TDS Not to be Deducted on Declaration Furnished by Payee

As per Section 197, TDS shall not be deducted at source in certain cases where the payee furnishes a declaration in writing that the tax on his estimated total income of the previous year will be nil.

A payee cannot give such declaration, in case the income or the aggregate of incomes liable to TDS credited or paid in a previous year, is likely to exceed the maximum amount not chargeable to tax.

However, a resident individual payee, who is of the age of 65 years or more at any time during the previous year, may furnish a declaration that the tax on income exceeds the maximum amount not chargeable to tax.

Incomes/payments covered

A declaration as above may be made by the recipient of following incomes/payments:-

(a) In case of a resident individual:

(i) Dividends (Sec. 194).
(ii) Withdrawal from National Saving Scheme, 1987 Account 9Sec. 194EE).

(b) In case of a resident individual being a senior citizen (of 65 years or more):

(i) Interest on securities (Sec. 193).
(ii) Dividends (Sec. 194).
(iii) Interest on time-deposits with a bank and interest other than interest on securities (Sec. 194A).
(iv) Withdrawal from National Saving Scheme, 1987 Account (Sec. 194EE).
(v) Income from units of Mutual Funds or UTI (Sec. 194K).

(c) In case of any person other than a company or a firm:

(I) Interest on securities (Sec. 193).
(II) Interest on time Deposits with the bank and other interest (except interest on securities (Sec. 194A).
(III) Income from units of Mutual Funds or UTI (Sec. 194K).

Note: The facility of claiming payments of dividends and withdrawal from NSS 1987

Account under section 197A (1) is available only in the case of individuals who are resident in India. Accordingly, it is not permissible for Hindu Undivided Families and other categories of tax-payers to claim such payments without deduction of tax at source on furnishing the declaration in the prescribed from.

Declaration Form: The declaration shall be furnished in duplicate in the following form:

(I) Form No. 15G – For a resident individual (other than a senior citizen) or a personal (other than a company or a firm)

(II) Form No. 15H – For a resident individual being senior citizen (of 65 year or more)

Note: In the opinion of the Board of Editors, a declaration as above, cannot be furnished in respect of an income receivable by a minor, if the income of the minor is to be clubbed in the income of the parent under section 64(1A) and parent is liable to pay tax on his total income. The TDS on such income of the minor can, however, be claimed by the parent in his return of income.

It will be sufficient if one declaration is made in respect of the income of each year, before each person responsible for making the payment. Where payments are to be made by the same person more than once in a year, the declaration in the prescribed form may be furnished before the first payment in the year becomes due. Further, in the declaration from, particulars of only such securities, shares or, as the case may be, other deposits are to be furnished, the income from which is payable by the person to whom the declaration is furnished. For example, in a declaration furnished to Company  it is not necessary for the declarant to give particulars of the deposits for held by him in other companies.

The person responsible for making the payment shall furnish a copy of each such declaration to the Assessing Officer on or before 7th day of the month next following the month in which the declaration is furnished to him.

Tax shall not be deducted at source on payment to a contractor (including a sub-contractor) (u/s 194C) in the course of business of plying, hiring or leasing goods carriages, who furnishes his PAN to the person making such payment. [Sec.194C(6)]


TDSMAN Top acceptance percentage as per NSDL data

As per data provide by the Income Tax Dept., NSDL has recently published the “Software vendorwise percentage of correction TDS/TCS statements accepted and rejected at TIN” which proves TDSMAN (PDS Infotech) to be one of the most accurate & reliable eTDS Software with top acceptance percentage.

The data shows an Acceptance of 95% & Rejection of only 5% in the last three months and an overall ACCEPTANCE of 93% – the highest in the list.


We are happy for this big success and thank our clients all over India for making TDSMAN a market leader.


How to know Invalid PAN in your e-tds/e-tcs return

Now, a good facility has been added by TIN center under TAN Registration. List of invalid PAN’s can be downloaded after login thorugh TAN Registration. You will get the option for download of list of Invalid PAN’s under the menu “TDS/TCS”.

Secondly, it is clearly displayed in the screen how many Defaults are available in your TAN numbers and how many Defaults are in UNREAD position.

To download the List of Invalid PAN’s, just select the option given as List of Invalid PAN’s under TDS/TCS. On pressing the same a screen appears where you need to select the Financial Year, Form No. and Quarter for downloading the Invalid PAN List. After that to open the requested/downloaded file, 15 digit Provisional Receipt No./Token No. of the accepted Regular Statement is required.


Changes in TAN Registration process at TIN website

Tax Information Network (TIN) has always been providing various facilities to deductors. One such facility provided under TIN is authenticated login (TAN account) provided to deductors/collectors at TIN website.

Under this login, following functions are provided:

  • Online request of consolidated TDS/TCS file: Useful for preparation of correction statement.
  • Online generation of Form 16A for valid PANs.
  • Online download of default details generated by Income Tax Department.
  • Bulk upload of Form 15CA records.
  • Update of TAN account contact details.

For creating authenticated login (TAN account), deductor/collector has to register TAN online at TIN website. Based on the feedback received from the deductors as well as Income Tax Department, the procedure for registering as well as getting the various facilities is simplified/modified regularly. Some changes have now been made in the TAN registration process.Preparation of correction statement will have to be made mandatorily using consolidated file provided by TIN. In view of the same, please create and activate the TAN account at TIN and avail the aforementioned facilities offered by TIN, if not done already.

Detailed revised procedure for creating TAN Account” and activation of TAN account is as under:

  • On registration, an e-mail containing link will be sent to registered e-mail ID (s).
  • User will be required to click on the link for activating the TAN account. This link is sent for verifying the validity of e-mail ID.
  • On clicking the link, user will be prompted to provide TAN and corresponding 12 digit TAN registration number.
  • If the TAN & TAN registration number matches, then TAN account will be activated within 24 hours.
  • TAN account will be active if at least one of the e-mail ID is verified.
  • TAN account will not be activated, If the user does not click link or does not provide respective TAN and TAN registration number and the same is verified.
  • If user has provided two e-mail ID (s) on registration/ re-registration, then the TAN account will be activated even if the user clicks on the link (as mentioned above) sent at any one of the registered e-mail ID.
  • On activation of TAN account, an e-mail containing the user ID in password protected PDF file will be sent to registered e-mail ID (s). On receipt of this e-mail, user can login to TAN account.

Further the user may re-register the TAN if user has:

Forgotten the TAN account details like user ID, TAN registration no. (12 digit alphanumeric number) or

Would like to update the contact details of TAN account ,wherein the user does not know the login credentials of TAN account,

Procedure for activation of TAN account on re-registration of TAN would be the same as applicable on first time registration of TAN (as above).