DEDUCTED AT SOURCE - LATEST AMENDMENTS IN INCOME TAX RULES, 1962

Rule 30 of the Income Tax Rules, 1962 ('Rules' for short) deals provides for the time and mode of payment to Government account of tax deducted at source or tax paid under section 192 (1A) of Income Tax Act, 1961 ('Act' for short). Rule 31 provides for the certificate of tax deducted at source or tax paid under section 192 (1A). The Central Board of Direct Taxes in exercise of powers conferred by section 295 of the Act made the Income Tax (First Amendment) Rules, 2010 which shall come into from 01.04.2010. Rule 2A of amendment Rules substituted the existing Rule 30 and Rule 31.
The substituted Rule 30 provides that all sums deducted in accordance with the provisions of -
Sec.192 - Salary;
Sec.193 - Interest on securities;
Sec.194 - Dividends;
Sec.194A - Interest other than 'Interest on Securities';
Sec.194B - Winnings from lottery or crossword puzzle;
Sec.194BB - Winnings from horse race;
Sec.194C- Payments to contractors and sub contractors;
Sec.194D - Insurance Commission;
Sec.194E - Payments to non resident sportsmen;
Sec.94EE - Payments in respect of deposit under NSS etc.,
Sec.94F - Payments on account of repurchase of units by mutual fund or UTI;
Sec.194G - Commission, etc., on the sale of lottery tickets;
Sec.194H - Commission or brokerage;
Sec.194I - Rent;
Sec.194J - Fees for professional and technology;
Sec.194K - Income in respect of units;
Sec.194L - Payment of compensation on acquisition of capital assets;
Sec.194LA - Payment of compensation on acquisition of certain immovable properties;
Sec.195 - Other items;
Sec.196A - Income in respect of units of non residents;
Sec.196B - Income from units;
Sec.196C - Income from foreign currency bonds or shares of Indian company;
Sec.196D - Income of Foreign Institutional Investors from securities.
Shall be paid to the credit of Central Government -
* In the case of deduction by or on behalf of the Government, on the same day;
* In the case of deduction by or on behalf of persons other than Government-
* In respect of sums deducted in accordance with the provisions of Sections 193, 194A, 194C, 194D, 194E, 194G, 194H, 194J, 195, 196A, 196B, 196C and 196D-
* Where the income by way of interest on securities referred to in above sections is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls;
* In any other case within one week from the last day of the month in which the deduction is made
* The Assessing Officer may, in special cases, and with the approval of the Joint Commissioner may permit any person to pay the income tax deducted from any income by way of interest on securities or any income by way of insurance commission or any income by way of commission or brokerage referred to in Section 194H quarterly on July 15, October 15, January 15 and April 15;
* In respect of sums deducted in accordance with the other provisions within one week from the last day of the month in which the deduction is made. The Assessing Officer may, in special cases, and with the approval of the Joint Commissioner permit an employer to pay income tax deducted from any income chargeable under the head 'Salaries' quarterly on June 15, September 15, December 15 and March 15.
* All sums paid under Sec.192(1A) shall be paid to the credit of the Central Government-
* In the case of payment on behalf of the Government, on the same day;
* In all other cases, within one week from the last day of each month on which the income tax is due under Sec. 192 (1B);
* The person responsible for making the deduction from any income chargeable under the head 'salaries' or the person who pays tax, referred in Sec. 192 (1A) or, in cases covered by Sec. 192 (5), the trustees shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within two months of the expiration of the month in which that date falls into any branch of RBI or the SBI or any authorized bank accompanied by an income tax challan. Where the deduction or payment is made by or on behalf of Government, the amounts shall be credited within the time and in the manner aforesaid without production of a challan.
* The person responsible for making deduction under Sec. 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 195, 196A, 196B, 196C and 196D shall pay the amount of tax so deducted to the credit of the Central Government within two months of the expiration of the month in which that date falls into any branch of RBI or SBI or any authorized banks accompanied by an income tax challan. Where the deduction is made by or on behalf of the Government the amount shall be credited within the time and manner aforesaid without production of a challan.
The substituted Rule 31 deals with the certificate of tax deducted at source or tax paid under Sec. 192 (1A). The certificate of deduction of tax at source or, the certificate of payment of tax by the employer on behalf of the employee, under section 203 to be furnished by any person deduction tax in accordance with Sec. 192 in Form 16.
