Deductors other than Company andBanks can also request Form 16A from TIN.

Form 16A is available for F.Y. 2010-11 also on the TINwebsite.

It is available to TANs registered at TIN website (www.tin-nsdl.com).

Register your TANonline at the TIN website now for Form 16A from TIN.

Brief procedure for receiving Form 16A from TIN website:

Login to TAN     Registration Account with user id, password and TAN.
Request Form 16A by carrying out verification by providing details of challan and deductees present in the TDS statement for     which Form 16A is requested.
Form 16A will be provided on successful verification.
Two attempts within a day for successful verification are provided.
On successful  verification, request number is generated and text file containing Form     16A details is e-mailed within 48 hours at the e-mail ID present in the  registered TAN account.
In case of large number of records multiple files of Form 16A are created and will be sent through     multiple emails.
Convert the text file to     Form 16A by passing the text file through the PDF Convertor Utility. The     utility is available to registered TAN post login.

CIRCULAR NO. 03 /2011

F. No 275/34/2011-( IT-B)
Government of India
Ministry of Finance

Department of Revenue

Central Board of Direct Taxes
New Delhi,

dated the 13th May, 2011

Subject: Issuance of TDS Certificates in Form No. 16A downloaded from TIN Website and option to authenticate the same by way of digital signature – Circular under section 119 of the Income-tax Act 1961.
Section 203 of the Income-tax Act 1961 (‘the Act’) read
with the Rule 31 of the Income-tax Rules 1962 (‘the IT Rules’) provides for
furnishing of certificate of tax deduction at source (TDS) by the deductor to
the deductee specifying therein the prescribed particulars like amount of TDS,
permanent account number (PAN), tax deduction and collection account number
(TAN), etc. The relevant form for such TDS certificate is Form No.16 in case of
deduction under section 192 and Form No.16A for deduction under any other
provisions of Chapter XVII-B of the Act. TDS certificate in Form No.16 is to be
issued annually whereas TDS certificate in Form No.16A is to be issued
quarterly.

2. Currently, a deductor has an option to authenticate TDS
certificate in Form No.16 by using a digital signature. However, no such option
of using a digital signature is available to a deductor for issuing TDS
certificate in Form No.16A and it, therefore, needs to be authenticated by a
manual signature. The Central Board of Direct Taxes (the Board) has received
representations to allow the option of using digital signature for
authentication of TDS certificate in Form No.16A as issuance of TDS certificate
in Form No.16A by manual signature is very time consuming, specially for deductors
who are required to issue a large number of TDS certificates.

3. The Department has already enabled the online viewing
of Form No.26AS by deductees which contains TDS details of the deductee
based on the TDS statement (e-TDS statement)filed electronically by the
deductor. Ideally, there should not be any mismatch between the figures
reported in TDS certificate in Form No. 16A issued by the deductor and figures
contained in Form No.26AS which has been generated on the basis of e-TDS
statement filed by the deductor.
However, it has been found that in some cases the figures contained in Form No.26AS are different from the figures reported in Form No.16A. The gaps in Form No.26AS and TDS certificate in Form No. 16A arise mainly on account of wrong data entry by the deductor or non-filing of e-TDS statement by the deductor. As at present, the activity of issuance of Form No.16A is distinct and independent of filing of e-TDS statement, the chances of
mismatch between TDS certificate in Form No.16A and Form No.26AS cannot be
completely ruled out. To overcome the challenge of mismatch a common link has
now been created between the TDS certificate in Form No.16A and Form No.26AS
through a facility in the Tax Information Network website (TIN Website) which
will enable a deductor to download TDS certificate in Form No.16A from the TIN
Website based on the figures reported in e-TDS statement filed by him. As both
Form No.16A and Form No.26AS will be generated on the basis of figures reported
by the deductor in the e-TDS statement filed, the likelihood of mismatch
between Form No.16A and Form No.26AS will be completely eliminated.

