The rule has been changed and now the last date of deposit for such transactions is April 30.
For non government deductors , earlier tds on all payments made during March was to be deposited before 7th of April. For all provisional entries credited on 31st March, the last date of deposit was 31st May.
The amended rule does not distinguish between payment entries and provisional entries and the last date of deposit for all such entries is April 30
Notification 41/2010 dated 31.05.2010
Above Notification amended rules pertaining to deposit of tax, issue of tds certificate and filing of eTDS statement.
The relevant extract of amended Rule 30 is reproduced below
30.
(1) All sums deducted in accordance with the provisions of Chapter XVII‐B by an office of the Government shall be paid to the credit of the Central Government ‐ (a) on the same day where the tax is paid without production of an income‐tax challan; and (b) on or before seven days from the end of the month in which the deduction is made or income‐tax is due under sub‐section (1A) of section 192, where tax is paid accompanied by an income‐tax challan.
(2) All sums deducted in accordance with the provisions of Chapter XVII‐B by deductors other than an office of the Government shall be paid to the credit of the Central Government ‐ (a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and (b) in any other case, on or before seven days from the end of the month in which‐ (i) the deduction is made; or (ii) income‐tax is due under sub‐section (1A) of section 192.
Wednesday, April 6, 2011
Tuesday, April 5, 2011
Notification No : CIRCULAR NO 7/2010
Notifications & Circulars
Period of validity of approvals issued under Section 10 (23C) (iv), (v), (vi) or (via) and Section 80G (5) of the IT Act-clarification reg
Notice Date : 27 October 2010
Period of validity of approvals issued under Section 10 (23C) (iv), (v), (vi) or (via) and Section 80G (5) of the IT Act-clarification reg.
CIRCULAR NO 7/2010
Dated: October 27, 2010
Subject:- Period of validity of approvals issued under Section 10 (23C) (iv), (v), (vi) or (via) and Section 80G (5) of the IT Act-clarification reg.
The Board has received various references from the field formations as well as members of public about the period of validity of approvals granted by the Chief Commissioners of Income Tax or Directors General of Income Tax under sub-clauses (iv), (v), (vi) and (via) of Section 10(23C) and by the Commissioners of Income Tax or Directors of Income Tax under Section 80G (5) of the Income Tax Act, 1961.
2. It has also been noticed by the Board that different field authorities are interpreting the provisions relating to the period of validity of the above approvals in a different manner. The following instructions are accordingly issued for the removal of doubts about the period of validity of various approvals referred to above.
3. Sub-Clause (iv) and (v) of Section 10 (23C) were amended by Taxation Laws (Amendment) Act, 2006 by insertion of the following proviso to that clause:-
“Provided also that any (notification issued by the Central Government under sub-clause (iv) or sub-clause (v), before the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President”, shall at any one time, have effect for such assessment year or years, not exceeding three assessment years) (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification.)”
The intention behind the insertion of the above proviso was laid out in the relevant portion of the explanatory notes to the Taxation Laws Amendment Act, 2006 which reads as under:
“A need has been felt to dispense with the requirement of periodic renewal of notifications. The requirement of periodic renewal of notifications has been resulting in delays in their renewal.
5.2 In order to overcome delays, the eighth proviso to section 10(23C) has been amended so as to provide that the above mentioned limit of effectivity for three assessment years shall be applicable in respect of notifications issued by the Central Government under sub-clause (iv) or sub-clause (v) before the date on which Taxation Laws (Amendment) Bill, 2006 receives the assent of the President.
5.3 The Taxation Laws (Amendment) Bill, 2006 received the assent of the President on 13.07.2006. Therefore, on account of the above amendment any notification issued by the Central Government under the said subclause (iv) or sub-clause (v), on or after 13.07.2006 will be valid until withdrawn and there will be no requirement on the part of the assessee to seek renewal of the same after three years.
The intention of legislature that the approvals under Section 10 (23C) (iv) & (v) after the cut off date mentioned above would be a one time approval which would be valid until withdrawn, is thus sufficiently clear.
4. Approvals under Sub-Clause (vi) and (via) of Section 10 (23C) are governed by the procedure contained in Rule 2CA. Rule 2CA was amended w.e.f. 1.12.2006, inter alia by substitution of the existing sub-rule 3 by a new provision which is reproduced below:-
“(3) The approval of the Central Board of Direct Taxes or Chief Commissioner or Director General, as the case may be, granted before the 1st day of December, 2006 shall at any one time have effect for a period of exceeding three assessment years.”
Read in isolation, without any further guidance as was given by way of explanatory notes to Finance Act, 2006 in respect of amendment of sub-clause (iv) & (v) of Section 10 (23C), the above amendment leaves some scope for doubt about the period of validity of the approval under Section 10 (23C) (vi) and (via) on or after 1.12.2006. For the removal of doubts if any in this regard, it is clarified that as in the case of approvals under sub-clause (iv) & (v) of Section 10 (23C), any approval issued on or after 1.12.2006 under sub-clause (vi) or (via) of that sub-section would also be a one time approval which would be valid till it is withdrawn.
