A clarification has been issued by CBDT on TCS on Cash Sale exceeding Rs. 2 lakhs.
CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
The CPC (TDS) Website "www.tdscpc.gov.in" has hosted a undermentioned communication on 10th September, 2014 regarding the usage of single challan for all purposes. The communication is as under:
SECTION 139D OF THE INCOME-TAX ACT, 1961 - FILING OF RETURN IN ELECTRONIC FORM - EXTENSION OF FACILITY TO TAXPAYERS TO VERIFY IF DEMAND IN THEIR CASE IS DUE TO TAX CREDIT MISMATCH ON ACCOUNT OF INCORRECT FURNISHING OF SPECIFIED PARTICULARS AND SUBMIT RECTIFICATION REQUESTS WITH CORRECT PARTICULARS OF TDS/TAX CLAIMS FOR CORRECTION OF THESE DEMANDS
PRESS NOTE NO.402/92/2006-MC, DATED 17-4-2014
Detailed instructions have been issued by the CBDT to all the assessing officers laying down a Standard Operating Procedure (SOP) for verification and correction of demand by the AOs.
Department is required to give credit for TDS once valid TDS certificate had been produced or even where deductor has not issued TDS certificates, on the basis of evidence produced by the assessee regarding deduction of tax at source and on the basis of indemnity bond.
The CBDT has issued Instruction No. 02/2014 dated 26.02.2014 in which it has referred to the judgements of the Supreme Court in Transmission Corp of A. P. 299 ITR 587 and GE India Technology Pvt. Ltd 327 ITR 456 on the issue of deduction of tax at source u/s 195 while making payments to non-residents.
CBDT has extended the due date to file TDS/TCS statement for Government deductor for the Financial year 2012-13(except first quarter) and Financial Year 2013-14 (first three quarters) to 31.03.2014.This has been done due to late filing of TDS returns by Govt departments due to non allottment of AIN number.
The CBDT has issued Circuar 04/2014 dated 10.02.2014 pointing out that a large number of returns have become non-est as ITR-V was not furnished within the due date. As a result the refund claims have not been processed.
This communication by TDS-CPC team seeks to provide important information related to a Certificate issued for Deduction of Tax at Lower/ NIL Rates under section 197/197A of the Income Tax Act, 1961.
This section is applicable from 1st June 2013 for the property transactions above RS 50 lakh.
Section 194IA reads as under,
1. “Any persons, being a transferee responsible for paying (other than the person referred to in sec 194-LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or any other mode, which ever is earlier, deduct an amount equal to one per cent of such sum as income tax thereon ”
TDS not to be Deducted on Service Tax Component shown Separately
Whether to deduct TDS on Service Tax Amount? This question had always put deductor in difficulty. The question always comes that whether TDS is to be deducted on the entire amount of the invoice i.e. including service tax or only on the payment made towards services i.e. excluding service tax.
CBDT has issued an important instruction to all officers regarding refund of TDS without matching of tds amount with form 26AS.As per new instructions when an assessee approaches the Assessing Officer with requisite details and particulars in the form of TDS certificate as an evidence against any mismatched amount, the said Assessing Officer will verify whether or not the deductor has made payment of the TDS in the Government Account and if the payment has been made, credit of the same should be given to the assessee.
On 29/06/2013, the Income Tax Department has released the following File Validation Utilities for the purpose of TDS Returns which would become applicable from 1st July 2013:
FVU Ver. 3.8 – Applicable from FY: 2010-11 onwards
FVU Ver 2.134 – Applicable from FY: 2007-08 till FY: 2009-10
For Fy 2006-07 or earlier financial years, eTDS returns (both regular and correction) will not be validated/filed any further. Major structural changes have announced in FVU Ver. 3.8 that would be applicable for financial year 2013-14.
Withdrawal of Provident Fund may attract Income Tax. The Income Tax Department recently told EPFO (Employees Provident Fund Organisation) to deduct Tax (TDS) from the withdrawal amount, if the withdrawal happened before completing five years of subscription. Tax officials have cited a rule in the 1961 Income-Tax Act that taxes PF withdrawals by employees before completing five years of contributions into the EPF is taxable.
Income Tax Department vide notification no 39/2013 dated 31st May 2013 has released the provisions and rules related to section 194-IA i.e. TDS on transfer of certain immovable properties other than agriculture land whose value or consideration exceeds Rs. 50 lacs, regarding mode of deduction, time of deposition and issuance of TDS certificates.
As per Section 234E where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
File e-TDS return(24q,26q,27q) for 4th quarter for Financial year 2012-13 by 15th May,2013 to avoid penalties
The fourth quarter of financial year 2012-13 has come to an end .Therefore, it is the time for all corporate and government deductors to file their eTDS returns.The last date to file the returns for fourth quarter of F.Y. 2012-13 is 15th May 2013.If you miss the date then you have to pay heavy penalty and have to a fees for late filing also.
Branch Manager, UCO Bank Vs. ACIT (ITAT Cuttack)The Assessing Officer imposed penalty under section 272A(2)(k) for delay in filing the TDS return under section 200(3). The assessee’s argument that the delay was due to a shortage of staff was rejected on the ground that the same was not reasonable cause. The CIT(A) confirmed the penalty.
In the last few months, several taxpayers have received similarly worded notices from the I-T Department. As per the I-T Department, in these cases, the current refund claims were adjusted against tax that these assessees owe the department.
tax 'N' accounts people
Tarun Kumar Gupta
Life style Post