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New updation in TDS/e-TDS, TCS and Due Dates for TDS Certificate

Friends, The important changes in TDS/TDS Procedure w.e.f. 01.04.2010 which is as under:

Latest Due Dates for submitting e-tds returns and issuing form 16 and 16A . Major amendments have been made by CBDT (The Central Board of Direct Taxes) regarding etds. Now Due Dates of etds/etcs returns have been changed and Time period for issuing form 16 and 16A have also been changed.These modifications are not minor.

Changes regarding etds have been made vide Notification No. 41/2010; SO No. 1261(E) dated 31.05.2010. and will be implemented w.e.f. on the Income Tax deducted/collected on or after 01.04.2010. In clarity from Financial Year 2010-11.

PROCEDURE CHANGED W.E.F. 01.04.2010 of TDS/TCS
New Changes in TDS Rules

CBDT 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 31.05.2010. 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 as under:

Sr. No.

Date of ending of the quarter of the Financial Year

Due Dates

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

15the May of the Financial Year immediately following the Financial Year in which deduction is made


Due dates for issuing TDS certificates to the employees or deductees or payees are also revised as under:

Sr. No.

Category

Periodicity of Furnishing TDS Certificate

Due Dates

1.

Salary (Form 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 16A)

Quarterly

With in 15 (Fifteen days) from the due date for furnishing the etds/tcs Statement.


Importance of MICR Code for Refund of Income Tax Return

Friends, you know very well about due date to file income tax return for financial year 2010-11(assessment year 2011-12) i.e. 31st July, 2011. In refund case Taxpayee are more careful in more particular to file return in time to get early refund. But in refund cases besides other thing person must stress correctness of PAN,BANK a/c Number and MICR code. The MICR code is mandatory to be filed in refund cases ,if option of direct credit in bank account has been selected. So double sure your self while filing MICR code in Income tax return .Few main things about MICR code is given hereunder for your ready reference.

WHAT IS MICR CODE ?
The MICR code means MAGNETIC INK CHARACTER RECOGNITION code. In MICR technology the information is printed on the instrument with a special type of ink which is made up of magnetic material. On insertion of the instrument in the machine, the printed information is read by the machine. MICR system is beneficial as it minimizes chances of error, clearing of cheques becomes easy and transfer of funds becomes faster in order to facilitate operations.

MICR code consist of 9 digit :
First three digit (1-3) denotes city and are same/identical first three digit of your pin code e.g. first three digit of Pin code of New Delhi = 110 so first three digit of MICR code of all the bank branches located in New Delhi must be 110.

Digit (4-6) denotes for Bank:
each bank has given a three digit code,4-6 digit is= bank code eg. SBI code is "002"so 4-6 digit of MICR code all the the branches of SBI is "002" irrespective of location in the india.

Last three digit (7-9) denotes branch code,it is in serial wise ,means if delhi has only one branch of SBI and its MICR code will be
110 (FOR CITY)
002(FOR BANK)
001(FOR BRANCH)

"110002001"

So, if you are located in delhi & your client has given you a Micr code of the bank located in New Delhi , doesn't begin with "110",you can easily tell him your Micr code is wrong.

HOW CAN I KNOW MY BANK BRANCH MICR CODE ?
  1. From your bank branch
  2. From your cheque book ??
  3. excel work book link is given below for Micr code for all most all the branches located in India.
Is there any benefit for MICR code OTHER than ITR.
Yes, now a days it is used by many organizations to send directly funds in customer account.
  1. By mutual fund for sending sale receipt of the units to customer account
  2. Refund of application money in shares .
  3. Refund of taxes by other department also.
  4. Refund of application money for real state/plot by govt/private organization.
Download MICR Codes of Bank, Branches in India

Why Original e-TDS Return Rejected?

Friends, On rejected e-Tds Original return very few changes are made by the Dedoctor as TIN-NSDL. Although, there are some possibility to change in a few cases where the original e-TDS return changeable. What are the reasons for rejection of original e-TDS return and what will you do for precaution. The following action should take for such cases which has been rejected by TIN-NSLDL when your Original e-TDS Return rejected.