5. As regards approvals granted upto 1.10.2009 under Section 80G by the Commissioners of Income Tax/ Directors of Income Tax, proviso to Section 80G (5) (vi) clarified that any approval shall have effect for such assessment year or years not exceeding five assessment years as may be specified in the approval. The above proviso was deleted by the Finance (No. 2) Act 2009. The intent behind the deletion of above proviso as explained in the explanatory memorandum to Finance (No.2) Bill, 2009 was as under:
“Further as per clause (vi) of sub-section (5) of section 80G of the Income-tax Act, 1961, the institutions or funds to which the donations are made have to be approved by the Commissioner of Income-tax in accordance with the rules prescribed in rule 11AA of the Income-tax Rule, 1962. The proviso to this clause provides that any approval granted under this clause shall have effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval.
Due to this limitation imposed on the validity of such approvals, the approved institutions or funds have to bear the hardship of getting their approvals renewed from time to time. This is unduly burdensome for the bona fide institutions or funds and also leads to wastage of time and resources of the tax administration in renewing such approvals in a routine manner.
Therefore, it is proposed to omit the proviso to clause (vi) of sub-section (5) of section 80G to provide that the approval once granted shall continue to be valid in perpetuity. Further, the Commissioner will also have the power of withdraw the approval if the Commissioner is satisfied that the activities of such institution or fund are not genuine or are not being carried out in accordance with the objects of the institution or fund. This amendment will take effect from 1st day of October, 2009. Accordingly, existing approvals expiring on or after 1st October, 2009 shall be deemed to have been extended in perpetuity unless specifically withdrawn.”
It appears that some doubts still prevail about the period of validity of approval under Section 80G subsequent to 1.10.2009, especially in view of the fact that no corresponding change has been made in Rule 11A (4). To remove any doubts in this regard, it is reiterated that any approval under Section 80G (5) on or after 1.10.2009 would be a one time approval which would be valid till it is withdrawn.
F.No.197/21/2010-ITA-I
(Raman Chopra)
Director (ITA-I)
Period of validity of approvals issued under Section 10 (23C) (iv), (v), (vi) or (via) and Section 80G (5) of the IT Act-clarification reg
Notice Date : 27 October 2010
Period of validity of approvals issued under Section 10 (23C) (iv), (v), (vi) or (via) and Section 80G (5) of the IT Act-clarification reg.
CIRCULAR NO 7/2010
Dated: October 27, 2010
Subject:- Period of validity of approvals issued under Section 10 (23C) (iv), (v), (vi) or (via) and Section 80G (5) of the IT Act-clarification reg.
The Board has received various references from the field formations as well as members of public about the period of validity of approvals granted by the Chief Commissioners of Income Tax or Directors General of Income Tax under sub-clauses (iv), (v), (vi) and (via) of Section 10(23C) and by the Commissioners of Income Tax or Directors of Income Tax under Section 80G (5) of the Income Tax Act, 1961.
2. It has also been noticed by the Board that different field authorities are interpreting the provisions relating to the period of validity of the above approvals in a different manner. The following instructions are accordingly issued for the removal of doubts about the period of validity of various approvals referred to above.
3. Sub-Clause (iv) and (v) of Section 10 (23C) were amended by Taxation Laws (Amendment) Act, 2006 by insertion of the following proviso to that clause:-
“Provided also that any (notification issued by the Central Government under sub-clause (iv) or sub-clause (v), before the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President”, shall at any one time, have effect for such assessment year or years, not exceeding three assessment years) (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification.)”
The intention behind the insertion of the above proviso was laid out in the relevant portion of the explanatory notes to the Taxation Laws Amendment Act, 2006 which reads as under:
“A need has been felt to dispense with the requirement of periodic renewal of notifications. The requirement of periodic renewal of notifications has been resulting in delays in their renewal.
5.2 In order to overcome delays, the eighth proviso to section 10(23C) has been amended so as to provide that the above mentioned limit of effectivity for three assessment years shall be applicable in respect of notifications issued by the Central Government under sub-clause (iv) or sub-clause (v) before the date on which Taxation Laws (Amendment) Bill, 2006 receives the assent of the President.
5.3 The Taxation Laws (Amendment) Bill, 2006 received the assent of the President on 13.07.2006. Therefore, on account of the above amendment any notification issued by the Central Government under the said subclause (iv) or sub-clause (v), on or after 13.07.2006 will be valid until withdrawn and there will be no requirement on the part of the assessee to seek renewal of the same after three years.
The intention of legislature that the approvals under Section 10 (23C) (iv) & (v) after the cut off date mentioned above would be a one time approval which would be valid until withdrawn, is thus sufficiently clear.
4. Approvals under Sub-Clause (vi) and (via) of Section 10 (23C) are governed by the procedure contained in Rule 2CA. Rule 2CA was amended w.e.f. 1.12.2006, inter alia by substitution of the existing sub-rule 3 by a new provision which is reproduced below:-
“(3) The approval of the Central Board of Direct Taxes or Chief Commissioner or Director General, as the case may be, granted before the 1st day of December, 2006 shall at any one time have effect for a period of exceeding three assessment years.”
Read in isolation, without any further guidance as was given by way of explanatory notes to Finance Act, 2006 in respect of amendment of sub-clause (iv) & (v) of Section 10 (23C), the above amendment leaves some scope for doubt about the period of validity of the approval under Section 10 (23C) (vi) and (via) on or after 1.12.2006. For the removal of doubts if any in this regard, it is clarified that as in the case of approvals under sub-clause (iv) & (v) of Section 10 (23C), any approval issued on or after 1.12.2006 under sub-clause (vi) or (via) of that sub-section would also be a one time approval which would be valid till it is withdrawn.
