sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 How to use your Form 16
 Which ITR form applies to you for financial year 2017-18?
 Income tax returns filing form-2 released; should you use it? Find out
  Are you planning to file ITR 1 form? here's how to do it Income Tax Return (ITR) filing
 30 LPA-Opening Financial Controller
 ITR form 2 in java release by CBDT for return filing by individuals
 How to file your income tax return using ITR Form-1 Income Tax efiling for AY 2018-19
 Income tax returns (ITR) filing: Have you received I-T dept notice? Safeguard yourself; here is how
 Delayed release of electronic ITR forms may compel CBDT to extend the filing deadline
 Trading volume linked to tax return?
 How to e-verify your income tax return? Here are five ways to do it

New Tax Deductions at Source form draws flak
April, 28th 2009

A new form introduced by the Central Board for Direct Taxes (CBDT) to improve tax deductions at source (TDS) has allegedly made the process more cumbersome, and may even prompt the government to put the transition to the new regime in abeyance. The new form for tax deductors those responsible for deducting tax while making a payment came into force from April 1, 2009.

According to the new rules, deductors have to deposit the tax amount through online payment. The form prescribes tracking of every TDS transaction through a unique transaction number (UTN) that is to be provided at the time of e-payment of such tax. However, the government, a large deductor of tax itself, is not geared up for this change required by the tax body and cannot switch to e-payment mode completely, according to an official who didnt want to be named.

To switch to a complete e-payment mode, rules of central as well as state governments with regard to payments will have to be changed. At present, central and state government departments have a cheque or cash system of payment and changing these rules will be an uphill task for them. The tax departments own software may find it difficult to support the UTN, said the official.

The issue of notification of the new forms and problems related to its implementation had figured at a recent meeting of the CBDT.

While April 1 is a logical start date for any such change, considering that the notification was issued only in the last week of March, I doubt whether non-corporate assesses would have enough time to gear up to these new and enhanced requirements. The generation of UTN is a new and untested aspect and should have ideally been tried on the existing set of e-paying assesses before expanding the scope of e-payment, said Amitabh Singh, partner, Ernst & Young.

All tax deductors have to also validate PAN of deductees from the tax authorities at the time of e-payment of tax instead of the present system of validation at the time of filing of quarterly returns.

This means that when a company deducts tax from the salary payment to its employee every month and deposits its with the tax authorities, it will have to get employees respective PANs validated from the income tax department.

This would cause hardships to companies as they have to file quarterly returns with regard to TDS on salaries. At present there is no requirement PAN of validation at the time of payments. In fact, tax departments own system may find it difficult to handle the pressure placed by new requirements of the form.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions