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
|
Within two months
Within one week from end of month of tax deduction |
With approval from the Tax Authority in special cases
|
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 |
|
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
|
|
|
| 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.
CANNOT GET A PRINTABLE FORMAT OF ARTICLES PUBLISHED IN TAXGURU.IN
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
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