Extension for Form 17 till 30-06-2009

Page no : 2

CA Shravan (Profession) (126 Points)
Replied 08 May 2009

thanks for sharing

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Rohan (Partner) (31 Points)
Replied 08 May 2009

I have rented a commercial space in name of my partnership firm since Jan 2007 on a 3 years lease. I have paid 4 months security (refundable ) equalling 64000 /- and the following rental payments:

FY : 2007 - 2008 - Total Rent paid = 196800

FY : 2008 - 2009 - Total Rent paid = 216480

FY : 2009 - 2010 - Total Rent to be paid = 174240 ( from April 2009 till December 2009 only)

The Property owner is a senior citizen and cheques paid are in his name, although the property is owned by him, his wife and childrens jointly. The issue is that he says being a senior citizen he is not liable for TDS. I assume it would have been true if he had no other income and am looking for some help on this here. Actually he owns other properties also and gets good amount of rental income from them as well. Much higher rents than what i am paying.

Can someone guide me as t,o if i am liable for not deducting and depositing of TDS on his behalf. I have not deducted and TDS till now for the rent. Although i do deposit TDS for employees and few contractors on a regular basis. Also, since i have not deducted TDS for the rented premises, how will it be viewed by the Tax Authorities and will they raise any demand on me or on the Property owner . Any help will be highly appreciated.

Thanks

Ronny

CA Neha Jain (ACA) (108 Points)
Replied 08 May 2009

Thanx for sharing this valuable information as the income Tax site has still not been updated.

Sumit Jain (CA) (4760 Points)
Replied 08 May 2009

Clarification regarding new Form No.17 - (06-05-2009)

5th May, 2009

Mr. S.S.N. Moorthy,
Chairman
Central Board of Direct Taxes
Department of Revenue
Ministry of Finance
Government of India
North Block
New Delhi – 110 001

Respected Sir,

Sub: Clarification regarding new Form No.17

The Income-tax Rules relating to time and mode of payment to Government account of -

(1) tax deducted at source; or
(2) tax paid under Chapter XVII-B; or
(3) tax collected at source under Chapter XVII-BB

have been amended vide the Income-tax (8th Amendment) Rules 2009 with effect from 1st April, 2009.

The two significant requirements arising as a consequence of such amendments are as follows –

(1) The new Rules [namely, Rule 30(4) and Rule 37CA(2)], inter-alia, mandatorily require the person responsible for making deduction, or payment of tax, under Chapter XVII-B, and the person responsible for making collection under Chapter XVII-BB, to electronically furnish an income-tax challan in new Form No.17 within the specified time.

(2) Further, new Rules 30(1)(b) and 37CA(1) provide that all sums deducted in accordance with the provisions of Chapter XVII-B and all sums collected in accordance with the provisions of Chapter XVII-BB should be paid to the credit of the Central Government within one week from the end of the month in which the deduction or collection is made.

From a combined reading of both the requirements [i.e. (1) and (2)] above, it is clear that remittances have to be made by the 7th of the succeeding month in new Form No.17. Therefore, the tax deducted and collected during the month of April, 2009 have to be remitted latest by 7th May, 2009 in new Form No.17.

However, the new Form No.17 has not yet been uploaded in the payment gateway on the site www.incometaxindia.gov.in. Only the old challan 281 is available on the website.

Therefore, we request you to clarify whether remittances can be made using the old challan 281. This clarification is required on an urgent basis since the new rules make it mandatory to furnish income-tax challan in new Form No.17 and only two more days are available to comply with this requirement.

