HOW TO DEPOSIT TDS OF APRIL

Nikhil (Internal Auditor) (208 Points)
Replied 30 April 2009

Its like u submit in the other months....

u are asking about April & Not March..

Due date for April is 7th May 2009.

CA Sudhir Halakhandi (PRACTICING CHARTERED ACCOUNTANT) (13401 Points)
Replied 30 April 2009

THE TDS FOR THE MONTH OF APRIL 2009 IS TO BE DEPOSITED IN FORM NO.17 AND I AM ASKING ABOUT THE PROCEDURE OF DEPOSTING OF TAX THROUGH FORM NO.17 .

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 30 April 2009

The Schema of the new form-17 is still not declared by the government. It looks that govenment and the IT Authorities are busy in the elections. The tax payer is made obfuscate by the department in alma-matter. Infact taxpayer is fooled.

Even the software makers are waiting for the schema to be appended at least 2 days before the last date of TDS payment, that is 5th.

As today is a election day, tomorrow is may day, then saturday and sunday, so we can expect the schema on or after 4th May only.

**DM

1 Like

Milan Somani (CA) (1456 Points)
Replied 30 April 2009

As per attached notification new Form 17 (the challan for payment of TDS and TCS) is applicable only for payment of tax deducted or collected at source on or after 1st April 2009, but refer notified ITRs for A.Y. 2009-10 as per which TDS Schedule will require UTN. How it is possible?

Attached File : 8 59 notification 020409.pdf downloaded: 332 times

Vikram (CS) (119 Points)
Replied 30 April 2009

Maybe this article will give a clear picture of the TDS-CHAOS

https://economictimes.indiatimes.com/Personal-Finance/Tax-Savers/Tax-News/New-TDS-form-draws-flak/articleshow/4457331.cms

CA Sudhir Halakhandi (PRACTICING CHARTERED ACCOUNTANT) (13401 Points)
Replied 01 May 2009

Nice Sharing Vikaram !! Thanks

MANISH KUMAR MEHTA (CHARTERED ACCOUNTANTS) (72 Points)
Replied 01 May 2009

may this link will help you

www.caclubindia.com/blog/show_blog.asp

CA Gaurav Jain (Chartered Accountant) (399 Points)
Replied 01 May 2009

RECENT CHANGES IN THE PROVISIONS REGARDING TAX DEDUCTION AT SOURCE (TDS) AND TAX COLLECTION AT SOURCE (TCS)

DR. VINOD K. SINGHANIA

This article examines the impact of the amendments made by the Income-tax (Sixth Amendment) Rules, 2009, Income-tax (Seventh Amendment) Rules, 2009 and Income-tax (Eighth Amendment) Rules, 2009 in respect of the provisions relating to tax deducted at source and tax collected at source.

INTRODUCTION

1. Various amendments have been made by Income-tax (Sixth Amendment) Rules, 2009 (hereinafter referred to as 6th Amendment Rule), Income-tax (Seventh Amendment) Rules, 2009 (hereinafter referred to as 7th Amendment Rule) and Income-tax (Eighth Amendment) Rules, 2009 (hereinafter referred to as 8th Amendment Rule). The impact of these amendments has been outlined below:

Due date of deposit of TDS/TCS

2. With effect from April 1, 2009, the due date of deposit of TDS/TCS has been modified by the 8th Amendment Rule by substituting rule 30 and rule 37CA. The table given below gives the amended provisions –

Due date of deposit of TDS/TCS
	TDS	TCS
Case 1 - When amount is credited on the last day of accounting year in the account of the payee	Within two months from the end of the month in which amount is credited to the account of the payee	NA
Case 2 - When the Assessing Officer permits, in special cases, quarterly payment of TDS after taking prior approval of the Joint Commissioner	In case of salary on June 15, September 15, December 15 and March 15 In the case of tax deduction under section 194A, 194D or 194H on July 15, October 15, January 15 and April 15
Case 3 - In any other case	Within one week from the end of the month in which tax is deducted	Within one week from the end of the month in which tax is collected

There is an overlapping between Case 1 (supra) and the provisions of section 40(a)(ia). One can examine the following case –

B Ltd. is a subsidiary of an overseas company. It maintains books of account on the basis of March-February year (accounting year starts on March 1 and ends on February 28/29 of the next calendar year, Income-tax Act does not require that books of account should be maintained on financial year basis). On February 28, 2010, it transfers a sum of Rs. 10 lakh as rent to the account of landlord in its books of account. Tax is deducted at source at the rate of 16.995 per cent under section 194-I. Tax is deposited on April 28, 2010 [i.e., within 2 months from the last date of the accounting year as permitted by section 200(1) read with amended rule 30(1)(a).

