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NEW TDS RULES (First Amendment) Rules, 2010

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NEW TDS RULES NOTIFIED

Income-tax (First Amendment) Rules, 2010

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6 Replies

C.Balaji (Learner) (1867 Points)
Replied 03 April 2010

Thanks for sharing.....CA Guy....

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 03 April 2010

There is a corrigenda to the rules also

Corrigenda to TDS Rules - Amendment in IT (First Amendment) Rules, 2010

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART –II, SECTION 3, SUB-SECTION (ii)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

CORRIGENDUM

Notification No. 18/2010

New Delhi, the 23rd March, 2010.

INCOME-TAX

S.O._____(E) In the notification of Government of India, Ministry of Finance, Department of Revenue (Central Board of Direct taxes), number 9/2010 dated 18-02-2010 bearing S.O. 424(E) and published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated 18th February, 2010 –

(i) at page 31 of the Gazette Notification, in fourth line of clause (i) of sub-rule (3), for “Form No.27B”, read “Form No. 27A”;

(ii) at page 32 of the Gazette Notification, in eighth line of Rule 37A, for “shall send within fourteen days from the end of the quarter”, read “shall send on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year and on or before the 15th June following the last quarter of the financial year”; and

(iii) At page 32 of the Gazette Notification, in Rule 37A, the proviso shall be omitted.

2. The other contents of the Gazette Notification shall remain unchanged.

Notification No. 18/2010/F.No.142/27/2009-SO(TPL)

(M.RAJAN)

Under Secretary (TPL-III)

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 03 April 2010

A addendum to the attachment as the same seems to have been missed:

(e) for Form No.16 and Form no. 16A the following forms shall be substituted, namely:-

(f) after Form 16A the following form shall be inserted, namely:

(g) Forms 17 and 24C shall be omitted;

(h) In Form 24Q, for Annexure I, the following Annexure I shall be substituted, namely:?

ANNEXURE I: DEDUCTEE WISE BREAK-UP OF TDS

ANNEXURE: DEDUCTEE WISE BREAK-UP OF TDS

(Please use separate Annexure for each line – item in the table at S. No. 4 of main Form 26Q)

(j) for Form No. 27D, the following form shall be substituted, namely:

FORM NO. 27D

(k) for Form 27EQ:

(i) for the figure and letter “31A”, the figure and letter“ 31AA” shall be substituted;

(ii) for the Annexure, the following Annexure shall be substituted, namely:?

ANNEXURE: PARTY WISE BREAK-UP OF TCS

(l) for Form 27Q:?

(i) for the words, figures and letters “see rule 31A(1)(c)(i)”, the words, figures and letters “see sections 194E, 195, 196A, 196B, 196C, 196D and rules 31A and 37A”, shall be substituted;

(ii) or the Annexure, the following Annexure shall be substituted, namely:?

ANNEXURE: PARTY WISE BREAK-UP OF TCS

[Notification No.___ /2010/F.No. 142/27/2009?SO(TPL)]

(M. RAJAN)

Under Secretary to the Govt. of India

Note: The principal rules were published vide Notification No. S.O 969 (e) dated the 26th of march, 1962 and last amended by Income?tax (13th Amendment ) Rules, 2009 vide Notification No. S.O. 3245 (E) dated 18th December, 2009

CA MD Azharuddin (CA) (13 Points)
Replied 24 June 2010

Key Changes – Income Tax (First Amendment) Rules 2010 (effective from April 1, 2009)

· Rule 30: The extended period of two months for remittance of Tax Deduction at Source (“TDS”), deducted on the last day of the Previous Year (“PY”), which was previously available for all the deductions made under Chapter XVII B of the Income tax Act, 1961 (“the Act”) is now limited to payments referred below:

(Table A)

Section	Nature of payments
193	Interest on securities
194A	Interest other than “Interest on securities”
194C	Contract
194D	Insurance commission
194E	Payments to non-resident sportsmen or sports associations
194G	Commission, etc., on the sale of lottery tickets
194H	Commission or brokerage
194I	Rent
194J	Fees for professional or technical services
195	Interest or any other sum to non residents
196A(2)	Income in respect of units of non-residents
196B	Income from units
196C	Income from foreign currency bonds or shares of Indian company
196D	Income of Foreign Institutional Investors from securities.

Accordingly, the TDS on remaining payments specified in the below table, has to be remitted, with a week from the end of the month in which the TDS amount has been deducted.

(Table B)

Section	Nature of payments
192	Salary
194	Dividends
194B	Winnings from lottery or crossword puzzle
194BB	Winnings from horse race
194EE	Payments in respect of deposits under National Savings Scheme, etc
194F	Payments on account of repurchase of units by Mutual Fund or Unit Trust of India
194LA	Payment of compensation on acquisition of certain immovable property

Implication: In case of Salaries (section 192 of the Act) paid on the last day of the PY for the month of March, previously the employer had the privilege to remit the TDS within two months from the last day of the PY. However, now he would be liable to remit the same within 7 days from the end of the month (ie April 7)

· The rules have been amended, with respect to persons remitting TDS on behalf of Government, these persons will have to mandatorily remit the TDS amount, on the same day on which TDS has been deducted;

· Requirements for electronically furnishing income tax challan in Form 17 and Quarterly statements in Form 24C, which was inserted by the Finance Act 2009, has been done away with;

· Rule 31: Requirement for furnishing TDS certificate in Form 16AA, for individuals, resident in India, where his income from salaries before allowing deductions under section 16 of the Act is less than 150,000, has been reinstated;

· Rule 31: With respect to the payment covered under the first Table above, where the assessee has credited such amount on the last day of the PY, the assessee has to furnish the TDS certificates within a week after the expiry of two months from the month in which income is so credited. In other cases, the TDS certificate has to be submitted within one month from the end of the month in such amount has been credited/paid to the payee.

· Rule 31AA: previously omitted by Income tax (eight amendment) rules 2009, has been re-instated which governs the procedural requirements with respect to collection of tax at source, i.e. furnishing Form 27EQ and time limit for filing etc

· Rule 31A: Quoting Permanent Account Number (“PAN”) for all the deductees is mandatory, except where PAN is not applicable;

· Rule 37A: previously omitted by Income tax (eight amendment) rules 2009, has been re-instated which governs the procedural requirements with respect to TDS deducted in case of non residents, ie furnishing Form 27Q of the payments covered under section 193, 194, 194E, 195, 196A,196C and 196D, time limit for filing the same etc

· Rule 37CA and 37D relating to payment of TDS has been amended (basically doing away with the requirement for filing Form 17 and remittance of TDS in case of persons deducting on behalf of Government etc)

· The annexure for Form 24Q, 26Q, 27Q and 27EQ has been substituted with new annexure (as per the format specified in the circular). Henceforth, the annexure providing the deductee wise break up of the TDS needs to be signed by the deductor. Currently, the authorised person was supposed to sign only the summary details of the TDS deducted (such as total amount deducted, total amount paid, total amount remitted etc)