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Smart & Easy TDS Software for Preparing TDS Returns

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

Budget 2017 – Changes in TCS Provisions

1.Restriction on cash transactions

It is also proposed to consequentially amend the provisions of section 206C to omit the provision relating to tax collection at source at the rate of one per cent. of sale consideration on cash sale of jewellery exceeding five lakh rupees.

This amendment will take effect from 1st April, 2017.

2.Exemption from tax collection at source under sub-section (1F) of section 206C in case of certain specified buyers.

The existing provision of sub-section (1F) of section 206C of the Act, inter-alia provides that the seller who receives consideration for sale of a motor vehicle exceeding ten lakh rupees, shall collect one per cent of the sale consideration as tax from the buyer.

In order to reduce compliance burden in certain cases, it is proposed to amend section 206C, to exempt the following class of buyers such as the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; local authority as defined in explanation to clause (20) of Section 10; a public sector company which is engaged in the business of carrying passengers, from the applicability of the provision of subsection (1F) of section 206C of the Act.

This amendment will take effect from 1st April, 2017.

3.Strengthening of PAN quoting mechanism in the TCS regime

Statuary provisions for deduction of tax at source (TDS) at higher rate of 20% or the applicable rate whichever is higher) in case of non-quoting of Permanent Account Number (PAN) is provided under section 206AA of the Act and it exist since April, 2010.

PAN acts as a common thread for linking the information in the departmental data base. It may also be noted that the process of allotment of PAN is made simple and robust. PAN application can be made online and PAN gets allotted in less than a week.

In order to strengthen the PAN mechanism, it is proposed to insert new section 206CC to provide the following:

i. any person paying any sum or amount, on which tax is collectable at source under Chapter XVII BB (hereafter referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (hereafter referred to as collector), failing which tax shall be collected at the twice the rate mentioned in the relevant section under Chapter XVII BB or at the rate of five per cent. whichever is higher.

ii. that the declaration filed under sub section (1A) of section 206C shall not be valid unless the person filing the declaration furnishes his Permanent Account Number in such declaration.

iii. that in case any declaration becomes invalid under sub-section (2), the collector shall collect the tax at source in accordance with the provisions of sub-section (1).

iv. no certificate under sub section (9) of section 206C shall be granted unless it contains the Permanent Account Number of the applicant.

v. the collector knows about the correct PAN of the collectee it is also proposed to provide for mandatory quoting of PAN of the collectee by both the collector and the collectee in all correspondence, bills and vouchers exchanged between them.

vi. that the collectee shall furnish his Permanent Account Number to the collector who shall indicate the same in all its correspondence, bills, vouchers and other documents which are sent to collectee.

vii. where the Permanent Account Number provided by the collectee is invalid or it does not belong to the collectee, then it shall be deemed that Permanent Account Number has not been furnished to the collector.

viii. to exempt the non-resident who does not have permanent establishment in India from the provisions of this proposed section 206CC of the Act.

This amendment will take effect from 1st April, 2017.

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Due Dates for the month of March 2017

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

7 March 2017 – Due date for deposit of Tax deducted/collected for the month of February, 2017. However, all sum deducted/collected 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

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

15 March 2017 – Fourth instalment of advance tax for the assessment year 2017-18.

15 March 2017 – Due date for payment of whole amount of advance tax in respect of assessment year 2017-18 for assessees covered under presumptive scheme of Section 44AD.

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

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

31 March 2017 – Last date for declaration of undisclosed income under Pradhan MantriGaribKalyanYojana, 2016.

31 March 2017 -​ Due date for payment of second installment (i.e., 25% of tax, surcharge and penalty) under Income Declaration Scheme, 2016.

Source: Income Tax

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TDSMAN (FY: 2017-18) released – avail Early Bird offer

Keeping its tradition, TDSMAN is one of the first to have released the version for FY: 2017-18. This will serve its users for the following:

TDSMAN is packaged with advanced corrective and validation features that help you prepare zero error TDS Return. Visit www.tdsman.com for more information.

Order Now and avail ‘Early Bird’ discount of Rs. 400 on the regular price by using Coupon Code ‘TMNEW‘.

This discount is valid for limited period.

Click Here to download the trial version of TDSMAN (FY: 2017-18) for your evaluation.

Click Here to place your Order online.

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File your TDS Returns (Q3) by 31st January, 2017

LAST DATE OF TDS RETURN FILING FOR QUARTER 3, FY: 2016-17 IS 31st JANUARY, 2017

With the introduction of Section 234E, there is now a provision of stringent penalties for delayed filing of TDS returns.

  • Failure to submit e-TDS Statement on time will result in fees on the deductor.
  • If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
  • The levied amount of fee is not supposed to exceed the TDS deductibles.
  • Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.

Click here for more details.

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