Salary TDS compliance for FY 2010-11 covers slab rates, perquisite valuation, deductions, PAN quoting, and quarterly reporting.
Income-tax deduction at source from salaries under section 192 for financial year 2010-11 is to be made on estimated salary income at the prescribed slab rates, with no surcharge for the year but with education cess and secondary and higher education cess chargeable. The circular explains salary computation, exemptions, deductions, valuation of perquisites, and employer obligations, including PAN and TAN quoting, quarterly filing of Form 24Q, issuance of Form 16, deposit timelines, and special procedures for Government deductors, pension payments, and e-filing.

Tax deducted at source credit: processing relaxed for specified returns; higher claim limit and verification rules apply.
For ITR-I and ITR-2 returns for A.Y. 2009-10, TDS credit reported in AS-26 (if not nil) shall be accepted during processing where the TDS claim and refund stay within prescribed thresholds; if those thresholds are exceeded or there is nil matching, the Assessing Officer shall allow credit only after due verification in the manner used in prior years.

TDS default thresholds: minor per-deductee shortfalls rounded off and small deductor demands ignored with DDO warnings.
Instruction prescribes that per-deductee short-deduction demands below a minimal threshold are to be rounded to zero and that, after that rounding, any remaining deductor-wise demand at or below a secondary minimal threshold is to be ignored; DDOs may be warned to avoid habitual short deduction. The instruction supersedes the earlier 2007 instruction, applies to all TCS/TDS cases under Direct Tax enactments, and is effective immediately.

Unblocking of refunds: field officers empowered to initiate unblocking; approving authority must verify genuine pendency before approval.
Field officers are now enabled to perform unblocking of refunds in AST and Assessing Officers may place refunds in a pending blocked state. An online MIS allows A.O., Range Head, CIT and CCIT to monitor pendency. Approving authorities must verify genuine pendency from records prior to approving unblocking. A user manual detailing procedures has been issued and uploaded to ITD Application and I-Taxnet for circulation to officers.

TDS fourth quarter reporting requirement: enhanced 24Q processing, relaxed CIN-based challan matching, and installation guidance.
Complete information must be furnished in 4th quarter salary TDS statements and the TDS software has been modified to upload and process 24Q 4th quarter returns. Challan matching criteria have been relaxed to a CIN-based approach with a challan mismatch flag used for verification and matched credits applied. PAN validation is deferred to notice printing. Front-end menus and processing workflow have been redesigned. Installation requires downloading listed files, adjusting product profile and running TDS01R25.FMX as system user, with uploads suspended during patch execution.

Validity of approvals under Section 10(23C) and Section 80G confirmed as one-time until withdrawn, removing renewal requirement.
Approvals under Section 10(23C)(iv) and (v) issued on or after 13.07.2006, under Section 10(23C)(vi) and (via) issued on or after 01.12.2006 pursuant to Rule 2CA, and approvals under Section 80G(5) issued on or after 01.10.2009 are to be treated as one-time approvals valid until withdrawn, removing the requirement for periodic renewal and subject to withdrawal where activities are not genuine or not in accordance with objects.

Special Leave Petition filings must be timely, complete, and accompanied by prescribed annexures to ensure departmental protection.
Submission and processing of Special Leave Petition proposals must meet procedural and temporal standards: proposals must reach the Directorate within 45 days with one legible set of annexures and an MS Word 2007 soft copy; late submissions must state reasons for delay. Common deficiencies include expired limitation, incomplete Proforma B, incorrect limitation computation, multiple or illegible annexures, missing soft copy, and absence of CCIT comments. Compliance requires parawise comments, petition copies and vakalatnama within three weeks of notice, prompt filing of counter-affidavits, and active follow-up by CITs to avoid costs or dismissal.

Applicability of transfer pricing amendment revised to apply to proceedings pending before the Transfer Pricing Officer from 1 October 2009.
The corrigendum revises paragraph 37.5 so the amendment is applicable from 1st October 2009 and applies to all cases with proceedings pending before the Transfer Pricing Officer on or after that date, replacing the earlier 1st April 2009 applicability; paragraph 38.3 is corrected to read 1st April 2009 instead of 1st October 2009.

Due date extension for income-tax returns under section 119: filing and tax-audit deadline extended to mid-October.
The Central Board of Direct Taxes, invoking powers under section 119 of the Income Tax Act, 1961, extends the due date for filing income-tax returns for Assessment Year 2010-11 from 30 September 2010 to 15 October 2010 due to floods and heavy rains; the due date for submission of the tax audit report under u/s 44AB is similarly extended to 15 October 2010.

Extension of filing due date under Section 119-return and tax audit deadlines postponed to relieve flood-affected taxpayers.
An administrative order under Section 119 extends the due date for filing returns of income for the stated assessment year and correspondingly extends the tax audit report filing deadline to 15 October 2010, as relief for disruption caused by floods and heavy rains.

