Duties Of Person Deducting Income Tax [Section 200] | Ay 2019-20 Onwards
Written by KnowYourGST Team under GST
Payment of tax deducted
- The persons responsible for deducting the tax at source should deposit the sum so deducted to the credit of the Central Government within the prescribed time [Sub-section (1)].
- Further, an employer paying tax on non-monetary perquisites provided to employees in accordance with section 192(1A), should deposit within the prescribed time, the tax to the credit of the Central Government or as the Board directs [Sub-section (2)].
- Rule 30 – Prescribed time and mode of payment to Government account of TDS or tax paid under section 192(1A)
- All sums deducted in accordance with Chapter XVII-B by an office of the Government shall be paid to the credit of the Central Government on the same day where the tax is paid without production of an income-tax challan and on or before seven days from the end of the month in which the deduction is made or income-tax is due under section 192(1A), where tax is paid accompanied by an income-tax challan.
- All sums deducted in accordance with Chapter XVII-B by deductors other than a Government office shall be paid to the credit of the Central Government on or before 30th April, where the income or amount is credited or paid in the month of March. In any other case, the tax deducted should be paid on or before seven days from the end of the month in which the deduction is made or income-tax is due under section 192(1A).
- In special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192/ 194A/194D/194H on or before 7th of the month following the quarter, in respect of first three quarters in the financial year and 30th April in respect of the quarter ending on 31st March. The dates for quarterly payment would, therefore, be 7th July, 7th October, 7th January and 30th April, for the quarters ended 30th June, 30th September, 31st December and 31st March, respectively.
- Tax deducted under sections 194-IA and 194-IB have to be remitted within 30 days from the end of the month of deduction. A challan-cum-statement in Form 26QB/26QC has to be furnished within 30 days from the end of the month of deduction.
- For the purpose of improving the reporting of payment of TDS made through book entry and to make existing mechanism enforceable, sub-section (2A) has been inserted in section 200. Accordingly, where the tax deducted or tax referred to in section 192(1A) has been paid without the production of a challan, the PAO/TO/CDDO or any other person, by whatever name called, who is responsible for crediting such sum to the credit of the Central Government, shall deliver or cause to be delivered within the prescribed time a statement in the prescribed form, verified in the prescribed manner and setting forth prescribed particulars to the prescribed income-tax authority or the person authorised by such authority [Sub-section (2A)].
Filing of TDS return
- Sub-section (3) casts responsibility on the following persons –
- any person deducting any sum on or after 1st April, 2005 in accordance with the foregoing provisions of this chapter; or,
- any person being an employer referred to in section 192(1A).
- These persons are responsible for preparing such statements for such periods as may be prescribed, after paying the tax deducted to the credit of the Central Government within the prescribed time.
- Such statements have to be delivered or caused to be delivered to the prescribed income-tax authority or the person authorised by such authority.
- Such statements should be in the prescribed form and verified in the prescribed manner.
- It should set forth such particulars and should be delivered within such time as may be prescribed.
- The deductor may also deliver to the prescribed authority, a correction statement -
- for rectification of any mistake; or
- to add, delete or update the information furnished in the statement delivered under section 200(3).
- Every person responsible for deduction of tax under Chapter XVII-B shall deliver, or cause to be delivered, the following quarterly statements to the DGIT (Systems) or any person authorized by him, in accordance with section 200(3):
- Statement of TDS under section 192 in Form No.24Q;
- Statement of TDS under sections 193 to 196D in Form No.26Q in respect of all deductees other than a deductee being a non-corporate non-resident or a foreign company or resident but not ordinarily resident in which case the relevant form would be Form No.27Q.
- Rule 31A - Time limit for submission of quarterly statements
Rule 31A requires every person responsible for deduction of tax under Chapter XVII-B to deliver, or cause to be delivered, quarterly statements to the Director General of Income-tax (Systems) or the person authorised by him within the due date for each quarter specified in Rule 31A(2). Rule 31A(2) prescribed differential due dates for Government deductors and other deductors. In order to ensure equity and give more time for other deductors, common due dates are now prescribed thereunder for Government deductors and other deductors. Accordingly, quarterly statements of TDS have to be furnished by the due dates specified in column (3) against the corresponding quarter –
||Date of Ending of the Quarter of the Financial Year
||31st July of the financial year
||31st October of the financial year
||31st January of the financial year
||31st May of the financial year immediately following
the financial year in which the deduction is made.
Providing Certificate for tax deducted to deductee [Section 203]
Every person deducting tax at source shall issue a certificate to the effect that tax has been deducted and specify the amount so deducted, the rate at which tax has been deducted and such other particulars as may be prescribed.
Every person, being an employer, referred to in sub-section (1A) of section 192 shall, within such period, as may be prescribed, furnish to the person in respect of whose income such payment of tax has been made, a certificate to the effect that tax has been paid to the Central Government, and specify the amount so paid, the rate at which the tax has been paid and such other particulars as may be prescribed.
Certificate of TDS to be furnished under section 203 [Rule 31]
The certificate of deduction of tax at source to be furnished under section 203 shall be in Form No.16 in respect of tax deducted or paid under section 192 and in any other case, Form No.16A.
Form No.16 shall be issued to the employee annually by 15th June of the financial year immediately following the financial year in which the income was paid and tax deducted. Form No.16A shall be issued quarterly within 15 days from the due date for furnishing the statement of TDS under Rule 31A