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INCOME TAX REVIEW

Returns, Certificates & Checklists

  1. Returns

    1. As per section 206(1), the persons as prescribed in Rule 36(1) in the case of every office of Government, the principal officer in the case of every company, the persons prescribed in Rule 36(2) in the case of every local authority or other public body or association, every private employer and every other person responsible for deducting tax under the provisions of Chapter XVII-B ("said Chapter") shall, within the prescribed time after the end of each financial year, prepare and deliver or cause to be delivered to the Income-tax authority prescribed in Rule 36A or such other authority or agency as may be prescribed, such Returns in such form and verified in such manner and setting forth such particulars as prescribed in Rules 37 and 37A.

      The said provision further says that the CBDT may, if it considers necessary or expe­dient so to do, frame a Scheme for the purposes of filing such Returns with such other authority or agency. The Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003 ("Scheme") was promulgated pursuant to the said new provision vide Notification dated 26.08.2003.

    2. A Return filed on computer media shall be deemed to be a Return for the purposes of this Section and the Rules made thereunder and shall be admissible in any proceedings thereunder, without further proof of production of the original as evidence of any contents of the original or of any fact stated therein.

    3. By virtue of Rule 33(1), in cases where the Trustees of an approved Superannuation Fund pay any contribu­tions made by an employer, including interest on such contribu­tions, to an employee during his life-time, they shall send within 2 months from the end of the financial year to the Assessing Officer referred to in Rule 36A, namely, an Assessing Officer designated by the Chief Commissioner or Commissioner within whose area of jurisdiction the office of the person responsible for deducting tax under Chapter XVII-B is situated, or in any other case, to the Assessing Officer within whose area of jurisdiction, the office of the person responsible for deducting tax under the said Chapter is situated, a Statement giving the following particulars:

      1. Name of the Superannuation Fund;

      2. Name and address of the employee;

      3. The period for which the employee has contributed to the Superannuation Fund;

      4. The amount of contribution repaid on account of princi­pal and interest;

      5. The average rate of deduction of tax during the preced­ing three years; and

      6. The amount of tax deducted on repayment.

      A Verification in the following Format shall be annexed to the said Statement:

      "We / I, the Trustee(s) of the above named Fund, do declare that what is stated in the above Statement is true to the best of our / my information and belief."

    4. Prescribed Returns regarding tax deducted at source under Section 206:

      By virtue of Rule 37, every person responsible for deducting tax under Chapter XVII-B shall, in respect of a previous year file with the Assessing Officer re­ferred to in Rule 36A the Returns in Form Number and by the date falling in the financial year immediately following the previous year as specified in the following Table:

      Sr. Nature of Returns Form No. Due Date
      1 Annual Return of deduction of tax under Section 192 from “Salaries” 24 30th June
      2 Annual Return of deduction of tax under: 26 30th June
        A. Section 193: “Interest on Securities”.    
        B. Section 194: “Dividends”.    
        C. Section 194A: “Interest other than Interest on Securities”.    
        D. Section 194B: “Winnings from Lotteries or Crossword    
          Puzzles”.    
        E. Section 194BB: “Winnings from Horse Races”.    
        F. Section 194C: “Payments to any Contractor or    
          Sub-contractor”.    
        G. Section 194D: “Insurance Commission”.    
        H. Section 194EE: “Payments in respect of Deposits    
          under the National Savings Scheme, etc.”    
        I. Section 194F: “Payments on account of Repurchase of    
          Units by Mutual Fund or Unit Trust of India”.    
        J. Section 194G: “Commission, etc., on Sale of    
          Lottery Tickets”.    
        K. Section 194H: “Commission or Brokerage”.    
        L. Section 194-I: “Rent”.    
        M. Section 194J: “Fees for Professional or Technical Services”.    
        N. Section 194K: “Income in re­spect of Units”.    
      3 In case of Non-Resident or Resident But NOR or Foreign Co.: . 27 Within 14 days
      from the end
      of each quarter

    5. Returns regarding tax deducted at source in the case of non-residents:
      By virtue of Rule 37A      , the person making deduction of tax in accordance with sec­tions 193, 194, 194E, 195, 196A, 196B, 196C and 196D of the Act shall send within 14 days from the end of the quarter a Statement in Form No. 27 to the Assessing Officer referred to in Rule 36A in respect of payments made to a person, not being a company, who is a non-resident or a resident but not ordinarily resident, or a company which is neither an Indian company nor a company which has made the prescribed arrangements for the decla­ration and payment of dividends within India.

