Press Information Bureau

Government of India

Ministry of Finance

10-July-2012 16:05 IST

Deductors Must Comply with their Obligations to Ensure Correct Credit to Persons from Whose Income Tax is Deducted at Source

All deductors other than Government deductors must file their quarterly TDS statement for the quarter ending 30th June 2012, on or before 15th July 2012 and Government deductors must file their statement on or before 30th July 2012. While submitting their statements, the deductors have to choose correct and relevant form, quote correct PAN against all entries and ensure that correct CIN/BIN is quoted in the TDS statement. Non-quoting of PAN or TAN in TDS statements or delay in filing of TDS statements may lead to levy of penalty.

Filing of TDS statement with correct PAN and CIN/BIN is important because under Rule 37BA of Income Tax Rules, 1962 credit for tax deducted at source is given to the deductees on the basis of TDS statement furnished to the Income-tax Department by the deductor. Filing of TDS statements with incorrect PAN or other details of the deductee would, therefore, cause inconvenience to the deductees (taxpayer).

In case the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, the deductee must file a declaration with the deductor that credit for the TDS shall be given to the other person and not to the deductee. The declaration filed by the deductee must contain the name, address, Permanent Account Number of the person to whom credit is to be given and reasons for giving credit to such person. The deductor must, in the TDS statement, report the tax deduction in the name of such other person and also issue the TDS certificate in the name of the person in whose name credit is shown in the TDS statement.

TDS certificates for deductions on income other than salary income (Form 16A) for the quarter ending 30th June 2012 should be issued on or before 30th July 2012.

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DSM/SS/GN

TDS compliance ensures accurate credit to taxpayers; deductors must file correct statements with accurate PAN and CIN. Deductors must file accurate quarterly TDS statements using the correct form and quote correct PAN and CIN/BIN since credit for TDS is allotted to deductees on the basis of the TDS statement under Rule 37BA. Non-quoting of PAN/TAN or late filing may attract penalty and impede correct credit. If income is assessable to a person other than the deductee, the deductee must submit a declaration naming the person and providing name, address, PAN and reasons; the deductor must report the deduction and issue the TDS certificate in that person's name.