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Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

Employers required to collect PAN of the lender banks from the employees to claim Interest in House Property in the salary return

The Finance Act, 2015 had introduced a new section 192(2D) of the Income-tax Act, wherein the employer was obliged to collect the necessary evidence or proof in Form 12BB  to allow any claim for any deduction and/or tax saving investments.

One of the requirements in Form 12BB for claiming the interest on house property is to provide the PAN of the lender i.e. the financial institutions, NBFC or others from where the loan is taken, if available. Though the same is not a mandatory requirement in Form 12BB, the same has been made mandatory in the Annexure-II required to be filed in the salary return –From 24Q for the last quarter of the financial year. The same was made effective from 1st June 2016 by the CBDT by way of its Notification No. 30/2016 dated 29 April 2016.

The latest (Return Preparation Utility) RPU version is not allowing the deduction of interest from House Property without the name and PAN of the lender. The same will result in short tax deduction scenario for majority of the employees as the TDS would have already been deducted considering the deduction of interest on house property for all the employees, thereby resulting in interest liability for short deduction for the employers.

Given the above, the due date of depositing the TDS for the March 2017 is till 30 April 2017; as such the employers still have time to collect the PAN of the lender from the employees. In case the PAN is not available, no deduction of interest shall be allowed and the total tax deduction of the employees shall be higher than previously deducted.

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CBDT issues PAN and TAN within 1 day to improve Ease of Doing Business

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, 11th April, 2017

CBDT issues PAN and TAN within 1 day to improve Ease of Doing Business

In order to improve the Ease of Doing Business for newly incorporated corporates, CBDT has tied up with Ministry of Corporate Affairs (MCA) to issue Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) in 1 day.

Applicant companies submit a common application form SPICe (INC 32) on MCA portal and once the data of incorporation is sent to CBDT by MCA, the PAN and TAN are issued immediately without any further intervention of the applicant. The Certificate of Incorporation (COI) of newly incorporated companies includes the PAN in addition to the Corporate Identity Number (CIN). TAN is also allotted simultaneously and communicated to the Company.

Till 31st March 2017, 19,704 newly incorporated Companies were allotted PAN in this manner. During March, 2017, of the 10,894 newly incorporated companies, PAN was allotted within 4 hrs in 95.63% cases and within 1 day in all cases. Similarly, TAN was allotted to all such companies within 4 hrs in 94.7 % cases and within 1 day in 99.73% cases.

CBDT’s initiative in starting of a business is expected to significantly improve the ranking of India in the Ease of Doing Business Study conducted by World Bank by reducing the number of processes of registration before various authorities under law, reducing the time taken for allotment of the registration number (CIN, PAN, TAN) and making the entire registration process for new companies much simpler.

CBDT has also introduced the Electronic PAN Card (E-PAN) which is sent by email, in addition to issue of the physical PAN Card, to all applicants including individuals where PAN is allotted. Applicant would be benefited by having a digitally signed E-PAN card which they can submit as proof of identity to other agency electronically directly or by storing in the Digital Locker (https://digilocker.gov.in).

 (Meenakshi Goswami)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

Source: Income Tax

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How to handle TDS on sale of property

Since June 2013, it has been mandatory for buyers of immovable property to deduct TDS from the amount to be paid to the seller. It is the responsibility of the buyer to deduct TDS if the transaction value exceeds Rs. 50 lakh. The buyer is required to deduct TDS @ 1% on the total consideration and deposit the same in the account of the income tax authorities in the prescribed format.

Form

Form 26QB must be filled by the buyer either online or offline to deposit the TDS. One can click the following link to access the form online.

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Due date for filing

The challan (Form 26QB) must be filed within 7 days from the month in which the TDS was deducted by the buyer.

Details

Information with respect to the buyer and seller (name, address, PAN, status), details of the property, consideration and TDS payable must be entered in the form.

Payment

One can choose to pay either through Netbanking or at the branch of the bank. If the taxpayer chooses e-tax payment on subsequent date at the bank branch, an acknowledgement number is generated. This number must be retained by the taxpayer to be presented to the bank while making the payment.

Process

Once the form is filed and payment made to the income tax authorities, approved form 26QB or form 16B can be downloaded by logging into TRACES as a tax payer. Form 16B must be provided by the buyer to the seller as a proof of deposit of TDS.

Points to note

  1. Dealings in agricultural land are excluded from the requirements of these provisions.
  2. If the consideration is being paid in installments, TDS must also be deducted on each installment.
  3. If PAN is not provided by the seller, TDS @ 20% is deductible.

Source: The Economic Times

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Due Dates for the month of April 2017

7 April 2017 – Due date for deposit of Tax deducted by an office of the government for the month of March, 2017. However, all sum deducted by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

14 April 2017 – Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of February, 2017

30 April 2017 – Due date for furnishing of Form 24G by an office of the Government where TDS for the month of March, 2017 has been paid without the production of a challan

30 April 2017 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of March, 2017

30 April 2017 – Due date for deposit of Tax deducted by an assessee other than an office of the Government for the month of March, 2017

30 April 2017 – Due date for e-filing of a statement in Form No. 61 containing particulars of Form No. 60 received during the period October 1, 2016 to March 31, 2017

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