4. PERSONS RESPONSIBLE FOR DEDUCTING TAX AND THEIR DUTIES:
Click to view Part I
Income Tax on Salaries – Circular No. 17/2014
Click to view Part II
RATES OF INCOME-TAX AS PER FINANCE (No. 2) ACT, 2014
|Click to view Part III
Scheme of Tax Deduction at Source from Salaries
4.1. As per section 204(i) of the Act, in case of payments other than payments by the Central Government or the State Government, the “persons responsible for paying” for the purpose of Section 192 means the employer himself or if the employer is a Company, the Company itself including the Principal Officer thereof. Further, as per Section 204(iv), in case the credit, or as the case may be, the payment is made by or on behalf of Central Government or State Government,
the DDO or any other person by whatever name called, responsible for crediting, or as the case may be, paying such sum is the ―persons responsible for paying” for the purpose of Section 192.
4.3. Deduction of Tax at Lower Rate:
4.4. Deposit of Tax Deducted:
4.4.1. Due dates for payment of TDS:
|Sl No.||Description||Time up to which to be deposited.|
|1||Tax deposited without Challan [Book Entry]||SAME DAY|
|2||Tax deposited with Challan||7TH DAY NEXT MONTH|
|3||Tax on perquisites opt to be deposited by the employer.||7TH DAY NEXT MONTH|
b) In any case other than an Office of Government
|Sl No.||Description||Time up to which to be deposited.|
|1||Tax deducted in March||30th APRIL NEXT FINANCIAL YEAR|
|2||Tax deducted in any other month||7TH DAY NEXT MONTH|
|3||Tax on perquisites opted to be deposited by the employer||7TH DAY NEXT MONTH|
However, if a DDO applies before the jurisdictional Additional/Joint Commissioner of Income Tax to permit quarterly payments of TDS under section 192, the Rule 30(3) allows for payments on quarterly basis and as per time given in Table below:
|Sl. No.||Quarter of the financial year ended on||Date for quarterly payment|
|1||30th June||7th July|
|2||30th September||7th October|
|3||31st December||7th January|
|4||31st March||30th April next Financial Year|
4.4.2 Mode of Payment of TDS
reports about the tax deducted and who is responsible for crediting such sum to
the credit of the Central Government, shall-
4.5 Interest, Penalty & Prosecution for Failure to Deposit Tax Deducted:
or tax payable by him under the second proviso to section 194B, he shall be punishable with rigorous imprisonment for a term which shall be between 3 months and 7 years, along with fine.
4.6 Furnishing of Certificate for Tax Deducted (Section 203):
‘F‘. If the status of matching other than ‘F‘, kindly take necessary action promptly to rectify the same. It is pertinent to mention here that certain facilities have been provided to the deductors at website www.tdscpc.gov.in/ including online correction of statements (Form 24Q).
|Total Taxable Income||Total Taxable Income (Rounded Off)||TDS to be Deducted (Incl. cess)||TDS Deducted/ Reported after rounding-off of income (Incl. cess)||Short Deduction|
4.7 Mandatory Quoting of PAN and TAN:
139A(5B), it is obligatory for persons deducting tax at source to quote PAN of the persons from whose income tax has been deducted in the statement furnished u/s 192(2C), certificates furnished u/s 203 and all statements prepared and delivered as per the provisions of section 200(3) of the Act.
4.8 Compulsory Requirement to furnish PAN by employee (Section 206AA):
4.9 Statement of deduction of tax under section 200(3) [Quarterly Statement of TDS]:
|Sl No||Return for Quarter ending||Due date for Government Offices||Due date for Other Deductors|
|1||30th June||31st July||15th July|
|2||30th September||31st October||15th October|
|3||31st December||31st January||15th January|
|4||31st March||15th May||15th May|
4.9.3 All Returns in Form 24Q are required to be furnished in electronically except in case where the number of deductee records is less than 20 and deductor is not an office of Government, or a company or a person who is required to get his accounts audited under section 44AB of the Act. [Notification No. 11 dated 19.02.2013].
