Section 206 - Persons deducting tax to furnish prescribed returns - Income Tax - Ready Reckoner - Income Tax

Persons deducting tax to furnish prescribed returns [ Section 206 ] Furnishing the TDS return before 01.04.2005 The Following person shall be responsible for deducting tax before the 1st day of April, 2005 under the foregoing provisions of this Chapter shall, prescribed person in the case of every office of Government, the principal officer in the case of every company, the prescribed person in the case of every local authority or other public body or association, every private employer and every other person within the prescribed time after the end of each financial year, prepare and deliver or cause to be delivered to the prescribed income-tax authority or such other authority or agency as may be prescribed, such returns in such form and verified in such manner and setting forth such particulars as may be prescribed. The Board may, if it considers necessary or expedient so to do, frame a scheme for the purposes of filing such returns with such other authority or agency referred to in this section 206(1). [ Section 206(1) ] Furnishing the TDS return after 01.04.2005 The person responsible for deducting tax under the foregoing provisions of this Chapter at his option, deliver or cause to be delivered such return to the prescribed income-tax authority in accordance with such scheme as may be specified by the Board in this behalf and subject to such conditions as may be specified therein, on or before the prescribed time after the end of each financial year, on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media (hereinafter referred to as the computer media) and in the manner as may be specified in that scheme : The prescribed person in the case of every office of Government and the principal officer in the case of every company responsible for deducting tax under the foregoing provisions of this Chapter shall, deliver or cause to be delivered, within the prescribed time after the end of each financial year, such returns on computer media under the said scheme. [ Section 206(2) ] Admissible in any proceeding without proof if return filed on computer media Notwithstanding anything contained in any other law for the time being in force, a return filed on computer media shall be deemed to be a return for the purposes of this section and the rules made thereunder and shall be admissible in any proceedings thereunder, without further proof of production of the original, as evidence of any contents of the original or of any fact stated therein. [ Section 206(3) ] Submit a Defective return treated as an Invalid return Where the Assessing Officer considers that the return delivered or caused to be delivered under section 206(2) is defective, he may intimate the defect to the person responsible for deducting tax or the principal officer in the case of a company, and give him an opportunity of rectifying the defect within a period of 15 days from the date of such intimation or within such further period which on an application made in this behalf, the Assessing Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such return shall be treated as an invalid return and the provisions of this Act shall apply as if such person had failed to deliver the return. [ Section 206(4) ] Important Notification Circulars Filing of returns u/s. 206 of IT Act, 1961, in respect of TDS from the salary of employees of a company working at its headquarters or in other branches-Extension of the procedure in respect of other TDS returns. It is clarified that where the head office or the branch office is already filing the return under section 206, no other Assessing Officer shall require the assessee to file such a return with him. Where, however, the return is not being filed, the Assessing Officer having jurisdiction in terms of rule 36A of the Income-tax Rules, may proceed so as to enforce compliance with the provisions relating to deduction of tax at source from Salary . [ Circular No. 719 Dated 22.08.1995 ] Board s Circular No. 719 (F. No. 275/206/95-IT(B) , dated 22nd August, 1995, states that where the head office or the branch office is already filing the returns under section 206, no other Assessing Officer shall require the assessee to file such return with him. The board has been decided to extend this procedure to all other TDS returns filed under rule 37, as required under section 206 of the Income-tax Act, 1961. [ Circular No. 744 Dated 05.06.1996 ]