Clarifications on the amendments/introduction of the new TDS/TCS provisions vide Notification No. 31/2009, dated 25 March 2009 — Circular No. 2/2009, dated 21 May 2009.

The CBDT vide a press release (as mentioned above) had stalled the implementation of the new provisions relating to TDS/TCS provisions till 1 July 1009. The CBDT has now reinstated the implementation of these provisions with effect from 1 April 2009, by issuing this Circular and clarifying certain ambiguities which arose due to the introduction/amendments relating to the captioned subject. Important clarifications are under :

•  Claim for TDS would be allowed only if amount has been deposited and information relating to the deductee has been provided by the deductor/collector and the claim matches with that of the deductee/collector.

•  Central and State Government deductors have also been made responsible for payment of TDS in the bank unlike earlier when book adjustments/consolidated payments were allowed.

•  Every deduction record will generate a Unique Transaction Number (UTN) on loading the information on NSDL and payment of the TDS/TCS to the Government Treasury. UTN would be emailed by the NSDL to the deductor, and needs to be quoted in the TDS certificate. This UTN can also be independently viewed by the deductee on the website of NSDL.

•  It is mandatory for all TAN holders to furnish Form 24C quarterly irrespective of whether any payment liable to TDS has been made or not. The first quarter in respect of which Form 24C is required to be furnished is the quarter ending on 30th June, 2009 by 15th July.

•  The above new system will be effective for all TDS/TCS on or after the 1st April, 2009. However, any TDS or TCS effected on or after the 1st April, 2009 but not later than 31st May, 2009 can be continued to be paid to the credit of the Central Government by using the old challan form. Post 1st June, 2009 such TDS/TCS shall be required to be paid by electronically by furnishing income tax challan in Form No. 17. By 15 July, for those TDS/TCS which have been paid in the old challan, Form No 17 needs to be filled up so that UTNs for these can be generated.

•  For splitting the payment of TDS/TCS , a separate Form 17 needs to be filled for each payment.

•  In the said Circular, it has been clarified for the AY 2008-09 and onwards, UTNs are going to be generated by NSDL and detailed procedure has been prescribed for claiming TDS on the basis of this UTNs. Since the returns for AY 2008-09 have already been filed, it remains to be seen how this would be practically implemented.

•  Similarly new procedures have been prescribed for issue of TDS/TCS certificates in Form 16/16A and 27D.

Instructions for new Income Tax Return forms for Assessment Year 2009-2010 — Circular No. 3/2009, dated 21 May 2009.

Certain clarifications have been given by the CBDT for the E-returns for AY 2009-10, the important ones being :

•  It has been reiterated that no enclosures need to be submitted along with the paper return. The only exception being transfer pricing report which needs to be filed separately as per the provisions of the Act.

•  With respect to E-filing(without digital signatures) and subsequent filing of verification form in ITR-V — hard copy of verification form ITR-V now can be filed within 30 days (instead of the earlier time limit of 15 days) from date of electronic filing. Further, the CBDT has decided to process all the paper returns i.e., ITR V Centrally at Bangalore. Hence, all the ITR V needs to be sent by the assessee at the following address :

•  It has been reiterated in this Circular that the credit for TDS/TCS and the advance tax/self assessment tax would be available mainly on the basis of the UTN information and CIN information feeded in the return.