Notification 34/2008

[sunil jain]

As per recent CBDT notification 34/2008 dt 13-03-2008, tax by all specified persons shall be paid electronically only wef 01-04-08. Whether this notification would applly to deposit of TDS also.

[Surender Gupta]

No, TDS shall not be subject to Electronic payment of tax. The meaning of tax u/s 2(43) is as follows: "tax in relation to the assessment year commencing on the 1st day of April, 1965, and any subsequent assessment year means income-tax chargeable under the provisions of this Act, and in relation to any other assessment year income-tax and super-tax chargeable under the provisions of this Act prior to the aforesaid date [and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA"

As rightly pointed out by Mr Gupta, the wordings of the present Notification has not covered the payment of amounts deducted as per the Income tax provisions.

AI Summary

Electronic tax payment requirement does not extend to amounts deducted at source under the notification's wording.
The notification requires specified persons to pay tax electronically, but its wording limits "tax" to amounts as defined and does not expressly include sums deducted at source; therefore payments of amounts withheld under income-tax provisions are not covered by the electronic-payment mandate.