4. In view of the above, for proper administration of the Act, the Board have,
in exercise of powers under section 119 of the Act, decided the following :-

4.1 ISSUE OF TDS CERTIFICATE IN FORM NO. 16A

(i) For deduction of tax at source made on or after 01/04/2011:

(a) The deductor, being a company including a banking
company to which the Banking Regulation Act,1949 applies and any bank or
banking institution, referred to in section 51 of that Act or a co-operative
society engaged in carrying the the business of banking, shall issue TDS
certificate in Form No.16A generated through TIN central system and which is
downloaded from the TIN Website with a unique TDS certificate number in respect
of all sums deducted on or after the 1st day of April, 2011 under any of the provisions
of Chapter-XVII-B other than section 192.
(b) The deductor, being a person other than the person referred
to in item (a)above, may, at his option, issue TDS Certificate in Form
No.16A generated through TIN central system and which is downloaded from the
TIN Website with a unique TDS certificate number in respect of all sums
deducted on or after the 1st day of April, 2011 under any provisions of
Chapter-XVII-B other than section 192.

(ii) For deduction of tax at source made during financial year 2010-11:

The deductor, may, at his option, issue the TDS
certificate in Form No.16A generated through TIN central system which is
downloaded from the TIN Website with a unique TDS certificate number in respect
of all sums deducted during the financial year 2010-11 under any of the
provisions of Chapter-XVII-B other than section 192.
4.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO.16A

(i) The deductor, issuing the TDS certificate in Form No.16A by downloading from the TIN Website shall authenticate such TDS certificate by either using digital signature or manual signature

(ii) The deductor being a person other than a person referred to in item 4.1(i)(a) above and who do not issue the TDS Certificate in Form No.16A by downloading from the TIN Website shall continue to authenticate TDS certificate in From No.16A by manual signature only.

5. The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of issuance of TDS certificate in Form No.16A which is downloaded from the TIN Website and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for issuance of TDS certificate in Form No.16A in electronic form.

6. It is further clarified that TDS certificate issued in Form No. 16A by the deductors covered by para 4.1(1)(a) in accordance with this circular and procedure, format and standards specified by the Director General of Income-tax (Systems) shall only be treated as a vilid TDS certificate in Form No. 16A for the purpose of section 203 of the Act read with Rule 31 of the IT Rules,1962.

7. Hindi version shall follow.

(AJAY KUMAR)

Director (Budget)

Tel.No.2309-2641

Copy to all CCsIT/ DsGIT for circulation

SERVICE TAX

1. The following two new services have been proposed
   1. Services by air conditioned restaurants having licence to serve liquor; and
   2. short term accommodation hotels / inns / clubs / guest houses etc.

1. The monetary limit for adjustment of excess service tax paid is increased from Rs. 1.00 lacs to Rs.2.00 lacs.
2. The penalty for delayed payment of service tax u/s 76 has been reduced from 2% to 1% per month or Rs.100 per day whichever is higher.
3. The maximum penalty reduced to 50% of the tax.
4. The rate of interest is reduced by 3% for assesses with turnover of upto 60 lacs.
5. The maximum penalty for delay in filing of return increased from Rs.2,000 to Rs.20,000

Courtesy: CA. Naveen ND Gupta

What is Form 15CA?

• Form 15CA is an undertaking by the remitter furnished in an electronic mode at the website of the Tax Information Network (http://www.tin-nsdl.com) giving details of the proposed remittance and tax deducted at source in accordance with the provisions of section 195(6) of the Income-tax Act, 1961.
• This information should be furnished after obtaining a Certificate in Form 15CB from a Chartered Accountant. The print out of the Form 15CA (furnished online) should be signed by authorized signatory and submitted to the bank prior to remitting the payment along with certificate of a Chartered Accountant in duplicate in Form 15CB.
• The fields marked with (*) are mandatory.
• Select the values from the drop down wherever provided.
• Each transaction detail should be filled in separately.

Guidelines in filling up form 15CA

The following guidelines may be kept in mind while furnishing Form 15CA

Remitter :

• Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) allotted by the Income Tax Department should be mentioned. TAN is mandatory in cases where-

- tax has been deducted or will be deducted at source;

- the remitter has obtained an order under section 195(2) of the Income-tax Act from the Assessing Officer.

