Amendment in procedural compliances related to TDS (w.e.f. 01.04.2010)
CBDT amends TDS procedures: Unified deposit deadline, quarterly non-salary certificates, new disclosure requirements in Forms 16/16A. The Central Board of Direct Taxes (CBDT) issued Notification No. 41/2010, effective from April 1, 2010, amending procedural compliances related to Tax Deducted at Source (TDS). Key changes include a unified TDS deposit deadline of April 30 for March deductions, replacing previous staggered dates. Non-salary TDS certificates are now issued quarterly, and the filing deadline for the last quarter's TDS return is advanced to May 15. The requirement to disclose the TDS Tax Authority's address in Forms 16 and 16A is introduced, and the issuance of annual consolidated certificates for non-salary cases has been discontinued. (AI Summary)
A. Highlights
CBDT, vide Notification No. 41/2010 dated 31st May'2010 has notified Income Tax (Sixth Amendment) Rules, 2010 which has the effect of amending the existing procedural compliances related to TDS. The new notification is effective from 1st April 2010and applies to tax deducted on or after 1st April 2010. The procedural part for tax deducted upto 31st March 2010 will be governed by the earlier rules/provisions. Major highlights are: Time limit for deposit of TDS for the entire month of March will be 30th April instead of two separate dates i.e. 7th April for TDS up to 30th March and 31st may for TDS deducted as on 31st March. Non-salary TDS certificates shall be issued on quarterly basis instead of monthly or annual basis. Time limit for filing of quarterly TDS return for the last quarter (i.e. ending with 31st March) has been advanced by one month to 15th May instead of 15th June.
B. Time Limit for TDS deposit
Particulars | Earlier provision | New provision |
TDS deducted on 31st March | 31st May | 30th April |
TDS deducted from 1st March to 30th March | 7th April | 30th April |
Other cases | Within one week from end of the month of tax deduction | Within one week from end of the month of tax deduction |
C. Time limit for issuance of TDS Certificate
Particulars | Earlier provision Frequency Time limit | New provision Frequency Time limit |
Form 16- Salary | Annual | 30th April | Annual | 31st May |
Form 16A- Other than Salary | Monthly | With in one month from end of the month | Quarterly | Within 15 days from the due date of quarterly TDS return |
Annual | Within one month from close of Financial Year |
Notes:
Now, address of TDS Tax Authority is required to be disclosed in Form 16 & 16A. Form 16AA (which was applicable where salary income was less than Rs. 1.50 lacs) has been discontinued as it was not relevant after increase of basic exemption limit up to Rs. 1.60 lacs. Facility of issuing annual consolidated certificate (in cases other than salary), at the request of deductee, has been withdrawn.
D. Time limit for filing of quarterly TDS return
Quarter ended on | Earlier provision | New provision |
30th June | 15th July | 15th July |
30th September | 15th October | 15th October |
31st December | 15th January | 15th January |
31st March | 15th June | 15th May |
E. Provisions not affected
There is no change in the form of payment of TDS i.e. Challan No. ITNS 281 will remain the same. Mode of payment of TDS by Companies is same i.e. mandatorily by electronic mode. Forms of quarterly statements of TDS i.e. Form 24Q (Salary TDS), Form 26Q (Other than salary TDS) and Form 27Q (for non residents/not ordinarily resident deductees) will remains the same.
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