NEW TDS RULES (First Amendment) Rules, 2010

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

There is a corrigenda to the rules also

(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

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)

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)

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)

If tds return is filed on 16th of the month after end of quarter, whether penaly of Rs. 200 per day is attacted?

 thanks in advance