4/2005 dated 06 04 2005
Circular No. 4/2005 was issued by the Central Board of Direct Taxes on 27 June 2005. Its subject is 4/2005 dated 06 04 2005.
Lays down the checks a deductor or collector must satisfy before filing a TDS or TCS return on computer media for deductions and collections up to 31 March 2005. Form No. 27A (TDS) or Form No. 27B (TCS) must be filled, verified and enclosed in paper with the media; the TAN must appear on that form and in the return as section 203A(2) requires; the bank deposit particulars must be correctly entered at item 6 of Form No. 24 or item 4 of Form No. 26, Form No. 27 or Form No. 27E; the data structure must conform to that prescribed by the e-filing Administrator; and the control totals of amount paid and tax deducted or collected in Form No. 27A or Form No. 27B must tally with the return. A corrupted return, or one failing any of these, is to be returned to the deductor for correction and resubmission. Earlier Board circulars on filing TDS and TCS returns on computer media stand modified to this extent.
To make sure returns filed on computer media conformed to the required specifications, after Finance Act, 2003 made e-filing of TDS returns compulsory for company principal officers, and Finance (No. 2) Act, 2004 extended it to prescribed officers of every Government office and recast the section 206C returns of tax collected at source into an annual return for financial year 2004-05.
CIRCULAR
INCOME-TAX ACT
Filing of returns of Tax Deduction at Source and Tax Collection at Source on Computer Media for deductions/collections up to 31st March, 2005
CIRCULAR NO. 4/2005, DATED 27-6-2005
1. Finance Act, 2003 amended section 206 of the Income-tax Act, 1961 to provide for mandatory filing of returns of tax deduction at source in computer media by principal officers of companies responsible for deducting tax in accordance with a scheme to be notified by the Board in the Official Gazette. The "Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003" was notified vide S.O. No. 974(E), dated 26-8-2003. Suitable amendments were made in the various rules and forms prescribed under the Income-tax Rules, 1962.
2. Finance (No. 2) Act, 2004 has further amended sub-section (2) of section 206 to extend the mandatory filing of returns of tax deducted at source to cases where deduction is made by the prescribed officer in the case of every office of the Government.
3. Finance (No. 2) Act, 2004 has also amended sub-sections (5A), (5B) and (5C) of section 206C of the Income-tax Act which pertain to filing of returns of tax collected at source. Consequent to this amendment, an annual return of tax collected at source will be required to be filed for tax collected during the financial year 2004-05 as against the earlier requirement of furnishing of half yearly returns.
4. The provisions of sub-sections (5B) and (5C) of section 206C which provided for furnishing of returns of tax collected at source on computer media have also been amended to provide for furnishing of such returns in computer media in accordance with a scheme to be notified by the Board by notification in the Official Gazette. The filing of such returns has been made mandatory in the case of companies, the Central Government and State Government. The "Electronic Filing of Returns of Tax Collected at Source Scheme, 2005" has been notified vide S.O. No. 453(E), dated 30th March, 2005.
5. With a view to ensure that the TDS returns filed on computer media conform to the required specifications, the person responsible for deduction or collection of tax at source and filing of TDS/TCS return on computer media shall ensure the following:
(i) Form No. 27A (in the cases of tax deduction at source) or Form No. 27B (in the case of tax collection at source) is duly filled in, verified and enclosed in paper format with the return on computer media.
(ii) Tax deduction and collection account number (TAN) of the person responsible for deducting/collecting tax at source is clearly mentioned in Form No. 27A or Form No. 27B, as the case may be, as also in the TDS/TCS return, as required by sub-section (2) of section 203A of the Income-tax Act.
(iii) The particulars relating to deposit of tax at source in bank are correctly and properly filled in the table at item no. 6 of Form No. 24 or item no. 4 of Form No. 26 or item no. 4 of Form No. 27 or item no. 4 of Form No. 27E, as the case may be.
(iv) The data structure of the return for tax deduction at source in Form No. 24 or Form No. 26 or Form No. 27 and for tax collection at source in Form No. 27E prepared on computer readable media conforms to the data structure prescribed by the e-filing Administrator authorized under the scheme for electronic filing of TDS/TCS returns notified by the Board.
(v) The Control Totals of the amount paid and the tax deducted at source as mentioned at item No. 4 of Form No. 27A tally with the corresponding totals in the return for tax deduction at source in Form No. 24 or Form No. 26 or Form No. 27, as the case may be.
(vi) The Control Totals of the amount paid and the tax collected at source as mentioned at item No. 4 of Form No. 27B tally with the corresponding totals in the return for tax collection at source in Form No. 27E.
6. In case the return on the computer readable media is found to be corrupted or does not fulfil any of the above guidelines, the computer readable media shall be returned to the deductor for appropriate correction and resubmission.
7. The guidelines returns to filing of returns relating to tax deduction at source and tax collection at source on computer media laid down in Board’s earlier Circulars shall stand modified to the above extent.
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In an old TDS record where a return on computer media was returned unaccepted, or where credit for tax deducted is denied because the return of that year was never validly filed.
Forms it names. Form No. 24, Form No. 26, Form No. 27, Form No. 27A, Form No. 27B, Form No. 27E
It mentions. Circular No. 4/2005
Source: the Income Tax Department’s own published text — its page for this instrument.