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.