Ministry of Finance
Deductors Must Comply with their Obligations to Ensure Correct Credit to Persons from Whose Income Tax is Deducted at Source
All deductors other than Government deductors must file their quarterly TDS statement for the quarter ending 30th June 2012, on or before 15th July 2012 and Government deductors must file their statement on or before 30th July 2012. While submitting their statements, the deductors have to choose correct and relevant form, quote correct PAN against all entries and ensure that correct CIN/BIN is quoted in the TDS statement. Non-quoting of PAN or TAN in TDS statements or delay in filing of TDS statements may lead to levy of penalty.
Filing of TDS statement with correct PAN and CIN/BIN is important because under Rule 37BA of Income Tax Rules, 1962 credit for tax deducted at source is given to the deductees on the basis of TDS statement furnished to the Income-tax Department by the deductor. Filing of TDS statements with incorrect PAN or other details of the deductee would, therefore, cause inconvenience to the deductees (taxpayer).
In case the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, the deductee must file a declaration with the deductor that credit for the TDS shall be given to the other person and not to the deductee. The declaration filed by the deductee must contain the name, address, Permanent Account Number of the person to whom credit is to be given and reasons for giving credit to such person. The deductor must, in the TDS statement, report the tax deduction in the name of such other person and also issue the TDS certificate in the name of the person in whose name credit is shown in the TDS statement.
TDS certificates for deductions on income other than salary income (Form 16A) for the quarter ending 30th June 2012 should be issued on or before 30th July 2012.
PIB
(Release ID :85265)
Late Fee:- Presently, if TDS Return is submitted late, penalty is charged @ 100/- per day as per section 272A. Penalty amount is limited to maximum of TDS amount. Practically, this penalty is not imposed in any case due to lengthy procedure to charge penalty. According to new rules applicable w.e.f. 01-07-2012 or after TDS/TCS section 272A has been changed with new Section 234E which is hard in comparison with old.
In simple words, penalty will be charged @ 200/- per day on late submission of TDS/TCS return. Penalty amount will not be increased the TDS/TCS amount. Penalty amount will be deposited prior submission of TDS/TCS return. This penalty will be start w.e.f. 2nd Quarter of the Financial Year 2012-13.
A new penalty under section 274H will also be charged except above new penalty. Minimum amount of this penalty will be Rs. 10,000 and Maximum amount of the penalty will be Rs. 1,00,000/- This penalty will be imposed under two circumstances :-
In case, incorrect information is submitted in TDS/TCS return.
In case, TDS/TCS return is submitted after one year, means deductor do not deposit TDS/TCS/RETURN/INTEREST with in one year after deducting TDS/TCS from deductor or collector.
Note :- Section 273B has been amended to relax in New Penalty, but there is no provision in relaxation of Late Fee. It means Late Fee amount will be paid as mandatory.
New Section 234E
234E. (1) Without prejudice to the provisions of the Act, 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.
(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible
or collectible, as the case may be.
(3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.
(4) The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.”.
Section 2734B
100. In section 273B of the Income-tax Act, after the word, figures and letter “section 271G,”, the
word, figures and letter “section 271H,” shall be inserted with effect from the 1st day of July, 2012
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