Clarification regarding filing of returns in respect of tax deducted at source from salary of employees of company working at its headquarters or in other branches.
1. Board’s Circular No. 719 [F. No. 275/206/95-IT(B)], dated 22-8-1995 states that where the head office or the branch office is already filing the returns under section 206, no other Assessing Officer shall require the assessee to file such return with him. Where, however, the return is not being filed, the Assessing Officer having jurisdiction in terms of rule 36A of Income-tax Rules may proceed so as to enforce compliance to the provisions relating to deduction of tax at source from “Salary”.
2. It has been decided to extend this procedure to all other TDS returns filed under rule 37, as required under section 206 of the Income-tax Act, 1961.
