SOME IMPORTANT ASPECTS RELATING TO TDS

Routine aspects relating to deduction of Income Tax at Source are well known. These are some aspects relating to deduction of Income Tax at ...

Routine aspects relating to deduction of Income Tax at Source are well known. These are some aspects relating to deduction of Income Tax at Source which are not too well known but useful for day to day administration of scheme of TDS.

TAX DEDUCTION AND COLLECTION ACCOUNTNUMBER: (S.203A):

Every person, deducting or collecting tax is required to apply for Tax Deduction and Collection Account Number within one month from the end of the month in which the tax was deducted or collected. Relevant Rule is 114A and relevant Form is Form No.49B. Here the problem arises, as tax in many cases is required to be deposited by 7 th of the succeeding month. Banks do not accept the challans without quoting the TAN number and TDS deposit get late.

TAN or TDCN is required to be quoted on all Challans, certificates, statements and returns relating to TDS. (Section 203A(2))

Failure to apply for TDCAN (From 49B) or failure to quote Tan or Quoting of false Tan invites penalty U/S 272BB, which is Rs.10000/-. Of course, opportunity of being heard will be given before levy of any such penalty.

OTHER IMPORTANT POINTS:

• If tax is not deducted , though it was required to be deducted, income tax shall be payable by the assessee direct. (Section 191)

• Where tax is deductible and has been deducted , the payee cannot be called upon to pay the tax so deducted. The AO can force recovery from the payer and not be payee (Section 205)

• NO DOUBLE DEMAND OF TAX

Where the assessee has paid tax himself under section 191, the liability under section 201(1) shall be eliminated. (Clarification by Board(F.NO.276/201/96-IT (B) DATED 29.1.1997) however, this will not alter the liability to charge interest u/s 201(1A) or penalty u/s 271C.

• Date of Cheque be deemed as date of payment in case of payment of TDS by Cheque: it is well settled proposition of law that if payment by any cheque is accepted and the cheque on presentation is encashed, the payment relates back to the dated when the cheque had been received.

• DEPOSIT OF TAX BY HEAD OFFICE EVEN THOUGH DEDUCTED AT SOURCE IN BRANCH:

(Circular No.719 dt.22.8.1995 and 744 dated 6.5.1996): Where all matters relating to TDS were handled (like deposit of tax, filing of returns, etc.) at Head Office or some other office, then though tax is deducted at branch office, it can be deposited at Regional/Head office. Circular no.719 and 744 are there. Though these circulars are only in respect of payment of salary. But these circulars have been followed by Orissa High Court in Larsen & Toubro Ltd. VITO (2005) 278 ITR 369 in matters relating to TDS U/S 192 and U/S 194C.

• DUPLICATE CERTIFICATE: in case the original TDS certificate is lost, the payee can get a duplicate TDS certificate, which can be issued on a plain paper. The duplicate certificate should be filed along with an indemnity bond (U/R 31(5)).

• CONSEQUENCES OF BELATED ISSUE OR NON ISSUE OF TDS CERTIFICATE: Failure to issue TDS certificate within the tome allowed U/R 31(3) attracts penalty of Rs. 100/- per day of default. (Sec 272A(2)(g).) However, penalty will not exceed the amount of tax deductible or collectible, as the case may be. Of course, penalty can be imposed by Joint Commissioner after giving an opportunity of being heard.

• CREDIT OF TAX DEDUCTED (SECTION 199,203 & 205):

• Credit of tax deducted and paid is given to the payee U/s 199 on the basis of TDS certificate issued u/s 203.

• Credit for TDS is given to person in whose hands the payment is clubbed . Thus where interest is paid to a minor, and the same is taxed in the hands of father, then the credit for such TDS will be given to the father (proviso (I) to Section 199).

• Relevant year of Payment: Credit for TDS will be given in the assessment year in which the income is assessable (S.199).

