TDS Changes in Income Tax Rules (6th Amendment), 2010

A change again…

One by one now it’s a 6^th amendment to the Income Tax Rules, 2010 as notified on 31^st May 2010

What a power to the government under section 295 of the Act…. On 18^th February 2010 it was their first amendment and now has a look at 6^th one notified on 31^st may 2010. In just in a time period of 102 days…

They shall come into force on the 1st day of April, 2010

Government want its money as early as possible that’s why the date of payment of TDS for the month of March has been limit to the month of April…it can be said win-win position for the government as well as for deductor…

Payment of TDS

Government will get money of TDS deducted on 31^st March in the month of April itself and deductor will get one extra month for the payment of TDS deducted in the month of March whereas looses one month for payment of TDS deducted on 31^st march.

1. Pay TDS deducted for the month of April to February: On or before 7^th of next month
2. Pay TDS deducted for the month of March: On or before 30^th April

TDS deducted by an office of government:

1. If paying without production of challan: on the same day
2. If TDS is of section 192(IA) or accompanied by an income‐tax challan: on or before 7th of next month

Power of assessing officer for allowing quarterly payment is subject to permission of JC.

The Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the TDS u/s 192, 194A, 194D or 194H and the payment would be by the date.

Confusion relating to e-payment:

According to rule 125(2): Payment made through Credit Card is to be covered within the meaning of e-payment, but in this rule e-payment is strictly means electronically remitted by way of

(a) Internet banking; or

(b) Debit card.

Whether board will accept payment through credit card or not, for this clarification is required.

Certificate of tax deducted at source to be furnished under section 203

1.                   Form No. 16, if the deduction or payment of tax is under section 192; and

2.                   Form No. 16A if the deduction is under any other provision of Chapter XVII‐B.

Must Contents of Certificates:

PAN and TAN of person deducting the tax, Book identification number (in case of payment without challan i.e. by way of book entry) in case of an office of the Government, challan identification number (CIN), Receipt number of the TDS return, the address of the CIT(TDS) of deductor

Periodicity of giving certificates:

Due dates of filing of TDS return:

As the payment if TDS for the financial year would maximum be completed till 30^th April. So, the due date for furnishing of last quarter return has been proponed to 15^th May instead of 15^th June.

Must Contents of TDS return:

The Deductor at the time of preparing statements of tax deducted shall quote:

1.                   his TAN and PAN

2.                   PAN of all deductees

3.                   particulars of the tax paid including book identification number or challan identification number as the case may be

Regards,

Krishan