      Where the income under the above said provisions is credited to the account of the payee as on the date upto which the accounts of such deductor are made, the Statement in Form No. 27 shall be sent within 14 days after the expiry of two months from the month in which income is so credited.

    6. Procedure For e-filing Of TDS Returns:

      1. Scheme for Electronic Filing of TDS Returns:
        The Scheme for electronic filing of TDS Returns was notified on 26.08.2003. The Board Circular No. 8 dated 19.09.2003 clarifies the procedure in this regard. The procedure basically envisages that corporate deductors will prepare their TDS Returns in the new TDS Return Forms 24, 26 or 27, according to the data structure notified by e-Filing Administrator. The e-TDS Returns in the prescribed data structure stored on CD ROM and supported by a duly signed control chart in Form 27A in paper format will be submitted to an e-TDS Intermediary appointed by the Board.

        The CBDT has appointed Director General of Income-tax (Systems) as e-TDS Administrator. Separately, National Securities Depository Limited ("NSDL") who is also the agency hosting TIN, has been appointed as e-TDS Intermediary.

        All deductors required to e-file their TDS Returns have to quote their 10-digit reformatted Tax Deduction Account Numbers (TAN) in their respective TDS Returns. A large number of deductors have already obtained these reformatted TANs which are unique countrywide. Wherever TAN has not been allotted or old TANs have not been reformatted, applications in Form 49B can be filed with NSDL.

        For ready information, it may be stated that NSDL has also been authorised to receive applications (Form 49B) for allotment of TAN at their front offices for fee of Rs. 55.10 (including Service Tax and Education Cess) to be paid by the applicant. The data in respect of such TAN applications will be entered by NSDL and sent to National Computer Centre (NCC) of Income-tax Department and the respective computer centres on-line. The allotment of TAN will be done by the IT Department Centres and communicated online to NSDL who will intimate the same to the applicant.

      2. The Income Tax Department has made e-filing of TDS Returns mandatory for all public and private limited companies from F.Y. 2002-2003 onwards. Non-corporate deductors have the option to file the Returns either in paper format or in electronic format.

        Simply stated, e- filing means electronic filing, i.e., the Returns have to be furnished in soft copy (in CD/floppy) as against the hard copy (paper Returns) which had to be filed till now. Due to teething trouble, the last date for filing for F.Y. 2002-2003 had been extended finally to 31.03.2004. For the said year, e-TDS Returns had to be re-submitted even where manual Returns had been furnished by corporates on or after 01.06.2003.

        A small anomaly was observed by the corporate deductors for filing e-TDS Returns for F.Y. 2002-2003, though at present it is not much relevant. All corporation deductors have to file TDS Returns in electronic format (Computer Media) on or after 01.06.2003 in accordance with Scheme. As the Returns to be filed were prescribed by Scheme which was notified on 26.08.2003, which reduced the number of TDS Returns to only 3, namely 24, 26 and 27, the corporate deductors could not file the Returns in electronic format between 01.06.2003 and 26.08.2003 (in the absence of any prescribed form).

        In manual Returns, separate Annexures have to be given for different types of payments under different sections. However, e-TDS Return is a single Return without any Annexures. Several software packages have been launched in the market which help in the generation of e-TDS Return, a list of whom is available on:

        http://tin.nsdl.com/ SWProviders.asp

        The e-deductor shall ensure that all columns of the Forms of the Return for tax deduction at source, prescribed under the Rules, are duly and correctly filled in.

        Separate computer media, like, CD ROM/ Floppy shall be used for each Form of e-TDS Return by the e-deductor.

