TDS and TCS changes from 2009-10

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:

1. New TDS Challan, Form 17 is introduced.
2. 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).
3. This additionally Contains, information of the Account No [or Card No] of the Deductor.
4. The earlier fields Surcharge and Cess break-ups are not necessary.
5. Information of Deductions paid under that challan has to be provided. This should contain PAN, NAME of the deductee and Total TDS.

• Payment:

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

• Acknowledgement:

1. The Deductee records under that challan have to be entered online [if less than 10] or have to be uploaded through a file.
2. 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:

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

Changes in Return filing

1. 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.
2. 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,

1. 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,

1. 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

1. New Formats of Form 16 and 16A.
2. 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.
3. 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.
4. 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.