Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: form 3cd :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: empanelment :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARDS
 
 
News Headlines »
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj

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 2017 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