Showing posts with label TDS. Show all posts
Showing posts with label TDS. Show all posts

Scheme for centralised processing of TDS Statements notified

0 comments Friday, January 18, 2013

CBDT has made centralised processing scheme of TDS statements. The TDS statement will be processed by a centralised processing cell as may be notified and will be known as Cell. 

 Cell has been given power to make ractification orders u/s 154 of Income Tax Act in relation to the TDS statements. 

 The serving of notices of demand has also been allowed to be made by Email or by placing such copy in the registered electronic account of the deductor on the portal of the Cell.
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Corporates and banks mandated to issue Form 16A downloaded from TIN central system

0 comments Tuesday, June 28, 2011
GOVERNMENT OF INDIA
INCOME TAX DEPARTMENT,
MINISTRY OF FINANCE
 
Form 16A – Deductee – Taxpayer
 
 
It is mandatory* for corporates and banks to issue TDS certificate in Form 16A as generated from Tax Information  Network of Income Tax Deptt. Please Insist on Form 16A (quarterly TDS certificate) that has been downloaded from TIN  Central  System  only.
 
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Taxpayers can also Verify their form 16A online

0 comments Tuesday, June 21, 2011
A taxpayer who has been issued form 16A by his deductor can verify such form online to check whether it is correct as per the TDS return of the deductor or not. This facility is provided by NSDL at their website tin.nsdl.com. No registration at the NSDL is required to check form 16A online. You will be required to fill the folowing details to verify form 16A.

1. TAN of the Deductor

2. PAN of the Deductee

3. Certificate Number

4. Total Amount Deducted
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Rates of TDS for the Financial Year 2010-2011

0 comments Monday, June 6, 2011


Section
Particulars
TDS
Threshold Limit
Surcharge and Education Cess
192
 Salary
Normal Rate
As per normal computation of income
1.      Surcharge:
No Surcharge on TDS in case of payment is made to Resident or Domestic Company
No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company
2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.
2.      Education Cess
No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company [Other than Salary]
3% EC and SHEC (2% + 1%) on TDS in case of Salary
3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident
193
 Interest on Specified Securities
10%
 Rs. 2,500 in case of Listed Debentures
Rs. 10,000 in case of 8% Savings (Taxable) Bonds, 2003,
Rs. 10,000 in case of 6½ per cent Gold Bonds, 1977, or 7 per cent Gold Bonds, 1980, where the Bonds are held by an individual not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value of the 6½ per cent Gold Bonds, 1977, or, as the case may be, the 7 per cent Gold Bonds, 1980
No TDS on certain specified securities
193
 Interest other Securities
10%
194
 Dividend       (Deemed)
10%
 Rs. 2,500
194
 Dividend (Other)
Nil
194A
 Interest other than interest on security
10%
 (a) Rs. 10,000/- where the payer is a banking company
(b) Rs. 10,000/- where the payer is a co-operative society engaged in carrying on the business of banking;
(c) Rs. 10,000/- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and
(d) Rs. 5,000/- in any other case
194B
 Winning from Lotteries
30%
 Rs. 5,000 - upto 30.6.2010
Rs. 10,000 - w.e.f. 1.7.2010
194BB
 Winning for horse race
30%
 Rs. 2,500- upto 30.6.2010
Rs. 5,000 - w.e.f. 1.7.2010
194C
 Payment to Individuals and HUF
1%
 Rs. 20,000 per single contract or Rs. 50,000 in aggregate during the Finance Year - upto 30.6.2010
Rs. 30,000 per single contract or Rs. 75,000 in aggregate during the Finance Year - w.e.f. 1.7.2010
No TDS on GTA if PAN number of the GTA is available
194C
 Payment to other contractors
2%
 Rs. 20,000 per single contract or Rs. 50,000 in aggregate during the Finance Year - upto 30.6.2010
Rs. 30,000 per single contract or Rs. 75,000 in aggregate during the Finance Year - w.e.f. 1.7.2010
No TDS on GTA if PAN number of the GTA is available
194D
 Insurance Commission
10%
 Rs. 5,000- upto 30.6.2010
Rs. 20,000 - w.e.f. 1.7.2010
194E
 Payment to a non-resident sportsman or association
10%
 -
194EE
 Payment for National Saving Scheme, 1987
20%
 -
194F
 Payment for repurchase of units
20%
 -
194G
 Commission on sale of lottery ticket
10%
 Rs. 1,000
194H
 Commission or Brokerage
10%
 Rs. 2,500- upto 30.6.2010
Rs. 5,000 - w.e.f. 1.7.2010
194I
 Rent on land, building or furniture
10%
 Rs. 1,20,000- upto 30.6.2010
Rs. 1,80,000 - w.e.f. 1.7.2010
194I
 Rent on plant, machinery or equipment
2%
 Rs. 1,20,000- upto 30.6.2010
Rs. 1,80,000 - w.e.f. 1.7.2010
194J
 Fees for Professional/Technical services
10%
 Rs. 20,000- upto 30.6.2010
Rs. 30,000 - w.e.f. 1.7.2010
194LA
 Compensation to a resident on acquisition of certain immovable property
10%
 Rs. 1,00,000

