TDS/TCS Deductors : New provision has been deferred.

The CBDT has deferred it's Notification No. 31/2009 dated 25.03.2009 regarding TDS/TCS payments and filing of eTDS returns. The new provisions will take effect from 1st July 2009. Meanwhile, the dedutors will follow the current provisions of payment and filing.

See the Press Release.

PAN Card is going to be Biometric soon.

Over the next few months, taxpayers will start getting biometric permanent account number cards that capture their fingerprints and facial features, marking the start of an exercise the finance ministry has been talking about for at least three years.

The development has elicited huge response from the country's top information technology companies. At least seven players, including Infosys, HCL, Tata Consultancy Services and its subsidiary CMC, are in the fray to develop a biometric card and the infrastructure that can handle 12 million new users annually.

Others shortlisted for the request-for-proposal stage include Electronics Corporation of India Ltd, ITI and Bharat Electronics.

Some of the players have negotiated tie-ups with other service providers but the details of these were not readily available.

The income tax department is pushing for a biometric card to ensure that an individual does not have more than one PAN.

The move comes at a time when the government is also working on a project for a national identity card, on the lines of the US social security number, and has already allocated Rs 100 crore (Rs 1 billion) for it.

To begin with, the government proposes to issue biometric cards to new applicants and those seeking a re-issue. But over a period of time, old cardholders are also proposed to be enrolled into the new system.

According to documents made available to the bidders, the government intends to capture fingerprints of four fingers of an individual -- two from each hand -- and the facial image, with the eyes clearly visible. After much deliberation, the tax department has dropped plans to capture the image of the iris, a senior official said.

The bidders have also been asked to ensure that the digital image of the application and documents submitted as proof are also captured in some form.

Along with the card, there are plans to spruce up the PAN issuance infrastructure. Bidders have been asked to ensure that they set up points of service for 10 hours a day, six days a week.

A mobile facility that ensures "at-your-doorstep" service has also been planned, officials said. A call centre that works for at least 10 hours a day, six days a week, along with a national helpline number and an online facility have also been proposed.

The tax department also wants the service provider to ensure that new PAN cards are issued within 20 days.

The proposed system is being designed to handle 70 million PAN records and handle 100,000 applications a day.

There is, however, no clarity on who would bear the cost of the card, which at present costs Rs 67.

Source : Business Standard.

New Return Forms for A.Y. 2009-10 Notified

CBDT has notified the ITR forms for the A.Y. 2009-10 (F.Y. 2008-09) vide Notification dated 27th March, 2009.

It will take some time to get the softwares for efiling. The department is working on it and will be released shortly to enable the assessees to download and file their return electronically. However the assessees who are not liable to file their return electronically mandatorily, may download the forms , print it and file their return of income manually right now.

View the Notification and download the form

Notification on TDS and TCS

The Board has amended the rules relating to Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) vide Notification No. S.O.858 (E) dated 25th March 2009. 

In this context, taxpayers are informed that the new Form 17 (the challan for payment of TDS and TCS) is applicable only for payment of tax deducted or collected at source on or after 1st April 2009. Therefore, in respect of any TDS or TCS made before the 1st April, 2009, the payment will continue to be made to the credit of the Central Government by using the challan in Form No. 281 (i.e. the old challan form) even after 31st March 2009. 

The Central Board of Direct Taxes will shortly issue a detailed circular on the amended rules relating to TDS and TCS. 

View the Press Release Here.

Cadre review and restucturing report : Likely to be available in April.

THE DRAFT REPORT OF THE CADRE REVIEW COMMITTEE IS NOT LIKELY TO BECOME AVAILABLE ON 2^ND APRIL AS PROMISED BY DIRECTOR (HRD).

THE MEETING OF THE SECRETARIAT AND WORKING COMMITTEE OF INCOME TAX EMPLOYEES' FEDERATION STANDS POSTPONED.THE SAID MEETING WAS SCHEDULED ON 19TH APRIL AT NEW DELHI  THE NEXT DATE WILL BE COMMUNICATED LATER.

SOURCE : ITEF.