CASES WHERE THE PAYMENT SUBJECT TO TDS RELATES TO MULTIPLE YEARS

CBDT Cir. No.5/2201 dated 2.3.2001: “ Where advance rent is spread over more than one financial year and tax is deducted thereon, credit shall be allowed in the same proportion in which such income is offered for taxation for different asstt, years based o the single certificate furnished for tax so deducted on the entire advance rent.

Where subsequent to the deduction of tax at source on advance rent pertaining to one or more financial year, the agreement gets terminated/cancelled resulting into refund of the balance amount of advance rent to the tenant, credit for the entire balance amount of TDS, which has not been given credit so far, shall be allowed in the asstt, year relevant to financial year during which the balance amount of advance rent is refunded back.”

It may be noted that word used is assessable and not assessed . Meaning thereby that in case some income is wrongly included in the computation chart in a wrong assessment year and the same is assessed accordingly, credit for TDS may be denied in that year, as the income is assessable in some other year. (Stallion Securities Ltd. V.ITO (2004) 91 ITD 338 (Hyd).

• Credit only if income is included in total income: Credit for TDS is allowed only when income from which tax was deducted at source is included in total income. Thus where income from which tax was deducted at source was not included in total income, credit for TDS is not admissible.

• Where one TDS certificate is issued for payments due to multiple owners: In case of joint owners or co-owners, credit shall be given to each such joint owner in the same proportion in which rent, interest, etc is assessable as his/her income. There is one problem in this that is only one TDS certificate is issued in favor of first co-owner. And in order to take credit, only one of the co-owners can attach the original TDS certificate with his return of income, others are required to file a copy of the same. In my views, provision should be made in the Rules so that person-deducing tax may be able to issue more than one certificate u/s 203.

9. REFUND OF TAX WRONGLY DEPOSITED:

Refund of excess TDS paid by the payer can be claimed by applying to ITO (TDS) as per Circular No.285 dated 21.10.1980.

It is possible in a case where tax has been wrongly deposited U?S 195, then an appeal can be preferred to CIT (A) U/s 248 for declaration that the person is not liable to make such deduction and refund can be granted by CIT (A). (Tata Engineering & Locomotive Ltd. Case (2005) 921ITD 111 (Mum)

10. CONSEQUENCES OF DEFAULT IN TDS:

Disallowance of Expenditure (U/S 40a (I) and (ia)

Assessee in default (U/S 201(1)

Charging of Interest U/S 201(1A) @ 12% p.a.

Penalty U/S 271C (Equal to the amount of tax not deducted or not paid)