5. As regards approvals granted upto 1.10.2009 under Section 80G by the Commissioners of Income Tax/ Directors of Income Tax, proviso to Section 80G (5) (vi) clarified that any approval shall have effect for such assessment year or years not exceeding five assessment years as may be specified in the approval. The above proviso was deleted by the Finance (No. 2) Act 2009. The intent behind the deletion of above proviso as explained in the explanatory memorandum to Finance (No.2) Bill, 2009 was as under:
“Further as per clause (vi) of sub-section (5) of section 80G of the Income-tax Act, 1961, the institutions or funds to which the donations are made have to be approved by the Commissioner of Income-tax in accordance with the rules prescribed in rule 11AA of the Income-tax Rule, 1962. The proviso to this clause provides that any approval granted under this clause shall have effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval.
Due to this limitation imposed on the validity of such approvals, the approved institutions or funds have to bear the hardship of getting their approvals renewed from time to time. This is unduly burdensome for the bona fide institutions or funds and also leads to wastage of time and resources of the tax administration in renewing such approvals in a routine manner.
Therefore, it is proposed to omit the proviso to clause (vi) of sub-section (5) of section 80G to provide that the approval once granted shall continue to be valid in perpetuity. Further, the Commissioner will also have the power of withdraw the approval if the Commissioner is satisfied that the activities of such institution or fund are not genuine or are not being carried out in accordance with the objects of the institution or fund. This amendment will take effect from 1st day of October, 2009. Accordingly, existing approvals expiring on or after 1st October, 2009 shall be deemed to have been extended in perpetuity unless specifically withdrawn.”
It appears that some doubts still prevail about the period of validity of approval under Section 80G subsequent to 1.10.2009, especially in view of the fact that no corresponding change has been made in Rule 11A (4). To remove any doubts in this regard, it is reiterated that any approval under Section 80G (5) on or after 1.10.2009 would be a one time approval which would be valid till it is withdrawn.
F.No.197/21/2010-ITA-I
(Raman Chopra)
Director (ITA-I)
ESI - Reduction of Coverage Limit w.e.f. 01.04.2011
ESI - Reduction of Coverage Limit w.e.f. 01.04.2011
Service Tax Liability Too Fixed At Invoice Stage
Rule provides a consistent tax regime for goods and services and sets the stage for GST
The Central Board of Excise and Customs has tweaked service tax rules, making service providers liable to pay tax as soon as they issue an invoice to their clients. Under the earlier rules, service tax became due only when a provider received payment for the service. This was at variance with the taxation of goods. States levy sales tax (value-added tax) on goods when the invoice is issued. Excise duty is also paid at the factory gate when the goods leave the factory on issuance of an invoice. The new rules provide a consistent regime for taxation of goods and services and aim to set the stage for the Goods and Services Tax (GST), which the government intends to roll out from April 2012.The Central Board of Excise and Customs had put out a draft of these rules for discussion in August last year. The rules have been changed following public feedback, a finance ministry official said. In cases where an invoice is issued periodically or not issued within 14 days of completion of service, a service provider will have to pay tax on completion of the service. For instance, in services such as telecommunications, construction and works contracts, service tax would become due after the completion of service or the date of completion mentioned in the contract. The new rules, however, offer relief to individuals, proprietory or partnership firms that provide services such as architecture, interior decoration, chartered accountancy, cost accountancy, scientific or technical consultancy and legal services. These service providers will be required to pay tax only after they receive payment. Although the government had begun taxing services in 1994,the need for rules aligning them with the taxation of goods was felt only now when the government is getting ready to roll out the GST. The new rules will determine the clear time of delivery of a service and reduce chances of a dispute under the GST regime, which will allow states to tax services. The introduction of point of taxation rules is an effort to align the way tax is paid on goods and services. However, the rules should have been kept simple as a harbinger of a simple GST, said Bipin Sapra, partner, Ernst & Young. The Central Board of Excise and Customs has also simplified Cenvat credit rules in line with the changes. Service providers will now be able to claim credit for tax already paid on inputs on receipt of invoice as against on payment of value of taxable service along with service tax. The government has also introduced three slabs for service tax on money changing but exempted inter-bank transactions. In high value transactions, the total service tax has been capped to a maximum of Rs 5,000.The Budget for 2011-12 had proposed a 0.1% levy on value of transaction, but the Indian Banks Association and forex dealers had protested against it.
