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Online TDS Payment

M H Laskar (Professional) (91 Points)

08 April 2009

Dear Sir,

Is it mandatory for small deductor to pay online TDS ? Is there any circular issued by Income Tax Department & if yes where should I get ?

Kindly suggest on urgent basis. My E-mail ID : mhlaskar @ gmail.com

Thankx & regards,

M.H. Laskar

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3 Replies

Sandeep Keswani (Tax Consultant) (1064 Points)
Replied 08 April 2009

Mr. Laskar, 1st of all note that there is no such thing as a SMALL DEDUCTOR. A proper categorisation would rather be (1) Deductors who are covered under Tax Audit u/s. 44AB and (2) Deductors to whom Sec 44AB is not applicable.

Regarding online payment of TDS, the following persons are MANDATORILY required to pay taxes ONLINE :

(1) Corporate assessees

(2) Persons required to get their accounts audited under sec 44AB.

Other than these persons mentioned above, there is no compulsion to pay taxes online.

HOWEVER, there is a recent ammendment made to this rule. According to CBDT Circular dated 25th March 2009, WITH EFFECT FROM 1st April 2009, all tax payers will be required to pay taxes online, irrespective of their status. In case of TDS deducted on or before 31st March 2009, old method of payment of TDS is valid even if it is paid in April 2009 or later. BUT for TDS deducted from 1st April 2009 onwards, compulsory E payment is to be made.

The Challan form for the same is also changed. Now a new Form No. 17 will be applicable instead of the old Form No. 281.

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Ramakrishna (Financial Executive) (438 Points)
Replied 08 April 2009

Dear friends!

This ambitious amendment in the IT law could have been stalled for some more time, since the online banking concept is yet to fully get estabilshed in the country. The deductors in Small cities/towns would initially find it difficult to adjust to this new type of TDS payment.

Any how! Cheers!!

Ramakrishna (Financial Executive) (438 Points)
Replied 08 April 2009

Dear friends!

This ambitious amendment in the IT law couid have been stalled for some time, since the online banking concept is yet to fully catch up in the country. The deductors in small cities/twons wouild find it extremely difficult to make TDS payments from their places as the bank branches themselves would not be quiet familar with the e-banking services.

As the great chinese philosepher Mr.Confucious has said, 'if you can't avoid something; then enjoy it' !

Good bye! cheers!!