regard, the Committee recommends that the following relaxations in terms of the time-limits prescribed under these rules should be considered:

(i) Persons required to deduct tax and file a Challan cum Statement in Form 26QB are required to do so within a tight time frame of seven days from the end of the month in which the deduction is made. Since such persons are not familiar with TDS procedures, with a view to grant them sufficient time for compliance, it is proposed that they may be allowed time of thirty days to comply with the necessary formalities, instead of the prevailing time limit of only seven days from the end of the month in which the tax deduction is made.

(ii) In case where the income or amount is credited or paid in the month of March, instead of the current time limit of 30 days until 30th April, it is proposed that an enhanced time limit of 45 days, until 15th May be allowed for payment of tax deducted, for better compliance.

(iii) As per the current provisions, where the deductor is the Government, the time granted for filing Statements of tax deducted is one month from the end of the quarter, however, non-Government deductors are granted only 15 days time for the purpose. The Committee recommends that even non-Government deductors need to be given a similar time of one month, for purposes of better compliance. Moreover, at the end of the year, the prescribed time of one month needs to be increased to one and a half month for all deductors.

2. In view of the above, the Committee recommends the following amendments to Rules 30 and 31A:

Time and mode of payment to Government account of tax deducted at source or tax paid under sub-section (1A) of section 192.

Sub-Rules (2), (2A) and (3) of rule 30 to be amended with effect from 1.6.2016

30. (1) All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government shall be paid to the credit of the Central Government—

(a) on the same day where the tax is paid without production of an income-tax challan; and

(b) on or before seven days from the end of the month in which the deduction is made or income-tax is due under sub-section (1A) of section 192, where tax is paid accompanied by an income-tax challan.

(2) All sums deducted in accordance with the provisions of Chapter XVII-B by deductors other than an office of the Government shall be paid to the credit of the Central Government—

(a) on or before 15th day of May where the income or amount is credited or paid in the month of March; and

(b) in any other case, on or before seven days from the end of the month in which—

(i) the deduction is made; or

(ii) income-tax is due under sub-section (1A) of section 192.

(2A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IA shall be paid to the credit of the Central Government within a period of ninety days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.

(3) Notwithstanding anything contained in sub-rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:—

Sl. No.Quarter of the financial year ended onDate for quarterly payment
(/)(2)(3)
1.30th June7th July
2.30th September7th October
3.31st December7th January
4.31st March15th May

Statement of deduction of tax under sub-section (3) of section 200

Sub-Rules (2) proposed to be substituted and Sub-Rule (4A) proposed to be amended with effect from 1.4.2016

31A. (1) Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:—

(a) Statement of deduction of tax under section 192 in Form No. 24Q;

(b) Statement of deduction of tax under sections 193 to 196D in—

(i) Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and

(ii) Form No. 26Q in respect of all other deductees.

(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by the due date specified in the corresponding entry in column (3) of the said Table:

Sl. No.Date of ending of the
quarter of the
financial year
Due date
(/)(2)(3)
1.30th June31st July of the financial year
2.30th September31st October of the financial year
3.31st December31st January of the financial year
4.31st March31st May of the financial year immediately following the financial year in which deduction is made

(3) (i) The statements referred to in sub-rule (1) may be furnished in any of the following manners, namely:—

(a) furnishing the statement in paper form;

(b) furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5);

(c) furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5).

(ii) Where,—

(a) the deductor is an office of the Government; or

(b) the deductor is the principal officer of a company; or

(c) the deductor is a person who is required to get his accounts audited under section 44AB1 in the immediately preceding financial year; or

(d) the number of deductee’s records in a statement for any quarter of the financial year are twenty or more, the deductor shall furnish the statement in the manner specified in item (b) or item (c) of clause (i).

(iii) Where deductor is a person other than the person referred to in clause (ii), the statements referred to in sub-rule (1) may, at his option, be delivered or cause to be delivered in the manner specified in item (b) or item (c) of clause (i).

(3A) A claim for refund, for sum paid to the credit of the Central Government under Chapter XVII-B, shall be furnished by the deductor in Form 26B electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5).

(4) The deductor at the time of preparing statements of tax deducted shall,—

(i) quote his tax deduction and collection account number (TAN) in the statement;

(ii) quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government;

(iii) quote the permanent account number of all deductees;

(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be;

(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;

(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee;

(vii) furnish particulars of amount paid or credited on which tax was not deducted in view of the furnishing of declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A by the payee;]

(viii) furnish particulars of amount paid or credited on which tax was not deducted in view of the notification issued under sub-section (1F) of section 197A.

(4A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194-IA shall furnish to the Director General of Income-tax (System) or the person authorised by the Director General of Income-tax (System) a challan-cum-statement in Form No. 26QB electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within ninety days from the end of the month in which the deduction is made.

(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.

(6) Where a statement of tax deducted at source is to be furnished for tax deducted before the 1st day of April, 2010, the provisions of this rule and rule 37A shall apply as they stood immediately before their substitution or omission by the Income-tax (Sixth Amendment) Rules, 2010.

Source- Draft Report of Justice R.V. Easwar (Retd) Committee to Simplify the provisions of Income-tax Act, 1961

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