        The e-TDS Return can be filed at any of the front offices of NSDL in many cities. At the receipt stage, these front offices will carryout validation checks on the e-TDS Returns to ensure compliance with the parameters and a provisional receipt will be issued on successful validation.

      3. 1.6.3 Objective
        TDS Returns, challans and TDS Certificates, especially for big deductor are quite voluminous and it is very costly and cumbersome to prepare and handle them.

        100% checking of the manual Returns is practically impossible due to cost, time and manpower constraints.

        Linking of TDS credit claimed through TDS Certificates with the tax deposited by the deductor is very time consuming and at times not practical.

        The basic objectives of computerisation of TDS Returns is to cut down the compliance cost for deductors, to correlate deduction of taxes made by deductors with the deposit of the deducted tax in the Government account in a designated bank and correlate deduction of tax by the deductors with the corresponding credits claimed by the deductees.

      4. The TDS Return file generated should be in the prescribed format. NSDL has prepared a software namely File Validation Utility ("FVU") which checks whether the format of the TDS Return file is as prescribed by the Income Tax Department. It does not ensure the accuracy of the data. Therefore, even if FVU shows "valid file", data should be checked and cross checked just as in the preparation of manual Returns.

        A separate Form 27A in physical form signed by the authorised signatory under the rubber stamp of the deductor is to be submitted alongwith electronic file for each type of Return. It contains the control totals like Form No., Total Amount of Payment, Total Amount of TDS and No. of Deductee-records. In case any of these mandatory requirements is not fulfilled, the e -TDS Return will not be accepted by the e -TDS Intermediary.

        If e-TDS Return file is complete in all respects, the Tax Information Network ("TIN") Facilitation Centre ("FC") of NSDL shall issue a provisional receipt to the deductor. This is deemed to be the acknowledgement of filing e-TDS Return.

        While preparing the e-TDS Returns, the deductor has to ensure that the mandatory requirements listed in Circular No. 8 of CBDT dated 19.09.2003 are complied with: (i) Tax Deduction Account Number (TAN) of the deductor is clearly mentioned in the TDS Return as also on Form No. 27A, as required by sub-section (2) of section 203A of the Act. However, in cases where TAN is not available, the e-TDS Returns will also be accepted if the same is accompanied with an application in Form 49B for allotment of new TAN or for reformatting of existing TAN.

        The deductors should prepare their e-TDS Return as per the above procedure, store the data on a CD ROM, enclose the control chart (Form 27A in paper format) and submit these at any of the front offices of NSDL. Although the Scheme permits e-TDS Returns to be prepared on a floppy, it would be preferable that these are prepared on a CD ROM to avoid any loss of data, viruses, etc.

        If the PAN of one or more deductees is not mentioned in the Return, the deficiency shall be mentioned in the provisional receipt. The deductor can file with the same TIN-FC the revised e-TDS Return (entire Return) after incorporating the missing TAN within 7 days of the provisional receipt together with a copy of the provisional receipt. However, the Scheme is silent on the payment of the upload charges again with such revised Return. It is learnt from a TIN-FC of NSDL in Mumbai that it has to be paid again according to the number of deductee-records as contained in such revised Return, irrespective of number of deductee-records as contained in the original Return.

      5. Upload Charges: E-filing of TDS Returns will reduce the voluminous paper work involved in filing of paper TDS Returns and enclosures, thereby significantly reducing the compliance cost of deductors. The e–Intermediaries, like, NSDL have been authorised to collect service charges in respect of the various services being rendered by them to the deductors for upload of e-TDS Returns at the following rates: 

        Category of e-TDS Return

        Upload charges
        [Including 10.20%
        Towards Service
        Tax (10%) +
        Education Cess (2%)]
        Returns having records of up to 100 deductee-records  Rs. 27.55  
        Returns having records of 101 to 1000 deductee-records  Rs. 165.30  
        Returns having records of more than 1000 deductee-records  Rs. 551.00  

        The said charges have to be paid in cash alongwith the CD or, as the case may be, floppy on which Return is stored.