4.9.4 Fee for default in furnishing statements (Section 234E):
4.10 TDS on Income from Pension:
4.11. Matters pertaining to the TDS made in case of Non Resident:
|1)||Name and address of employer||:||___________________________________
|3)||TDS Assessment Range of the employer||:|
|4)||Name, designation and PAN of employee||:|
|5)||Is the employee a director or a person with substantial
interest in the company
(where the employer is a company)
|6)||Income under the head “Salaries” of the employee (other
than from perquisites)
|8)||Valuation of Perquisites
|9.||Details of tax, –|
|(a) Tax deducted from salary of the employee u/s 192(1)||………|
|(b) Tax paid by employer on behalf of the employee u/s
|(c) Total tax paid||………|
|(d) Date of payment into Government treasury||………|
DECLARATION BY EMPLOYER
I ………………………………. s/o ………………………………………. working as ……………………………(designation)
do hereby declare on behalf of ……………..….. (name of the employer) that the information given above is based on the books of account, documents and other relevant records or information available with us and the details of value of each such perquisite are in accordance with section 17 and rules framed thereunder and that such information is true and correct.
Signature of the person responsible
for deduction of tax
|Full Name ……………………
1. Procedure of preparation and furnishing Form 24G at TIN-Facilitation Centres (TIN-FCs):
2. Online upload of Form 24G at TIN websites:
Furnishing of Monthly Form No. 24G Statements by Pay and Accounts Officers (PAOs)/District Treasury Officers (DTOs)/Cheque Drawing and Disbursing Officers(CDDOs)
5. Where should the Accounts Office Identification Number (AIN) application be submitted ?
11. Can the AO submit the electronically prepared Form No.24G at the Income Tax Office?
12. What does Form 24G contain?
· BIN will be generated for valid TAN-DDO records added in Form 24G correction statement.
(a) BIN details and amount of TDS reported in the quarterly TDS/TCS Statement filed by the DDO will be matched with the details filed in Form No.24G filed by the PAO for verification purpose.
|Person Responsible for filing Form No. 24G in case of State Govt. Departments|
POINT NO. 4.9 OF CIRCULAR OF DEDUCTION OF TAX AT SOURCE FROM SALARIES U/S 192 OF THE INCOME TAX ACT, 1961 – FINANCIAL YEAR 2014-15 – PROCEDURE OF PREPARATION OF QUARTERLY STATEMENT OF DEDUCTION OF TAX UNDER SECTION 200(3) OF THE ACT
1. Quarterly e-TDS statement/return should be prepared by Deductor/DDO as per the data structure (File Format) prescribed by the DIT (Systems), Delhi which is available on TIN website www.tin-nsdl.com. Deductor/DDO can prepare e-TDS statement/return either by using in-house facilities, third party software or by using Return Preparation Utility (RPU) developed by NSDL e-Governance Infrastructure Limited (NSDL), which is freely downloadable from the TIN website.
After preparation of e-TDS statement/return, the Deductor/DDO is required to validate the same by using the File Validation Utility (FVU) which is freely available on TIN website.
2. Procedure of furnishing of e-TDS statement/return at TIN Facilitation Centres (TIN-FCs):
Once file is validated through FVU, ‗.fvu file‘ is generated. Copy of this ‗.fvu file‘ in
CD/DVD/Pen Drive along with physical Form 27A duly filled and signed by the Deductor/DDO or by the person authorized by the Deductor/DDO, to be furnished at TIN-FC, an acknowledgement containing a unique 15 digit token number is provided to the Deductor/DDO. Deductor/DDO can view the status of e-TDS statement/return on TIN website. Only one regular e-TDS statement/return for a ‗FY-Quarter-TAN-Form‘ can be submitted.
2.1 Correction in e-TDS statements/returns:
2.1.1 CPC-TDS portal ( www.tdscpc.gov.in) has also introduced online correction of statements whereby personal information, PAN correction, add/update of challan information, add/update of salary detail, add/update/movement of deductee row etc. can be done in the statements filed by the deductors, with or without the digital signatures. For further details, kindly refer the matrix below:
|Default Summary View||Personal Information||Challan Correction (Unmatched, matched Deductee + Deductee Movement||PAN Correction (Annex.I)||PAN Correction (Annex. II)||Add Challan to statement||Interest, Levy Payment||Modify/Add deductee rows||Delete/ Add salary deducted rows|
|Online Correction(with digital signature, 2013-14 onwards)||Y||Y||Y||Y||Y||Y||Y||Y||Y|
|Online Correction(with digital signature, prior to 2013-14 onwards)||Y||Y||Y||N||N||Y||Y||N||N|
|Online Correction(without digital signature, 2013-14 onwards)||Y||N||Y||N||N||Y||Y||N||N|
|Online Correction(without digital signature, prior to 2013-14 onwards)||Y||N||Y||N||N||Y||Y||N||N|
For more information, deductors are advised to refer to e-tutorials/FAQs available on TRACES portal. Online correction entails no charges and does away with the requirement of downloading conso file and visiting TIN-FCs.
