Filing of returns u/s. 206 of IT Act, 1961, in respect of TDS from the salary of employees of a company working at its headquarters or in other branches-Extension of the procedure in respect of other TDS returns-Clarification reg

Clarification on TDS Filing: Head or Branch Office Filing Sufficient; Enforced Compliance for Non-Filing u/s 206.

Circular No. 744, dated June 5, 1996, clarifies the filing of returns under section 206 of the Income-tax Act, 1961, concerning Tax Deducted at Source (TDS) from employee salaries. It states that if a company's head office or branch office is already filing these returns, no other Assessing Officer should require additional filings. However, if returns are not filed, the Assessing Officer with jurisdiction under rule 36A may enforce compliance. This procedure is now extended to all other TDS returns filed under rule 37, as mandated by section 206 of the Income-tax Act.