      6. The computerised data of e-TDS Returns in the prescribed data structure and Form 27A will be transmitted by NSDL to the National Computer Centre of Income Tax Department online and will become available to the concerned TDS Assessing Officers on the network. This will obviate requirement of data entry for e-TDS Returns by the Assessing Officers.

      7. Where the details of deposit of tax deducted at source with bank, the PAN, TAN, or any other relevant details are not given in the e-TDS Return, the e-filing Intermediary shall forward a deficiency memo to the e-deductor with a request to remove the deficiencies within 7 days of receipt of the same. It is not clear whether it is 7 working days.

        In case the deficiency indicated in the deficiency memo is removed within seven days, the data on e-TDS Return shall be transmitted by the e-TDS Intermediary to the e-filing Administrator and the provisional receipt shall be deemed to be the Acknowledgement of the e-TDS Return. The date of issue of provisional receipt shall be deemed to be the date of filing of the e-TDS Return.

        In case no deficiency memo is issued by the e-filing Administrator within 30 days of issue of the provisional receipt, the provisional receipt issued shall be deemed to be the acknowledgement of the e-TDS Return and the date of issue of provisional receipt shall be deemed to be the date of filing of e-TDS Return.

        Where the deficiencies indicated in the deficiency memo are not removed by the e-deductor within 7 days, the e-TDS Intermediary shall communicate the same to the e-filing Administrator and transmit the data to the e-filing Administrator whereupon Assessing Officer may take action for declaring the Return as an invalid Return after giving due opportunity to the deductor as required under section 206(4) of the Act.

        In case the defects intimated by the Assessing Officer are rectified within the period of 15 days or such further period as may be allowed by the Assessing Officer, the date of issue of provisional receipt shall be deemed to be the date of filing of e-TDS Return.

      8. Some of the practical problems in e-TDS Returns are discussed hereunder:

        Firstly, as per the prescribed format, there must be atleast 1 deposit challan. However, in case there is no deduction, the FVU will not validate the file. To get over this, enter one deposit challan of nominal amount say, Re. 1/- and run FVU and believe it or not, the file would be validated.

        Secondly, State Code is a mandatory field for deductees. This is understandable for Indian deductees. However, the State Code has to be given for foreign parties who may not have any Indian address. Till this anomaly is rectified, you have no option but to put State Code of any Indian State.

        The success or otherwise of the Scheme would determine its continuation and extension to non-corporate deductors also.

    7. Multiple locations and filing of Returns:
      In case of e-Return, the same can be filed anywhere in India with the TIN FC, irrespective of location of the deductor or its Branch, etc.
       

  2. On Line Tax Accounting System ("OLTAS"):

    1. Income Tax Department’s initiative to receive information and maintain records of tax paid through banks through online upload of challan details is named as On Line Tax Accounting System ("OLTAS"). OLTAS has been introduced with effect from 01.06.2004 by the Department for reporting of taxes collected by Banks.

      The main features include the following:-

      1. The present 7 types of 4-copy challans are replaced by the following 3 types of single-copy challans:

        1. ITNS 280 for corporate and non-corporate income tax and wealth tax (other than TDS)

        2. ITNS 281 for TDS for corporates and non-corporates

        3. ITNS 282 for Gift Tax, Estate Duty, Expenditure Tax, Securities Transaction Tax (recently notified) and other Direct Taxes

        2.

      2. The new single-copy challans will have a main portion at the top and a ‘taxpayer counterfoil’ at the bottom. The bank will retain the main portion of the challan and return the ‘taxpayer counterfoil’ duly receipted to the taxpayer.

        Because there will be only one copy of challan, it becomes extremely important that the challan is correctly filled and PAN of the taxpayer and PAN / TAN of the deductor as the case may be, is correctly indicated in the challan and that the right columns are ticked/ filled in the challan and that the taxpayer collects a proper stamped Acknowledgement from the banks indicating the Challan Identification Number (CIN) as indicated above.