Economic Times,New Delhi,2-4-11
The Central Board of Excise and Customs has tweaked service tax rules, making service providers liable to pay tax as soon as they issue an invoice to their clients. Under the earlier rules, service tax became due only when a provider received payment for the service. This was at variance with the taxation of goods. States levy sales tax (value-added tax) on goods when the invoice is issued. Excise duty is also paid at the factory gate when the goods leave the factory on issuance of an invoice. The new rules provide a consistent regime for taxation of goods and services and aim to set the stage for the Goods and Services Tax (GST), which the government intends to roll out from April 2012.The Central Board of Excise and Customs had put out a draft of these rules for discussion in August last year. The rules have been changed following public feedback, a finance ministry official said. In cases where an invoice is issued periodically or not issued within 14 days of completion of service, a service provider will have to pay tax on completion of the service. For instance, in services such as telecommunications, construction and works contracts, service tax would become due after the completion of service or the date of completion mentioned in the contract. The new rules, however, offer relief to individuals, proprietory or partnership firms that provide services such as architecture, interior decoration, chartered accountancy, cost accountancy, scientific or technical consultancy and legal services. These service providers will be required to pay tax only after they receive payment. Although the government had begun taxing services in 1994,the need for rules aligning them with the taxation of goods was felt only now when the government is getting ready to roll out the GST. The new rules will determine the clear time of delivery of a service and reduce chances of a dispute under the GST regime, which will allow states to tax services. The introduction of point of taxation rules is an effort to align the way tax is paid on goods and services. However, the rules should have been kept simple as a harbinger of a simple GST, said Bipin Sapra, partner, Ernst & Young. The Central Board of Excise and Customs has also simplified Cenvat credit rules in line with the changes. Service providers will now be able to claim credit for tax already paid on inputs on receipt of invoice as against on payment of value of taxable service along with service tax. The government has also introduced three slabs for service tax on money changing but exempted inter-bank transactions. In high value transactions, the total service tax has been capped to a maximum of Rs 5,000.The Budget for 2011-12 had proposed a 0.1% levy on value of transaction, but the Indian Banks Association and forex dealers had protested against it.
Economic Times,New Delhi,2-4-11
Monday, April 4, 2011
Two new info required in quarterly statement of deduction of tax from 1st April 2011
CBDT has notified amendment to Rule 31 and inserted tow new information to be provided by every deductor of tax in its quarterly statement of tax deduction .
Under Rule 31 , every person responsible for deduction of tax under Chapter XVII-B, are required to submit quarterly statement of tax. Sub Rule 4 of Rule 31A prescribes what information are required to to be given . Till 31s March 2011 , the Sub Rule 4 was as under
(4) The deductor at the time of preparing statements of tax deducted shall,-
(i) quote his tax deduction and collection account number (TAN) in the statement;
(ii) quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government;
(iii) quote the permanent account number of all deductees;
(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.
However, from 01/04/2011 , two new clause to sub-rule 4 are being added. These are
"(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;
(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee."
Under Rule 31 , every person responsible for deduction of tax under Chapter XVII-B, are required to submit quarterly statement of tax. Sub Rule 4 of Rule 31A prescribes what information are required to to be given . Till 31s March 2011 , the Sub Rule 4 was as under
(4) The deductor at the time of preparing statements of tax deducted shall,-
(i) quote his tax deduction and collection account number (TAN) in the statement;
(ii) quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government;
(iii) quote the permanent account number of all deductees;
(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.
However, from 01/04/2011 , two new clause to sub-rule 4 are being added. These are
"(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;
(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee."
Service tax on forex transactions cannot exceed Rs 5,000 – Govt
The government has capped service tax on foreign exchange transactions at Rs 5,000, which is seen as a bid to pacify market players, who feared a significant drop in the country’s forex volumes due to high levies on such transactions. As per a notification, tax for foreign exchange transactions will be calculated “at the rate of 0.1 per cent of the gross amount of currency exchanged for an amount up to Rs 1,00,000, subject to the minimum amount of Rs 25″.
For transactions between Rs 1 and Rs 10 lakh, the tax rate will Rs 100, plus 0.05 per cent of the gross amount of currency exchanged.
For transactions over Rs 10 lakh, the rate of service tax to be levied has been fixed at Rs 550 plus 0.01 per cent of the gross amount of currency exchanged. However, the maximum amount of service tax paid has been capped at Rs 5,000.
The rates are subject to the condition that “the person providing the service shall exercise such option for a financial year and such option shall not be withdrawn during the remaining part of that financial year.”
In his Budget speech, Finance Minister Pranab Mukherjee had proposed to introduce new methods to calculate service tax on forex transactions.
According to the first technique, service tax will be imposed at 0.1 per cent of the gross amount of currency exchanged.
As per the second technique, service tax will be one per cent of the difference between buying/selling rate and the Reserve Bank of India’s reference rate for the day multiplied by total units of the currency.
All foreign exchange transactions have been subjected to service tax since May, 2008.
For transactions between Rs 1 and Rs 10 lakh, the tax rate will Rs 100, plus 0.05 per cent of the gross amount of currency exchanged.
For transactions over Rs 10 lakh, the rate of service tax to be levied has been fixed at Rs 550 plus 0.01 per cent of the gross amount of currency exchanged. However, the maximum amount of service tax paid has been capped at Rs 5,000.
The rates are subject to the condition that “the person providing the service shall exercise such option for a financial year and such option shall not be withdrawn during the remaining part of that financial year.”
In his Budget speech, Finance Minister Pranab Mukherjee had proposed to introduce new methods to calculate service tax on forex transactions.
According to the first technique, service tax will be imposed at 0.1 per cent of the gross amount of currency exchanged.
As per the second technique, service tax will be one per cent of the difference between buying/selling rate and the Reserve Bank of India’s reference rate for the day multiplied by total units of the currency.
All foreign exchange transactions have been subjected to service tax since May, 2008.
