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.

Time and Mode of Payment of TDS to Government Account

(A) Time of TDS Payment

(i) Tax Deducted by an office of the Government:

(a)     on the same day where the tax is paid without production of an income-tax challan; and

(b)     on or before seven days from the end of the month in which the deduction is made, where tax is paid accompanied by an income-tax challan.

(ii) In any other case,

(a)     on or before 30th day of April where the income or amount is credited or paid in the month of March: and

(b)     in any other case, on or before seven days from the end of the month in which the deduction is made.

(iii)  Special cases where payment can be deposited quarterly

In the following cases, the Assessing Officer may with the prior approval of the Joint Commissioner, allow payment of TDS quarterly as under:

Quarter of the financial war
ended on
Date for quarterly payment
(i) Income chargeable under the head “Salaries” under section 192 30th June 7th July
(ii) any income by way of interest other than income by way of interest on securities under section
194A
30th September 7th October
(iii) any income by way of insurance commission under section 194D 31st December 7th January
(iv) any income by way of commission or brokerage referred to in section 194H under section 192 31st March 30th April

(B) Mode of TDS Payment

1. Where office of the Government makes the payment without production of challan

(1) [Rule 30(4)]- In case of an office of the Government where lax has been paid to the credit of the central Government without the production of a challan i.e. through book entry

Where tax has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government. shall submit a statement in Form No. 24G to the agency authorised by the Principal Director of Income-tax (Systems) in respect of tax deducted by the deductors and reported to him

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(2) [Rule 30(4A)]- Time limit for furnishing the statement in Form No. 24G

Statement in Form No. 24G shall be furnished—

(a)     on or before the 30th day of April where the statement relates to the month of March; and

(b)          in any other case, on or before 15 days from the end of relevant month.

(3) [Rule 30(48)]- Manner of furnishing the statement in Form No. 24G

Statement in Form No. 24G shall be furnished in the following manner, namely:

(a)     electronically under digital signature in accordance with the procedures, formats and standards specified under rule 30(5); or

(b)     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 30(5).

(4) [Rule 30(4C)]- Book Identification Number to be intimated to each of the deductors

The persons referred to in rule 30(4) shall intimate the number (hereinafter referred to as the Book Identification Number) generated by the agency to each of the deductors in respect of whom the sum deducted has been credited.

(5) [Rule 30(5)]- Principal Director General of Income-tax (Systems) to specify the procedure, formats. etc. of furnishing and verification of the statements

The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day-to-day administration in relation to furnishing of the information and verification of the statements.

2. Where tax is to be deposited accompanied by an income-tax challan No. ITNS 281

The person deducting tax shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time specified it into any branch of:

(i)         the Reserve Bank of India, or

(ii)        the State Bank of India, or

(iii)       any authorised Bank.

3. Where tax is to be deposited electronically by person referred to in Rule 125(1)

The amount deducted shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan.

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Who is required to make electronic payment of tax [Rule 125(1)]

The following persons shall pay tax electronically on or after 1.4.2008:—

(a)        a company;      and

(b)        a person (other than a company), to whom provisions of section 44AB are applicable.

4. [Rule 30(2A) & (6A)]- Time and mode of payment of tax deducted under section 194-IA

As per rule 30(2A), tax deducted under section 194(IA) shall be paid to the credit of the Central Government within a period of 30 dais (w.e.f. 1 .6.2016. earlier it was 7 days) from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No26QB.

Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QB. the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the above specified time into the Reserve Bank of India or the State Bank of India or any authorised bank. [Rule 30(6A)]

5. [Rule 30(28) and (6B)]- Time and mode of payment of tax deducted under section 194-IB

As per rule 30(2B), any sum deducted under section 194-IB shall be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QC.

Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QC, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in rule 30(2B) into the Reserve Bank of India or the State Bank of India or any authorized bank. [Rule 30(6B)]

6. [Rule 31(2C) & (6C)]- Time and mode of payment of tax deducted under section 194M

(1)     Any sum deducted under section 194M shall be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QD.

(2)     The tax shall be deposited by remitting it electronically within 30 days from the end of month in which deduction is made into the Reserve Bank of India or the State Bank of India or any authorised bank.

(3)     The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of remitting the amount electronically to the Reserve Bank of India or the State Bank of India or any authorised bank and shall be responsible for the day-to-day administration in relation to the remitting of the amount electronically in the manner so specified.

See also  [Section 194H]- TDS on Commission and Brokerage

(4)     Online payment of TDS is mandatory. Online payment of challan is available on TIN NSDL website.

(5)     Both transferee and transferor must have Permanent Account Number (PAN). Transferee is not required to hold/obtain TAN for payment of TDS.

[Rule 31(3C)]- Form, time limit and procedure for issue of TDS certificate of deduction of tax under section 1941

The person responsible for deduction of tax under section 1 94M shall furnish the certificate of deduction of tax at source in Form No.16D to the payee within 15 days from the due date for furnishing the challan-cum-statement in Form No.26QD under rule 31A(3C) after generating and downloading the same from the web portal specified by the Principal Director General or Director General of Income-tax (System) or the person authorised by him.

The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of generation and download of certificates and shall be responsible for the day-to-day administration in relation to the generation and download of certificates from the web portal specified by him or the person authorised by him.

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