        The collecting bank branch will put a rubber stamp on the challan and its counterfoil indicating a unique Challan Identification Number (CIN) comprising of 7-digit BSR Code allotted by RBI to that bank branch, the date of deposit (dd/ mm/ yy, i.e., 6 digits) and the challan serial number in 5 digits. CIN will, therefore, be unique for each challan through out the country and will be used for identifying the challan in the OLTAS.

      3. The collecting branch shall electronically transmit the entire data of the challan online to the TIN presently hosted by the NSDL at Mumbai. TIN will in turn transmit it to the Regional Computer Centres (RCCs) through the National Computer Centre (NCC) at Delhi.

      4. The taxpayer need not enclose the proof for payment of taxes and will have to mention CIN of the challan for the payment of taxes in the Return of Income. As the new Scheme has come into force only from 01.06.2004, the challans for Advance Tax payments and Self Assessment Tax paid upto 31.05.2004 will not have CIN. Therefore, in respect of Advance Tax or Self Assessment Tax paid before 01.06.2004, the Assessing Officer’s copy of the challan will have to be enclosed with the Return of Income for F.Y. 2004-2005. This will be necessary only for the said financial year which is a switch-over year.

    2. Quoting of PAN / TAN on challans made mandatory w.e.f 01.01.2005:
      CBDT has clarified on 10.12.2004 that the Newspaper reports saying that due to non-quoting of PAN on challans or its incorrect capture by banks, tax payment transactions are going to suspense account are not correct. Also, it is not correct that the taxpayers whose entries do not have PAN may not get credit for such payment. This is because each challan is identifiable by a unique Challan Identification Number (CIN). CBDT has, however, cautioned that all taxpayers quote their PAN on the challans. The quoting of PAN and TAN is mandatory with effect from 01.01.2005.

      With the introduction of the facilities for filing of PAN application through UTI Investors Ltd. and NSDL, the average time for allotment of PAN has come down to about 15 working days. Presently, PAN has been allotted to more than 3.6 crore persons. Income Tax Department has also introduced ‘Tatkal’ Service for allotment of PAN, in which PAN applications can be filed on internet and service charges can be paid through Credit Card. Those taxpayers who still do not have PAN may avail the facility for ‘Tatkal’ allotment. Particulars in this regard are available on website of the Income Tax Department at incometaxindia.gov.in, and of Tax Information Network (TIN) at http://tin-nsdl.com.

      The availability of PAN/TAN on challans will expedite and ensure correct credit of taxes to the taxpayers. In order to obviate any difficulty in this regard, CBDT has decided to enforce implementation of the provisions for mandatory quoting of PAN and TAN on challans from 1st January, 2005. Accordingly, no payment of tax will be received in the banks unless the challan carries the PAN of the taxpayer or TAN of the deductor, as the case may be.

      A facility to download the Challan Nos. 280 and 281 with pre-printed PAN / TAN and name of the taxpayer / deductor is available on the website of the Income Tax Department www.incometaxindia.gov.in and http://incometaxindiaefiling.gov.in. By surfing any of the above sites, fill PAN or, as the case may be, TAN only and relevant Challan will appear on the screen of the Monitor with PAN / TAN and full name already filled in. For convenience and speed, fill the remaining data as required by the Challan with the help of Tab on keyboard and take the print on plain paper. The said Challan on website is fully in monochrome and not in colour.

      The said website, namely, http://incometaxindiaefiling.gov.in. is expected to go live fully by 05.01.2005 (though it is "Under Construction" on that day) and will provide very useful information, like, Bulk PAN Query to enable the institutions to query PAN in bulk, Download of ITNS 280 and 281 Challans, Registration of e-Return Intermediary, e-filing of Return of Income, Ascertain status of refunds, Filing of tax related grievances. However, presently also this website is available for download of ITNS 280 and 281 pre-printed Challans and "Know Your PAN".

      In order to facilitate correct quoting of PAN while making payment of income tax, companies and firms are being sent challans (number 280) with PAN, name of taxpayer and some other particulars already printed by the department. Similarly, for payment of Tax Deducted at Source (TDS), similar blank challans (number 281) are being mailed to all TAN (Tax Deduction & Collection Account Number) holders.

