Circular No. 402/92/2006-MC (27 of 2010)

Of 2010 press release no. 402/92/2006 mc 27 of 2010 dated 2 6 2010

What this is

Circular No. 402/92/2006-MC (27 of 2010) was issued by the Central Board of Direct Taxes on 2 June 2010. Its subject is Of 2010 press release no. 402/92/2006 mc 27 of 2010 dated 2 6 2010.

What it does

Announces the amendment of the deduction rules by Notification No. 41/2010 dated 31 May 2010, applying to tax deducted on or after 1 April 2010. The certificate forms are revised to carry the receipt number of the statement filed by the deductor, so that the deductor's tax deduction account number, the deductee's permanent account number and that receipt number together form the unique identification for allowing credit claimed in the return. Government authorities — the Pay and Accounts Officer, Treasury Officer or Cheque Drawing and Disbursing Officer — who credit deducted tax by book entry must now file a monthly statement electronically in the new Form No. 24G with the agency authorised by the Director General of Income-tax (Systems). The due date for the statement for the last quarter moves from 15 June to 15 May of the following financial year, the other quarters remaining 15 July, 15 October and 15 January. The salary certificate in Form No. 16 is annual, due by 31 May of the financial year following that in which the income was paid and the tax deducted; the non-salary certificate in Form No. 16A is quarterly, due within fifteen days from the due date for furnishing the statement.

Why it was issued

It announces the amended rules; no separate reason is given.

Who it reaches

Deductors filing quarterly statements and issuing certificates from the financial year 2010-11
Government pay and accounts, treasury and disbursing officers, newly required to file Form No. 24G
Deductees whose credit now depends on the three-part identification
Employers issuing Form No. 16

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.

PRESS RELEASE
INCOME-TAX ACT
CBDT amends Rules relating to TDS
PRESS RELEASE NO. 402/92/2006-MC (27 OF 2010), DATED 2-6-2010
The Central Board of Direct Taxes (CBDT) have amended the Rules relating to TDS provisions date and mode of payment of Tax Deducted at Source (TDS), TDS certificate and filing of ‘statement of TDS’ (TDS return) vide Notification No. 41/2010; SO No. 1261(E), dated 31-5-2010. The amended rules will apply only in respect of tax deducted on or after 1st day of April, 2010.
Forms for TDS certificate have been revised to include the receipt number of the TDS return filed by the deductor. Now the Tax-deduction Account Number (TAN) of the deductor. Permanent Account Number (PAN) of the deductee, and Receipt number of TDS return filed by the deductor will form the unique identification for allowing tax credit claimed by the taxpayer in his income-tax return.
Government Authorities (Pay and Accounts Officer or Treasury Officer or Cheque Drawing and Disbursing Officer) responsible for crediting tax deducted at source to the credit of the Central Government by book-entry are now required to electronically file a monthly statement in a new Form No. 24G containing details of credit of TDS to the agency authorised by the Director General of Income-tax (Systems).
Due date for furnishing TDS return for the last quarter of the financial year has been modified to 15th May (from earlier 15th June). The revised due dates for furnishing TDS return are :

Sl. No.

Date of ending of the quarter of the financial year

Due date

1.

30th June

15th July of the financial year

2.

30th September

15th October of the financial year

3.

31st December

15th January of the financial year

4.

31st March

15th May of the financial year immediately following the financial year in which deduction is made

Due date for furnishing TDS certificate to the employee or deductee or payee is revised as under :

Sl. No.

Category

Periodicity of furnishing TDS certificate

Due date

1.

Salary (Form No. 16)

Annual

By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted

2.

Non-Salary (Form No. 16A)

Quarterly

Within fifteen days from the due date for furnishing the ‘statement of TDS’

Nnn

What to watch

Credit turns on all three elements matching — the deduction account number, the permanent account number and the receipt number of the statement; a mismatch in any one blocks the claim.
The last quarter's statement date advanced by a month, from 15 June to 15 May, which is easy to miss in the first year.
Form No. 16A is now tied to the statement date, falling fifteen days after it, rather than to a fixed calendar date.
The amended rules apply only to tax deducted on or after 1 April 2010.

Where you meet it

When credit claimed in a return is denied for want of a match in Form No. 26AS, or on a late-filing or late-issue proceeding against a deductor for a year from 2010-11.

What it names

Forms it names. Form No. 16, Form No. 16A, Form No. 24G

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.