27 August 2013
FORM 3CD- CLAUSE 27 REQUIRES US TO REPORT THE LATE DEDUCTION INFOLLOWING MANNER-
1. Name of Party 2. PAN 3. Section under which tax should be deducted 4. Due date of deduction 5. Actual date of deduction Amount.
What should be the date of deduction??? For specific 1. if expense date is 01/06/2012 2. if expense date is 07/06/2012 3. if expense date is 30/06/2012
25 July 2024
In Form 3CD, Clause 27 pertains to reporting late deduction of tax at source (TDS) details. Here’s how you should interpret and fill out the required information:
1. **Name of Party**: The name of the party to whom the payment was made.
2. **PAN**: Permanent Account Number of the party to whom the payment was made. This is crucial for TDS purposes.
3. **Section under which tax should be deducted**: The specific section of the Income Tax Act under which TDS should have been deducted. For example, Section 194C for payments to contractors.
4. **Due date of deduction**: This refers to the date by which the tax should have been deducted at source as per the provisions of the Income Tax Act. The due date of deduction is generally the date of credit of income or payment, whichever is earlier, unless specified otherwise for certain payments like rent or fees for professional or technical services.
5. **Actual date of deduction**: The actual date when the TDS was deducted.
6. **Amount**: The amount on which TDS should have been deducted and the actual amount deducted.
### Understanding Due Date of Deduction:
- **For Specific Cases**:
1. **Expense Date: 01/06/2012**: - **Due Date of Deduction**: Typically, TDS should be deducted at the time of credit of income or payment, whichever is earlier. If the expense date is 01/06/2012 and payment is made on the same day, the due date of deduction is 01/06/2012.
2. **Expense Date: 07/06/2012**: - **Due Date of Deduction**: If payment is made on 07/06/2012, the due date of deduction would generally be 07/06/2012, as it is the date of payment.
3. **Expense Date: 30/06/2012**: - **Due Date of Deduction**: If the expense date is 30/06/2012 and payment is made on the same day, the due date of deduction is 30/06/2012.
### Additional Considerations:
- The due date of deduction is critical as it determines the timing by which the TDS should have been remitted to the government. It is based on the provisions of the Income Tax Act relevant to the specific type of payment.
- The actual date of deduction is when TDS was actually deducted from the payment made.
### Conclusion:
When reporting late deduction of TDS in Form 3CD, ensure that you accurately mention both the due date of deduction (as per Income Tax Act provisions) and the actual date of deduction. These details help in transparency and compliance with tax regulations. If in doubt about the due date of deduction for specific payments, refer to the relevant sections of the Income Tax Act or consult with a tax professional for precise guidance.
CAclubindia