    3. Challan Status Query for Tax Payer
      TIN provides a facility to the tax payers to enquire about the status of their challans over the internet. Using this facility, they can satisfy that your tax payment has been properly accounted for in your name. The collecting banks can also use this facility to enquire about the status of the challans uploaded by them.

      Following is the specimen of query on TDS challan that can be placed on the Web Site of NSDL to know the status of the actually paid challans and the reply that may be received (confidential data is modified):

      Specimen Reply On Net Enquiry On: https://tin.tin.nsdl.com/oltas/servlet/queryStatus

      (1) Display Before Entering Data

      Note:

      1. Details stamped on the acknowledgement for challan given by the bank have to be entered herein above.

      2. Challan Status may be viewed after a week from depositing the challan with the bank.

      3. In case on making a query on the site, if the following message is displayed "no records found for the above query" or if there is any other discrepancy in the data, then please enquire with the bank where you have deposited the challan. If you do not get a satisfactory reply, you may email / write to NSDL.

      (2) Display (Reply) After Entering Data

      Note:

      1. Please refer (view) to your challan with respect to Major Head Code - Description (e.g. 0020 - Corporation Tax or 0021 - Income Tax).

      2. TAN is displayed in case of TDS challans and PAN in case of non-TDS challans. PAN / TAN is displayed as mentioned by Tax Payer and captured by the bank.

    4. List of BSR Codes of branches of 33 Banks authorised to collect direct taxes (as informed by respective banks) as appearing on:

      http://tin.nsdl.com/OLTASListOfBSR.asp

      By clicking the name of the concerned Bank, one can find or confirm the BSR Code of his Branch.
       

  3. Certificate For Tax Deducted [Section 203 And Rule 31]

    1. Rule 31(1) states that the Certificate of deduction of tax at source or the Certificate of payment of tax by the employer on behalf of the employee, under Section 203 to be furnished by any person deducting tax shall be as under:

      1. Under Section 192: In Form No. 16. If a resident individual whose income from salary before allowing deduction under Section 16 of the Act does not exceed Rs. 1,50,000, the Certificate of deduction of tax at source shall be in Form No. 16AA. The said Form No. 16AA is a Certificate-cum-Return of Income.

      2. Under any other provision: In Form No. 16A.

      The said provision is tabulated hereunder for convenient reference:

      Section Nature of Payment Form No. Time Limit
      192 Salary 16/16AA 30th April
      193 Interest on securities 16A Within one month from the end of the month of issue of cheque or warrant. Refer Note 2
      194 Dividend 16A Within one month from the end of the month of issue of cheque or warrant.
      194A Interest other than Interest on securities 16A Within one month from the end of the month during which credit or payment which ever is earlier. Refer Notes 1 & 2
      194B Winning from lottery & crossword puzzles 16A Within one month from the end of the month during which payment is made.
      194BB Winning from horse races to any person 16A Within one month from the end of the month during which payment is made.
      194C Payment to Contractor / Sub-Contractor 16A Within one month from the end of the month during which credit / payment is made. Refer Note 2
      194D Insurance Commission 16A 30.04.2004 Refer Notes 1 & 2
      194G Commission, etc. on dale of Lottery Tickets 16A 30.04.2004 Refer Note 2
      194H Commission and Brokerage 16A Within one month from the end of the month during which credit or payment which ever is earlier. Refer Notes 1 & 2
      194I Rent 16A Within one month from the end of the month during which credit or payment, whichever is earlier. Refer Note 2
      194J Professional Fees 16A Within one month from the end of the month during which credit or payment which ever is earlier. Refer Note 2

      Notes:

      1. Rule 30(1)(b) Proviso empowers the Assessing Officer to permit any person to pay quarterly TDS from income by way of:

        1. Salary: Quarterly on 15th June, 15th September, 15th December and 15th March.

        2. Interest under section 194A or Insurance Commission under Section 194D and Commission & Brokerage under section 194H: Quarterly on 15th July, 15th October, 15th January and 15th April. Time limit for issue of TDS Certificate referred to in sections 194A, 194D and 194H is within 14 days from date of payment of tax.