Prosecution U/S 276B(Imprisonment not <>

COMMENTS

Follow by Email

Name

.csi,1,1.9 rpu,1,3g,1,5.4 fvu download,1,6th pay scale,1,7th pay scale,8,80c deduction,3,aadhar card,4,ACT,1,adjustments of advance tax,1,advance tax,4,advance tax adjustments,1,advance tax calculator,3,advance tax dates,1,ALL ABOUT,15,all about health policy,3,all about hindu undivided family,2,all about huf,6,all about iec number,1,all about insurance policy,4,all about mutual fund,2,all about permanent account number,2,all about public provident fund,24,all about section 80c,2,ALL ABOUT SERVICE TAX,4,ALL ABOUT TDS,7,all india banking officer association,1,alp,2,alternate minimum tax,2,alumunium circles,1,amendments in 80g of income tax act,3,amendments rules vat,2,american taxes,1,anti dumping duty,21,apa,2,application for online tan,3,assam vat,1,ATM,8,audit,4,BAD DEBTS,1,bank india,3,bank rate,1,banking,204,Banking officer association,1,banks in india,2,base year 2001-02 ltcg,1,BJP,1,black money,2,BROKERS,1,bsnl,2,BUDGET,4,budget 2014,5,budget 2015,6,budget 2017,3,business,2,CANDIDATES,1,capital gains,25,case laws,2,cash reserve ratio,1,cbdt clarification on garib kalyan yojana,1,cbdt press release,3,cc account,1,central excise,57,central excise duty calculation,1,central excise notification,16,CESS,2,cii,5,circular,1,citixw=en chaeter draft,1,clarification about 80 CCD of income tax,1,clarification on garib kalyan yojana,1,company,11,composition scheme,1,composition scheme in gst,1,contribute pension scheme,2,COPYRIGHT,1,cost inflation index,5,cotton yarn,1,credit card,17,credit rating,2,CRICKET,6,crr,2,ctt,1,custom,172,custom notification,57,dearness allowance,6,deduction u/s 16,1,deduction u/s 80c,1,deduction u/s 80ddb ay 2017-18,1,deduction u/s 80ddb fy 2016-17,1,delhi,4,delhi vat rate changes,2,delhi vat rates,11,demat account,1,deny service tax on restuarants,1,department emails,1,depreciation,8,details of paid refund of tax,1,dgft,26,diesel prices rise,1,different bank rtgs rates,3,din number,1,discussion paper on dtc,1,DIWALI,1,DOLLAR,1,double taxation avoidance agreement,21,download fvu 5.4,1,download fvu 5.5,1,download rpu 1.9,1,download rpu 2.0,1,dtaa between india and finland,20,DTC,6,DTC coming to india,3,duty drawback scheme,1,e filing of cenral excise return,1,e wallet for mutual fund,1,e-file income tax return,1,e-filing of service tax return,1,E-STAMP DUTY,1,e-tds intermediary,5,e-tds rpu 2.0rpu 2.0 free download,1,E-TDS SOFTWARE,2,earn money online,1,EBIZ,1,economic growth,1,economic growth model of tourism,1,economy,2,education cess,1,ELECRICITY,2,ELECTIONS,5,ELECTIONS 2014,1,epcg terminal excise duty,1,epf,25,epf interest rate 2016-17,1,esi limit increased,3,ESI notification,2,ETDS SOFTWARE,7,excel based salary calculator,1,EXCEL CALCULATOR,75,EXCISE,9,EXCISE CIRCULAR,3,excise classification,1,excise duty,1,excise duty detail,1,excise duty in india,1,excise exemption,1,excise notification,26,excise notification no 20,1,excise notification no 21,1,excise notification no 22,1,excise tax exemption,1,exempted salary income,1,EXPENSES,1,faded note,1,FBT,1,fdi,3,fdr,1,file extension fvu,7,FINANCE,3,finance act 2013,1,finance bill,8,FINANCIAL CRISES,1,fixed deposit,8,foreign exchange rates,1,FOREIGN TRADE,2,FORM 10-IB INCOME TAX,1,FORM 10IB,1,FORM 16,6,form 16-16a fuv software,16,form 16a,5,form 26as income tax,2,form 26as india,2,form 26as online,2,form 26as registration,2,form 26as utn,1,form 49a,3,form 61a