Error Description :
  • TAN mentioned in the statement is not at present available in TAN master.
  • Regular statement with same periodicity (combination of Form, TAN, FY and Quarter) cannot be uploaded more than once
Reason for Rejection:
  • TAN is the identifier for any TDS/TCS statement. It is necessary that the TAN of the deductor quoted in the statement should be present in the TAN Master Database at the TIN central system, failing which the statement will get rejected for this reason
  • At any point in time only one regular statement for a combination of TAN, Form No, FY and Quarter can be accepted at the TIN central system. In case of any rectifications or additions to a regular statement filed has to be done by filing a correction statement in the prescribed format. If a regular statement is filed more than once for the same periodicity and TAN, the subsequent regular statement will get rejected at the TIN central system for the said reason.
Action after Rejection:
  1. Deductor to file the statement with the correct TAN.
  2. If the TAN quoted in the statement is correct, deductor to send the proof of TAN to NSDL at tin_returns@nsdl.co.in or to TIN, NSDL, Times Tower, 1st floor, Kamala Mills Compound, S B Marg, Lower Parel, Mumbai - 400013
Deductor to check
  1. If he is trying to file correction statement but has filed the same in the format of regular statement instead. If yes, then he has to prepare the correction statement in the prescribed format and file the return.
  2. If he has mentioned incorrect TAN/periodicity, then he has to file the statement with correct TAN/periodicity.
  3. If the statement filed is a regular statement and correct TAN is mentioned in the statement, then the deductor needs to forward the proof of TAN to NSDL at tin_returns@nsdl.co.in or to TIN, NSDL, Times Tower, 1st floor, Kamala Mills Compound, S B Marg, Lower Parel, Mumbai - 400013

Who are Exempted and Who are not Exempted to Submit Annual Income Tax Return

As the public interest official notification issued by Income Tax Department regarding no need to file Income Tax Return upto 5 Lakhs of salaried person with a few conditions. As per the Income Tax Deparment notification No. 36/2011, a employee whose Taxable income not exceed Rs. 5 Lakhs (Five Lakhs) in annual, they exempt to file Income Tax Return. The following conditions are clarify/solve your problems:

Know about, Who are Exempted :
  1. This exemption is available to Individual assessee only (He may be resident or not)
  2. Exemption is available for Assessment year 2011-12.
  3. Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
  4. Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/- . Pension is also covered under salary head.
  5. Individual must have reported his pan to his employer.
  6. He has Earned salary only from one employer during the year.
  7. He has reported his income from saving Bank Interest to his employer for TDS deduction purposes.
  8. Employer has deducted the tax on his Full income,salary plus interest {if any},and tds has been deposited in Govt account by the employer.
  9. No refund is Due to assessee.
  10. Individual has received Form 16 From the employer ,which mention PAN, Income detail and Tax deducted and deposit detail.
Know about, Who are not exempted:
  • If His Total taxable income after deduction u/s 80C to 80U is more than 5 (five) Lakh rupees.
  • If refund is due to Him .
  • If his total income includes any one of following Incomes (1. Income from House property Including minus Income from interest on House Loan. 2. Income from Business/profession; 3. Income from capital gain; 4. Income from Interest other than Interest from saving bank up to 10000.Suppose you have earned interest from FDR then you can not claim exemption from return filing; 5. Saving Bank interest is more than 10000 rupees and 6. Any other Income under "Income from other source.)
  • If He has not offered his Saving Bank interest income to his employer for tax deduction.
  • If he has discharged His tax liability through advance tax or self assessment challan.
  • If he has received salary from two employers during the year.
  • If he has not submitted his PAN to his employer.
  • If Form 16 has not been issued to Him by His employer.
  • If notice u/s 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income
  • If assessment year is other than 2011-12.
To see Official Notification of Exemption from Income Tax Return Click Here

Form 26AS, Form 16 and Refund Status

Friends, while submission of Annual Income Tax Return at the end of Fin. Year to Income Tax Department, the Annual Tax Credit statement u/s. 203AA as Form 26AS which contains the Details of Tax Deducted/Collected at Source by the Taxpayee as in Part-A of the Form 16 or 16A. This data available with the Department of OLTAS i.e. On Line Tax Accounting System.

