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
|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
|Form of challan||Challan No. ITNS 281|
|Mode of payment of TDS/TCS|| |
C. Form for issue of TDS/TCS certificate
|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
|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
|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
|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 |
|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.