TaxTMI 
TaxTMI 
Question - What are the proposed amendment in the provisions of section 194A of the Income-tax Act, 1961 in Finance Bill 2015 ?
Rationalisation of provisions relating to deduction of tax on interest (other than interest on securities)
28 Feb 2015 
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Tax Deduction and Collection reforms expand processing, correction and reporting obligations and impose enhanced penalties for noncompliance.
Proposed amendments strengthen TDS/TCS compliance by enabling processing of TDS statements to compute late filing fees under section 234E, introducing parallel processing and correction statements for TCS, and treating TCS intimations as equivalent to TDS intimations for rectification, appeal and deemed demand while avoiding duplicate interest charges. They mandate verified reporting by officials who credit book entry payments and impose daily penalties for non filing, require DDOs to obtain prescribed evidence for salary deductions, and require payers to furnish information for remittances to non residents with a monetary penalty for non submission, effective 1 June 2015. (AI Summary)
Proposed amendments strengthen TDS/TCS compliance by enabling processing of TDS statements to compute late filing fees under section 234E, introducing parallel processing and correction statements for TCS, and treating TCS intimations as equivalent to TDS intimations for rectification, appeal and deemed demand while avoiding duplicate interest charges. They mandate verified reporting by officials who credit book entry payments and impose daily penalties for non filing, require DDOs to obtain prescribed evidence for salary deductions, and require payers to furnish information for remittances to non residents with a monetary penalty for non submission, effective 1 June 2015. (AI Summary)