CLARITY OM NEW TDS FORM 17 AND NEW TDS RETURN

CLARITY OM NEW TDS FORM 17 AND NEW TDS RETURN

Dear friends,

As I have informed you earlier that new Tax payment challan Form 17 and many other changes has been introduced by Income Tax rules 8th amendment 2009. Further Ministry of finance has clarified that the new challan is applicable on deduction made on or after 01.04.2009.In this post I am trying to clarify the issue related to these new system.

New Form Challan 17

Section wise challan: earlier we have to fill separate challan for deduction made under different section now no need to do this .you can pay all the tax deducted in a period in a single challan, irrespective of the tax has been deducted on salary or 194c or 194 J etc, it can now be deposited in a single challan at a time.

TDS / TCS: TDS and TCS both can be deposited in a single challan at a time.

No need to differentiate between corporate deductees or no corporate deductees.

No need to give break up of basic tax, surcharge or cess, total figure is only required to be mentioned.

Information of deductees is also to be given in challan i.e. Pan, Name, and tax deducted.

If deductees is more than 10 then details of deductees has to be uploaded with the challan.

Challan can be deposited only through e payment and credit debit card option will also be allowed.

This facility is expected to start at Tin- nsdl site by the end of this Month as the tax deducted in the month of April 2009 is required to be deposited by 07.05.2009

Unique Transaction Number:

on successful uploading of the challan, acknowledgment will be generated and against each entry of deductees detail one unique transaction number will be given and pan number of the deductees is also verified and a status of pan verified yes /no will be given so that in case of incorrect pan or not verified pan, deductor have a time to correct them while filing the TDS return.

This unique transaction number is also required to be mentioned in form 16/16a and quarterly return 24Q, 26Q etc.

Quarterly returns are now not quarterly.

Now no need to file quarterly return, quarterly means deductor has to prepare the quarterly return in as earlier done on form 24 Q or 26Q etc but filing date is now annual only 15 June. Means quarterly return are now required to be filed annually or we can say form 24Q/26Q/27EQ etc is now annual Form though Performa remain quarterly.

New Tax compliance return on 24 C

a. New Quarterly return, Form 24C introduced with following contents.

b. With the Deductor information, Form 24C should contain Details of TDS Compliances for 3 months separately and the Challan Identification Numbers / Amounts in that quarter.

c. Details of TDS Compliances should contain the section wise (all) information of Total Payment, Total amount eligible for deduction, Total amount considered for TDS at full rate, Amount of TDS at full rate, Total amount considered for TDS at lesser rate, Amount of TDS at lesser rate, Total TDS.

d. The due dates are same as earlier quarterly returns.

Changes in TDS Certificates

1. New Formats of Form 16 and 16A.

2. These formats may be applicable for FY 2009-10 and above.

a. Form 2008-09, the same earlier formats may continue as the data for new formats would be less. However a confirmation circular is expected from CBDT.

3. The forms should contain the information of UTN against each payment shown in TDS certificate.

a. UTN has to be mentioned, along with Gross amount paid and TDS amount.

b. Date of Payment is not required. That means if a party payment is shown consolidate in monthly challan, a yearly Form 16A contains only 12 entries.

4. Form 16A is section independent. It can contain multiple section related deductions.