• In case an invalid PAN and/or TAN is filled in by the remitter, the Form will not be generated.
• In case the remitter does not have a TAN, it is mandatory to quote PAN of the remitter.
• PAN of the remitter should invariably be given. However, the same is mandatory if status of entity is Company or Firm. If PAN is not given in such cases, the remitter will not be allowed to generate the Form.
• Details in at least two address fields for remitter should be mentioned.
• Name of the entity should be mentioned in the “Name of remitter” field.
• No value is to be provided in Area code, AO type, Range code & AO number. The fields will be entered by the system after validating the PAN and/or TAN.
• Email id and mobile no., if any, should be provided.

Recipient of remittance:

• Complete address of recipient of remittance, separated by coma, should be provided.
• PAN, allotted by the Indian Income Tax Department should be mentioned.
• If status of entity is “company”, then provide type of company i.e., “domestic” or “other than domestic”.
• In the field “Principal Place of Business”, the country of tax residence of the recipient of the remittance should be mentioned.

Information for accountant :

• Enter name of the Chartered Accountant in the field “Name of the accountant”.
• Details in at least two address fields should be mentioned.
• Date of certificate should not be a future date.
• Registration no. should be numeric.
• Details of accountant are not required if point no.15 is selected i.e. any order u/s 195(2)/ 195(3)/ 197 of the Income-tax Act has been obtained from Assessing Officer.
• Certificate number is an alphanumeric field.

Guidelines for Part B of the Form 15CA (Particulars of remittance and TDS) :

• Provide the values as per the accountant certificate obtained in Form 15CB.
• In case name of the country is not available in drop down list, select value “other” from the drop down and provide name of the country.
• In case currency name is not available in drop down then select value ”other” from the drop down and provide name of the currency.
• Proposed date of remittance should be current date or a future date.
• Amount of TDS should be less than amount of remittance.
• Actual amount of remittance after TDS should be less than amount of remittance.
• BSR code of the bank through which the remittance is made should be mentioned.
• Rate of TDS as per DTAA (if applicable) should be mentioned upto two decimal places.
• Amount should be mentioned upto 2 decimal places.
• Select any one out of fields 12, 13, 14 and 16. One form is to be filled for one type of remittance.
• Details of “responsible person” should be mentioned for verification.
• If no tax has been deducted then value “0.00” should be mentioned in “Amount of TDS” field (foreign currency and Indian Rupees.)
• Value for “rate of deduction as per the Income-tax Act” should be “0.00” if no tax has been deducted and “amount of TDS in Indian and foreign currency” should be “0.00”.

Generation of Form 15CA :

• After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form.
• A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited.
• On confirmation, a filled up Form 15CA with an acknowledgement number will be displayed. Print out of the Form should be taken, signed and submitted prior to remitting the payment.
• Form 15CA can be re-printed by selecting the re-print option. For re-printing, please enter “acknowledgement no.”, “PAN” and/or “TAN” mentioned in the Form.

What is 15CB?

• The person making the payment (remitter) needs to obtain a certificate from a Chartered Accountant in Form 15CB. The format of Form 15CB has been prescribed by Central Board of Direct Taxes (CBDT).

Common discrepancies noted while submitting Form 15CA and 15CB to the bank :

These are some of the common errors that could be avoided to ensure proper submission of these forms to the bank prior to making the remittance.

• Form 15CA and/or 15CB is not provided prior to the proposed remittance.
• Details stated in Form 15CA/ 15CB do not tally with each other or with the details in the A2 form and/or supporting documents.
• Form 15CB is unsigned/ un-stamped : Form 15CB has to be signed and stamped by the Chartered Accountant clearly mentioning the registration number and certificate number.
• Unsigned 15CA : The print out of the undertaking Form (i.e. Form 15CA) should be physically signed by the remitter.

