Income Tax Rules Amendments – TDS Related April 18, 2009

Certain amendments have been made by the Income Tax Department in relation to TDS related compliances. The Notification No. S.O.858(E) on TDS dated 25th March 2009 has been issued.

My personal analysis on the notification and summary of the amendments are given below in the most crisp manner possible!!!! Hope its useful!

Remittance:

* No change in TDS remittance due date
* The person responsible for making deduction, or payment of tax, under Chapter XVII-B shall, within the time specified in sub-rule (1), or sub-rule (2), -
(a) electronically furnish income-tax challan in Form No.17; and
(b) pay the amount by electronically remitting.

Certificates

Form No.	Description	Mode of Submission	Due Date
F16	Cert. Salary TDS	Physical	30 Apr following the end of FY
F16A	Cert. Non-Salary TDS	Physical	30 Apr following the end of FY
F27D	Cert. TCS	Physical	30 Apr following the end of FY

Challan

Form No.	Description	Mode of Submission	Due Date
F17	Challan	Electronic	within 1 week from end of the month, For 31 March within 31 May

Returns

Form No.	Description	Mode of Submission	Due Date
F24C	TDS Compliance Statement	Electronic	Q1-15Jul Q2-15Oct Q3-15Jan Q4-15Jun
F24Q	Return Salary TDS	Electronic	15 June following the end of FY
F26Q	Return Non-Salary TDS	Electronic	15 June following the end of FY
F27Q	Return Non-Residents	Electronic	15 June following the end of FY
F27EQ	TCS Return	Electronic	15 June following the end of FY

A query to be solved! November 18, 2008

TDS on professional fees

 

1. Facts of the Case:

 

Company:

• Company follows mercantile basis.
• Company creates a provision for audit fees for Rs.40,000/- for ‘FY 05-06’
• Company deducts TDS on above amount @ 10.3% = Rs.4120/- and remits to govt.
• Company issues TDS certificate to Auditor for the above TDS stating ‘FY 05-06’

 

CA Firm:

• Firm may follow mercantile basis or cash basis.
• Whatever it follows, Firm will raise the bill in ‘FY 06-07’ only and probably receive money in ‘FY 06-07’ only. So, income accounted in ‘FY 06-07’
• Firm will have to claim the TDS. But Certificate mentions ‘FY 05-06’. It can claim TDS certificate in ‘FY 06-07’ because TDS relates to the income which is accounted and offered as income, in ‘FY 06-07’.

 

2. Queries in the above Case:

 

Company:

• Whether Company should show as Provision for Audit Fees under provisions or Outstanding Expenses under Current Liabilities?
• If it is just a provision, should the company deduct TDS (because TDS should be deductible at the time of credit to the party or payment to the party whichever is earlier)?
• When should the company deduct TDS? In the TDS certificate what Financial Year should be mentioned?
• What happens, if auditor bill is different and provision for audit fee amount is different?

 

CA Firm:

• When should firm account the fees?
• When should TDS be claimed?

The query above relates to conceptual issues like provisions vs. liability, tds credit, accrual vs. matching concept….. The above is a food for thought and there is no proper consensus among the professionals. If you give your feedback the same may be beneficial for the public at large and the professionals at large. Your feedbacks are invited!

SMS based service for PAN & TAN Application status April 18, 2008

National Securities Depository Limited (NSDL) processes PAN and TAN applications on behalf of Income Tax Department. With a view to keep the applicant updated about the status of his application, NSDL has launched a Short Message Service (SMS) based facility.

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The applicant can send an SMS to 53030 with a message containing the word PAN followed by a space and the 15-digit acknowledgement number provided at the time of submission of application i.e., PAN ACKNOWLEDGEMENT NUMBER (e.g., PAN 123456789012345 – this is an illustrative acknowledgement number. Actual acknowledgement number should be provided in the SMS).

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Similarly, to know the status of TAN application, applicant can send the SMS to 53030 with a message containing the word TAN followed by a space and the 14-digits acknowledgement number provided at the time of submission of application i.e., TAN ACKNOWLEDGEMENT NUMBER (e.g., TAN 12345678901234 – this is an illustrative acknowledgement number. Actual acknowledgement number should beprovided in the SMS).

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There will be special charges for these SMS. These charges may vary from one mobile service-provider to another. The charge structure can be obtained from the concerned service-provider. The status of the PAN/TAN applications will continue to be available from NSDL-TIN web-site www.tin-nsdl.com or NSDL Call Centre at 022- 24994650 or Aykar Sampark Kendra at 0124- 2438000.

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Budget 2008 March 1, 2008

For complete Document Click here

budget-2008.pdf