FORM NO 13 Notification No 16 / 2011 Dated March 29, 2011
Notification No. 16/2011, Dated: March 29, 2011
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Second Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of April, 2011.
2. In the Income-tax rules, 1962,-
(a) for rule 28AA, the following rule shall be substituted, namely:-
“Certificate for deduction at lower rates or no deduction of tax from income other than dividends.
28AA. (1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies deduction of tax at lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.
(2) The existing and estimated liability referred to in sub-rule (1) shall be determined by Assessing Officer after taking into consideration the following:-
(i) tax payable on estimated income of the previous year relevant to the assessment year;
(ii) tax payable on the assessed or returned income, as the case may be, of the last three previous years;
(iii) existing liability under the Income-tax Act,1961 and Wealth-tax Act, 1957;
(iv) advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;
(v) tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and
(vi) tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.
(3) The certificate shall be valid for such period of the previous year as may be specified in the certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.
(4) The certificate shall be valid only with regard to the person responsible for deducting the tax and named therein.
(5) The certificate shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.”
(b) in rule 3IA, in sub-rule (4), after clause (iv), the following clauses shall be inserted, namely:-
“(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;
(c) in Appendix-II , for Form No.13, the following Form shall be substituted, namely:-
“FORM NO.13
[See rules 28 and 37G]
Application by a person for a certificate under sections 197 and/or 206C(9) of the Income-tax Act, 1961, for no *deduction/collection of tax or *deduction/ collection of tax at a lower rate
To
The Assessing Officer,
1. *I,_____________________________________________ of _______________ do, hereby, request that a certificate may be issued to the person responsible for paying to me the incomes/sum by way of salary/interest on securities/ interest other than “interest on securities”/insurance commission/commission (not being insurance commission) or brokerage/commission, etc., on the sale of lottery tickets/fees for professional or technical services/any sum by way of payment to contractors and subcontractors/dividends/rent/income in respect of units/sum by way of payment of compensation on acquisition of immovable property (strike out whichever is not applicable) authorising him not to deduct income-tax/to deduct income-tax at the rate of ___________ per cent at the time of payment to me of such income/sum. The particulars of my income and other details are as per para 2.
and/or
*I, _______________________________________________ of _________________ do, hereby, request that a certificate may be issued to the seller, being the person responsible for collecting the tax from me in respect of the amount payable by me as the buyer of ________________________ [specify the nature of goods referred to in the Table in sub-section (1) of section 206C]/lessee or licensee of ________________________ [specify the nature of contract or licence or lease referred to in the Table in sub-section (1C) of section 206C] (Strike out whichever is not applicable) authorizing him to collect income-tax at the rate of _____________________ per cent at the time of debit of such amount to my account or receipt thereof from me, as the case may be. The particulars of my income and other details are as per para 2.
2. The particulars of my income and other details are as under:
(i) Status
(State whether individual, Hindu undivided family,
firm, body of individuals, Company, etc.)
(ii) Residential status
(Whether resident/resident but not ordinarily
resident/non-resident)
(iii) Permanent Account No. (PAN)
(iv) Tax Deduction and Collection Account No. (TAN)
(v) Details of returns/statements which have become due but have not been filed:
(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee.”
Section under which return/
statement has become due Assessment
year/quarter Due date for filing Reason for not filing
(1) (2) (3) (4)
Section 139
Section 200
Section 206C
(vi) Details of returned income/assessed income for the last three assessment years:
(enclose copies of returns of income filed along with their enclosures and copies of assessment orders, if
assessed, for the last three assessment years.)
Assessment year Total income as per
return of income Total income as
per latest
assessment Total tax including
interest payable on
returned income Total tax including
interest payable on
assessed income
(1) (2) (3) (4) (5)
(vii) Details of tax payment for the last three assessment years:
Assessment
year Total
payment of tax including
interest Tax paid by
way of
Advance
tax Credit
claimed for tax
deduction at source. Credit
claimed for
tax collection
at source. Tax paid by
way of self
assessment
tax Tax paid in response to notice of
demand
under section
156
(1) (2) (3) (4) (5) (6) (7)
(viii) Details of sales, profit, etc. for the last three previous years in the case of assessee whose income
include income under the head “Profits and gains of business or profession”:
(enclose copies of profit and loss account and balance sheet along with audit report, if audited, for the
last three previous years)
Gross sales,
turnover receipt of
business or
profession Gross sales,
turnover receipt of
business or
profession Gross profit Net profit
In rupees In percentage to amount stated in column (1) In rupees In percentage to amount stated in
column (1)
(1) (2) (3) (4) (5) (6)
(ix) Details of existing liability under Income-tax Act, 1961 and Wealth-tax Act, 1957:
Assessment
Year/ period Liability under the Income-tax Act, 1961 Amount
payable under
the Wealth-tax
Act, 1957
Amount
payable in
respect of
advance-tax Amount
payable for
selfassessment
tax Amount for which
notice of demand
under section 156
has been served but
not paid. Amount payable
as deductor or
collector which
had become due
but not paid.
(1) (2) (3) (4) (5) (6)
(x) Assessment year to which the payments relate
(xi) Estimated total income of the previous year relevant to the assessment year referred to in (x) above
(give detailed computation and basis thereof)
(xii) Total tax including interest payable on the income at (xi)
(xiii) How the liability mentioned in col. (ix) and col. (xii) is proposed to be discharged?
