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Re UTN

Tapas Majumdar (Professor of Economics) (35 Points)

28 June 2009

I read a news report that unless assessee's provide UTN again each item of TDS credit for tax deducted at source will not be given. UTN' or Unique Transaction Numbers will be generated by NSDL and provided to those making TDS; the deductors in turn will hand them over to assessees. Those who make deductions are blissfully unaware; NSDL is unapproachable meanwhile those who will be penalised will be the taxpayers. What kind of policy is this ? If NSDL and deuctors goof up, kick the taxpayer?

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8 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 28 June 2009

Mr.Tapas Majumdar

The soft ware is not yet ready. I heard that in the recent meeting of CBDT it was proposed to post pone the use of UTN to the next Assessment Year. We have to wait for a press release from CBDt.

Best Wishes

Sathikonda

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kaustubh (CA, CS , CFM) (293 Points)
Replied 28 June 2009

ya, please wait mr. tapas....

a notification is expected within 2-3 days...

the income tax dept. is making a joke of us...

Mannurkar (Accountant) (159 Points)
Replied 29 June 2009

Yes we donot have any alternative other than waiting and watching

Anjan Mukherji (Professor of Economics) (24 Points)
Replied 29 June 2009

Is it true that furnishing UTN is a requirement ONLY for those TDS made after July 1, 2009? Then we do not need to worry for AY 2009-10? Can some one please confirm ? Thanks a lot.

LORENCE MALEKAR (PROPRIETOR) (24 Points)
Replied 29 June 2009

Our institute and chember of Commerce should take up this issue with the department. Department is unnecessarily panalising the tax payers for their ineffieciency.

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Ajay Chaudhary (CA) (63 Points)
Replied 29 June 2009

Its not mandatory to mention UTN in the return for AY 2009-10. If we have the physical copy of the TDS certificate, then we can file return even if we dont have UTN and produce TDS certificate when asked by the Dept. They cannot deny credit if we have TDS certificate.

MAHENDRA KUMAR BAGRECHA (FCA) (1402 Points)
Replied 29 June 2009

I agree with your views. CBDT should have given some more time to understand the procedure and CBDT may again defer the scheme as they CBDT still not ready for this new procedure.

Anjan Mukherji (Professor of Economics) (24 Points)
Replied 30 June 2009

The Press Release, in this connection, put up today makes matters clear for this year atleast. But the threat of having to obtain UTN remains in the years ahead. The problem with the scheme is one of incentives. What incentives do TDS deductors and NSDL have of issuing UTN in time for assessees to use in their returns? None whatsoever. Who is penalised? The assessees: those who have no control over the situation. This is just terrible design of a policy. Unless those who make TDS and the NSDL are penalised for not making available UTN's timely and conveniently, this will not work. A carrot and stick policy works when the carrot and stick falls on the donkey who is supposed to do the work; if a bystander is to do the work the carrot and stick policy for the donkey will fail to elicit the correct response from the bystander. The poor donkey will get beaten up for sure.Those who are able to influence policy making are requested to take up this aspect of framing rules.