THE PRESIDENT ICAI has written letter dated 5th May, 2009 , to The Chairman, CBDT and sought clarification on Clarification regarding new Form No.17.

Respected Sir,

Sub: Clarification regarding new Form No.17

The Income-tax Rules relating to time and mode of payment to Government account of –

(1) tax deducted at source; or
(2) tax paid under Chapter XVII-B; or
(3) tax collected at source under Chapter XVII-BB

have been amended vide the Income-tax (8th Amendment) Rules 2009 with effect from 1st April, 2009.

The two significant requirements arising as a consequence of such amendments are as follows –

(1)   The new Rules [namely, Rule 30(4) and Rule 37CA(2)], inter-alia, mandatorily require the person responsible for making deduction, or payment of tax, under Chapter XVII-B, and the person responsible for making collection under Chapter XVII-BB, to electronically furnish an income-tax challan in new Form No.17 within the specified time.

(2)   Further, new Rules 30(1)(b) and 37CA(1) provide that all sums deducted in accordance with the provisions of Chapter XVII-B and all sums collected in accordance with the provisions of Chapter XVII-BB should be paid to the credit of the Central Government within one week from the end of the month in which the deduction or collection is made.

From a combined reading of both the requirements [i.e. (1) and (2)] above, it is clear that remittances have to be made by the 7th of the succeeding month in new Form No.17. Therefore, the tax deducted and collected during the month of April, 2009 have to be remitted latest by 7th May, 2009 in new Form No.17.

However, the new Form No.17 has not yet been uploaded in the payment gateway on the site www.incometaxindia. Only the old challan 281 is available on the website.

Therefore, we request you to clarify whether remittances can be made using the old challan 281. This clarification is required on an urgent basis since the new rules make it mandatory to furnish income-tax challan in new Form No.17 and only two more days are available to comply with this requirement.

Warm regards,

Yours sincerely,
CA. Uttam Prakash Agarwal

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0 responses to “ICAI sought Clarification regarding new Form No.17 – from CBDT”

  1. Bharati says:

    Form 17 procedure is completed or not. Shall we make payment of TDS for the month of July,2009 in form 281 or should we wait for form 17
    Pl. advice me.

  2. VP Sharma says:

    Tell me plseaseeeeeeeeeeeeeee should I make payment of TDS for the month of June, 2009 using form 281 or should I wait..for form 17……

    Somebody out there advise me!!!!!

  3. Rohit Sharma says:

    I T Deptt Whiz Guys have left people in a big limbo regarding Form 17. It clearly depicts “Lack of Coordination, Planning & Implementation.

  4. Shailesh H. Chudgar says:

    We have paid TDS/TCS on 7th May 09 for the month of April 09 in old challan 281 in absence of non availability of New Challan 17 on the website. What is the pros & cons.

    • Sandeep Kanoi says:

      Department has allowed payment in old form 281 as facility for payment in form 17 not yet available.

  5. S.Malleswar Rao says:

    The Income Tax Department should ensure all new forms required are test checked before the announcement of implementation of new rules. It seems Income Tax Department often fails to follow this general rule which avoids inconvenience to tax payers.

  6. n k mohan says:

    shall be use the old form 281 for making payment.

    • Sandeep Kanoi says:

      Yes you can as facility to pay through new form 17 is not yet available. CBDT is expected to issue a circular in a day or two allowing payment in old form 281 till 30th June 2009.

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