(xiv) Details of payment of advance-tax and tax already deducted/collected for the assessment year relevant to the current previous year till date.
Nature of prepaid tax Date of payment/deduction/collection
Advance tax
TDS
TCS
(xv) Details of income claimed to be exempt and not included in the total income in col. (xi) (Please append a note giving reason for claiming such exemption).
(xvi) Please furnish the particulars in Annexure-I in respect of no deduction of tax or deduction of tax at a lower rate under section 197 and/or in Annexure-II for collection of tax at lower rate under section 206C(9) of the Income-tax Act, as the case may be.
*I, ________________________________ the trustee/co-trustee of _______________________________ do hereby declare that the securities/sums/shares, particulars of which are given in the Annexure, are properly held under trust wholly for charitable or religious purposes and that the income therefrom qualifies for exemption under sections 11 and 13 of the Income-tax Act, 1961.
*I declare that the securities/sums/shares, particulars of which are given in the Schedules above, stand in my name and are beneficially owned by me, and the income therefrom is not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.
I further declare that what is stated in this application is correct.
Date ___________ ___________________
Signature
Place __________ ___________________
Address
ANNEXURE I
[For the purpose of tax deduction at source]
Please furnish the particulars with the Schedules below in respect of the payments for which the certificate is
sought.
SCHEDULE I
Description of securities Number of securities Date of
securities Amount of securities Estimated amount of
interest to be received
(1) (2) (3) (4) (5)
SCHEDULE II
Sl.
No. Name and address of
the person to whom the
sums are given on
Interest Amount
of such
sums The date on which
such sums were
given on interest Period for which
such sums were
given on Interest Rate of
interest Estimated
amount of
interest to
be received
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE III
Sl. No. Name and address of person responsible for paying insurance commission Estimated amount of insurance commission
(1) (2) (3)
SCHEDULE IV
Sl.
No. Name and address of the company No. of shares Class of shares and face value of each share Total face value of shares Distinctive numbers of shares Estimated amount
of dividend to be
received
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE V
Sl.
No. Name and
address of the
employer Period of
employment Amount of salary
received Income from
house property Income from sources other than salary and income from house property Estimated total
income
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE VI
Sl. No. Name and address of person responsible for paying rent Estimated amount of rent to be received
(1) (2) (3)
SCHEDULE VII
Sl.
No. Name and
address of the
mutual fund No. of
units Classes of units
and face value of
each unit Total face
value of
units Distinctive
numbers of
units Estimated amount
of income to be
received
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE VIII
Sl. No. Name and address of person responsible for paying commission (not being insurance commission referred to in section 194D) or brokerage. Estimated amount of commission (not being
insurance commission referred to in section 194D) or brokerage to be received
(1) (2) (3)
SCHEDULE IX
Sl.
No. Full name and
address of the
authority/person
with whom the
contract was made Date of
the
contract Nature of
the contract Date by which
work on the
contract would
be completed Sums expected to be credited/ paid
in pursuance of the contract during
the current previous year and each
of the three immediately succeeding
years
(1) (2) (3) (4) (5) (6)
SCHEDULE X
Sl. No. Name and address of person(s) responsible for paying commission, remuneration or prize (by whatever name called) on the sale of lottery tickets Estimated amount of commission/
remuneration/prize to be received (strike out
whichever is not applicable)
(1) (2) (3)
SCHEDULE XI
Sl. No. Name and address of person(s) responsible for paying fees for professional/technical services Estimated amount of fees for professional/technical services to be received
(strike out whichever is not applicable)
(1) (2) (3)
SCHEDULE XII
Sl. No. Name and address of person responsible for paying compensation or enhanced compensation or the
consideration or enhanced consideration on account of
compulsory acquisition of immovable property Estimated amount of compensation or the
enhanced compensation or consideration or the
enhanced consideration
(1) (2) (3)
Date ____________
(Signature) _________
Place ______________
(Address)__________________
ANNEXURE II
[For the purpose of tax collection at source]
Please furnish particulars of the amounts payable in respect of which the certificate is sought in the schedules below:-
SCHEDULE I
Sl.
No. Full name and
address of the
seller Date of sale with
reference number of
such sale Nature and description
of the goods sold and
details of sale Amounts expected to be debited/
paid in pursuance of the sale during
the current financial year and each of the three immediately succeeding
years.
(1) (2) (3) (4) (5)
SCHEDULE II
Sl.
No. Full name and
address of the
person granting
lease or licence Date of grant of
lease or licence or
contract or transfer
of right with
reference number Nature of contract or
licence or lease and
description and
details of the contract Amounts expected to be debited/ paid
in pursuance of the contract during
the current financial year and each of
the three immediately succeeding
years.
(1) (2) (3) (4) (5)
Date _______________
_______________
Signature of the buyer
Full Name ____________
Designation _____________”
F.No.133/11/2011-SO(TPL)
(Rajesh Kumar Bhoot)
Director (Tax Policy and Legislation)
Note. The principal rules were published vide, Notification No.S.O.969(E), dated 26th March, 1962 and last amended by the Income-tax (First Amendment) Rules, 2011 vide Notification S.O.495(E) dated 9th March, 2011.
