Centralised Processing of Statement of TDS Scheme, 2013

(Notification 3, Date of Issue 15-01-2013)

Ministry of Finance has introduced the scheme for Centralised Processing of Statement of TDS on 15th January, 2013 in exercise of powers conferred by S. 200A(1) of The Income Tax Act, 1961. The scheme mainly provides for:-

1. Set up of Centralised Processing Cells

It appears that the processing of TDS returns will be done on the line of Income Tax returns. For this purpose CBDT has been authorised to set up processing cells and specify their jurisdiction.

2. Furnishing of correction statement of TDS

It has been provided that the correction statement can be filed at the authorised agency or online through the portal. It appears that henceforth TDS correction statement would be filed online, creating thereby an opportunity of Chartered Accountants. The correction statement can also be digitally signed.

One thing to note here is that only correction statement has been covered under online filing. It can be expected to cover original TDS statements also in coming years.

3. Processing of statements

It is provided that the Cell shall take into account the information furnished in the correction statement, if any, furnished before the date of processing of the statement of TDS furnished by a deductor. Such processing shall be on the lines of manner specified u/s 200A (1) of the Act.

4. Rectification of Mistakes

Provisions for rectification have been made exactly on the lines of S. 154 of the Act. Income Tax Authority of the Cell may itself, or on an application filed by the deductor, rectify the mistakes apparent from records. Any refund due shall be granted and any order for demand shall be treated as order u/s 156.

5. Other Miscellaneous Provisions

a. Demand can be adjusted in accordance of S. 245 also.

b. All appeals shall lie to CIT (A) having jurisdiction over the AO of the deductor.

c. No person shall appear personally at the cell or though AR.

d. Cell may call for information for the purpose of processing or rectification of statements.

e. Rest are the common provision relating to service of notice (S. 282) and powers conferred on Director General to specify various procedures under this scheme.