The existing rules 31A and 31AA of the Income-tax Rules, 1962 require only a Government office and a company to furnish quarterly statements of deduction/collection of tax at source electronically. The said rules 31A and 31AA have been amended vide Notification No. 238/2007 [ S.O. 1484(E) ] dated 30th August, 2007 to provide that in addition to the existing two categories, quarterly statements of TDS/TCS shall also have to be furnished electronically in the following cases:-

(i) Where the deductor/collector is a person required to get his accounts audited under section 44AB of the Income-tax Act in the immediately preceding financial year.

(ii) The number of deductees'/collectees' records in a quarterly statement for any quarter of the immediately preceding financial year is equal to more than fifty.

Failure to furnish quarterly statements of TDS and quarterly statements of TCS shall, under the provisions of section 272A of the Income-tax Act, 1961, render the defaulter liable for a penalty of Rs.100/- for every day during which the default/failure continues.

The notification has come into effect from 1st day of September, 2007. Accordingly, quarterly statement for the quarter ending 30th September, 2007 shall have to be mandatorily filed electronically by Government and corporate deductors/collectors and by the deductors/collectors falling in the aforementioned two categories.

Electronic TDS/TCS filing requirement expands to audited and high-record deductors, with daily penalty for non-compliance. Rules 31A and 31AA now require quarterly TDS/TCS statements to be filed electronically not only by Government offices and companies but also by persons required to obtain an audit of accounts in the immediately preceding financial year and by those whose quarterly statements exceeded fifty deductee/collectee records in any quarter of the immediately preceding financial year. The amendment is effective from 1 September 2007 and non-compliance attracts a daily penalty under the Income-tax Act.