Amendment in procedural compliances related to TDS (w.e.f. 01.04.2010)

[C.A. Chandan Goyal]

A. Highlights

CBDT, vide Notification No. 41/2010 dated 31^st May'2010 has notified Income Tax (Sixth Amendment) Rules, 2010 which has the effect of amending the existing procedural compliances related to TDS.

The new notification  is effective from 1^st April 2010and applies to tax deducted on or after 1^st April 2010.

The procedural part for tax deducted upto 31^st March 2010 will be governed by the earlier rules/provisions.

Major highlights are:

Time limit for deposit of TDS for the entire month of March will be 30^th April instead of two separate dates i.e. 7^th April for TDS up to 30^th March and 31^st may for TDS deducted as on 31^st March.

Non-salary TDS certificates shall be issued on quarterly basis instead of monthly or annual basis.

Time limit for filing  of quarterly TDS return for the last quarter (i.e. ending with 31st March) has  been advanced by one month to 15th May instead of 15th June.

 

B.   Time Limit for TDS deposit

Particulars	Earlier provision	New provision
TDS deducted on 31st March	31st May	30th April
TDS deducted from 1st March to 30th March	7th April	30th April
Other cases	Within one week from end of the month of tax deduction	Within one week from end of the month of tax deduction

 

C.    Time limit for issuance of TDS Certificate

Particulars	Earlier provision Frequency                    Time limit		New provision Frequency                    Time limit
Form 16- Salary	Annual	30th April	Annual	31st May
Form 16A- Other than Salary	Monthly	With in one month from end of the month	Quarterly	Within 15 days from the due date of quarterly TDS return
	Annual	Within one month from close of Financial Year

Notes:

Now, address of TDS Tax Authority is required to be disclosed in Form 16 & 16A.

Form 16AA (which was applicable where salary income was less than Rs. 1.50 lacs) has been discontinued as it was not relevant after increase of basic exemption limit up to Rs. 1.60 lacs. 

Facility of issuing annual consolidated certificate (in cases other than salary), at the request of deductee, has been withdrawn.

 

D.    Time limit for filing of quarterly TDS return

Quarter ended on	Earlier provision	New provision
30th June	15th July	15th July
30th September	15th October	15th October
31st December	15th January	15th January
31st March	15th June	15th May

 

E.     Provisions not affected

There is no change in the form of payment of TDS i.e. Challan No. ITNS 281 will remain the same.

Mode of payment of TDS by Companies is same i.e. mandatorily by electronic mode.

Forms of quarterly statements of TDS i.e. Form 24Q (Salary TDS), Form 26Q (Other than salary TDS) and Form 27Q (for non residents/not ordinarily resident deductees) will remains the same.