Income Tax Department has introduced a scheme for centralized processing of annual income-tax returns which envisages no interface with the tax payer and processing of returns to be done in an automated jurisdiction-less manner. Implementation of such scheme requires having a robust system for information relating to payment of TDS and TCS so that the credit for TDS and TCS can be granted accurately and the risk of financial fraud is minimized.
In this regard, the Central Board of Direct Taxes (CBDT) issued Notification No. 858(E) dated 25th March 2009 introducing new rules in relation to remittance of taxes deducted at source, issue of certificate of taxes deducted, etc., effective 1st April 2009. As per the said notification, CBDT substituted new rules for existing rules and had inter alia prescribed that TDS and TCS shall be paid electronically by furnishing an income-tax challan in Form No.17. Subsequently, a press release was issued clarifying that the new Form No. 17 will be applicable only for the payment of taxes deducted or collected at source on or after 1st April 2009. Thereafter, another press release was issued by the CBDT deferring the implementation of the above notification to1st July 2009 from1stApril 2009. The CBDT had also clarified that the tax deductors/collectors may continue to deposit TDS/TCS and file TDS/TCS returns as per the pre-amended provisions in the interim period.
The CBDT has now issued a circular no. 2/2009 dated May 21, 2009 providing detailed clarification with regard to the new scheme. Some of the salient features of this new scheme are discussed in the subsequent paragraphs. The aforesaid circular specifies that henceforth the claim for TDS and TCS shall be allowed only if the following conditions are complied:
· The amount of TDS / TCS has been deposited by the deductor / collector;
· Deductor / collector furnish information relating to the deductee;
· The TDS/TCS claim matches the information furnished by the deductor /collector.
The revised information reporting scheme has been harmonized with a view to make TDS payment and information reporting system uniform across all deductors (including Central and State Government).
Payment of TDS / TCS
Rule 30 and Rule 37CA which provide for time for payment of the TDS / TCS to the credit of the Central Government and the mode of such payment have been substituted. It is now mandatory for all deductors (including the Central and State Governments) to make the payment by electronically furnishing the newly introduced income-tax challan in Form No. 17. While furnishing this challan, the deductor will be simultaneously required to furnish three basic information relating to the deduction i.e., Permanent Account Number (PAN), name of the deductee and amount of TDS / TCS, to the Taxpayer Information Network (TIN) system maintained by National Securities Depository Limited (NSDL) either through screen based upload or file upload.
Effective date
The new system of reporting will be effective for all TDS / TCS transactions made on or after 1stApril, 2009. However, any TDS or TCS effected from 1st April 2009 to 31st May, 2009 shall continue to be paid to the credit of the Central Government by using the old challan forms. In this case, the deductor / collector shall, nevertheless, be required to fill up Form No.17 in respect of such payments at any time between 1st July, 2009 and 15th July, 2009.
The TDS or TCS effected on or after the 1st June, 2009 shall be required to be paid by electronically furnishing income tax challan in Form No. 17.
Obtaining Unique Transaction Number (UTN)
Upon payment of TDS / TCS to the credit of the Central Government and after uploading of basic information, every tax deduction record will be assigned a unique transaction number (UTN). The deductor will be able to get the UTN for all deductions by e-mail or by downloading the UTN file. The deductor will be required to quote such UTN on the TDS/TCS certificate issued to the deductee. NSDL will also create a facility to allow independent viewing of the UTNs by the deductee. The deductees will be able to claim credit for the TDS / TCS by quoting the UTN in their annual income-tax return.
No comments:
Post a Comment