Filing of returns relating to Tax Deduction at Source on computer media

1. Finance Act, 2003 has amended section 206 of the Income-tax Act, 1961 with a view to provide for mandatory filing of returns relating to tax deduction at source by principal officers of companies responsible for deducting tax on computer media. For this purpose, the Board has been empowered to notify an appropriate scheme in the Official Gazette.

2. Pursuant to this, rule 37B of the Income-tax Rules, 1962 has been amended to provide that where a person responsible for deducting tax under Chapter XVIIB is required to file a return or statement referred to in rule 37 or 37A on a computer media, he shall deliver or cause to be delivered the same in accordance with such scheme as may be specified by the Board. It has been further provided in rule 37B that the return or statement filed on computer media shall contain all the information required under rule 37 or rule 37A, as the case may be.

3. The forms of TDS returns prescribed under rules 37 and 37A have also been amended and notified vide S.O. No. 878(E) and S.O. No. 877(E), dated 31-7-2003 respectively.

4. The Board has, under the powers conferred by section 206 of the Income-tax Act, framed and notified the “Electronic Filing of Returns of Tax deducted at Source Scheme, 2003”, vide S.O. No. 974(E), dated 26-8-2003.

5. With a view to ensure that the TDS returns filed on computer media conform to the required specifications, the person responsible for deduction of tax at source and filing of TDS return on computer media shall ensure the following:

  (i)  Form No. 27A is duly filled in all columns, verified and enclosed in paper format with the return on computer media.

 (ii)  Tax deduction account number (TAN) of the person responsible for deducting tax at source is clearly mentioned in Form No. 27A as also in the TDS return, as required by sub-section (2) of section 203A of the Income-tax Act.

(iii)  The particulars relating to deposit of tax at source in the bank are correctly and properly filled in the table at item No. 6 of Form No. 24 or item No. 5 of Form No. 26 or item No. 5 of Form No. 27, as the case may be.

 (iv)  The data structure of the return for tax deduction at source in Form No. 24 or Form No. 26 or Form No. 27 prepared on computer readable media conforms to the data structure prescribed by the e-filing administrator authorised under the scheme for electronic filing of TDS returns notified by the Board vide S.O. No. 974(E), dated 26-8-2003.

  (v)  The Control Totals of the amount paid and the tax deducted at source as mentioned at item No. 3 of Form No. 27A tally with the corresponding totals in the return for tax deduction at source in Form No. 24 or Form No. 26 or Form No. 27, as the case may be.

6. In case the return on the computer readable media is found to be corrupted or does not fulfil any of the above guidelines, the computer readable media shall be returned to the deductor for appropriate correction and resubmission.

7. The guidelines relating to filing of returns relating to tax deduction at source on computer media laid down in Board’s earlier Circular No. 797, dated 10.10.2000 shall stand modified to the above extent.

Circular : No. 8/2003, dated 19-9-2003.

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