Background
The Central Board of Direct Taxes (“CBDT”) has issued notifications amending the rules in relation to compliance procedures as follows:
• Forms for furnishing information to the income-tax department by a person responsible for making payments to a non-resident / foreign company.
• Withholding tax or tax deducted at source (“TDS”) / tax collected at source (“TCS”) procedures and payments.
Amendments to Income-tax Rules, 1962
• CBDT Notification No. 30 / 2009 – Furnishing of information under section 195(6)
– The CBDT has inserted rule 37BB, which provides that the person making payment to a non-resident / foreign company would be required to furnish information in Form No.15CA to the income tax department.
– The payer would be required to obtain a certificate from an accountant (as defined under section 288 of the Income-tax Act, 1961) in Form No. 15CB.
– The payer would be required to furnish Form No. 15CA electronically before making the remittance. A print out of the form will be required to be submitted before the remitting the payment.
– Rule 37BB will be effective from 1st July, 2009.
• Notification No. 31 / 2009: TDS / TCS procedures and payments:
– The amendment substantially amends and replaces some of the procedural compliances relating to the TDS / TCS returns, challans, time limit for issue of TDS certificates and format of TDS certificate (like Form Nos. 16 and 16A, etc.).
– TDS/TCS shall be deposited mandatorily by electronic mode only (for this purpose, payment through Internet Banking Facility, Debit Card or Credit Card is allowed).
– TDS/TCS Challan needs to be furnished electronically through newly introduced Form 17.
– TDS Compliance Statement through Form 24C is to be filed by all assesses who have been allotted TAN (newly introduced).
– Form 16 and 16A amended. Form 16AA abolished.
– Quarterly deposit of TDS is allowed in certain cases with prior approval of Joint Commissioner.
– Duplicate issuance of TDS/TCS certificate allowed on request of the deductee. Assessing Officer to give credit on duplicate certificate on filing of affidavit and confirmation.
– TDS/TCS quarterly statement will continue to be filed on quarterly basis.
The above amendments are effective April 1, 2009.
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Particulars
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Rule No. |
Current provisions as applicable upto 31 March 2009
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Amended provisions applicable effective from 1 April 2009 |
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Applicability to furnish quarterly statements |
31A |
Every person responsible for deducting tax
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Every person who has been allotted TAN |
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Date of payment of TDS by Government deductor
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30 |
Same day
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• Not prescribed. • Similar time-limit as applicable for non government deductor would apply2 |
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Date of payment of TDS by Non- Government Deductor.
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30 |
• In case of amount credited to the account of payee, if the credit is on the date upto which the accounts were made – within two months from the end of the month in which amount is credited. • In other cases – within one week from the end of the month in which deduction is made. |
No change
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Prescribed challans
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30 / 37CA
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Challan No. ITNS 281
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• Electronic furnishing challan in Form no. 17 • The CBDT has issued a press release to clarify that in relation to any TDS / TCS made before 1 April 2009, the old challan Form No. 281 should be used though payment for the same is made after 31 March 2009. |
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Mode of payment
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30 / 37CA
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Mode of e-payment not specified
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E-payment specified to be by way of internet banking facility or by use of credit or debit card |
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Furnishing of challan in case of payments covered u/s. 192(5) / 206C
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30 / 37CA
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Furnishing of challans for TDS payments before the authorised bank was compulsory in case of non-government deductors
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Furnishing of challans for TDS payments by way of electronic mode is compulsory for all deductors. |
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Details of Deductee to be submitted in challan
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30 / 37CA
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No details of deductees were required to be given in Challan No. ITNS 281
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Details of deductee including name, PAN, TDSamount is required to be given in electronic challanForm no. 17 |
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Time limit for issue of TDS certificate in Form No. 16A for payments made during the financial year |
31 |
One month from the end of the month in which tax was deducted
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No change
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Time limit for issue of TDS certificate in Form No. 16A for the credit made on the date upto which the accounts of the deductor were prepared. |
31 |
Within one week after the expiry of two months from the month in which income was credited
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Within one week after the date on which the TDS was paid
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Time limit for issue of TCS certificate in Form No. 27D / 16A |
37D |
One month from the end of the month in which tax was collected |
No change
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Time limit for payment made u/s. 192, 192(1A) and 194D |
31 |
One month from the end of the financial year
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No change
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Time limit for filing of Form No. 24Q, 26Q, 27Q , 27EQ3
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31A,37A4, 31AA and 37D |
– 15 July, 15 October, 15 January for 1st, 2nd and 3rd quarter respectively for all the forms – 15 June for 4th quarter in case of all the forms except Form No. 27EQ – 30 April for 4th quarter in case of Form No. 27EQ |
15 June following the financial year
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Form No. 27A / 24C5
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31A
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Form No. 27A to be furnished
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Compliance Statement in Form No. 24C to be submitted on or before 15 July, 15 October, 15 January of the first three quarters of the financial year respectively, and on or before 15 June following the last quarter of the financial year |
Note:
- Notification No. 30 / 2009 dated 25 March, 2009 and Notification No. 31 / 2009 dated 25 March, 2009.
- In case of amount credited to the account of payee, if the credit is on the date upto which the accounts were made – within two months from the end of the month in which amount is credited. In other cases – within one week from the end of the month in which deduction is made.
- Form No. 24Q – Quarterly Statements for salary, Form No. 26Q – Quarterly Statements for other than salary, Form No. 27Q – Quarterly Statements for payments other than salary to non-residents, Form No. 27EQ – Quarterly Statements for tax collection at source.
- The rule 37A is omitted w.e.f. 1 April, 2009 and its principal contents are merged with rule 31A.
- Form No. 27A – Form for furnishing TDS / TCS statements filed in a computer media, Form No. 24C – TDS and TCS Compliance Statement.
furnishing online should be made easier. It should be like e-filing of our tax returns. No lamba procedure like Regn. paying advance deposit etc.etc.