Even if tax is deposited before the due date given by rule 30, Rs. 10 lakh will be disallowed for the previous year 2009-10 by virtue of section 40(a)(ia).

Mode of payment of TDS/TCS

3. TDS and TCS shall be deposited electronically through internet banking facility by every deductor or collector with effect from April 1, 2009. The modified procedure is given below –

(i) Deposit through internet banking - Every deductor or collector will have to deposit tax only through internet banking facility.

(ii) New challan in Form No. 17 - The deductor/collector will electronically submit a challan in Form No. 17. Form No. 17 will be submitted on or before the due date of making deposit of TDS/TCS. In Form No. 17, the deductor will submit deductee-wise break-up of TDS and collectee-wise break-up of TCS. Immediately after uploading Form No. 17, a ‘Transaction Reference Number’ for the challan and a ‘Unique Transaction Number’ for each deductee/collectee will be created.

Unique Transaction Number

4. The ‘Unique Transaction Number’ will be generated by the deductor/collector at the time of electronically submitting of challan in Form No. 17. The ‘Unique Transaction Number’ will be quoted in respect of each deposit as follows –

(i) By the deductor/collector - The deductor/collector will quote ‘Unique Transaction Number’ in Form Nos. 16, 16A, 24Q, 26Q, 27Q and 27EQ.

(ii) By the deductee/collectee - The deductee/collectee will quote ‘Unique Transaction Number’ in ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 (Schedule TDS 1/TDS 2) to get the benefit of credit in respect of tax deducted/collected.

Certificate of TDS/TCS

5. TDS/TCS certificate will be issued in the following Forms as follow –

	*TDS*	*TCS*
Form No.	Form No. 16 for salary, Form No. 16A for payment other than salary	Form No. 27D

Form No. 16AA has been omitted. The format of Form Nos. 16, 16A and 27D has been substituted by new forms. On or after April 1, 2009, a person deducting/collecting tax at source will have to issue certificates in the new format even if tax was deducted/collected before April 1, 2009. The new format of Form Nos. 16, 16A and 27D includes ‘Unique Transaction Number’. The new format of Form No. 16 has provision for showing amount deductible on account of ‘standard deduction’/rebate available under sections 88, 88B and 88C. These deductions/rebates are now a days not available. One fails to understand the purpose of providing space for these deductions/rebates in the new format of Form No. 16.

Due date for giving certificates of TDS/TCS

6. The table given below highlights different due dates applicable for giving TDS/TCS certificates to deductees/collectees –

Due date for giving certificate of TDS/TCS
	*TDS*	*TCS*
Situation 1 - TDS on salary under section 192 Situation 1 - TDS on salary under section 192	By April 30 after the end of the financial year	NA
Situation 2 - When tax is deducted at the time of passing credit entry on the last day of the accounting year	Within one week from the date of deposit of TDS	NA
Situation 3 - When prior approval is taken from the Assessing Officer to quarterly deposit tax deducted under section 192, 194A, 194D or 194H	Within 14 days from the date of deposit of TDS	NA
Situation 4 - When deductee requests the payer to issue consolidated TDS certificate (applicable only when more than one TDS certificate is required to be given to the deductee)	By April 30 after the end of the financial year	NA
Situation 5 - Any other case	Within one month from the end of the month in which tax is deducted	Within one month from the end of the month in which tax is collected

In Situation 2, the time-limit is within one week from the date of deposit of TDS. Suppose, an accounting adjustment entry is passed on March 31, 2009 in respect of unpaid commission payable to an agent. Tax is deducted by the assessee under section 194H on March 31, 2009. This tax can be deposited by May 31, 2009. Suppose, tax is deposited on May 16, 2009, then TDS certificate in new Form No. 16A shall be issued on or before May 23, 2009.

Situation 4 covers those cases where a deductee requests the deductor to provide a consolidated TDS certificate for the entire financial year. It is possible only when there are at least two TDS pertaining to two different months. If there is no request from the deductee, then consolidated TDS certificate for the entire financial year cannot be issued.

Return to be submitted to the department

7. The following return shall be submitted by a person who has been allotted a deduction/collection account number under section 203A.

return to be submitted to the Department
	*Form No.*	*Due date*
Quarterly TDS/TCS Compliance Statement	Form No. 24C	To be submitted quarterly on or before July 15, October 15, January 15 and June 15
Quarterly statement of ded uction/collection of tax	Form No. 24Q (for salary), Form No. 26Q (for payment other than salary to a resident), Form No. 27Q (for payment other than salary to a non-resident), Form No. 27EQ for TCS	To be submitted on or before June 15 after the end of the financial year

TDS/TCS Compliance Statement in Form No. 24C shall be submitted electronically by every person who has been allotted a tax deduction/collection number (TAN). In case, no tax has been deducted or collected during a quarter, then nil return should be submitted in Form No. 24C.

