Volume 3, Issue 15


30th July, 2010


Tax Alert
NEW TDS RULES

The CBDT has, vide Notification No. 41/2010 dated 31 May 2010 (new Notification), notified Income‐tax (Sixth Amendment) Rules, 2010 which amends the Rules 30, 31, 31A, 31AA, 37A, 37CA and 37D relating to TDS/TCS compliance. The CBDT has simplified various interpretational issues involved in the earlier provisions. The new Notification is effective from 1st April 2010 and applies to tax deducted/collected on or after 1st April 2010.

The procedural requirements effective for tax deducted/ collected on or after 1 April 2010 in terms of the new Notification are summarized below:

A. Time limit for depositing TDS

Particulars Old Provision Amended Provision
  • By Government
    Deductor
  • TDS deducted to be
    deposited on the same
    day
  • Same day if tax paid
    without challan
  • Within 7 days from the
    end of the month of
    tax deduction if tax
    paid with challan
  • Others
  • TDS on credit made on
    date up to which
    accounts of the deductor
    are made‐ within 2
    months
  • Other cases‐ Within one
    week from the end of the
    month of tax deducted
  • TDS on amount paid/
    credited in the month
    of March ‐ up to 30th
    April
  • Other cases‐ Within 7
    days from the end of
    the month in which the
    deduction is made
  • With approval from
    the tax authorities
    in special cases
    • TDS from interest (other than securities),
      insurance commission
      and commission/
      brokerage
    • TDS from salaries



  • Quarterly basis on 15th
    July, 15th October, 15th
    January and 15th April.




  • Quarterly basis on 15th
    June, 15th September,
    15th December and 15th
    April.



  • Quarterly basis on 7th
    July, 7th October, 7th
    January and 30th April.




  • Same as above.

B. Time limit for depositing TCS

Particulars Old Provision Amended Provision
  • By Government
    Deductor
  • Within one week from the end of
    month of tax collection at source
  • Within one week from the end of
    month of tax collection at source
  • With challan‐Within 7 days from
    the end of month of tax collection
  • By others
  • Same as above
  • Within one week from the end of
    month of tax collection

C. Mode of Payment of TDS/TCS and prescribed challan:

Particulars Old Provision Amended Provision
  • Form of Challan
  • ITNS 281
  • ITNS 281
  • Mode of Payment of TDS/TCS
  • Government Deductors‐ to be paid
    without challan by internal transfer.
  • Mandatorily by electronic mode as
    per Rule 125 for
    a) Companies
    b) Others who are liable to tax audit.
  • Form 24G within 10 days from the
    end of the month of tax deduction/
    collection by government deductors
    paying without challan.
  • Mandatorily by electronic mode as
    per Rule 125 for
    a) Companies
    b) Others who are liable to tax
    audit.

D. Form for issue of TDS/TCS certificate:

Particulars Old Provision Amended Provision
  • Form for TDS certificate
  • TDS on Salary‐ Form 16
  • TDS on Salary where Salary income is
    less than Rs.1.5 lacs‐Form 16AA
  • TDS on others‐ Form 16A
  • TDS on Salary‐ Form 16*
  • TDS on others‐ Form 16A*
  • Form for TCS certificate
  • Form 27D
  • Form 27D

* New Form 16 and Form 16A have been notified. Form 16AA stands withdrawn and hence Form 16 needs to be
issued even in cases where income is less than basic exemption limit.

E. Time limit for issue of TDS/TCS certificate:

Particulars Old Provision Amended Provision
  • TDS‐Salary and insurance
    commission
  • Within one month from the end of the
    FY(Financial Year).
  • By 31st of May of FY immediately
    following the FY in which the
    income was paid and tax deducted.
  • TDS ‐ Others
  • Where credit is made on date upto
    which accounts are made‐ Within one
    week from expiry of two months from
    date of credit.
  • Others‐ Within one week from the
    end of the month of credit/payment.
  • Where more than one certificate is
    required to be issued during a FY, one
    consolidated certificate for the whole
    year on the request of payee may be
    issued within one month from the end
    of such FY.
  • Where quarterly deposit of TDS is
    allowed with approval from tax
    authorities‐ Within 14 days of
    payment of TDS.
  • On Quarterly basis within 15 days
    from the due date of furnishing TDS
    quarterly statement .i.e.
  • Qtr1 ‐ 30th July
  • Qtr2 – 30th October
  • Qtr3 – 30th Jan
  • Qtr4 – 30th May of the immediately
    following FY
  • TCS
  • Within one month from the end of
    month of debit/receipt.
  • Where more than one certificate
    is required to be issued during a
    FY, one consolidated certificate for
    the whole year on the request of
    payee may be issued within one
    month from the end of such FY.
  • On Quarterly basis within 15 days
    from the due date of furnishing TCS
    quarterly statement .i.e. as above

It is to be noted that the option of consolidated TDS certificate for multiple TDS payments at the request of deductee
stands withdrawn.

F. Form and time limit for filing quarterly TDS/TCS statents:
Forms for filing TDS/ TCS statements remain same as before amendment.

Particulars Old Provision Amended Provision
Quarter I 15th July Same as before
Quarter II
15th October Same as before
Quarter III 15th January Same as before
Quarter IV 30th April for TCS and 15th June for TDS of
the FY immediately following the FY in
which deduction is made.
15th May of the FY immediately
following the FY in
which deduction is made.

The procedural compliance for tax deducted/collected up to 31 March 2010 shall be governed by the earlier Rules.
The notable features of the amended Rules are:

  1. Time limit for deposit of TDS for the entire month of March will be 30th April instead of two separate time limits viz. 7 April for TDS up to 30th March and 31st May for TDS as
  2. Non‐salary TDS certificates will have to be issued on quarterly basis (instead of monthly or annual basis). i.e. by 30th July for Qtr 1, 30th October for 2nd, 30th January for 3rd, and 30th May for Qtr 4.
  3. Time limit for filing quarterly TDS statement for last quarter of FY has been advanced from June 15 to May 15.