        2.

      2. Where income referred to in sections 193, 194A, 194C, 194D, 194G, 194H, 194I and 194J is credited to the account of payee as on the date on which account of such person is made, tax shall be deposited within two months from expiration of month in which date falls. The time limit for issue of TDS Certificate is within a week after the expiry of two months from the month in which income is credited.

    2. Where more than one Certificate is required to be furnished to a payee for deduction of tax made during a financial year, the person deducting the tax may on request from such payee issue within one month from the close of such financial year a consolidated Certificate in Form No. 16A for tax deducted during whole of such financial year.

    3. By virtue of Rule 31(4), where a TDS Certificate issued is lost, the person deducting tax at source may issue a Duplicate Certificate of deduction of tax at source on a plain paper giving necessary details as contained in Form No. 16 or Form No. 16A, as the case may be. However, the Assessing Officer before giving credit for the tax de­ducted at source on the basis of Duplicate Certificate shall get the payment certified from Assessing Officer designated in this behalf by the Chief Commissioner or the Commissioner and shall also obtain an Indem­nity Bond from the assessee. A specimen of Indem­nity Bond is given as Annexure to this write up.

    4.  By virtue of insertion of sub-section (3) in section 203 by The Finance (No. 2) Act, 2004 with effect from 01.04.2005, where the tax has been deducted or paid in accordance with the provisions of the said Chapter on or after the 1st day of April, 2005, there shall be no requirement to furnish a Certificate referred to hereabove.
       

  4. Checklists

    1. Checklist for payers:
      Illustrative list for compliance with the provisions:

      • Identification of payments requiring deduction

      • Obtaining TAN, if not already obtained as quoting of TAN is mandatory with effect from 01.01.2005

      • Providing administrative procedure for deduction

      • Fixing the obligations for compliance with the provisions

      • Obtaining relevant information, if required, from the payees, including PAN

      • Estimation or computation of the amount on which tax needs to be deducted

      • Determining the rate of tax, inclusive of Surcharge and Education Cess

      • Receive Certificates by the Assessing Officer determining the amount or the rate of tax or receive Form 15G / 15H

      • Deduct the tax

      • Payment within the time in the prescribed mode

      • Furnish Certificate in prescribed form: Applicable till 31.03.2005

      • Furnish quarterly statements to the prescribed Authority or authorised agency

      • Furnish Returns

      • Comply with deficiencies, if any, stated in provisional receipt for e-TDS Return

      • Ascertain the consequences having regard to the nature of deficiencies

      • Ascertain the liability to pay interest, if any, for late filing, payment, etc.

    2. Checklist for payees:
      Illustrative steps for compliance with the provisions:

      • Identify the receipts liable for deduction of tax at source

      • Apply under section 197 for no deduction or deduction at lower rate.

      • Furnish declaration or Certificate, if any, for no deduction or deduction at lower rate

      An assessee other than company and firm can furnish a declaration in new Form No. 15G for non-deduction of TDS on income from:

      1. Interest on Securities

      2. Dividend

      3. Interest other then Interest on Securities

      4. Payment of NSS

      5. Income from Units

      The income from said 5 sources should not exceed the maximum amount which is not chargeable to tax, i.e., Rs. 50,000.

      New Form No. 15H can now be given by an individual resident in india who is of the age of 65 years or more at any time during the Previous Year and who is entitled to rebate under section 88B, even if the aggregate income from the above 5 sources exceeds Rs.50,000, provided the tax payable on his total income is Nil.

      • Receive the TDS Certificate within the time prescribed

      • Examine the contents of the Certificate, especially, date of deposit of tax by deductor, year for which Certificate is issued. Take necessary remedial action, if any error / omission / discrepancy is noticed.

      • Receive the Statement from the prescribed authority or authorised agency

      • Examine the details about tax deducted, whether reflected in the Statement or not.

    5.
 

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