In Budget 2012 CBDT has introduced a provision w.e.f. 01.07.2012 by which a person who has defaulted in payment of TDS / TCS will not be deemed to be a person in default if he furnishes a certificate from CA to the effect that the person in respect of whom default is committed

 (i)  has furnished his return of income under section 139;

(ii)  has taken into account such sum for computing income in such return of income; and

(iii)  has paid the tax due on the income declared by him in such return of income,

and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:]

The above was done by inserting proviso  to sub-section (1) of section 201 & to sub-section (6A) of section 206C. The CBDT has now issued the format of such certificates (Form 26 A for default in Payment of TDS & Form No.  27BA for default in Payment of TCS) and issued  a notification related to same which is as follows :-

Income-tax (Eleventh Amendment) Rules, 2012 – Insertion of rules 31ACB, 37J, Form Nos. 26A & 27BA

Notification no. 37/2012 [f.no. 142/18/2012-so(tpl)], dated 12-9-2012

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (11th Amendment) Rules, 2012.

(2) They shall come into force on the date of publication in the Official Gazette.

2. In the Income-tax Rules, 1962, (hereafter referred to as the “said rules”),-

(a)  after rule 31ACA, the following rule shall be inserted, namely:-

“Form for furnishing certificate of accountant under the first proviso to sub-section (1) of section 201

31ACB. The certificate from an accountant under first proviso to sub-section (1) of section 201 shall be furnished in Form No.26A”;

(b)  after rule 37-I, the following rule shall be inserted, namely:-

“Form for furnishing certificate of accountant under first proviso to sub-section (6A) of section 206C

37J. The certificate from an accountant under first proviso to sub-section (6A) of section 206C shall be furnished in Form No. 27BA.”

3. In Appendix-II to the said rules.-

(a) after Form No. 26, the following form shall be inserted, namely.—

“FORM No. 26A

[See rule 31ACB]

Form for furnishing accountant certificate under the first proviso to sub-section (1) of section 201 of the Income-tax Act, 1961

I (name) _________________________ am the person responsible for paying (within the meaning of section 204) in the case of (name of the payer) ______________________ with PAN # (PAN of the payer) __________________________________________ and TAN (TAN of the payer) ______________________ located at  (address of the payer) _______________________ ______________

I do hereby state that I, being the person responsible for paying had paid to/credited to the account of (name of the payee)  _________________ a sum of _____________________ rupees without deduction of whole or any part of the tax

A certificate from an accountant certifying that the payee has fulfilled all the conditions mentioned in the first proviso to sub-section (1) of section 201 of the Income-tax Act, 1961 is enclosed as Annex ‘A’ to this Form

I further state that the interest under sub-section (1A) of section 201 amounting to _______ rupees for non-deduction/short deduction of tax * has been paid by me the details of which are as under –

BSR Code/**24G Receipt Number (first seven digits of BIN) Challan Serial Number/**DDO Serial Number (last five digits of BIN) Date of deposit through challan/**date of transfer voucher

or

*has not yet been paid by me

Place Signature
Date Designation

 # In case of Government deductors “PAN NOT REQD” should be mentioned

* Delete whichever is not applicable

** For payment made without the production of challan

ANNEXURE A

Certificate of accountant under first proviso to sub-section (1) of section 201 of the Income-tax Act, 1961 for certifying the furnishing of return of income, payment of tax etc. by the payee

I/We *hereby confirm that I/we* have examined the relevant accounts, documents and records of (name and address of the payee with PAN) __________________________________________________ for the period ___________________ and hereby certify the following:

(i) ____________________  (payer) has paid to or credited following sum to the account of ________________ (payee) without deduction of whole or any part of the tax in accordance with the provisions of Chapter-XVII-B

Nature of payment Date of payment or credit Section under which tax was deductible Amount paid or credited Amount of tax deductible Details of amount deducted, if any
Amount deducted Date of deduction

(ii) The payee, who is a resident, has furnished his return of income for the assessment year ______________ relevant to the payment referred to in (i) above. The details of return of income filed by the payee are as under –

 

Date of filing return Mode of filing i.e. whether e-filed or paper return Acknowledgement number of return filed If paper return-designation and address of the Assessing Officer Amount of total taxable income as per return filed Tax due on the income declared in the return Details of tax paid

(iii) The payee has taken into account the sum referred to in (i) for computing his taxable income in return of income filed by him the details of which are as under –

Receipt on which Tax has not been deducted Head of Income under which the receipt is accounted for Gross receipt under the head of income under which the receipt is accounted for Amount of taxable income under the head of income under which the receipt is accounted for

(iv) It has been ensured that the information furnished is true and correct in all respects and no relevant information has been concealed or withheld

(v) Neither I, nor any of my partners, is a director, partner or an employee of the above mentioned entities or its associated concerns

I/we* fully understand that any statement made in this certificate, if proved incorrect or false, will render me/us* liable for any penal or other consequences as may be prescribed in law or is otherwise warranted

(Signature and Stamp/Seal of the Signatory)

†Accountant

Place Name of the Signatory
Date Full Address
Membership No.

Notes:

 1.  *Delete whichever is not applicable

 2.  †This certificate is to be given by –

 (i)  a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or

(ii)  any person, who in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that State “

(b) after Form No. 27B, the following form shall be inserted, namely.—

——————————-

“FORM No. 27BA

[See rule 37J]

Form for furnishing accountant certificate under first proviso to sub-section (6A) of section 206C of the Income-tax Act, 1961

I. (name) ____________________ am the person responsible for collecting tax under section 206C in the case of (name of the seller/licensor/lessor) ________________________________ with PAN # (PAN of the seller/licensor/lessor) ___________________ and TAN (TAN of the seller licensor/lessor) ____________________ located at (address of the seller/licensor/lessor) _______________

I do hereby state that I, being the person responsible for collecting tax had received from debited to the account of (name of the buyer/licensee/lessee) _________________ a sum of _______________ rupees without collection of whole or any part of tax.

