The Central Board of Direct Taxes (CBDT) had recently notified Rules 30, 31, 31A, 31AA, 37A, 37CA and 37D (Rules) pertaining to tax deducted/collected at source (TDS/TCS) in February 2010. The above notification validated the procedural compliances made during financial year (FY) 2009-10 for the period when the implementation of a new proposed TDS/TCS compliance procedure was kept in abeyance.
The CBDT has now, vide Notification No. 41/2010 dated 31 May 2010 (new Notification), notified Income-tax (Sixth Amendment) Rules, 2010 which amends the Rules. The new Notification is effective from 1 April 2010 and applies to tax deducted/collected on or after 1 April 2010. The procedural compliance for tax deducted/collected up to 31 March 2010 will be governed by the earlier Rules.
The notable features of the amended Rules are: (a) Time limit for deposit of TDS for the entire month of March will be 30 April instead of two separate time limits viz. 7 April for TDS up to 30 March and 31 May for TDS as of 31 March. (b) Non-salary TDS certificates will need to be issued on quarterly basis (instead of monthly or annual basis). (c) Time limit for filing quarterly TDS statement for last quarter of FY is advanced to 15 May instead of 15 June.
Summary of the new Notification
The new Notification amends the Rules relating to time and mode of depositing TDS, issuance of TDS/TCS certificate, filing of TDS/TCS quarterly statements etc.
The procedural requirements effective for tax deducted/collected on or after 1 April 2010 in terms of the new Notification are summarized below:
A. Time limit for depositing TDS/TCS
| Particulars | Earlier provision
|
New provision | ||
| By Government deductor | Same day | Same day if tax paid without challan i.e., by internal transfer Within 7 days from end of month deduction if tax paid with challan | ||
| By Others | TDS on credit made on date up to which accounts of deductor are made (except salary, lotteries, horse races etc.) | Within two months | TDS on credit made in month of March | On or before 30 April |
| Other cases | Within one week from end of month of tax deduction | Other cases | Within one week from end of month of tax deduction | |
| With approval from the Tax Authority in special cases | ||||
| TDS from interest (other than securities), insurance commission and commission/ brokerage | Quarterly basis on 15 July, 15 October, 15 January and 15 April | Quarterly basis on 7 July, 7 October, 7 January and 30 April | ||
| TDS from salaries | Quarterly basis on 15 June, 15 September, 15 December and 15 March |
Same as above | ||
TCS
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B. Prescribed income tax challan and mode of payment of TDS/TCS
| Particulars | Earlier provision | New Provision |
| Form of challan | Challan No. ITNS 281 | Challan No. ITNS 281 |
| Mode of payment of TDS/TCS | Without challan i.e., internal transfer by Government deductors | Form 24G within 10 days from end of month of tax deduction/collection by Government deductors paying without challan |
| Mandatorily by electronic mode for (a) Companies (b) Other deductors/collectors who are liable for tax audit* | Mandatorily by electronic mode for (a) Companies (b) Other deductors/collectors who are liable for tax audit | |
| For others – at their option either physically or by electronic mode | For others- at their option either physically or by electronic mode |
* In terms of Rule 125
C. Form for issue of TDS/TCS certificate
| Particulars | Earlier provision | New Provision |
| Form for TDS certificate |
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| Form for TCS certificate | Form 27D | Form 27D |
Note: In addition to other requirements, the new forms require disclosure of the address of TDS Tax Authority.
D. Time limit for issue of TDS/TCS certificate
| Particulars | Earlier provision | New Provision | ||
| TDS | TDS from salary and insurance commission | Within one month from the close of FY (CBDT Circular No. 2 of 2007 dated 21 May 2007 provided option to issue such certificates with digital signature) | TDS from salary | On annual basis by 31 May following the FY of tax deduction (can be optionally issued with digital signature) |
| Where credit is made on date up to which accounts of deductor are made credit |
‘ Within one week from expiry of two months from date of credit | Others | On quarterly basis within 15 days from due date of furnishing TDS quarterly statement | |
| Others | Within one month from end of month of credit/ payment | |||
| Where quarterly deposit of TDS is allowed | Within 14 days of payment of TDS |
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| Consolidated TDS certificate for multiple payments at request of deductee |
Within one month from close of FY | |||
| TCS | Within one month from end of month of debit/receipt | On quarterly basis within 15 days from due date of TCS quarterly statement | ||
E. Form and time limit for quarterly statements of TDS/TCS
| Particulars | Earlier provision | New provision | ||
| Form for furnishing quarterly statements of TDS/TCS | Salary TDS | Form 24Q | Salary TDS | Form 24Q |
| Other TDS (resident deductees) | Form 26Q | Other TDS (resident deductees) | Form 26Q | |
| Other TDS (non- resident/not ordinarily resident deductees) | Form 27Q | Other TDS (non- resident/not ordinarily resident deductees) | Form 27Q | |
| TCS | Form 27EQ | TCS | Form 27EQ | |
Time limit for furnishing quarterly statements of TDS/TCS
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- 15 July, 15 October, 15 January and 15 May
- Same as above
Comments
The new Notification amends the procedural compliances and applies to tax deducted/collected on or after 1 April 2010.
The time limit for deposit of TDS for the entire month of March is rationalized to 30 April instead of two separate time limits viz. 7 April for TDS up to 30 March and 31 May for TDS as of 31 March.
The time limit for issue of TDS certificates for non-salary TDS is rationalized to quarterly basis instead of monthly basis. However, deductors will need to note that the facility of issuing annual consolidated certificate for such TDS, at the request of deductee, has been withdrawn.
Deductors will also need to note that the time limit for filing quarterly TDS statements for last quarter of FY has been advanced to 15 May instead of 15 June.
Related Post:-
- Download Latest Form 16, 16A, 27D, 24G in Excel Format for A.Y. 2011-12
- Income-tax (Sixth Amendment) Rules, 2010 – Substitution of rules 30, 31, 31A, 31AA, 37CA and 37D; Form Nos. 16, 16A and 27D; insertion of Form No. 24G and omission of rule 37A
- New Changes in TDS Rules related to due date for furnishing TDS return/Certificate, inclusion of receipt number in TDS certificate and Requirement of filing form No. 24G by government companies
- Summary of Recent Amendments in TDS rules vide Notification No. 41/2010 Applicable from 01.04.2010
this is the grate side to learn student of tax thankful tax guru
Quaterly compliance of TDS cErtificate Issue is was not required, It would unnecessarilily create tedious paperwork process.Furthur Quaterly TDS payment should be more clearly clarified as to which entities would be eligable to apply to there Assessing Officers must be some criteria?
Very good summary plz do forward me the latest issues related to tax. I wud really b grateful to u
I agree with the above post,
as Central Board of Direct Taxes (CBDT) had recently notified Rules for TDS,you can find more information about TDS and its rules at Indian income tax.