income tax,1,form 61a registration procedure,1,form26as status,1,fraud emails,1,free download fvu 5.5,1,FREE EDUCATION IN INDIA,1,FREE ETDS SOFTWARE,4,frequent dishonour of cheques,1,fringe benefit adjustments,1,fvu,42,fvu 5.4,1,fvu 5.4 version download,1,fvu 5.5,1,fvu for quarterly returns,2,fvu latest version 5.5,1,fvu version 5.4,1,fvu3.2,1,g,1,gaar,2,garib kalyan yojana 2016,1,gas cylinder prices rise,1,gift and income tax,5,gold scheme,10,goods and service tax in india,2,gratuity calculator,1,GRATUITY LIMIT,2,GST,3,GST AND EXCISE,1,gst coming to india,18,gst composition scheme,1,gst genuine concerns,4,gst in india,23,gst item exception,1,gst rate,3,gst registration,5,gst return rules,1,gst sailent features,10,gst tax,11,gst tax in india,9,guideline for online registration of tan,2,HARYANA,4,haryana vat,4,HIMACHAL PACKAGE,1,HINDU,2,HOME LOAN,18,home loan rate,2,hotels service tax notification,1,house rent allowance,10,housing loan,8,HOW TO,19,how to create huf,3,how to e-file excise return,1,how to file returnin gst,1,how to know tax credit online,1,how to protect data online,1,how to register for form 61a,1,how to watch tax credit online,1,HRA,4,HUMOR,3,iec number in india,1,immort and export goods by air,1,import export,11,import export code number,7,income declaration scheme,19,income exempted from income tax,1,INCOME TAX,419,income tax 80c deduction,1,income tax access,1,income tax act,10,income tax advance tax dates,1,income tax amendments,1,income tax calculator,1,income tax calculator ay 2018-19,1,income tax calculator financial year 2010-11,1,income tax calculator for analysis year 2018-19,1,income tax calculator for fy 2017-18,1,income tax calculator xls,1,income tax cases,2,income tax circular,1,income tax compliance scheme,2,income tax deduction,37,income tax deduction 80c ay 2017-18,1,income tax deduction 80c fy 2016-17,1,income tax deduction for medical treatment,1,income tax deduction u/s 16,1,income tax deduction u/s 16 ay 2017-18,1,income tax deduction u/s 80c,1,income tax deduction u/s 80ddb,1,income tax deductions under 80c,2,income tax defaulters,1,income tax demand,1,income tax department emails,2,income tax dispute resolution panel rules,1,income tax education,1,income tax education programme,1,INCOME TAX EXAMS,1,income tax exempted income,1,income tax exemption,13,INCOME TAX FORM 10IB,1,income tax form 15g,7,income tax form 15h,2,income tax form 61a,1,income tax forms,95,income tax is sending emails,1,INCOME TAX NOTIFICATION,20,income tax office and banks,1,income tax on educational and medical institution,1,income tax on property,1,income tax on salary,2,INCOME TAX ON SECOND HOUSE PROPERTY,3,income tax provisions,1,income tax rates,1,income tax rates in new tax code,1,income tax refund,12,income tax refund statusincome tax refund loans,1,income tax remittances,1,income tax return,49,income tax return 2015-16,2,income tax return for nri,2,income tax rules,10,income tax scrutiny,7,INCOME TAX SECTION,44,income tax slabs,8,income tax slabs 2016-17,1,income tax slabs ay 2016-17,1,income tax slabs ay 2017-18,1,income tax slabs fy 2016-17,1,income tax slabs fy 2017-18,1,income tax transport rules,1,INDIA,8,india income tax,1,INDIA NOMINATION SYSTEM,2,INDIA POST,2,india share market,1,indian bank,1,indian currency,1,indian government,2,indian income tax on fixed deposits nricomputation of total income for nri,1,INDIAN POST,2,indra gandhi national old age pension scheme,1,INDUSTRIAL