Detail Procedure about New Provision of TDS & TCS

Mandatory efiling of TDS for every deductor and Collector

Every deductor or collector will have to deposit tax only through internet banking facility in form No. 17 (Newly Introduced Form instead of Challan No. 281) with effect from 1-4-2009.(notfication No.31/2009). The deducted or Collector will upload this form and after uploading Form No. 17 a ‘Transaction Reference Number’ will be created. Unique Transaction number (UTN) for each deductee/collectee will be created also.

Unique Transaction Number

• The ‘Unique Transaction Number’ will be generated after uploading the Form No. 17.
• Then the UTN of each deductee is further required to be quoted not only in the TDS returns 24Q and 2Q, but also in the certificates to be issued in form No. 16 and 16A.
• The deductee/collectee will also put ‘Unique Transaction Number’ in ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7 (Schedule TDS 1/TDS 2) to get the benefit of credit in respect of tax deducted/collected.(epayment of TDS/TCS is not available yet) today is 2nd may, 2009

Certificate of TDS/TCS

TDS —– TDS Form No. 16 for salary, Form No. 16A for payment other than salary (Procedure for Tax deduction on Salary Step by Step)

TCS —– TCS Form No. 27D

Form No. 16AA has been omitted. The format of Form Nos. 16, 16A and 27D has been substituted by new forms. On or after April 1, 2009, a person deducting/collecting tax at source will have to issue certificates in the new format even if tax was deducted/collected before April 1, 2009. The new format of Form Nos. 16, 16A and 27D includes ‘Unique Transaction Number’.

RETURN TO BE SUBMITTED TO THE DEPARTMENT
The following return shall be submitted by a person who has been
allotted a deduction/collection account number under section 203A.

1. Quarterly TDS/TCS Compliance Statement Form No. 24C To be submitted quarterly on or before July 15, October 15, January 15 and June 15
2. Quarterly statement of deduction/collection of tax Form No. 24Q (for salary), Form No. 26Q (for payment other than salary to a resident), Form No. 27Q (for payment other than salary to a non-resident), Form No. 27EQ for TCS To be submitted on or before June 15 after the end of the financial year

• TDS/TCS Compliance Statement in Form No. 24C shall be submitted electronically by every person who has been allotted a tax deduction/collection number (TAN).
• In case, no tax has been deducted or collected during a quarter, then nil return should be submitted in Form No. 24C.
• The format of Form Nos. 24Q, 26Q, 27Q and 27EQ has been amended with effect from April 1, 2009.
• These returns should be submitted in the new format.
• These returns would be submitted electronically by every deductor or collector.

Related posts:

1. Procedure for Tax Deduction (TDS) on Salary
2. Procedure for filing e-TDS/TCS returns with insufficient deductee PAN
3. Procedure of TDS in Tally.ERP
4. Procedure to Apply Online Import Export Code (IEC)
5. TDS Rate Doubles if You Fail to Mention Your PAN!