Circular No. 796

937. Use of computerised challan forms for deposit of tax deducted at source

What this is

Circular No. 796 was issued by the Central Board of Direct Taxes on 10 October 2000. Its subject is 937. Use of computerised challan forms for deposit of tax deducted at source.

What it does

Permits computerised challan forms to be used for depositing tax deducted at source, provided the printed form is an exact replica of the one then in use, with the same format and colour and of similar size.

Why it was issued

It had been brought to the Board's notice that persons deducting tax on behalf of clients had to fill in hundreds of printed challans, which was cumbersome and time-consuming, and a proposal was made that computerised forms would improve efficiency and reduce mistakes.

Who it reaches

Deductors depositing tax at source in large numbers of challans
Agents and professionals depositing on behalf of clients
Bank counters accepting challans

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

937. Use of computerised challan forms for deposit of tax deducted at source
1. At present printed challan forms are used by the assessees for the purpose of depositing tax deducted at source in accordance with the prescribed procedure under the Income-tax Act, 1961 and the Income-tax Rules, 1962. In this context, it has been brought to the notice of the Board that for depositing tax deducted at source hundreds of challan forms are required to be filled up by the persons responsible for deducting tax at source on behalf of their clients which is a cumbersome and time consuming exercise. Under these circumstances, a proposal has been put forth that computerised challan forms may be permitted to be used so as to increase the operational efficiency and to reduce the possibility of mistakes in filling in of the challan forms.
2. The aforesaid proposal has been considered by the Board and it has been decided to permit the use of computerised challan forms provided these are the exact replica of the one in use at present having same format, colour and may be similar in size.

Circular : No. 796, dated 10-10-2000.

What to watch

The concession fails if the computerised form departs from the prescribed format or colour; only size may be approximately similar.
It concerns the form of the challan alone and changes nothing about the time or manner of payment.
Deposit of tax deducted at source has since moved to electronic payment, so the paper challan practice it permits belongs to that period.

Where you meet it

At the bank counter when a computer-printed challan is refused as not being the prescribed form.

← Circular No. 798 · Circular No. 797 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.