Posts Tagged ‘CBDT’

Preparation of correction TDS / TCS statement

July 16th, 2011

As directed by DIT (Systems), deductors/collectors are advised to prepare correction TDS/TCS statements using consolidated TDS/TCS file only, provided by TIN. Consolidated TDS/TCS file is provided to registered TANs. Detailed procedure for registration of TAN and procuring consolidated TDS/TCS file is available at TIN website (www.tin-nsdl.com) under the service menu.

In view of the above you are advised to prepare correction statement using consolidated TDS/TCS file provided by TIN.

It is also informed that update of section code in quarterly TDS/TCS statement is allowed in case status of the challan/ transfer voucher is booked/ provisionally booked.

TIN-NSDL to provide TDS Certificate – Form 16A

July 15th, 2011

CBDT has recently vide Circular No. 3/2011 permitted issue of certificate for tax deducted at source (TDS certificate) with digital signature for TDS from income other than salary income (non-salary TDS) in Form 16A. The Deductors exercising this option need to download Form 16A from the Tax Information Network (TIN) website.

The new facility is available for issue of Form 16A from financial year 2010-11 onwards. The Circular states that Companies, Banks & Deductors engaged in banking business will need to mandatorily issue Form 16A downloaded from the TIN website from FY: 2011-12.

Visit www.tin-nsdl.com for more details

eTDS Return Processing – CBDT instructions on short deduction by small amounts

December 17th, 2010

INSTRUCTION NO. 8/2010 [F.NO. 275/73/2009-IT(B)] dated 8.12.2010 states that, in the present system of processing of e-TDS returns, the returns are processed online and mismatch report showing defaults on various accounts is generated. Based on this mismatch report, the assessing officers issue show-cause notices to the deductors and take follow up actions. 

1. It has come to the notice of the Board that substantial number of TDS returns are pending where the deductee-wise default on account of short deduction of tax is less than Rs. 10.

2. This issue has been considered by the Board and it has been decided that:(i)  where the default on account of short deduction is less than Rs. 10 for each deductee, the demand is round off to zero; and (ii)  after considering (i) above, deductor-wise demand/default, if any, of Rs. 100 or less will also be ignored for further action.

3. However, the DDOs in such cases may be warned to be careful in future so as to ensure that they do not become habitual in short deduction of tax.

4. Earlier Instruction No. 11/2007, dated 18-12-2007 issued under F. No. 385/56/2007-IT(B) on the subject stands superseded by this instruction.

5. These instructions shall apply to all TCS/TDS cases under all Direct Tax Enactments. These instructions will come into force immediately.

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

June 5th, 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:

Sl. No.

Date of ending of the quarter of the financial year

Due date

1.

30th June

15th July of the financial year

2.

30th September

15th October of the financial year

3.

31st December

15th January of the financial year

4.

31st March

15th May of the financial year immediately following the financial year in which deduction is made

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

Sl. No.

Category

Periodicity of furnishing TDS certificate

Due date

1.

Salary (Form No.16)

Annual

By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted

2.

Non-Salary
(Form No.16A)

Quarterly

Within fifteen days from the due date for furnishing the ‘statement of TDS’

Sl. No.

Date of ending of the quarter of the financial year

Due date

1.

30th June

15th July of the financial year

2.

30th September

15th October of the financial year

3.

31st December

15th January of the financial year

4.

31st March

15th May of the financial year immediately following the financial year in which deduction is made

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

May 15th, 2010

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.