Contains of Tax Credit Statement Form 26AS:
  • Details of tax deducted on behalf of the taxpayer by deductors,
  • Details of tax collected on behalf of the taxpayer by collectors,
  • Advance tax/self assessment tax/regular assessment tax, etc. deposited by the taxpayers (PAN holders),
  • Details of paid refund received during the financial year,
  • Details of the High value Transactions in respect of shares, mutual fund etc.
Three Way to viewed/accessed Form 26AS:
  1. View Tax Credit from https://incometaxindiaefiling.gov.in : Taxpayers who are registered at the above potal viz. https://incometaxindiaefiling.gov.in can view 26AS by clicking on 'View Tax Credit Statement (From 26AS)' in "My Account". For "New Registration", Click on 'Register' on the portal. The registration process is user-friendly and takes minimal time.
  2. View Tax Credit (Form 26AS) from bank site through net banking facility: The facility is available to a PAN holder having net banking account with any of authorized banks. View of Tax Credit Statement (Form 26AS) is available only if the PAN is mapped to that particular account. The facility is available for free of cost.
  3. View Tax Credit (Form 26AS) from TIN website : The facility is available to PANs that are registered with Tax Information Network for view of 26AS statement. The PAN holder has to fill up an online Registration form for such purpose. Thereafter, verification of PAN holder's identity is done by the TIN-Facilitation Centre personnel either at PAN holder's address or at the TIN-facilitation center that has been chosen by the PAN holder. The verification involves a cost at prescribed rates. Once authorised, the PAN holder can view Tax Credit Statement online.
List of banks registered with NSDL for providing view of Tax Credit Statement (Form 26AS) are as below:
1. Axis Bank Limited
2. Bank of India
3. Bank of Maharashtra
4. Citibank N.A.
5. Corporation Bank
6. ICICI Bank Limited
7. IDBI Bank Limited
8. Indian Overseas Bank
9. Indian Bank
10. Kotak Mahindra Bank Limited
11. Oriental Bank of Commerce
12. State Bank of India
13. State Bank of Mysore
14. State Bank of Travancore
15. The Federal Bank Limited
16. UCO Bank
17. Union Bank of India
18. Bank of Baroda
19. Karnataka Bank
20. The Saraswat Co-operative Bank Limited
21. City Union Bank Limited
22. State Bank of Patiala

Liabilities of Tax Deduction at Source. Tax Collection At Source and Advance Tax,

Taxpayee should make there tax payment as Advance Tax, Tax Deduction at source, Tax collection at Source always in due dates for the financial year. Each Tax estimate should be calculate and found if correct then paid as advance.

Advance Tax:
Tax payers whose total income is likely to be chargeable to tax for the assessment year are required to pay tax in advance during the financial year (April 1 to March 31) on their estimated current income, which will be assessable to tax during the next following financial year called assessment year. The current income for this purpose means the total income which will be chargeable to tax in the relevant assessment year.

The advance tax payable is the tax on the current income minus the tax deductible at source or collectible out of any income included in the current income.

Deduction of Tax At Source :
Person responsible for paying any income chargeable to tax under the head 'Salaries' is required to compute the tax liability in respect of such income and deduct tax at source at the time of payment. If the employee has any other income he can inform the employer in which case the employer can take that income into consideration for computing his tax liability. He will not take account of loss except loss from house property.

Those responsible for paying any income by way of interest on securities or any other interest are required to deduct tax at source at the prescribed rates at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode. W.e.f. 01.07.1995 interest on term deposits with banks is also subject to such deduction.

Tax Collection at Source:
In certain cases tax is to be collected at source from the buyer, by the seller at the point of sale. Such tax collection is to be made by the seller at the time of debiting the amount payable if the buyer to the account of the buyer or at the time of receipt such amount from the said buyer, whichever is earlier.

The prescribed list of forms of certificates which to be issued and necessary form filled with assessing officer by the person deducting the tax at source is as follows:

Categories of Payment

Form No. of the Certificate

Form No. of Return to be filled with the assessing Officer

Salaries

16

24 (annual)

21 (monthly)

Interest on securites (government)

16A

25 (annual)

Interest on Securities (others)

16A

27(in case of interest on securities payable to non-resident)

Interest other than interest on Securities

16A

26A (annual)

27 A (return of interest payment without tax deductions)

Dividends

16A

26 (annual)

27 (in case of dividend payable to non-resident)

Winning from Lotteries / Crossword Puzzles

16A

26B

Winning from Horse Races

16A

26BB

Payment to Contractors / Sub-contractors

16A

26C

Insurance commission

16A

26D (annual)

26E (where insurance commission paid / credited without tax-deduction)

Non-resident sportmen or sports association

16B

27

National Savings Scheme etc.

16A

26F

Equity Linked Saving Scheme

16A

26G

Commission, remuneration or reward on sale of lottery tickets

16A

26H

Payment to non-resident

16A

27

Foreign company being unit holders of mutual fund

16A

27

Units held by offshore fund and income from foreign currency bonds

16A

27


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