The format of Form Nos. 24Q, 26Q, 27Q and 27EQ has been amended with effect from April 1, 2009. On or after April 1, 2009, these returns should be submitted in the new format. Moreover, on or after April 1, 2009, these returns would be submitted electronically by every deductor or collector.

Furnishing information under section 195(6)

8. Rule 37BB has been inserted by 7th Amendment Rule with effect from July 1, 2009.

8.1 Section 195(6) - Tax is deductible at source under section 195 in respect of payment/credit of any sum (other than salary) to a person who is a non-resident. The person making the remittance is required to furnish an undertaking
addressed to the Assessing Officer accompanied by a certificate from a chartered accountant in a specified format. This undertaking and certificate is submitted to the Reserve Bank of India or its authorized dealers who, in turn, are required to forward a copy to the Assessing Officer.

The purpose of the undertaking and the certificate is to effectively collect taxes (by way of TDS under section 195) at the stage when the remittance is made as it may not be possible to recover the tax at a later stage from the non-residents. There has been substantial increase in foreign remittances, making the manual handling and tracking of certificates difficult.

To monitor and track transactions in a timely manner, section 195 was amended by the Finance Act, 2008 so that the certificate and undertaking can be submitted electronically.

8.2 Rule 37BB - Rule 37BB provides that the deductor will obtain a certificate from a chartered accountant in Form No. 15CB. The undertaking by the deductor would be submitted in Form No. 15CA. The information in Form No. 15CA shall be furnished electronically to the website designated by the Income-tax Department and thereafter signed printout of the said form shall be submitted prior to remitting the payment.

Credit for tax deducted at source for the purpose of section 199

9. Rule 37BA has been incorporated by the 6th Amendment Rule with effect from April 1, 2009.

9.1 When income is taxable in the hands of some other person - When income on which tax is deducted at source is assessable in the hands of a person other than the deductee, credit will be available in respect of TDS to the other person in whose hands the income is chargeable to tax. However, this facility will be available only when the following conditions are satisfied –

(i) Income is taxable in the hands of a person other than deductee because of the following –

(a) the income of the deductee is included in the total income of another person under the provisions of section 60, section 61, section 64, section 93 or section 94;

(b) the income of a deductee being an association of persons or a trust is assessable in the hands of members of the association of persons, or in the hands of trustees, as the case may be;

(c) the income from an asset held in the name of a deductee, being a partner of a firm or a karta of a Hindu undivided family, is assessable as the income of the firm, or Hindu undivided family, as the case may be;

(d) the income from a property, deposit, security, unit or share held in the name of a deductee is owned jointly by the deductee and other persons and the income is assessable in their hands in the same proportion as their ownership of the asset.

(ii) The deductee should file a declaration to the deductor on a plain paper. The declaration should contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person.

(iii) After the receipt of declaration from the deductee, the deductor will report the tax deduction in the name of the other person. The ‘Unique Transaction Number’ will be generated in the name of the other person.

(iv) The deductor shall keep the declaration in safe custody and issue Form No. 16 or 16A in the name of the other person.

(v) The other person will include the income in his income-tax return and give the information in Schedule SPI TDS-1 and TDS-2 of ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 or ITR-7.

9.2 When income is assessable in the hands of deductee in different years - Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.

In such a case, the credit would be available on the basis of income reported in the income-tax return and the information which is submitted in Schedule TDS-2 (Column 7) of different ITRs.

Credit for tax collected at source for the purpose of section 206C(4)

10. Rule 37-I has been inserted by the 6th Amendment Rule with effect from April 1, 2009. On the basis of information submitted by the collector, credit will be given to the person from whom tax has been collected. Credit is available for the year for which income is assessable in the hands of the collectee. Where, however, tax has been collected at source and paid to the Central Government and the lease or license is relatable to more than one year, credit for tax collected at source shall be allowed across those years to which the lease or license relates in the same proportion in which the income is assessable to tax. For the purpose, the collectee will have to give information in Schedule TCS (Column 7) of different ITRs.

1 Like

CA Gaurav Jain (Chartered Accountant) (399 Points)
Replied 01 May 2009

Thanks Vikram.....

