CBDT AMENDS RULES RELATING TO TDS

The Central Board of Direct Taxes (CBDT) have amended the Rules relating to TDS provisions date and mode of payment of tax deducted at source (TDS), TDS certificate and filing of ‘statement of TDS’ (TDS return) vide Notification No.41/2010; SO No.1261(E) dated 31.05.2010.

The amended rules will apply only in respect of tax deducted on or after 1st day of April 2010.

Forms for TDS certificate have been revised to include the receipt number of the TDS return filed by the deductor. Now the Tax-deduction Account Number (TAN) of the deductor, Permanent Account Number (PAN) of the deductee, and Receipt number of TDS return filed by the deductor will form the unique identification for allowing tax credit claimed by the taxpayer in his income-tax return.

Government Authorities (Pay and Accounts Officer or Treasury Officer or Cheque Drawing and Disbursing Officer) responsible for crediting tax deducted at source to the credit of the Central Government by book-entry are now required to electronically file a monthly statement in a new Form No. 24G containing details of credit of TDS to the agency authorised by the Director General of Income-tax (Systems).

Due date for furnishing TDS return for the last quarter of the financial year has been modified to 15th May (from earlier 15th June). The revised due dates for furnishing TDS return are

Sl.No. Date of ending of the quarter of the f.y. Due date
1. 30th June 15th July of the financial year
2. 30th September 15th October of the financial year
3. 31st December 15th January of the financial year
4. 31st March 15th May of the financial year Immediately following the financial year in which deduction is made

Due date for furnishing TDS certificate to the employee or deductee or payee is revised as under

Sl.No. Category Periodicity of furnishing TDS certificate Due date
1. Salary (Form

No.16)

Annual By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted

2. Non-Salary

(Form No.16A)

Quarterly Within fifteen days from the due date for

furnishing the ‘statement of TDS’

DSM/BY/GN

  • thanks a lot sir for the information
    i just want to know something else
    in a sole proprietorship concern the depreciation was not taken for past 5 yrs as there is not much business
    is the issue justified?

  • thanks a lot sir for the information
    i just want to know something else
    in a sole proprietorship concern the depreciation was not taken for past 5 yrs as there is not much business
    is the issue justified?

  • Tom PJ

    In the case of a proprietorship (consultant firm) is a separate PAN required or will the PAN of the proprietor be the relevant one? If the latter, how will the TDS deducted by the client be accounted for when the deduction has been made in payment to the firm?

    • Anonymous

      In case of sole proprietorship firm, your personal PAN is the PAN of the firm. TDS deducted in the name of firm can have same PAN and it will not be a problem.