Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Person Deducting TDS to File Statement of TDS [Section 200(3) and Rule 31A(1)]

Person Deducting TDS to File Statement of TDS [Section 200(3) and Rule 31A(1)]
Person Deducting TDS to File Statement of TDS [Section 200(3) and Rule 31A(1)]

(1) [Rule 31A(1)]- Forms of Filing Quarterly Statement

Every person responsible for deduction of tax under Chapter XVII-B (other than under section 194-IA or 194-IB) or as the case may be, any person being an employer referred to in section 192(IA), shall after paying the tax deducted to the credit of the Central Government within the prescribed time, deliver, or cause to be delivered, the following quarterly statements to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems):—

(a) Statement of deduction of tax under section 192 & 192( IA) Form No. 24Q;
(b) ) Statement of deduction of tax under sections 193 to 196D other than under section 194-IA
(i)         in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident Form No. 27Q
(ii)        in respect of all other deductees Form No. 26Q
(c) Challan cum statement of tax deducted and deposited as per section 194-IA Form No. 26QB to be filed within 30 days from the end of the month in which deduction is made
(d) Challan cum statement of tax deducted and deposited as per section 194-IB Form No. 26QC to be filed within 30 days from the end of the month in which deduction is made
(e) Challan cum statement of tax deducted and deposited as per section 194M Form No. 26QD to be filed within 30 days from the end of the month in which deduction is made

Correction statement [Proviso to section 200(3)]:

The person may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under section 200(3) in such form and verified in such manner as may be specified by the authority.

(2) [Rule 31A(2)]- Due dale of Filing Quarterly Statement other than in Form 26QB or 26QC

 

See also  [Section 190 to 206CA]- Deduction and Collection of Tax at Source (TDS & TCS)
SL. No Date of ending of quarter of financial year Due date (both for Government Deductor or any other Deductor)
(1) (2) (3)
1. 30th June 31st July of the financial year
2. 30th September 31St October of the financial year
3. 31St December 31St January of the financial year
4. 31st March 31St May of the financial year immediately following the financial year in which the deduction is made

(3) [Rule 31A(3)(i)]- Manner of Filing Quarterly Statement

The quarterly statements may be furnished in any of the following manners, namely:

(a)        furnishing the statement in paper form;

(b)     furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under rule 31A(5);

(c)      furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under rule 31A(5).

(4) [Rule 31A(3)(ii)]- E-Filing of Return Mandatory for company and office of the Government and some other persons

Where,—

(a)        the deductor is an office of Government: or

(b)        the deductor is principal officer of a company; or

(c)      the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

(d)     the number of deductees records in a statement for any quarter of the financial year are 20 or more,

the deductor shall furnish the statement in the following manner:

(i)      furnish the statement electronically under digital signature in accordance with the procedure, formats and standards specified under rule 31A(5), or

(ii)     furnish the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedure, formats and standards specified in rule 31(5).

(5) [Rule 31(3)(iii)]- E-Filing of statement by persons other than referred to in rule 31A(3)(ii)

Where deductor is a person other than the person referred to in rule 31A(3)(ii). the quarterly statements may at delivered or cause to be delivered electronically in the manner given above.

(6) [Rule 31A(4)]- Procedure for Filing Return

The deductor at the time of preparing statements of tax deducted shall,—

(i)         quote his tax deduction and collection account number (TAN) in the statement;

(ii)     quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government;

(iii)       quote the permanent account number of all deductees;

(iv)    furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.

(v)      furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the Payee;

See also  [Section 194-O]- TDS from Payment of certain sums by e-Commerce Operator to e-Commerce Participant

(vi)    furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of section 194C(6) (i.e. payment to transporter of goods carriage) by the payee.

(vii)    furnish particulars of amount paid or credited on which tax was not deducted in view of the furnishing of declaration under section l97A(l) or (IA) or (IC) by the payee (,e. in case of Form No. 15G or 15H).

(viii)   furnish particulars of amount paid or credited on which tax was not deducted in view of the notification issued under section 197A (1F).

(7) [Section 234E]- Fee for defaults in furnishing TDS statements

Late Fee of Rs. 200 per day:

Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in section 200(3) or the proviso

to section 206C(3), he shall be liable to pay, by way of fee, a sum of 200 for every day during which the failure continues.

The amount of fee referred to above shall not exceed the amount of tax deductible or collectible, as the case may be.

Late fee to be paid before filing statement of TDS / TCS:

The amount of fee referred to above shall be paid before delivering or causing to be delivered a statement in accordance with section 200(3) or the proviso to section 206C(3).

Late fee applicable to tax deducted / collected on or after 1.7.2012:

The provisions of this section shall apply to a statement referred to in section 200(3) or the proviso to section 206C(3) which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after 1.7.2012.

Section 234E levies a fee to regularize the late filing of TDS statement by deductor which causes inconvenience to everyone. Such fee is a fixed charge for extra service which department has to provide due to late filing of TDS statements and is not in guise of a tax nor is it onerous. Therefore section 234E does not violate any provision of Constitution and is therefore infra vires.

Section 234E is a charging provision creating a charge for levying fee for certain defaults in filing statements, and fee prescribed under section 234E could be levied even without a regulatory provision being found in section 200A for computation of fee.

(8) Procedure of making a Claim of Refund by the deductor.

The Board prescribes the following procedure for regulating refund of amount paid in excess of tax deducted and / or deductible in respect of TDS on residents covered under sections 192 to I 94LA of the Income-tax Act, 1961. This circular will not be applicable to TDS on non-residents falling under sections 192, 1 94E and 195 which are covered by circular No. 7/2007 issued by the Board.

See also  Rates for TDS ( Deduction of Tax at Source) given under Income Tax Act. for Financial Year 2020-21 (AY:2021-22)

The excess payment to be refunded would be the difference between:

(i)      the actual payment made by the deductor to the credit of the Central Government: and

(ii)        the tax deductible at source.

In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.

“However, the refund claims pertaining to the period up to March 31. 2009 may be submitted to the Assessing Officer (TDS) up to 3 1.12.2012.” [Circular No. 6/2011, dated 24.8.2011.

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