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.

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.

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 Earlier Instruction No. 11/2007, dated 18-12-2007 issued under F. No. 385/56/2007-IT(B) on the subject stands superseded by this instruction.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

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:

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.