Relevant abstracts from CBDT circular no. 2/2009 dated 21-5-2009

13. The above new system will be effective for all tax deducted at source or tax collected at source on or after the 1st April, 2009. However, any TDS or TCS effected on or after the 1st April, 2009 but not later than 31st May, 2009 shall continue to be paid to the credit of the Central Government by using the old challan form. The TDS or TCS effected on or after the 1st June, 2009 shall be required to be paid electronically by electronically furnishing income tax challan in Form No. 17.

14. Where the payment of TDS or TCS effected on or after the 1st April, 2009 but not later than 31st May, 2009 is paid to the credit of the Central Government by using the old challan form, the deductor/ collector shall, nevertheless, be required to fill up Form No.17 in respect of such payments any time between 1st July, 2009 to 15th July, 2009. Therefore, the deductors/collectors are advised to prepare the schedule relating to details of TDS/ TCS from deductees in Form No.17 in advance (in an excel sheet) and be in a state of preparedness to file the same by 15th July, 2009 so that the UTNs relating to TDS / TCS transactions carried out in the

Electronic reporting requirement: Form No.17 must be filed for transitional TDS/TCS payments after initial physical challan use. TDS/TCS effected between 1st April and 31st May, 2009 may be paid using the old physical challan but must be reported by the deductor/collector via electronic filing of Form No.17 between 1st July and 15th July, 2009; from 1st June, 2009 onward, TDS/TCS payments must be made electronically by furnishing income tax challan in Form No.17.