Dated : September 27, 2010

Order under Section 119 of the Income Tax Act, 1961

On consideration of the reports of disturbance of general life caused due to floods and heavy rains, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income Tax Act, 1961, hereby extends the due date of filing of returns of income for the Assessment Year 2010-11 from 30.09.2010 to 15th October 2010. Accordingly the due date for Tax Audit report u/s. 44AB of the Income Tax Act is also extended to 15th October, 2010.

(Ajay Goyal)
Director (ITA. II)

A. You can claim the tax benefit in the ratio in which you contribute EMIs for the property. You should keep the ratio constant throughout the term of the loan.

Step 2: Go to “My Account” -> select “E-Filing Processing Status”

Step 3: Enter Assessment Year -> 2009-10 and click on ‘Submit’

Step 4: View Processing Status for your return (see highlighted box below). In case of Refund, go to Step 5 to check Refund status. In case or No Demand No refund or Demand, await Intimation from CPC Bangalore

Step 5: To view Refund Status go to Tax Information Network (TIN) Website : https://tin.tin.nsdl.com/oltas/refundstatuslogin.html and enter PAN and Assessment Year and click ‘Submit’

Step 6: View refund Status. In case status is ‘dispatched by speed post’ -> track speed post by clicking on the hyperlinked Speed Post Ref. no: starting with “EY…”. In case ‘Mode of Payment’ is ‘ECS’ then check your Bank Account for Direct Deposit.

Step 7: Or go to http://services.ptcmysore.gov.in/speednettracking/. Enter the ‘Speed Post Ref. no’ in ‘Article Number’ and ‘Date’ in ‘Date of booking’ and click on ‘Track’

Step 8: View Status of Speed Post delivery -> click on ‘Movement’ to view tracking of article (see highlighted box below).

Step 9: Refund may be verified for correctness and in case of any error, the same may be brought to the notice of CPC, Bangalore. Intimation sheet will be directly mailed by Speed Post from CPC Bangalore.

www.mukeshraj.com

1. Selection of cases for scrutiny during the financial year 2010-11 will be done primarily through CASS this year. Manual Selection for scrutiny this year will be limited only to a few categories of cases listed below.
2. List of cases selected during each month in accordance with the selection criteria mentioned below shall be submitted by the Assessing Officers to their respective Range heads by the 15^th of the following month and also displayed on the Notice Board of their office.
3. These guidelines are meant only for the use of officers of the Income Tax Department. These are not be disclosed even if a request is made under the right to Information Act, in view of the decision of the Central Information Commission in the case of Shri Kamal Anand Vs Director (ITA-II), CBDT (Order No. CIC/AT/2007/00617 dated 21.02.2008).

SELECTION CRITERIA APPLICABLE TO ALL RETURNS AT ALL STATIONS:

a)    Value of international transaction as defined u/s 92b exceeds Rs. 15 crores.

b)    Cases involving addition in an earlier assessment year in excess of Rs.10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

c)    Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs.10 Lakhs or more.

d)    Assessments in survey cases for the financial year in which survey was carried out This criteria will not apply if all of the following conditions are fulfilled:

(i)            There are no impounded books or documents.

(ii)           There is no retraction of disclosure made during the survey.

(iii)          Declared income, excluding any disclosure made during the survey, is nor less than the declared income of the preceding assessment year.

e)    Assessment in Search & Seizure cases to be made under sections 158B, 158BC, 158BD, 153A 153C & 143(3) of the IT Act.

f)     Assessments initiated under section 147 / 148 of the IT Act.

g)    Assessing Officer may select any return of scrutiny after recording the reasons and obtaining approval of the CCIT/DGIT. The cases under this category should be selected if there are compelling reasons and the case is not selected through CASS. There cases should be watched by CCIT / CIT in respect of the quality of assessment.

1. In all the returns filed in ITR-1 and ITR-2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and where the refund computed does not exceed Rs. 25,000; the TDS claim of the tax payer shall be accepted at the time of processing of the return.
2. In all the returns filed in forms other than ITR-1 and ITR -2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and the refund computed does not exceed Rs. 25,000 and there is 10% matching of TDS amount claimed, the TDS claim shall be accepted at the time of processing of the return.
3. In all remaining cases, TDS credit shall be given after due verification.