The Central Board of Direct Taxes (CBDT) had last year amended Rules 30, 31, 31A, 31AA, 37A, 37CA and 37D (rules) pertaining to tax deducted/collected at source (TDS/TCS) vide Notification No.31/2009 dated 25 March 2009. The amended rules were to come into force from 1 April 2009. The most significant features of the amended rules were (a) Mandatory electronic payment of TDS/TCS in new challan Form 17 for all deductors/collectors. (b) Introduction of Unique Transaction Number for tracking each TDS/TCS transaction. (c) Furnishing of annual statement of TDS/TCS in addition to quarterly statements. However, in view of difficulties in the implementation of this amendment, the CBDT kept the said Notification No. 31/2009 in abeyance vide Press Release dated 30 June 2009.

The CBDT has now, vide Notification No. 9/2010 dated 18 February 2010 (new Notification), notified Income-tax (First Amendment) Rules, 2010 which restores the position prevailing prior to 1 April 2009. The new Notification comes into force from 1 April 2009.

This Tax Alert summarizes the changes effected by the new Notification.

Summary of the new Notification

The new Notification effectively restores the position prevailing prior to 1 April 2009 and validates the procedural compliances made during the period from 1 April 2009 till 18 February 2010 in terms of the rules as they stood prior to 1 April 2009.

The procedural requirements effective from 1 April 2009 in terms of the new Notification are summarized below:

A. Time limit for depositing TDS/TCS

PARTICULARS REQUIREMENT
By Government deductor Same day
By others

  • TDS on credit made on date up to which accounts of deductor are made (except salary, lotteries, horse races etc.)
  • Other cases
Within two months

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
  • TDS from salaries
Quarterly basis on 15 July, 15 October, 15 January and 15 April

Quarterly basis on 15 June, 15 September, 15 December and 15 March

TCS Within one week from end of month of tax collection  at source

B. Prescribed income tax challan and mode of payment of TDS/TCS

PARTICULARS REQUIREMENT
Form of challan Challan No. ITNS 281
Mode of payment of TDS/TCS
  • Mandatory 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

C. Form for issue of TDS/TCS certificate

PARTICULARS REQUIREMENT
Form for TDS certificate Form 16 for salary TDS and Form 16A for others Form 16AA for salary TDS where salary income is less than INR 1.50 lakhs
Form for TCS certificate Form 27D

D. Time limit for issue of TDS/TCS certificate

PARTICULARS REQUIREMENT
TDS from salary and insurance commission Within one month from the close of financial year (FY)
Where credit is made  on date up to which accounts of deductor are made Within one week from expiry of two months from date of credit
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
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
Consolidated TCS certificate for multiple payments at request of collectee Within one month from end of 30 September/31 March

E. Issue of duplicate TDS/TCS certificate where original certificate is lost

PARTICULARS REQUIREMENT
Manner of issue On plain paper by giving necessary details of Form 16/16A/27D
Manner of grant of credit for duplicate certificate On furnishing of Indemnity Bond by  deductee/collectee and certification by the designated Tax Authority

F. Form and time limit for quarterly statements of TDS/TCS

PARTICULARS REQUIREMENT
Form for furnishing quarterly  statements of TDS/TCS
Salary TDS Form 24Q
Other TDS (resident deductees)

 

Form 26Q

 

TDS from non- resident/not ordinarily resident deductees

 

Form 27Q
TCS Form 27EQ
Time limit for furnishing quarterly statements of TDS/TCS
TDS in respect of  resident deductees in Form 24Q and Form 26Q

 

15 July, 15 October, 15 January and 15 June
TDS in respect of non- resident/not ordinarily resident deductees in Form 27Q

 

  • 14 July, 14 October, 14 January and  14 April
  • days from expiry of two months from date up to which accounts of deductor are made where credit of income is made on that date

 

TCS 15 July, 15 October, 15 January and 30 April

It needs to be noted that there is a difference between the due dates for filing quarterly statements of TDS in respect of resident deductees and non-resident deductees.

Comments:- The new Notification validates the procedural compliances made during the period from 1 April 2009 til  18 February 2010 in terms of the rules as they stood prior to 1 April 2009.

More Under Income Tax

Posted Under

Category : Income Tax (25503)
Type : Notifications (15398) Notifications/Circulars (30678)

0 responses to “CBDT restores TDS/TCS rules prevailing prior to 1 April 2009”

  1. HAREN PAREKH says:

    CANNOT GET A PRINTABLE FORMAT OF ARTICLES PUBLISHED IN TAXGURU.IN

  2. Manoj K. Modi (Rewari) says:

    Thanks for timely information.

    However, I could not understand whether the concept of UTN Unique Transaction Number)has been dropped by department or it would be applied.

    Clarification from any friend would be appreciated.

    Manoj K Modi

    • CA Sandeep Kanoi says:

      concept of UTN Unique Transaction Number) been dropped as department do not have infrastructure to implement it.

  3. John Lawrence says:

    Updates are exceptionally good and crisp to understand the requirements to be fulfilled under Tax Laws. Helps in planning and scheduling payments propmtly and above all to educate ourseleves with adherence to statutory compliance

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