2.1.2 With effect from 1st January, 2015, TRACES will be providing a correction window of 7 days from date of processing at CPC-TDS (generally 2 days after date of filing of statement). This facility will enable the filer to correct PAN errors and challan mismatch cases identified by CPC-TDS and avoiding of issuance of demand notices. Therefore, deductors are advised to check the processing status promptly so as to utilize this facility.
2.1.3 Deductor/DDO can also file a correction e-TDS statement for any modification in the e-TDS statement. Correction statement can be prepared by using the TDS Consolidated file that is available at TRACES ( www.tdscpc.gov.in). Validation of correction statement is in line with regular e-TDS statement, physical Form 27A duly signed and Statement Statistical Report at TIN-FC. On successful acceptance of correction e-TDS statement at the TIN-FC, an acknowledgement containing a unique 15 digit token no. is provided to the Deductor/DDO. Deductor/DDO can view the status of e-TDS statement on TRACES website.
3. Procedure of preparation and furnishing of paper TDS statement/return at TIN-Facilitation Centres (TIN-FCs):
All statement/return in Form 24Q are required to be furnished in computer media except in case where the number of deductee records are equal to or less than 20. Paper statement/return duly filled and signed by the Deductor/DDO can be furnished at TIN-FC. On successful acceptance of paper statement/return at the TIN-FC, an acknowledgment containing a unique 15 digit token no. is provided to the Deductor/DDO. Deductor/DDO can view the status of paper statement/return on TIN website. No charges are applicable for paper TDS statement/return.
3.1 Correction in paper statements/returns:
The physical TDS statement/return is to be filed again in case of any correction to a physical TDS statement/return accepted at TIN. The deductor will submit the duly filled and signed physical TDS statement/return along with a copy of provisional receipt of regular paper statement/return at TIN-FC. On successful acceptance of correction paper statement/return at the TIN-FC, an acknowledgement containing a unique 15 digit token number is provided to the Deductor/DDO. Deductor/DDO can view the status of paper statement/return on TIN website.
4. Procedure of furnishing of e-TDS statement/return online at TIN website:
Deductor/DDO is required to procure Digital Signature Certificate (DSC) for online upload of e-TDS statement/return. After registration on TIN website, an authorization letter by the Deductor/DDO should be provided on the letter head of the organisation to NSDL. Once application is approved by NSDL, user ID is created and intimated to Deductor/DDO on their registered email ID provided at the time of registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC).Deductor/DDO can login with its user ID and DSSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token no. and 8 digit receipt number is generated and displayed. There is no need to submit physical form 27A in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website.
No charges are applicable for online upload of e-TDS statement/return.
4.1 Correction of e-TDS statement/return online at TIN website:
Deductor/DDO can file a correction e-TDS statement/return for any modification in e-TDS statement/return accepted at TIN central system. Correction statement/return can be prepared by using the TDS consolidated file only, available at the CPC-TDS portal www.tdscpc.gov.in through TAN registration. Preparation and validation of e-TDS statement is in line with regular e-TDS statement/return (submitted at TIN-FC) Deductor/DDO can login with its user ID and DSC and upload the validated e-TDS file (.fvu file) generated by the FVU to the TIN website. On successful acceptance of correction e-TDS statement/return at TIN, an acknowledgement containing a unique 15 digit token number is generated and displayed. There is no need to submit copy of provisional receipt of regular e-TDS statement/return, physical Form 27A and SSR in online upload. Deductor/DDO can view the status of e-TDS statement/return on TIN website.
5. For FAQs and further details, Deductors/DDOs are advised to log on website www.tin– nsdl.com
2. RATES OF INCOME-TAX AS PER FINANCE (No. 2) ACT, 2014: Click to View
3. SECTION 192 OF THE INCOME-TAX ACT, 1961: BROAD SCHEME OF TAX DEDUCTION AT SOURCE FROM “SALARIES”: Click to View
ANNEXURE 1 – SOME ILLUSTRATIONS – For Assessment Year 2015-16