A certificate from accountant certifying that the buyer/licensee/lessee has fulfilled all the conditions mentioned in the first proviso to sub-section (6A) of section 206C of the Income-tax Act, 1961 is enclosed as Annex ‘A’ to this Form.

I, further, state that the interest under sub-section (7) of section 206C amounting to ____________ rupees for non-collection short collection of tax

* has been paid by me, the details of which are as under :-

BSR Code/**24G Receipt Number (first seven digits of BIN) Challan Serial Number/**DDO Serial Number (last five digits of BIN) Date of deposit through challan/* *date of transfer voucher

or

*has not yet been paid by me.

Place: Signature:
Date: Designation:

# In case of Government deductors, “PAN NOT REQD” should be mentioned.

*Delete whichever is not applicable.

** For payment made without the production of challan by the Government deductor.

ANNEXURE A

Certificate of accountant under first proviso to sub-section (6A) of section 206C of the Income-tax Act, 1961 for certifying the furnishing of return of income, payment of tax etc. by the buyer/licensee/lessee

I/We* hereby confirm that I/we* have examined the relevant accounts, documents and records of (name and address of the buyer/licensee/lessee with PAN) ____________________ for the period _______________ and hereby certify the following:

(i) ______________________________ (seller/licensor/lessor) has received from or debited following sum to the account of _______________________ (buyer/licensee/lessee) without collection of whole or any part of the tax in accordance with the provisions of Chapter -XVII-BB

Nature of Receipt Date of Receipt or debit Section under which tax was Collectible Amount received or debited Amount tax collectible Details of amount collected, if any
Amount collected Date of collection

(ii) The buyer/licensee/lessee, has furnished his return of income for the assessment year _________________ relevant to the receipt referred to in (i) above. The details of return of income filed by the buyer/licensee/lessee are as under –

Date of filing return Mode of filing i.e. whether e-filed or paper return Acknowledgement number of return filed If paper return-designation and address of the Assessing Officer Amount of total taxable income as per return filed Tax due on the income declared in the return Details of tax paid

(iii) The buyer/licensee/lessee has taken into account the sum referred to in (i) for computing his taxable income in return of income filed by him, the details of which are as under:-

Payment on which Tax has not been collected Head of Income under which the payment is accounted for Gross payment under the head of income under which the payment is accounted for Amount of taxable income under the head of income under which the payment is accounted for

(iv) It has been ensured that the information furnished is true and correct in all respects and no relevant information has been concealed or withheld

(v) Neither I, nor any of my partners, is a director, partner or an employee of the above mentioned entities or its associated concerns

I/we* fully understand that any statement made in this certificate, if proved incorrect or false, will render me/us* liable for any penal or other consequences as may be prescribed in law or is otherwise warranted.

(Signature and Stamp/Seal of the Signatory)

†Accountant

Place: Name of the Signatory…………………………
Date: Full Address:……………………………………..
Membership No…………………………………

Notes:

 1.  *Delete whichever is not applicable.

 2.  †this certificate is to be given by-

 (i)  A chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or

(ii)  Any person, who in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that State.”.

Download Format of Form No. 26A in word Format

Download Format of Form No. 27BA in word Format

More Under Income Tax

Posted Under

Category : Income Tax (25549)
Type : Notifications (15402) Notifications/Circulars (30688)
Tags : Income Tax Notifications (9622) TDS (925)

One response to “Format of CA Certificate to Furnish in case of Failure to deduct TDS / TCS”

  1. Saurabh Gupta says:

    If you can pls guide how and where to deposit Form 26A.

  2. payal says:

    Sir

    My client had scrutiny assessment of A.y 2013-14.The A.O added back Interest payment due to non deduction of TDS u/s 40(a)(ia).We filed an appeal as per second proviso to Section 40(a)(ia)which says that if the assessee makes payment of the nature specified u/s 40(a)(ia) to a resident payee without deduction of tax and is not deemed to be an assessee in default u/s 201(1) on account of payment of taxes by the payee, then, for the purpose of allowing deduction of such sum, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee.

    For Supporting the same my assessee is required to furnish form 26A with the CIT(A) duly certified by CA of the Company receiving the Interest payment.(TATA HOUSING P. LTD.)
    My Assessee fails to provide the Signed form 26A from CA of Tata Housing Finance P. Ltd.
    Kindly guide me for any other possible alternative to support the Assessee.
    Thankyou

  3. Gupta says:

    full procedure to submit form

  4. HITENDER says:

    WHAT IS THE PROCEDURE TO SUBMIT FORM 26A UNDER INCOME TAX ACT. TO WHOM IT SHOULD BE SUBMITTED. WHETHER IT IS TO BE SUBMITTED MANUALLY OR ELECTRONICALLY.

  5. R.B.SHAH Advocate of Tribunal says:

    the above form can be produced for previous year’S PENDING MATTER also i.e. before A.Y.2013-14 and save from inadmissible expenditure which are made without tds.

  6. Devesh says:

    Sir,
    my question is I am an accountant and payment made to foreign resident. TDS deposit on time but not deposit Education Cess on TDS. Sir, I have received TDS notice towards short deducation of TDS and the short deduction amount is amount of education cess.

    Can you please guide me is required to obtain CA certificate in case of tds default. I have deposit tds with interest and file revised return.

  7. Rubbal says:

    Nice Work. But the format is not posted properly. It is requested to post an attachment for the same, so that any one can download it.

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