Relyonsoft.com
Tax Software  
customerlogin Customer Login | userlogin Visitor Login | buyonline Buy Online
TDS certificates need to be issued till 2010

Back to Budget Page

Much said, "Dematerializing TDS and TCS certificates" has been once more postponed. This time, not by an year. It is two years. As per the budget amendment, it will be optional to issue a TDS certificate for any deductions made on or after 01-04-2010.

There is a reason for postponing and it says, the postponing of the scheme is because "the national level information technology infrastructure of the Income-tax Department is not yet operational".

A summary regarding of the finance bill regarding this matter is as below:

Amendments to the provisions of Dematerialisation of TDS and TCS certificates

A scheme for dematerialisation of Tax Deducted at Source (TDS)/ Tax Collected at Source (TCS) certificates was introduced through the Finance (No. 2) Act, 2004, with effect from 01-04-2005 for any deduction or collection of tax at source made on or after 1-04-2005. The commencement of this scheme was postponed to 1-4-2006 by the Finance Act, 2005 and later to 1-4-2008 by the Finance Act, 2006. Since the national level information technology infrastructure of the Income-tax Department is not yet operational, it is proposed to extend the commencement of the scheme to 1-04-2010.

The system of allowing credit to the assessee for TDS/TCS needs a certain degree of flexibility considering the ongoing technological and business process changes. Providing rigorous conditions regarding the method of giving credit for TDS/TCS in the Act itself, makes the system difficult to restructure and implement according to the changing technological environment. In view of this, it is proposed to substitute section 199 and section 206C(4) so that the manner in which credit of TDS/TCS is to be given will be governed by Rules to be framed under section 199 & section 206C(4) i.e. the Board may make such rules as may be necessary for the purpose of giving credit in respect of TDS/TCS or tax paid by employer on perquisite under section 192(1A).

These amendments will take effect from the 1st day of April, 2008.

Source: Relyon | Back to Budget Page

Chat with us
 
 
Tax, Payroll and Accounting Software
© 2012-2013 Relyon Softech Ltd. All rights reserved