INCOME TAX MATTERS ( A monthly journal on - Income tax and wealth tax- since 1999) - ( subscription for the year 2009 (TWO VOLUMES) is only Rs. 1300/-) - For subcription and to Know more click here

 

ARTICLES AND Views relating to Income Tax

 

Cost Inflation Index for the purpose of computing Long Term Capital Gain for the financial year 2009-10 is 632 and for other years is as follows :-

 

 

Quarterly Compliance Statement in Form No. 24C of tds/tcs to be submitted to the Department With effect from April 1, 2009 - To be submitted quarterly.
( By P C GARG Advocate and CA Ritesh Garg)

Quarterly TDS/TCS Compliance Statement in Form No. 24C -- To be submitted quarterly on or before July 15, October 15, January 15 and June 15 (First Form No. 24C To be submitted on or before July 15, 2009)

TDS/TCS Compliance Statement in Form No. 24C shall be submitted by every person who has been allotted a tax deduction/collection number (TAN).

TDS/TCS Compliance Statement in Form No. 24C shall be submitted electronically only. 

Form 24C is required to be furnished by all TAN holders irrespective of whether a TDS/TCS transaction has been effected during the quarter or not.  In the event of the column (3) of the Schedules in From 24C is zero for all nature of payments, the deductor/collector should specify in the section on filing status in Form 24C that it is a case of ‘Nil Return’ and it would not be necessary to fill in the Schedules.  (Para 21 of Circulars No. 02/209, dated 21-5-2009)

Para 20 & 22 of Circular No. 02/209, dated 21-5-2009  also explains how to fill form 24 C as follows :-

The first part of the Form relates to personal information and filing status. 

The Schedule COM-I relates to details of TDS/TCS compliance in the first month of the relevant quarter. 

Likewise details of TDS/TCS compliance for the second and third month of the relevant quarter would have to be reported in Schedule COM-2 and Schedule COM-3 respectively.

In this Schedule in column (3), for example, against section 194A in column (1), the TAN holder is required to furnish the total amount of interest paid during the month.

Let us assume that this total amount is Rs. 1 crore. 

In column (4) of the corresponding entry, the deductor is required to furnish the total amount on which TDS was liable or eligible to be deducted out of Rs. 1 crore.   As is well known, no TDS is required to be deducted if the interest payment is less than Rs.  10,000. If the total of the amounts of interest payment/credit less than Rs. 10,000 is Rs. 30 lakhs, then the deductor must report in column (4) an amount of Rs. 70 lakhs (Rs. 1 crore – Rs. 30 lakhs). 

In column (5), the deductor has to report that the total amount on which tax was deducted at prescribed rate out of the amount reported in column (4).  In the instant case the rate of tax to be deducted at source is 11.33 percent (including surcharge and education cess).  However, in many instances the recipients of interest exceeding the threshold limit of Rs. 10,000/- would either furnish certificate for non deduction of tax or deduction at a lower rate than the prescribed rate.  Let us assume that the amount of interest paid to such recipients is Rs. 15 lakhs.  Therefore, the amount of interest payment liable to TDS at the prescribed rate would be Rs. 55 lakhs (Rs. 70 lakhs – Rs. 15 lakhs), which is required to be reported in column (5). 

Since the prescribed rate is 11.33%, and the amount of interest liable to TDS at the prescribed rate is Rs. 55 lakhs, the amount of TDS on such payment is Rs. 6,23,150/-.  This amount is required to be reported in column (6). 

In column (7), the deductor is required to report the amount of Rs. 15 lakh i.e., the amount of interest payment liable to TDS at less than the prescribed rate. 

Let us assume that the TDS at ‘nil’ or lower rate on the amount of Rs. 15 lakh is Rs. 50,000/-.  This amount would be required to be reported in column (8). 

The total amount of TDS of Rs. 6,73,150/- (Rs. 6,23,150 + Rs. 50,000) is required to be reported in column (9). 

The above example is reproduced below in the tabular form as would appear in Form 24C:-

Section	Nature of payment	Total Expense or Capital outgo under the section	Total Amount on which TDS / TCS was liable or eligible to be deducted  or collected out of (3)	Total Amount on which tax was deducted or collected at prescribed rate out of (4)	Amount of tax deducted or collected on (5)	Total Amount on which tax was deducted or collected at less than prescribed rate out of (6)	Amount of tax deducted or collected on (7)	Total  Amount =(6) + (8)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
194A	Interest other than interest on securities	1,00,00,000	70,00,000	55,00,000	6,23,150	15,00,000	50,000	6,73,150

 

 

In Schedule PAY of Form 24C, the deductor/collector is required to indicate the details of the payment of the TDS/TCS to the credit of the Central Government.

[ Note - Form 24 C is given in our journal " INCOME TAX MATTERS " at vol. 13 (2009) page 156 (JS) ]

 

 

 

 

 

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