1.    Self Declaration - Tax (TDS) is not deductible under section 193, 194, 194A, 194EE or 194K if the recipient makes a declaration in Form 15G / 15H under the provisions of section 197A. But, the person seeking to furnish Form 15G / 15H must have PAN number on or after 1.4.2010
2.   Certificate from AO - Under Section 197 - A person can apply to AO and seek a certificate in Form 13 for no deduction of TDS or deduction of TDS at lower rates under sections192, 193, 194, 194A, 194C, 194D, 194G, 194H[, 194-I, 194J, 194K, 194LA and 195.
2. In case PAN of the deductee is not available than TDS rate will be 20%

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Credit of TDS to be allowed across the years in the same proportion in which income is assessable

0 comments Sunday, June 5, 2011
The Chennai ITAT has held in  ITO Versus Shri Anupallavi Finance & Investments that Where tax has been deducted at source and paid to the Central Government and income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.

In this case deductor deducted TDS on accrual basis of income whereas deductee was declaring such income on cash basis as and when it was recieved by the deductee. The deductee-assessee however, claimed the credit of whole of TDS in the year of deduction stating that TDS deducted represents his income and is automaticaly offered to assessment in the year of deduction. But the AO allowed claim of TDS on pro rata basis i.e on the basis of income offered for assessment.
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Mandatory online issuing of form 16A will force deductors to revise their TDS returns

0 comments Monday, May 23, 2011

CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011
has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process.

Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules.
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Procedure for downloading form 16A online

0 comments Thursday, May 19, 2011
Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link:
PROCEDURE FOR DOWNLOADING FORM 16A ONLINE

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Form 16A to be downloaded online by deductors for TDS on or after 01-04-2011

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Now TDS certificate in Form No 16A will be downloaded and generated  online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns.

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Procedure for regulating refund of excess amount of TDS deducted and/or paid

0 comments Thursday, April 28, 2011
 
CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)]
DATED 27-4-2011

The procedure for regulating refund of amount paid by the deductor in excess of the tax deducted at source (TDS) and/or deductible is governed by Board circular No. 285, dated 21-10-1980.
2. Subsequent to issue of circular No. 285, new sections have been inserted under Chapter XVII-B of the Income-tax Act, 1961. References have been received by the Board regarding inclusion of these sections also for the purpose of issue of refund of excess amount of the TDS deducted/deductible.
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Correction in OLTAS Income Tax/TDS challan after payment

2 comments Tuesday, February 22, 2011
Recently I faced a situation where the tax demand on regular assessment of my client for A.Y 2008-09 was deposited with a nationalized bank but wrongly the said payment of demand was done towards A.Y 2010-11. This situation may have been faced by many assessees because there may always be a possibility of mentioning wrong Assessment year or wrong PAN/TAN etc in the TDS Challan or in Income Tax Challans.

In such situation the first thing that comes to mind is how one can get the challan corrected after the payment of tax so that right credit of tax is given to the assessee/deductor concerned. The power to amend such wrong details in challan after payment of tax in OLTAS has been given to Assessing officer and Bank depending upon the type of correction, which has been provided as follows for the benefit of all concerneds.

NSDL receives tax collection data as uploaded by the bank. It is not authorized to carry out any changes in the data sent by the bank to TIN.
The fields that can be corrected and the entity authorized to carry out corrections are as below:
Sl. No.
Type of Correction on Challan
Performed By
1
PAN/TAN
Assessing Officer
2
Assessment Year
Assessing Officer
3
Major Head
Assessing Officer /Bank
4
Minor Head
Assessing Officer
5
Nature of Payment
Assessing Officer
6
Total Amount
Bank
7
Name
Bank
  

Thus application should be made for correction to the A.O or Bank in case of any mistake in Income Tax/TDS Challan depending upon the type of correction as mentioned above.


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PROCEDURAL PROVISIONS RELATING TO TDS AND FILING OF TDS STATEMENTS UNDER INCOME TAX ACT 1961

1 comments Sunday, August 15, 2010
T.D.S means the Tax deducted at source. Whenever a person liable to deduct tax of another person under Income Tax Act, deducts tax, the credit of such tax is given to the deductee when his liability to pay income tax is calculated. Such credit is given on the basis of the information given by the deductor to the Income Tax Department by way of filing his T.D.S statements, wherein the full detail about the tax deducted, the PAN No of deductee etc are given, so that the right credit of T.D.S can be given to the deductee.

Rule 37BA(1) provides that credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chepter XVII, shall be given to the person to whom payment has been made or credit has been given (i.e.Deductee), on the basis of information relating to deduction of tax furnished by the deductor to the income tax authority or the person authorized by such authority.
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