07 March 2014

Circular on Sec 234E


CBDT CIRCULAR ON TDS RETURNS OF GOVT DEDUCTORS
THE Central Board of Direct Taxes (CBDT) has received several petitions from deductors/collectors, being an office of the Government ('Government deductors'), regarding delay in filing of TDS/TCS statements due to late furnishing of the Book Identification Number (BIN) by the Principal Accounts Officers (PAO) / District Treasury Office (DTO) / Cheque Drawing and Disbursing Office (CDDO). This has resulted in consequential levy of fees under section 234E of the Income-Tax Act, 1961.
Board has decided to ex-post facto, extend the due date of filing of the TDS/TCS statement prescribed under sub- section (3) of section 200 /proviso to sub-section (3) of section 206C of the Act read with rule 31A/31AA of the Income-tax Rules, 1962.
However Board has clarified that any fee under section 234E of the Act already paid by a Government deductor shall not be refunded. Further this extension is only a one-time exception in view of the special circumstances.
Board states that timely filing of TDS/TCS statements is essential to ensure timely reconciliation of Government accounts and for providing tax credit to the assessees while processing their Income-tax Returns.
Board suggests that since the Government deductor and the associated PAO/ DTO/ CDDO belong to the same administrative setup that regulates the clearance of expenditure, the deductors/collectors may be advised to co-ordinate with the respective PAO/DTO/CDDO to ensure timely receipt of BIN/filing of TDS/TCS statements.
This Circular is addressed to all Chief Commissioners and Directors General of Income Tax. They are supposed to inform all the officers for compliance.

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