Saturday, April 4, 2009

Major changes in TDS Compliance

CBDT has issued Notification No 31 dated March 25, 2009 bringing out several changes in TDS compliance. The notification amends various rules w.e.f 01-04-2009.

TDS Payment

* TDS payment is now to be made electronically by all deductors. Earlier only corporate and persons covered under mandatory tax audit were required to make payment electronically.
* Electronic payment is now to be made in Form No 17
* Form No 17
o Form No 17 requires deductor to provide deductee wise PAN, Name and TDS amount
o There are two columns Unique Transaction Number and PAN Valid Y/N . To comprehend these columns more information is needed.

New TDS Compliance Statement

* New Form 24C in introduced
* This form is to be submitted every quarter electronically
* For each TDS section , monthly figures are to be given in respect of
o Total expense or capital outgo under the section
o Total amount on which TDS was to be deducted
o Total amount on which TDS deducted at normal rate / TDS amount
o Total amount on which TDS deducted at lower rate / TDS Amount
o Total TDS = TDS at normal rate + TDS at lower rate

eTDS Statements

* Form 24Q/ 27Q formats have been modified
* In deductee wise details , Unique Transaction No is to be given
* eTDS Statements in Form 24Q, 26Q,27Q are to be submitted only once a year on or before 15th June

Form 16 / 16A

* Formats of 16/16A have been amended
* Gross amount and TDS amount is to be given unique Transaction Number Wise
* Whether PAN uploaded was validated by income tax department is to be shown separately
* Several details not be given like : Date of payment, Chq No, BSR Code, CIN etc

Unique Transction Number ( UTN )

* It seems the whole system is now going to be based in UTN
* From the following chart it is clear that UTN is a common link between Challan, TDS certificate and eTDS Statement.
* UTN will be provided by the income tax department.
* How this number will be provided by the department – we have to wait and watch