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24th April 09

New Form Challan 17

1. Section wise challan: earlier we have to fill separate challan for deduction made under diffirent section now no need to do this .you can pay all the tax deducted in a period in a single challan .irrespective of  the tax has been deducted on salary or 194c or 194 J etc ,it can now be deposited in a single challan at a time.
2. TDS/TCS: TDS and TCS both can be deposited in a single challan at a time.
3. No need to differentiate between corporate deductee or no corporate deductee.
4. No need to give break up of basic tax ,surcharge or cess ,total figure is only required to be mentioned.
5. Information of deductee is also to be given in challan i.e Pan,Name, and tax deducted .
6. If deductee is more than 10 then details of deductees has to be uploaded with the challan.
7. challan can be deposited only through e payment and credit debit card option will also be allowed .
8. This facility is expected to start at Tin-nsdl site by the end of this Month as the tax deducted in the month of april 2009 is required to be deposited by 07.05.2009

Unique Transaction Number.

1. on successful uploading of the challan , acknowledgment will be generated and against each entry of deductee detail one unique transaction number will be given and pan number of the deductee is also verified and a status of pan verified yes /no will be given so that in case of incorrect pan or not verified pan ,deductor have a time to correct them while filing the tds return.
2. This unique transaction number is also required to be mentioned in form 16/16a and quarterly return 24Q,26Q etc.

Quarterly returns are now not quarterly.

1. Now no need to file quarterly return , quarterly.means deductor has to prepare the quarterly return in as earlier done on form 24 Q or 26Q etc but filing date is now annual only 15 June.Means quarterly return are now required to be filed annually or we can say form 24Q/26Q/27EQ etc is now annual Form though performa remain quarterly.

New Tax compliance return on 24 C 

New Quarterly return, Form 24C introduced with following contents.
b.      With the Deductor information, Form 24C should contain Details of TDS Compliances for 3 months separately and the Challan Identification Numbers/Amounts in that quarter.
c.       Details of TDS Compliances should contain the section wise (all)  information of Total Payment, Total amount eligible for deduction, Total amount considered for TDS at full rate, Amount of TDS at full rate, Total amount considered for TDS at lesser rate, Amount of TDS at lesser rate, Total TDS.
d.      The due dates are same as earlier quarterly returns.
Changes in TDS Certificates
1.       New Formats of Form 16 and 16A.
2.       These formats may be applicable for FY 2009-10 and above.
a.       Form 2008-09, the same earlier formats may continue as the data for new formats would be less. However a confirmation circular is expected from CBDT.
3.       The forms should contain the information of UTN against each payment shown in TDS certificate.
a.       UTN has to be mentioned, along with Gross amount paid and TDS amount.

b.      Date of Payment is not required. That means if a party payment is shown consolidate in monthly challan, a yearly Form 16A contains only 12 entries.
4.       Form 16A is section independent. It can contain multiple section related deductions.

E Payment of TDS/TCS mandatory for all from 01.04.2009

Income Tax Department has amended the rules relating the Payment of TDS /TCS and now it is mandatory for all to deposit the such taxes through E-payment only from 01.04.2009 onwards .Further challan to deposit the TDS /TCS has also been changed .Now TDS/TCS is required to be deposited on Challan number 17 (new) through online mode only.The most important amendment in challan form is that now with each challan,deductor has to give deductee detail also .If there are more than 10 deductee in the a single challan then he has to upload a file for deductee detail .This is uphill task for every body and can not be managed without a integrated software.

Main abstract of the New amended Rules are

1. Mandatory E payment:E-payment of TDS /TCS is mandatory for all type of deductors.
2. New Challan for TDS/TCS deposit:Tds/TCS deposit challan is now on Form number 17
3. Deductee detail in challan required:Deductee detail is to be given in TDS challan while depositing the TDS/TCS  upto 10 deductee
4. Deductee Detail with challan to be uploaded in file:If deductees are more than 10 ,then detail of deductees is to be uploaded with challan  through file.
5. Quarterly deposit of TDS/TCS:Quarterly deposit of Tds is now can be done in few cases with the approval of Jt commissioner
6. Form16/16A amended: Form 16 and 16A has also been amended and 16AA abolished
7. Unique transaction number concept:A unique transaction number will be alloted to each tax deduction and tax collection entry.
8. This unique number is to be mentioned in every Form 16/16AA
9. In form 16/16A status of quarterly return is also to be given ,whether pan uploaded in etds return validated by the department or not.
10. Mandatory quarterly Etds/Tcs returns:Quarterly TDS/TCS is now required to be filed irrespective of tax deduction in the quarter or not.
11. Tax compliance new return in Form 24 C:A new form 24 C ,Tax Compliance Form is also required to be filed with quarterly etds returns
12. Form 26Q,24Q, 27EQ amended:Form 24Q,26Q and 27 EQ has also been amended to give effect the concept of unique transaction number .

These amendment has many more other impact which I  will try to cover in next posts