Warm regards,

Yours sincerely,
Sd/-
CA. Uttam Prakash Agarwal

swapnil (Student) (45 Points)
Replied 09 May 2009

Originally posted by :Sumit Jain

Form 17 is being uploaded in the Income tax's official website the link to download the Form is here under

https://law.incometaxindia.gov.in/TaxmannDit/DisplayPage/formspg.aspx?smd=3

Clarification regarding new Form No.17 - (06-05-2009)

5th May, 2009

Mr. S.S.N. Moorthy,
Chairman
Central Board of Direct Taxes
Department of Revenue
Ministry of Finance
Government of India
North Block
New Delhi – 110 001

Respected Sir,

Sub: Clarification regarding new Form No.17

The Income-tax Rules relating to time and mode of payment to Government account of -

(1) tax deducted at source; or
(2) tax paid under Chapter XVII-B; or
(3) tax collected at source under Chapter XVII-BB

have been amended vide the Income-tax (8th Amendment) Rules 2009 with effect from 1st April, 2009.

The two significant requirements arising as a consequence of such amendments are as follows –

(1) The new Rules [namely, Rule 30(4) and Rule 37CA(2)], inter-alia, mandatorily require the person responsible for making deduction, or payment of tax, under Chapter XVII-B, and the person responsible for making collection under Chapter XVII-BB, to electronically furnish an income-tax challan in new Form No.17 within the specified time.

(2) Further, new Rules 30(1)(b) and 37CA(1) provide that all sums deducted in accordance with the provisions of Chapter XVII-B and all sums collected in accordance with the provisions of Chapter XVII-BB should be paid to the credit of the Central Government within one week from the end of the month in which the deduction or collection is made.

From a combined reading of both the requirements [i.e. (1) and (2)] above, it is clear that remittances have to be made by the 7th of the succeeding month in new Form No.17. Therefore, the tax deducted and collected during the month of April, 2009 have to be remitted latest by 7th May, 2009 in new Form No.17.

However, the new Form No.17 has not yet been uploaded in the payment gateway on the site www.incometaxindia.gov.in. Only the old challan 281 is available on the website.

Therefore, we request you to clarify whether remittances can be made using the old challan 281. This clarification is required on an urgent basis since the new rules make it mandatory to furnish income-tax challan in new Form No.17 and only two more days are available to comply with this requirement.

Warm regards,

Yours sincerely,
Sd/-
CA. Uttam Prakash Agarwal

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swapnil (Student) (45 Points)
Replied 09 May 2009

Form No 17 has been uploaded in the ITs official Website the link is here under to download the said Form

https://law.incometaxindia.gov.in/TaxmannDit/DisplayPage/formspg.aspx?smd=3

CA.VVGANESH (SR PARTNER) (27 Points)
Replied 09 May 2009

We should not rely on "Notification being Issued". As practisioners unless and untill CBDT issues notification the issue is not resolved!!.

Even in the Taxindiaonline.com website the flas news has been removed on 7th May 09 itself!!

Let us be clear any notification issued by Finance Ministry should be follwed. CBDT has not issued any clarification till date on the implementation of Form 17, which means TDS for April 2009 though due on 7th May 2009 assessee cannot be paid to the government account. There is no willful default of assessee for non payment. It is sufficient if the TDS for April 2009 is paid when the Form17 is made available in the online tax https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp website.

If the CBDT keeps in abeyance Form 17 for the time being they have to issue notification to that effect and extent the due date from 7th May 2009 suitably.

CA SRIRAM S (CHARTERED ACCOUNTANT) (240 Points)
Replied 09 May 2009

Can Any one say the breif changes of TDS form could i get form 17& it should be paid electronically

CA CS CMA Srinivasan N (ACA, ACS, CWA Inter) (1172 Points)
Replied 09 May 2009

Hello,

The recent changes introduced in TDS and E-filing provides for mandatory E Payment and requires for greater details from the Deductors. One of this is validation of PAN numbers of all deductees and also the introduction of UTN(Unique Transaction Number). There will be a UTN for each deductee and it has to be mentioned in the TDS certificates issued by Deductors.

You may see this link for the changes :

https://www.taxmann.net/datafolder/Flash/flashart_2.htm

and see this link for downloading Form 17.

https://www.taxguru.in/income-tax-forms

The payment is to be made electronically.

However as you can see in the above posts the applicability has been deferred till 30.6.09 due to the lack of infrastructure with IT Dept.

Rgds