POLICY,7,inflation rate,1,INSURANCE PLANS,6,interest rate on epf,1,INTEREST RATES,4,intermediary,1,INTERNET,3,introduction of dtc,2,IPL,1,ipo,5,ipo irregularty,1,ipo process reduced,3,ipo time,1,irda,1,IT 2015-16,1,it calculator 2017-18,1,it deduction 80c 2016-17,1,ITO RESULTS,1,itr 2 for financial year 2017-18,1,itr 2 in excel 2017-18,1,ITR 2013-14,17,itr 2014-15,12,ITR 2015-16,15,itr 2016-17,11,itr 2017-18,10,itr 3 in excel 2017-18,1,itr 3 in excel fy 2017-18,1,itr 3 in java fy 2017-18,1,itr 4s ay 2017-18,1,itr 5 ay 2018-19,1,itr 5 for ay 2018-19,1,itr 5 for fy 2017-18,1,itr 5 fy 2017-18,1,itr 5 in java 2017-18,1,itr 6 2017-18,1,itr 6 fy 2017-18,1,itr 7 2017-18,1,itr 7 2018-19,1,itr 7 for financial year 2017-18,1,itr 7 for fy 2017-18,1,itr forms 2017-18itr ay 2017-18,1,itr in java 2017-18,1,itr income tax reurn preparation software,2,itr1 ay 2017-18,1,itr2 for fy 2017-18,1,itr5,1,itr7 17-18,1,itr7 18-19,1,itr7 2017-18,1,jammu and kashmir,1,KANDHAR,1,KASHMIR,3,kisan vikas patra,2,kyc,4,last date for advance tax,1,latest fvu,1,latest fvu 5.4 free download,1,latest fvu 5.5,1,latest fvu download 5.5,1,latest fvu version 5.4,1,latest rpu 1.9,1,latest rpu version 1.9,1,liquor,1,LLP,1,loan,3,long term capital gain,1,long term capital gain calculation after base year 2001-02,1,long term capital gain calculator,1,long term infrastructure bonds,1,ltc,1,ltcg base year 2001,1,mat,4,MDU,1,mediclaim policy,5,microsoft windows 7,1,MOBILE,2,mobile banking in india,2,mobile vs. atm,1,monetary policy,3,Money laundering act,1,MUSIC NOTATION,1,MUTUAL FUND,6,mutual fund in e wallet,1,new amendment to employee family pension scheme in india,5,new circular for section 195,1,new cpc,1,new ipo,1,new ipo of small companies,2,new method for refund income tax,1,new pension scheme,6,new provision of tds,1,NEW RETURN PREPARATION SOFTWARE,7,new return preparation utility 2.0,1,new rpu 2.0,1,new rule on perquisites,1,new saral 2 for income tax return,1,new service tax st3 version,1,new st3 1.9,1,new tds rates,3,new version st3,1,NOMINATION SYSTEM,2,notificaton no. 66(e),1,nps,1,nri income tax,1,nri income tax 2008-2009,1,ongc looking for restoration,1,ONLINE,1,online insurance,5,online register for general excise tax numbersales tax online registration,1,online registration for pan,1,online registration for viewing 26as,1,online service tax paymentservice tax payment online,1,online view tax credit,1,OPINION POLL,2,PAN,32,PAN FOR Tds,1,PAN registration for form 26AS,1,paper excise duty exemption,1,PARTNERSHIP LAW,4,pay commission,1,pay excise tax online,1,pension,5,permanent account number pan holder registration for online view of form 26as,1,perquisite valuation,1,perquisites 2016-17,1,perquisites taxation,1,perquisites valuation,1,petrol prices rise,1,pick up and drop rule to income tax,1,plastic excise duty exemption,1,pmgky,5,pmvvy,1,POLITICS,3,polypropylene excise duty excemption,1,post office,2,ppf,30,pradhan mantri garib kalyan yojana 2016,1,PRE FBT NORMS,1,pre paid payment instruments,1,pre payment penalty,1,protection of data,1,public provident fund,30,qualification for intermediary,1,railways,4,rate of foreign currencies,1,rate of interest,2,rate of interest epf 2016-17,1,rbi,111,rbi circular on cheques,10,rbi circular on mobile banking,1,rbi circular on rtgs,1,rbi hikes crr,1,rd,3,rds rpu 2.0,1,reduction in ipo process,1,refund of tds,1,refund of tds to deductor,2,refuse to pay service tax,1,registration prodecure for form 