In the case of an individual resident in India, where the income from salaries before allowing deductions under Sec. 16 of the Income tax Act, 1961 does not exceed Rs.1,50,000, the certificate of deduction of tax at source shall be in Form No.16AA.
The Certificate of tax at source shall be in Form No. 16A in case of section 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194-I, 194J, 194K, 194LA, 195, 196A, 196B, 196C and 196D.
The above certificates shall be furnished within a period of one month from the end of the month during which the credit has been given or the sums have been paid or, a cheque or warrant for payment of any dividend has been issued to a shareholder. Where the income under Sec. 193 or 194A or 194C or 194D or 194E or 194G or 194H or 194-I or 194J or 195 or 196A(2) or 196B or 196C or 196D is credited by a person to the account of the payee as on the date up to which the account of such person are made, the certificate shall be issued within a week after the expiry of two months from the month in which income is so credited.
The certificate in the case of deduction of tax under Sec. 192 (1) or payment of tax by the employer on behalf of the employee under Sec. 192(1A) or 194D may be furnished within one month from the close of the financial year in which such deduction was made. Where payment of income tax deducted is permitted quarterly in accordance with clause (a) of the proviso to clause (b) of sub rule (1) of rule 30 may be furnished within fourteen days from the date of payment of income tax.
Where more than one certificate is required to be furnished to a payee for deductions of income tax made during a financial year, the person deducting the tax, may on request from such payee, issue within one month from the close of such financial year a consolidated certificate in Form 16A for tax deducted during whole of such financial year.
If the certificate is lost, the person deducting tax at source may issue a duplicate certificate of deduction of tax at source on a plain paper giving necessary details as contained in Form 16 or Form No. 16A as the case may be. The Assessing Officer before giving credit for the tax deducted at source on the basis of duplicate certificate shall get the payment certified from the Assessing Officer designated in this behalf by the Chief Commissioner or the Commissioner and shall also obtain an indemnity bond from the assessee.
The newly substituted Rule 31A provides that every person responsible for deducting tax in accordance with Sec.200 (3) of the Act, deliver or cause to be delivered to the Director General of Income Tax (systems) or the person authorized by the Director General of Income Tax (systems), quarterly statement in Form No. 24Q in respect of deduction at source under Sec. 192(1) and 192 (1A) and in Form No. 26Q in respect of other cases of deduction of tax at source on or before 15th July, 15th October, 15th January in respect of the first three quarters of the financial year and on or before the 15th June following the last quarter of the financial year.
Where the deductor is an office of Government or a company or a person required to get his accounts audited under Sec. 44AB in the immediately preceding financial year or the number of deductees' records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty, the person responsible for deducting tax at source and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media.
A person responsible for deducting the tax at source and preparing quarterly statement shall quote his tax deduction and collection account number (TAN) and permanent account number (PAN) in the quarterly statement. The PAN shall not be required to be quoted where the tax has been deducted by or on behalf of the Government. The PAN of all persons in respect of whose income tax has been deducted shall be quoted. But the PAN shall not be required in respect of the persons to whom the second proviso to Sec. 139A (5B) of the Act applies. The particulars of the tax paid to the Government are to be furnished.
The person responsible for deducting tax at source and preparing quarterly statements on computer media shall prepare the quarterly statement as per the data structure provided by the e-filing Administrator designated by the Board for the purposes of administration of Electronic filing of Returns of Tax deducted at Source Scheme, 2003 supported by a declaration in Form No. 27A in paper format. In case any compression software has been used for preparing the statement such compression software shall be furnished on the same computer media. A label indicating name, PAN, tax deduction and collection account number and address of the person responsible for deduction of tax at source, the period to which the statement pertains and the volume number of the said computer media in case more than one volume of such media is used.
Dated: - April 5, 2010