CMA KNVV Sri Vidya - Sri Kanth (C.A.Final (New) ICWAI FINAL (New)) (11269 Points)
Replied 02 May 2009

https://www.saraltds.com/resources/notification-no-so858-e-on-tds-25032009.pdf

go through this

CMA KNVV Sri Vidya - Sri Kanth (C.A.Final (New) ICWAI FINAL (New)) (11269 Points)
Replied 02 May 2009

TDS and TCS changes from 2009-10

Notification on TDS Changes | Form 16 | Form 16A | Form 24C - Compliance Statement | Form 17 - TDS Challan

TDS/TCS systems have undergone several changes with effect from FY 2009-2010. These include the changes in Challan Payment, TDS Certificates, Return Filing, etc. A glimpse is here on it.

Changes in Challan Payment

Challan Format:

New TDS Challan, Form 17 is introduced.
Challan is section Independent. Deductor can prepare a single challan at the end of the month for all his TDS deductions (Including Salaries and Non Salaries).
This additionally Contains, information of the Account No [or Card No] of the Deductor.
The earlier fields Surcharge and Cess break-ups are not necessary.
Information of Deductions paid under that challan has to be provided. This should contain PAN, NAME of the deductee and Total TDS.

Payment:

Electronic Payment [e-Payment] of TDS made mandatory to all. No TDS/TCS Payments would be accepted directly at Bank Branches.
The system for acceptance of e-Payment would be ready by end of April in accordance to Form 17.
An entry form would be provided similar to Form 17 format.
Credit Card/Debit Card acceptance is likely to happen.
The old system of e-Payment may remain for challan payments of earlier years.

Acknowledgement:

The Deductee records under that challan have to be entered online [if less than 10] or have to be uploaded through a file.
On successful payment, an acknowledgement would be generated in Form 17 format, which validates [Yes/No] for each PAN of the deductee and generates a Unique Transaction Number [UTN] for each deductee record.

Due Date:

Challan Payment Due dates remain almost the same.
Joint Commissioner, on prior request through AO, can approve for Quarterly payment of TDS under certain sections.

Changes in Return filing

Earlier Forms:
1. Earlier quarterly returns namely, Form 24Q, 26Q, 27Q and 27EQ remains as it is, with a little change in File structure.
  1. UTN has to be mentioned against each deduction.
2. Quarterly Due dates for all the forms have been removed and annual due date of 15th June introduced.
  1. These forms have to be prepared quarterly and can file at the end of the year, before June 15th.
New Form:
1. New Quarterly return, Form 24C introduced with following contents.
2. With the Deductor information, Form 24C should contain Details of TDS Compliances for 3 months separately and the Challan Identification Numbers/Amounts in that quarter.
3. Details of TDS Compliances should contain the section wise (all) information of Total Payment, Total amount eligible for deduction, Total amount considered for TDS at full rate, Amount of TDS at full rate, Total amount considered for TDS at lesser rate, Amount of TDS at lesser rate, Total TDS.
4. The due dates are same as earlier quarterly returns.

File Validation Utility

For 2008-09 financial year,

There is a new validation utility 2.126 [probably releasing by 15/04/2009]. This has nothing to do with the 09-10 changes.

For 2009-10,

A new File Validation Utility is expected for uploading 2009-10 returns. However it is required only after June 30th, as far as first quarter return filing is concerned.

Changes in TDS Certificates

New Formats of Form 16 and 16A.
These formats may be applicable for FY 2009-10 and above.
1. Form 2008-09, the same earlier formats may continue as the data for new formats would be less. However a confirmation circular is expected from CBDT.
The forms should contain the information of UTN against each payment shown in TDS certificate.
1. UTN has to be mentioned, along with Gross amount paid and TDS amount.
2. Date of Payment is not required. That means if a party payment is shown consolidate in monthly challan, a yearly Form 16A contains only 12 entries.
Form 16A is section independent. It can contain multiple section related deductions.

Certificates and Challan Payments for 2008-09 and before years may remain as earlier. However a circular on these lines is expected from CBDT, upon which the details can be confirmed.

1 Like

N.J.R (Practice) (346 Points)
Replied 02 May 2009

Originally posted by :Milan Somani
"	As per attached notification new Form 17 (the challan for payment of TDS and TCS) is applicable only for payment of tax deducted or collected at source on or after 1st April 2009, but refer notified ITRs for A.Y. 2009-10 as per which TDS Schedule will require UTN. How it is possible?	"

Dear Milan,

Best policy is to wait n watch for any relaxation...

Megha (Business) (24 Points)
Replied 02 May 2009

HOW ONE CAN DEPOSIT THE TDS OF APRIL ??? PLEASE SUBMIT YOUR REPLY?

Indudhar (Tax Advocate) (427 Points)
Replied 02 May 2009

Since Electronic Payment [e-Payment] of TDS is made mandatory to all for FY 2009-10 & also the New Form No.17 is still not been introduced in income tax dept website.

https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp

So keep checking the ITD website, and till then relax & need not worry