PRESS RELEASES, DATED 18-7-2008  

E-Payment of Taxes

The Central Board of Direct Taxes (CBDT) have vide notification S.O.No.493(E) dated 13.3.2008 notified the categories of taxpayers who are mandatorily required to electronically pay taxes on or after the 1st day of April, 2008. A company and such other taxpayers (other than a company), to whom provisions of section 44AB of the Income-tax Act, 1961 are applicable have been brought within the ambit of the new provision.

With a view to clarifying and facilitating such electronic payment of taxes by different categories of taxpayers, the CBDT has issued Circular No. 5 of 2008. The Circular clarifies that a taxpayer can make electronic payment of taxes from the account of any other person. However, the challan for making such payment must clearly indicate the Permanent Account Number (PAN) of the taxpayer on whose behalf the payment is to be made. It will not be necessary for the assessee to make payment of taxes from his own account in an authorized bank.

Further, it has also been clarified that for the purpose of the newly inserted rule 125 of the Income-tax Rules, 1962, the meaning of ‘tax’ will include payment of tax deducted at source (TDS) or tax collected at source (TCS). Therefore, a company and such other taxpayers (other than a company), to whom provisions of section 44AB of the Income-tax Act, 1961 are applicable, are also required to mandatorily make such payment electronically.

BSC/GN-184/08

IT returns to be filed without TDS certificates

The Central Board of Direct Taxes have vide notification S.O.No.752(E) dated 28.3.2008, notified the return forms for the assessment year 2008-09. With a view to enabling tax-payers to file returns in the electronic mode, these returns (except ITR-7) have been made annexure-less. In the recent past media reports have raised doubts on whether TDS/ TCS certificates, counterfoil of challan for tax payment and other documents should be filed along with the return or not. On consideration by CBDT, it is clarified that –

(i) no annexures, TDS/ TCS certificates are required to be annexed to the returns of income. Wherever documents are attached with the return, the receiving official is required to detach and return to the tax-payers all such annexures; 

(ii) ITR-V verification form is in the nature of an acknowledgement, and therefore, the same should be received by giving a Return Receipt Number, as if it were a return. These ITR-V verification forms are to be received in separate counters to be set up for the purpose and these forms should be kept in safe custody 

(iii) the credit for tax deducted at source (TDS)/tax collected at source (TCS) shall be allowed on the basis of details furnished in the relevant schedules of the return forms, subject to relevant instructions on verification of TDS claims; 

(iv) no disallowance of claim for TDS/TCS shall be made by the assessing officer only on the ground that the TDS/TCS certificates have not been filed along with the return of income or Form ITR-V. The same procedure shall also apply in respect of challans relating to Advance Tax and Self Assessment Tax;

(v) assessees are also advised to retain with themselves all annexures relating to computation of income, TDS/TCS certificates, counterfoil of challans relating to payment of advance tax and self assessment tax, audit reports and any other document which they would have otherwise liked to file in support of their claims. The original documents and certificates may be produced by them as and when called for by the assessing officer.

BSC/GN-185/08