TDSMAN Blog

smart & easy software for eTDS & eTCS returns

TDSMAN Blog - smart & easy software for eTDS & eTCS returns

Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons–Section 203A

At present, any person who is required to deduct tax at source (other than under Section 194IA) is expected to obtain a TAN and quote that TAN in the challan and the TDS statement that he is supposed to file. This is a cumbersome requirement–particularly to the individuals who acquire an immovable property from non-residents. In such cases, for one time transactions also, the TAN related formalities have to be complied with. In order to provide relief to such individuals or Hindu undivided families (HUFs) who are not liable for audit under Section 44AB or for one time transactions such as single transaction of acquisition of immovable property from non-residents on which tax is deductible under Section 195, it is proposed to amend Section 203A to the effect that the requirement of obtaining and quoting of TAN shall not apply to such notified persons.

This amendment is effective from 1st June, 2015.

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Furnishing of information made more stringent and penalty introduced – Sections 195 and 271-I

Presently, when any person responsible for making a payment to a non-resident of any interest or other sum chargeable under the provisions of this Act, such person is required to deduct tax from such payment under Section 195(1). Further, sub-Section (6) of Section 195 requires such person to furnish the information relating to payment of any sum in Form 15CA. In most cases, a view was taken that this provision applied only to payments which gave rise to income chargeable to tax in India. Consequently, payments that did not give rise to income chargeable to tax in India were not reported in the Form 15CA.

Now, sub-Section (6) is proposed to be amended to provide for furnishing of information whether or not such remittances are chargeable to tax. This would cast a heavy burden on persons who make payments to non residents–especially in case of import of goods. Even for such payments, now, the obligation to furnish Form 15CA (and also Form 15CB) will have to be complied with.

This burden has been further compounded by the proposal to introduce a new Section 271-I to levy a penalty of Rs. 1,00,000/- if the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information.

This amendment is effective from 1st June 2015.

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Amendment relating to processing of TCS returns – Section 206CB w.e.f. June 01, 2015

A new Section 206CB is proposed to be introduced to facilitate the processing of TCS (tax collected at source) statements on the same lines as TDS statements.

Section 206CB(1) permits adjustments to the sums collectible to take care of arithmetical errors or incorrect claims apparent from any information in the TCS statement filed.

Interest if any, payable on the sum collectible and fee payable under Section 234E are now chargeable in respect of the TCS. For this purpose, suitable provisions have been introduced in the Sections 200A and 206CB.

The intimation has to be sent before the expiry of one year from the end of the financial year in which the statement is filed.

Section 206C(7) provides for payment of interest if the person responsible for collecting the tax does not collect the tax or after collecting does not pay it as required under that Section. At the same time, since an intimation generated under Section 206CB is deemed to be a notice of demand under Section 156, interest under Section 220(2) would be payable if the tax collector fails to pay such demand within thirty days of the service of the notice of demand. This could give rise to a situation where interest is charged under both Sections, 220(2) as well as 206C(7). To avoid this, a new sub-Section (2C) is proposed to be inserted in the Section 220 to provide that where interest is charged for any period under Section 206C(7), no interest shall be charged under Section 220(2) of the Act on the same amount for the same period.

These amendments are effective from 1st June 2015.

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Quick steps to generate TDS Certificate using TDSMAN

Below are the quick steps to generate TDS Certificate using TDSMAN Software:

In TRACES Information menu

1. Request for Form 16A / Form 16 (Part A).
2. After 2 hours, go to “Download Requested files” to download the file.
3. Download PDF converted Utility to create PDFs.

In PDF Converter Utility provide the path of the downloaded file. Provide your TAN as password and click on “Generate” to create the certificates.

Note: You can send your downloaded certificate file for conversion to info@tdsman.com, if you are facing any problem with PDF creation.

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