Amendments in the provisions relating to filing, processing of quarterly statement, penalty thereto, etc. [Sections 200,200A, 201 & 271H] [W.e.f. 1-10-2014]
(A) Filing of correction statement [Proviso to section 200(3)]:
Under Chapter XVII-B, a person is required to deduct tax on certain specified payments at the specified rates if the payment exceeds specified threshold. The person deducting tax ('the deductor') is required to file a quarterly statement of tax deduction at source (TDS) containing the prescribed details of deduction of tax made during the quarter by the prescribed due date.
Currently, a deductor is allowed to file correction statement for rectification/updation of the information furnished in the original TDS statement as per the Centralised Processing of Statements of Tax Deducted at Source Scheme, 2013 notified vide Notification No.03/2013 dated 15-01-2013. However, there does not exist any express provision in the Act for enabling a deductor to file correction statement.
In order to bring clarity in the matter relating to filing of correction statement, the Act has inserted the following proviso to section 200(3):
Provided that the person may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be specified by the authority.
(B)Consequential amendment in section 200A: Since proviso to section 200(3) now allows the deductor to file correction statements, consequently, section 200A has been amended for enabling processing of correction statement as well.
(C) Extension of period for which assessee shall be deemed to be in default for failure to deduct tax [Section 201(3)]: The existing provisions of section 201(1) provide for passing of an order deeming a payer as assessee in default if he does not deduct or does not pay or after deduction fails to pay the whole or part of the tax as per the provisions of Chapter XVII-B.
As per existing section 201(3), no order shall be made under section 201(1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of—
(i) two years from the end of the financial year in which the statement is filed in a case where the statement referred to in section 200 has been filed;
(ii) six years from the end of the financial year in which payment is made or credit is given, in any other case:
Section 201(3) has been substituted by the Finance (No. 2) Act, 2014, w.e.f. 1-10-2014 as under: No order shall be made under section 201(1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of seven years from the end of the financial year in which payment is made or credit is given.
(D) Competent authority to levy penalty under section 271H specified: The existing provisions of section 271H provides for levy of penalty for failure to furnish TDS/TCS statements in certain cases or furnishing of incorrect information in TDS/TCS statements. The existing provisions of section 271H do not specify the authority which would be competent to levy the penalty under the said section. Therefore, provisions of section 271H have been amended to provide that the penalty under section 271H shall be levied by the Assessing officer.BACK