New TDS Provisions applicable from Ist July, 2009

Any person liable to deduct or collect tax at source is going to have tough time from Ist July onwards. Drastic changes have been made in the Income-tax provisions relating to Tax Deduction or Tax Collection at Source.

 



Form Nos. 16, 16A and 27D have been amended. These amended forms call for some additional information like, ‘TDS Certificate Number’, ‘TDS Unique Transaction Number (UTN)’ and ‘Status of Validation of PAN by Income-tax Department.  It may be pointed out here that though these forms have been amended by CBDT yet, they carry few discrepancies which are creating confusion in the minds of DDOs.  For example, in Form No.16, columns have been provided for Standard Deduction and Tax-rebates under sections 88, 88B & 88C, whereas these deductions/tax rebates stand withdrawn four years ago.

Secondly, for making deposit of TDS/TCS, a new tax challan, Form No.17 have been introduced which calls for furnishing of information relating to every person whose TDS/TCS is deposited after deduction/collection of tax. The information called for is Name and PAN of deductee/collectee and amount of tax deducted/collected. In addition, status of validation of PAN by Income-tax Department and ‘Unique Transaction Number’ is also required to be mentioned.  For the first time,   

all the tax deductors/collectors in the Central and State Government Departments  have also been made responsible for making of payment of TDS/TCS electronically by using Form No. 17 within one week from the end of the month in which the deduction/collection is made.

Thirdly, a new form, Form No 24C have been introduced titled as ‘TDS and TCS Compliance Statement’.  This statement is required to be filed quarterly showing monthwise details of tax deduction/collection made under various sections, along with total expense or capital outgo pertaining to each section, amount on which tax was required to be deducted/collected, amount on which tax deducted/collected, amount of tax deducted/collected, amount on which tax was deducted/collected at less than prescribed rate etc. etc. The said TDS/TCS compliance statement in Form No.24C is required to be furnished on quarterly basis on or before the 15th July, the 15th October, the 15th January in respect in first three quarters of the financial year respectively, and on or before 15th June following the last quarter of the financial year.

Form Nos. 24Q, 26Q, 27Q and 27QE have also been amended and Quarterly Statements through these forms are required to be furnished annually on or before the 15th June following the financial year.


All these forms have been made applicable now from 1st July 2009. These amended/newly inserted forms carry lot of discrepancies which might create confusion amongst DDOs on one hand and will increase their workload without any monetary gain on the other hand.

The Central Brand of Direct Taxes should remove the discrepancies at the earliest and make the forms simple and easy to understand so that the tax deductors/tax collectors and tax-payers can perform their duties/relating to TDS/TCS provisions in a better way.

Raakesh Chandra Sood

Income-tax & Financial Consultant

272, Second Floor, Sector 33A,

Chandigarh 160020

Phone No. 094173 51016

taxandmoneymanager@rediffmail