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Second Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of April, 2011.
2. In the Income-tax rules, 1962,-
(a) for rule 28AA, the following rule shall be substituted, namely:-
“Certificate for deduction at lower rates or no deduction of tax from income other than dividends.
28AA. (1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies deduction of tax at lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.
(2) The existing and estimated liability referred to in sub-rule (1) shall be determined by Assessing Officer after taking into consideration the following:-
(i) tax payable on estimated income of the previous year relevant to the assessment year;
(ii) tax payable on the assessed or returned income, as the case may be, of the last three previous years;
(iii) existing liability under the Income-tax Act,1961 and Wealth-tax Act, 1957;
(iv) advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;
(v) tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and
(vi) tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.
(3) The certificate shall be valid for such period of the previous year as may be specified in the certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.
(4) The certificate shall be valid only with regard to the person responsible for deducting the tax and named therein.
(5) The certificate shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.”
(b) in rule 3IA, in sub-rule (4), after clause (iv), the following clauses shall be inserted, namely:-
“(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;
(c) in Appendix-II , for Form No.13, the following Form shall be substituted, namely:-
“FORM NO.13
[See rules 28 and 37G]
Application by a person for a certificate under sections 197 and/or 206C(9) of the Income-tax Act, 1961, for no *deduction/collection of tax or *deduction/ collection of tax at a lower rate
To
The Assessing Officer,
1. *I,_____________________________________________ of _______________ do, hereby, request that a certificate may be issued to the person responsible for paying to me the incomes/sum by way of salary/interest on securities/ interest other than “interest on securities”/insurance commission/commission (not being insurance commission) or brokerage/commission, etc., on the sale of lottery tickets/fees for professional or technical services/any sum by way of payment to contractors and subcontractors/dividends/rent/income in respect of units/sum by way of payment of compensation on acquisition of immovable property (strike out whichever is not applicable) authorising him not to deduct income-tax/to deduct income-tax at the rate of ___________ per cent at the time of payment to me of such income/sum. The particulars of my income and other details are as per para 2.
and/or
*I, _______________________________________________ of _________________ do, hereby, request that a certificate may be issued to the seller, being the person responsible for collecting the tax from me in respect of the amount payable by me as the buyer of ________________________ [specify the nature of goods referred to in the Table in sub-section (1) of section 206C]/lessee or licensee of ________________________ [specify the nature of contract or licence or lease referred to in the Table in sub-section (1C) of section 206C] (Strike out whichever is not applicable) authorizing him to collect income-tax at the rate of _____________________ per cent at the time of debit of such amount to my account or receipt thereof from me, as the case may be. The particulars of my income and other details are as per para 2.
2. The particulars of my income and other details are as under:
(i) Status
(State whether individual, Hindu undivided family,
firm, body of individuals, Company, etc.)
(ii) Residential status
(Whether resident/resident but not ordinarily
resident/non-resident)
(iii) Permanent Account No. (PAN)
(iv) Tax Deduction and Collection Account No. (TAN)
(v) Details of returns/statements which have become due but have not been filed:
(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee.”
Section under which return/
statement has become due Assessment
year/quarter Due date for filing Reason for not filing
(1) (2) (3) (4)
Section 139
Section 200
Section 206C
(vi) Details of returned income/assessed income for the last three assessment years:
(enclose copies of returns of income filed along with their enclosures and copies of assessment orders, if
assessed, for the last three assessment years.)
Assessment year Total income as per
return of income Total income as
per latest
assessment Total tax including
interest payable on
returned income Total tax including
interest payable on
assessed income
(1) (2) (3) (4) (5)
(vii) Details of tax payment for the last three assessment years:
Assessment
year Total
payment of tax including
interest Tax paid by
way of
Advance
tax Credit
claimed for tax
deduction at source. Credit
claimed for
tax collection
at source. Tax paid by
way of self
assessment
tax Tax paid in response to notice of
demand
under section
156
(1) (2) (3) (4) (5) (6) (7)
(viii) Details of sales, profit, etc. for the last three previous years in the case of assessee whose income
include income under the head “Profits and gains of business or profession”:
(enclose copies of profit and loss account and balance sheet along with audit report, if audited, for the
last three previous years)
Gross sales,
turnover receipt of
business or
profession Gross sales,
turnover receipt of
business or
profession Gross profit Net profit
In rupees In percentage to amount stated in column (1) In rupees In percentage to amount stated in
column (1)
(1) (2) (3) (4) (5) (6)
(ix) Details of existing liability under Income-tax Act, 1961 and Wealth-tax Act, 1957:
Assessment
Year/ period Liability under the Income-tax Act, 1961 Amount
payable under
the Wealth-tax
Act, 1957
Amount
payable in
respect of
advance-tax Amount
payable for
selfassessment
tax Amount for which
notice of demand
under section 156
has been served but
not paid. Amount payable
as deductor or
collector which
had become due
but not paid.
(1) (2) (3) (4) (5) (6)
(x) Assessment year to which the payments relate
(xi) Estimated total income of the previous year relevant to the assessment year referred to in (x) above
(give detailed computation and basis thereof)
(xii) Total tax including interest payable on the income at (xi)
(xiii) How the liability mentioned in col. (ix) and col. (xii) is proposed to be discharged?
