By Kapil Nayyar and Neha Srivastava
Nayyar Maniar & Associates
AMENDMENT IN TDS RULES
A. INTRODUCTION
The Central Board of Direct Taxes (CBDT) has amended the rules relating to Tax Deducted At Source (TDS) vide Notification No. 41/2010, SO No. 1261 (E) dated May 31, 2010. The amendments mainly relate to the date and mode of payment of TDS, TDS Certificates and filing of TDS return.. The amended rules shall apply only to the tax deducted at source on or after 1st April 2010.
B. SALIENT FEATURES AND COMPARISON
Salient features of the Notification are enumerated below. We have also tried to capture the difference between the regulations as it was and as it will be after the issue of this notification:
Prior to Issuance of Notification
The provisions stated that the TDS Certificate should include the Tax deduction Account Number (TAN) of the deductor, Permanent Account Number (PAN) of the deductee. These two details would form Unique Identification Number for allowing credit claimed by the tax payer in his inc
Post Issuance of Notification
The Notification has now amended the rule and further introduced the introduction of the receipt number of the TDS return filed by the Deductor. Now Tax deduction Account Number (TAN), permanent Account Number (PAN) and receipt number of the TDS return will form Unique Number for claiming credit by the tax payer.
NMA Insights
The Notification mandates the receipt number of the TDS return to be quoted in the inc
II. Mode of Payment
Prior to Issuance of Notification
The Authorities were responsible for crediting tax deducted at the source to the credit of Central Government through book entry.
Post Issuance of Notification
The authorities are now required to electronically file a monthly statement in a new form no. 24G containing details of credit of TDS to the agency authorized by the Director general of Inc
NMA Insights
The new notification has provided a systematic approach for the credit of tax deducted at source to the credit of central government. This will be less tedious as c
III Due Date for furnishing TDS Return
Prior to Issuance of Notification
The provisions stated that the due date for filing TDS return for the last quarter of the financial year shall be 15th of June
Post Issuance of Notification
The new notification has modified the due date for filing TDS return for the last quarter of the financial year to 15th of May.
NMA Insights
Since the last date of issuing Form 16A was fixed at 31st May and the due date of filing the return was 15th June, thus either inc
IV Due Date for furnishing TDS Certificate
Prior to Issuance of Notification
Sl. No. |
Category
|
Periodicity of furnishing TDS
certificate
|
Due date
|
1. |
Salary (Form 16) |
Annual |
Within 30 days of the end of the financial year |
2. |
Non-Salary (Form 16A)
|
Monthly/ Annually |
Within 30 days of the end of the financial year |
Post Issuance of Notification
Sl. No. |
Category
|
Periodicity of furnishing TDS
certificate
|
Due date
|
1. |
Salary (Form No.16)
|
Annual |
By 31st day of May of the financial year immediately following the financial year in which the inc |
2. |
Non-Salary (Form No.16A)
|
Quarterly |
Within fifteen days fr |
NMA Insights
Since under the earlier provisions, the TDS certificate was to be issued by 30th April, thus a number of C
Also the earlier clause of issuing monthly Form 16A was bec
Conclusion
These amendments c
(Kapil Nayyar is a Fellow member of the Institute and a Partner with Nayyar Maniar & Associates. He has more than 8 years of post qualification experience in Direct Taxes and International Taxation. Kapil is also a Lead Advisor to Pr