Due date extension for income-tax returns: filing and tax audit deadlines moved for affected taxpayers after law-and-order disruption
Administrative extension of the income-tax return filing deadline for assessment year 2010-11 in Jammu and Kashmir under Section 119, granted due to law-and-order disruption, postpones the statutory filing date for all categories of taxpayers and aligns the deadline for furnishing the tax audit report with the revised return-filing schedule.

Deduction under Section 80P: Regional Rural Banks are excluded and prior circular deeming them cooperative societies withdrawn.
Deduction under Section 80P concerns relief to cooperative societies and whether Regional Rural Banks qualify; although a prior CBDT circular had deemed RRBs to be cooperative societies, an amendment excluded most cooperative banks from Section 80P and the Board clarifies that RRBs are not eligible for the deduction from the relevant assessment year, withdrawing the earlier deeming circular and directing field officers to take remedial action.

Budget estimates 2011-12 require Ministries to submit certified RE/BE receipts and expenditure schedules in prescribed formats by set deadlines.
Budget Circular 2011-2012 prescribes formats, categories and deadlines for RE 2010-11 and BE 2011-12: Ministries must submit certified estimates of Revenue Receipts, Interest Receipts, Capital Receipts and Public Account transactions in prescribed appendix forms; prepare SBEs through staged proposed/pre-budget/final submissions with supporting schedules (charged expenditure, recoveries, loan/equity components, explanations for significant variations); and furnish Detailed Demands for Grants, statements on gender, SC/ST, guarantees, arrears and asset registers, complying with classification, reconciliation and fiscal-prudence instructions and specified submission modes and due dates.

Scope of scrutiny limited to AIR information; broader inquiry needs administrative commissioner approval for significant income escapement.
Scrutiny based solely on AIR data is confined to issues arising from that information, with broader scrutiny permitted only with administrative Commissioner approval where there is prima facie potential escapement of income more than Rs. 10 Lacs. Notices issued under section 143(2) for such AIR-selected cases must be stamped "AIR Case" and this requirement is to be communicated to all officers.

Computer Assisted Selection of Cases (CASS) controls require system-generated assessment notices before PAN migration and centralized run.
Second-cycle CASS will be run centrally; section 143(2) notices selected by CASS must be generated from the system by the Assessing Officer with PAN jurisdiction, with a new AST field to record notice service dates. PAN migration for selected cases is held until system-generated notices are printed to allow migration. Manual selections per CBDT guidelines must be entered into the CASS system, and agriculture-income selections may be disapproved by the CCIT per user-manual procedure.

Constitution of Dispute Resolution Panel under section 144C: three members appointed for Mumbai DRP-II effective immediately.
Constitution of a three-member Dispute Resolution Panel (DRP-II, Mumbai) under section 144C of the Income-tax Act, 1961 is established, superseding the prior order. The order specifies Mumbai as the place of the DRP, names three Commissioners/Directors of Income-tax as members drawn from Transfer Pricing and International Tax, takes effect immediately and continues until further orders, and is issued with the approval of the Chairman of the Board.

TDS credit acceptance streamlines return processing by allowing limited matching claims to be accepted at processing stage.
Instruction sets automated acceptance criteria for TDS claims while processing returns for A.Y. 2009-10: for ITR-1 and ITR-2, TDS claims below specified aggregate and refund thresholds will be accepted at processing if As-26 shows a positive TDS payment; for other return forms, acceptance at processing requires similar thresholds plus at least ten percent matching of claimed TDS. Remaining cases require TDS credit only after due verification.

Computer Assisted Selection of Cases: centralised compulsory selection for income tax returns with AO feedback and notice controls.
CASS will be run centrally for returns filed in FY 2009 10 on CBDT approved parameters; selection is compulsory and non score based, manual selections must be entered, AOs can view CIB data and must record scrutiny feedback, notices u/s 143(2) are to be generated only by officers with jurisdictional PAN, and AOs can enter notice service dates in AST. Selection under "Agriculture income" may be disapproved by CCIT as per user manual procedures.

Lower TDS/TCS certificate issuance must be generated via ITD system immediately, centralising records and processing.
Certificates for lower or nil deduction under Section 197 and for lower collection under Section 206C(9) must be generated and issued by the assessing officer through the ITD system's TDS module; prior administrative approval requirements and monetary-limit approval provisions continue to apply, and system process flow is prescribed in DIT (Systems) TDS/TCS instructions.

AST software implementation enables SARAL II return processing; officers must report any incorrect calculations or excess refunds immediately.
Implementation of AST Software authorises electronic data entry and processing of I.T.R.-1C (SARAL II); a user manual explains the software provisions and must be brought to the attention of all relevant officers. Assessing officers are required to report immediately to the Directorate of Systems any incorrect calculations or excess refund computations identified in software outputs.