(xiv) Details of payment of advance-tax and tax already deducted/collected for the assessment year relevant to the current previous year till date.
Nature of prepaid tax Date of payment/deduction/collection
Advance tax
TDS
TCS
(xv) Details of income claimed to be exempt and not included in the total income in col. (xi) (Please append a note giving reason for claiming such exemption).
(xvi) Please furnish the particulars in Annexure-I in respect of no deduction of tax or deduction of tax at a lower rate under section 197 and/or in Annexure-II for collection of tax at lower rate under section 206C(9) of the Income-tax Act, as the case may be.
*I, ________________________________ the trustee/co-trustee of _______________________________ do hereby declare that the securities/sums/shares, particulars of which are given in the Annexure, are properly held under trust wholly for charitable or religious purposes and that the income therefrom qualifies for exemption under sections 11 and 13 of the Income-tax Act, 1961.
*I declare that the securities/sums/shares, particulars of which are given in the Schedules above, stand in my name and are beneficially owned by me, and the income therefrom is not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.
I further declare that what is stated in this application is correct.
Date ___________ ___________________
Signature
Place __________ ___________________
Address
ANNEXURE I
[For the purpose of tax deduction at source]
Please furnish the particulars with the Schedules below in respect of the payments for which the certificate is
sought.
SCHEDULE I
Description of securities Number of securities Date of
securities Amount of securities Estimated amount of
interest to be received
(1) (2) (3) (4) (5)
SCHEDULE II
Sl.
No. Name and address of
the person to whom the
sums are given on
Interest Amount
of such
sums The date on which
such sums were
given on interest Period for which
such sums were
given on Interest Rate of
interest Estimated
amount of
interest to
be received
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE III
Sl. No. Name and address of person responsible for paying insurance commission Estimated amount of insurance commission
(1) (2) (3)
SCHEDULE IV
Sl.
No. Name and address of the company No. of shares Class of shares and face value of each share Total face value of shares Distinctive numbers of shares Estimated amount
of dividend to be
received
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE V
Sl.
No. Name and
address of the
employer Period of
employment Amount of salary
received Income from
house property Income from sources other than salary and income from house property Estimated total
income
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE VI
Sl. No. Name and address of person responsible for paying rent Estimated amount of rent to be received
(1) (2) (3)
SCHEDULE VII
Sl.
No. Name and
address of the
mutual fund No. of
units Classes of units
and face value of
each unit Total face
value of
units Distinctive
numbers of
units Estimated amount
of income to be
received
(1) (2) (3) (4) (5) (6) (7)
SCHEDULE VIII
Sl. No. Name and address of person responsible for paying commission (not being insurance commission referred to in section 194D) or brokerage. Estimated amount of commission (not being
insurance commission referred to in section 194D) or brokerage to be received
(1) (2) (3)
SCHEDULE IX
Sl.
No. Full name and
address of the
authority/person
with whom the
contract was made Date of
the
contract Nature of
the contract Date by which
work on the
contract would
be completed Sums expected to be credited/ paid
in pursuance of the contract during
the current previous year and each
of the three immediately succeeding
years
(1) (2) (3) (4) (5) (6)
SCHEDULE X
Sl. No. Name and address of person(s) responsible for paying commission, remuneration or prize (by whatever name called) on the sale of lottery tickets Estimated amount of commission/
remuneration/prize to be received (strike out
whichever is not applicable)
(1) (2) (3)
SCHEDULE XI
Sl. No. Name and address of person(s) responsible for paying fees for professional/technical services Estimated amount of fees for professional/technical services to be received
(strike out whichever is not applicable)
(1) (2) (3)
SCHEDULE XII
Sl. No. Name and address of person responsible for paying compensation or enhanced compensation or the
consideration or enhanced consideration on account of
compulsory acquisition of immovable property Estimated amount of compensation or the
enhanced compensation or consideration or the
enhanced consideration
(1) (2) (3)
Date ____________
(Signature) _________
Place ______________
(Address)__________________
ANNEXURE II
[For the purpose of tax collection at source]
Please furnish particulars of the amounts payable in respect of which the certificate is sought in the schedules below:-
SCHEDULE I
Sl.
No. Full name and
address of the
seller Date of sale with
reference number of
such sale Nature and description
of the goods sold and
details of sale Amounts expected to be debited/
paid in pursuance of the sale during
the current financial year and each of the three immediately succeeding
years.
(1) (2) (3) (4) (5)
SCHEDULE II
Sl.
No. Full name and
address of the
person granting
lease or licence Date of grant of
lease or licence or
contract or transfer
of right with
reference number Nature of contract or
licence or lease and
description and
details of the contract Amounts expected to be debited/ paid
in pursuance of the contract during
the current financial year and each of
the three immediately succeeding
years.
(1) (2) (3) (4) (5)
Date _______________
_______________
Signature of the buyer
Full Name ____________
Designation _____________”
F.No.133/11/2011-SO(TPL)
(Rajesh Kumar Bhoot)
Director (Tax Policy and Legislation)
Note. The principal rules were published vide, Notification No.S.O.969(E), dated 26th March, 1962 and last amended by the Income-tax (First Amendment) Rules, 2011 vide Notification S.O.495(E) dated 9th March, 2011.
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