TDS RATE 2010-11

D VAT AMENDMENT IN BUDGET 2010

(TO BE PUBLISHED IN PART IV OF THE DELHI GAZETTE EXTRAORDINARY))
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
FINANCE (T&E) DEPARTMENT
DELHI SACHIVALAYA, I.P.ESTATE: NEW DELHI-02

No.F.3(30)/Fin.(T&E)/2009-10/jsfin/285 Dated : 01.04.2010
NOTIFICATION

Whereas the Lt. Governor of the National Capital Territory of Delhi is of the opinion that it
is expedient in the interest of general public so to do.
Now, therefore, in exercise of the powers conferred by section 103 of the Delhi Value
Added Tax Act, 2004 (Delhi Act 3 of 2005), the Lt. Governor of the National Capital Territory of
Delhi, hereby, makes the following amendments in the Schedules appended to the said Act,
namely:-
AMENDMENTS
1. In the First Schedule appended to the Delhi Value Added Tax Act, 2004 (Delhi Act 3
of 2005), hereinafter referred to as the "principal Act",-
(a) the commodity mentioned at Sl. No.73 and 74 shall be omitted;
(b) after commodity at Sl. No.75, the following commodities shall be added, namely :-
“76 Oral Iron Chelator Defarasirox.
77 Liquefied Petroleum Gas (LPG) for domestic use.".
2. In the Third Schedule appended to the principal Act, -
(a) the commodities mentioned at Sl. Nos. 20, 118, 165, 166, 168, 169, 171, 179, 181, 182,
184, 185 and 186 shall be omitted;
(b) for the commodity at Sl. No. 6, the following commodity shall be substituted, namely:-
“ 6 All utensils (including pressure cookers/pans) except utensils made of precious
metals”;
(c) for the commodity at Sl.No.24, the following commodity shall be substituted, namely:-
"24 Declared goods as specified in section 14 of the Central Sales Tax Act,
1956 but not including cereals, pulses, sugar, textiles, tobacco and Liquefied Petroleum
Gas (LPG) for domestic use ." ;
(d) for the commodity at Sl. No. 41, the following commodity shall be substituted,
namely:-
“41 Computers, telephone and parts thereof, teleprinter and wireless
equipment and parts thereof, Mobile phone and all mobile
accessories costing upto rupees ten thousand";
(e) in the commodity at Sl. No. 41A, in the table, in column 2, for entry against Sl.No.7,
the following entry shall be substituted, namely:-
"Uninterrupted Power Supplies (UPS) and their parts";
(f) for the commodity at Sl. No. 57, the following commodity shall be substituted, namely:-
“57 Readymade garments costing upto rupees five thousand but not including those
made up of khadi";
(g) for the commodity at Sl. No. 76, the following commodity shall be substituted,
namely:-
“76 Writing instruments costing upto rupees one thousand per piece, geometry boxes,
colour boxes, crayons and pencil sharpeners”;
(h) for the commodity at Sl. No. 81, the following commodity shall be substituted,
namely:-
“81 Kirana items namely ararote, singhara, kuttu & their atta, kala namak, sendha
namak, heeng, aam papar, mushrum, khumba and guchchi, goley ka burada, til,
rai, postdana, mungafali dana, sabudana, roli, mehendi patti, pisi mehendi”;
(i) for the commodity at Sl. No. 180, the following commodity shall be substituted,
namely:-
“180 Liquefied Petroleum Gas (LPG) other than for domestic use and Piped Natural
Gas (PNG)”
(j) after the commodity at Sl.No.187, the following commodities shall be added, namely :-
“188 Bio- inputs like bio- fertilizers, micro-nutrients and Plant Growth
Promoters.
189 Kerosene- stoves, Lanterns and Petromax and their spares.”.
3. In the Fourth Schedule appended to the principal Act, -
(a) in the commodity at Sl.No.1, for entry (v), the following entry shall be substituted,
namely:-
" (v) Diesel;";
(b) after the commodity at Sl.No.10, the following commodities shall be added, namely :-
"11 Aerated Drinks.
12 Watches costing above rupees five thousand”.
This notification shall come into force with immediate effect.
By order and in the name of the
Lt. Governor of the National
Capital Territory of Delhi,
Sd/-
(AJAY KUMAR GARG)
JOINT SECRETARY (FIN./PLG.)
No.F.3(30)/Fin.(T&E)/2009-10/jsfin/285 Dated : 01.04.2010