New Changes in TDS Rules – CBDT Release No. 402/92/2006-MC (27 of 2010), dated 2-6-2010

The Central Board of Direct Taxes (CBDT) have amended the Rules relating to TDS provisions date and mode of payment of tax deducted at source (TDS), TDS certificate and filing of ‘statement of TDS’ (TDS return) vide Notification No. 41/2010; SO No. 1261(E) dated 31.05.2010. The amended rules will apply only in respect of tax deducted on or after 1st day of April 2010.

Forms for TDS certificate have been revised to include the receipt number of the TDS return filed by the deductor. Now the Tax-deduction Account Number (TAN) of the deductor, Permanent Account Number (PAN) of the deductee, and Receipt number of TDS return filed by the deductor will form the unique identification for allowing tax credit claimed by the taxpayer in his income-tax return.

Government Authorities (Pay and Accounts Officer or Treasury Officer or Cheque Drawing and Disbursing Officer) responsible for crediting tax deducted at source to the credit of the Central Government by book-entry are now required to electronically file a monthly statement in a new Form No. 24G containing details of credit of TDS to the agency authorised by the Director General of Income-tax (Systems).

Due date for furnishing TDS return for the last quarter of the financial year has been modified to 15th May (from earlier 15th June). The revised due dates for furnishing TDS return are:

Due date for furnishing TDS certificate to the employee or deductee or payee is revised as under:

Direct tax collection at Rs 3,78,350 cr in FY’10: CBDT member

The direct tax collection for 2009-10 is Rs 3,78,350 crore as against the revised target of Rs 3.8 lakh crore. 

Speaking at the inaugural function of an Assocham conference on TDS, CBDT member Durgesh Shankar said the all-India direct tax collections have gone up from Rs 3,38,212 crore in 2008-09 to Rs 3,78,350 crore in 2009-10, registering a growth of 11.8 per cent. 

The share of TDS (Tax Deduction at Source) has not grown commensurately with the rise in direct tax collection in 2009-10, he said. 

The growth in TDS collection has dipped to 36.91 per cent from the earlier 38.49 per cent. 

The actual TDS collection has touched Rs 1,39,529 crore from Rs 1,30,172 crore, he said, adding that Bangalore has out-performed many other regions across the country in this regard. 

Stating that there is considerable potential for enhanced TDS collection, Shankar said that the government is bringing about a paradigm shift in the functioning of the I-T Department through e-filing, introduction of a tax information network and greater interaction with tax payers. 

Manual processing of I-T returns is being phased out gradually and e-filing of corporate returns has been made mandatory, he added. 

It is encouraging to see taxpayers taking the e-filing route, Shankar said, adding that central processing centres are being set up at different locations to ensure speedy tax refund.

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Income Tax Department press release dated January 20, 2010 on TDS

As per new provision of tax deduction at source (TDS) under the Income Tax Act 1961 effective from April 1, 2010, TDS at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available.

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Income-tax ( First Amendment) Rules, 2010 (TDS/TCS Rules)

Notification has been issued by Ministry of Finance, CBDT, amending the rules regarding Time and mode of payment to Government account of tax deducted/collected at source or tax paid under Section 192/206C, Certificates of tax deducted/collected at source or tax paid, Quarterly statement of deduction/collection of tax.

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