From April 1, 2025, Section 200A of the Income-tax Act will be expanded to include processing schemes for statements filed by non-deductors, such as those from exchanges (e.g., Form No. 26QF). This amendment broadens the scope of statement processing beyond just those filed by tax deductors, enhancing clarity and efficiency in tax administration.
Budget 2024: Widening ambit of section 200A of the Act for processing of statements other than those filed by deductor
Section 200A of the Act provides for the manner in which statement of tax deduction at source or a correction statement made by a person deducting any sum under section 200 shall be processed.
2. There are statements, such as Form No. 26QF which is filed by an Exchange wherein the deductee is filing details of the tax. It is proposed to widen the ambit of section 200A of the Act to state that in respect of statements which have been made by any other person, not being a deductor, the Board may make a scheme for processing of such statements
3. The amendment will take effect from the 1st day of April, 2025.
[Clause 68]
Extract of Clause 62 of Finance Bill 2024
Clause 68 of the Bill seeks to amend section 200A of the Income-tax Act relating to processing of statements of tax deducted at source.
The said section provides the manner in which statement of tax deduction at source or a correction statement made by a person deducting any sum (deductor) under section 200 shall be processed.
It is proposed to amend the marginal heading to insert the words “and other statements”.
It is proposed to insert a new sub-section (3) in the said section to provide that the Board may make a scheme for processing of statements which have been made by any other person, not being a deductor.
These amendments will take effect from 1st April, 2025.
68. Amendment of section 200A.
In section 200A of the Income-tax Act, with effect from the 1st day of April, 2025,—
(a) in the marginal heading, for the word “source”, the words “source and other statements” shall be substituted;
(b) after sub-section (2), the following sub-section shall be inserted, namely:
“(3) The Board may make a scheme for processing of statements made by any other person, not being a deductor.”.