61a,1,remittances to non resident under section 195,1,repo rate,1,reserve bank of india,8,Residential Status of Returning Indians.,2,RESULTS,2,RETURNS,1,revised dtaa,14,ROHTAK,1,royalty,1,rpu,36,rpu 1.9 download,1,rpu 2.0,1,RPU 2.0 FOE ETDS,6,rpu version 1.9,1,rpu version 1.9 free download,1,rpu version 2.0,1,rtgs commission,1,rtgs in india,5,rtgs procedure in india,2,rtgs rates in india,3,rti,3,rules of dispute for income tax,1,RUPEE,1,safeguard duty,2,salary,22,salary allowances,9,salary deduction under section 16,1,salary income exempted,1,salary income tax,2,salary income which is exempted from income tax,1,salary tax experts,1,salary under section 192,1,sale against f form,1,saving,1,saving account,16,sbi,7,schedule,2,scribbled notes,1,sebi,23,sebi circular,17,sebi new guideline,9,SECOND HOME INCOME TAX IMPLICATION,1,second home tax,1,section 194a,1,section 194c for tds,1,section 195 of income tax,1,section 40 A3,2,section 80 CCD of income tax,1,section 80c of income tax,2,SECTION 80DDB,1,section 80g,1,section 80g of income tax,1,senior citizen scheme,3,SERVICE TAX,116,service tax circular,6,service tax deny on hotels,1,SERVICE TAX EXEMPTIONS,1,service tax form,1,service tax notification,10,service tax on restuarants,1,SERVICE TAX RATES,1,service tax return,1,SERVICE TAX.,2,SEZ,6,SHARE MARKET,3,share market india,1,share market live on internet india,1,shayari,2,SMS,1,SOME POINTS TO KNOW,3,SRINAGAR,1,st3,2,st3 1.9,1,st3 ver 1.9,1,st3 version 1.9,1,stainless steel patti,1,state bank of india,1,state income tax refund,1,steel excise duty exemption,1,sukanya samriddhi account,2,swacch bharat cess,1,tamilnadu contribute pension scheme,1,tan,6,tan online application,4,tan registration online,5,tax,1,tax credit refund status,1,TAX DEDUCTION AT SOURCE,1,tax defaulters,1,tax planning,4,taxation of perquisites,1,TAXES ON PREQISITES,2,tcs email,3,TDS,164,tds amendments,1,tds circular for job work,2,tds conference,1,tds emails,1,tds job,1,tds limit,1,tds new circular,4,tds new provision,1,tds new provision from 1st april 2010,1,tds new rates,1,TDS NEW RULES,1,tds notification,1,tds on interest,1,tds on job work,1,tds on property,1,tds on salary,7,tds on salary calculator,3,tds on transport contract,2,tds on transport contract if pan provided,1,tds rates for financial year 2009-10,1,tds refund,1,tds refund status,1,tds work,1,tds.tcs,3,tds/tcs rules 2010,3,TENDERS,1,time in ipo process,1,timing of market indiaindia share market analysis,1,timings of share market india,1,TRACES,36,TRADE POLICY,2,transporter celing,1,transporter payment increased,1,transporter payment limit,1,TRAVEL,2,tuition fees deduction of income tax,1,types of excise duty,1,UAN NO.,1,unique payment interface,1,USEFULNESS,159,vacancy,2,VAT,14,vat forms,1,vat rules,2,view tax credit online,1,watch 26as form on net banking,1,watch detaiils of refund of tax,1,wealth tax,2,WHAT IS,7,window 7,1,windows 7 download,1,windows 7 in india,1,windows 7 pirated,1,wish,1,WITHDRAWL MONEY FROM ATM,3,woman,1,written with pen on note,1,yarnwaste,1,
ltr
item
Taxalertindia: SOME IMPORTANT ASPECTS RELATING TO TDS
SOME IMPORTANT ASPECTS RELATING TO TDS
Taxalertindia
http://www.taxalertindia.com/2009/04/some-inportant-aspects-relating-to-tds.html
http://www.taxalertindia.com/
http://www.taxalertindia.com/
http://www.taxalertindia.com/2009/04/some-inportant-aspects-relating-to-tds.html
false
4958114534680130554
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy