No.402/92/2006-MC (10 of 2009) Government of India / Ministry of Finance Department of Revenue Central Board of Direct Taxes *** New Delhi dated the 24th April 2009 PRESS RELEASE The benefit of enhanced depreciation on commercial vehicles has been extended up to 30th September 2009. Now, commercial vehicles acquired on or after 1st January 2009 and put to use before the 1st October 2009 will be eligible for depreciation at the rate of 50 percent. The Central Board of Direct Taxes have issued a notification vide S.O. 989(E) dated 21st April 2009 (Notification No.37/2009/F.No.142/01/2009-TPL) to this effect, substituting the words 1st day of April 2009 with the words 1st day of October 2009. Earlier, the benefit was made available for commercial vehicles acquired on or after 1st January 2009 and put to use before the 1st April 2009 vide a notification dated 19th January 2009.

Income-tax (Sixth Amendment) Rules, 2009 - Insertion of rule 37BA and 37-I April, 02nd 2009 NOTIFICATION NO. 28/2009, DATED 16-3-2009 In exercise of the powers conferred by section 295 read with sub-section (3) of section 199 and sub-section (4) of section 206C of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :- 1 (1) These rules may be called the Income-tax (Sixth Amendment) Rules, 2009. (2)They shall come into force with effect from the 1st day of April, 2009. 2. In the Income-tax Rules, 1962,- (A)after rule 37B, the following rule shall be inserted, namely:- Credit for tax deducted at source for the purposes of section 199. 37BA. (1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority. (2)(i) If the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for tax deducted at source shall be given to the other person in cases where- (a)the income of the deductee is included in the total income of another person under the provisions of section 60, section 61, section 64, section 93 or section 94; (b)the income of a deductee being an association of persons or a trust is assessable in the hands of members of the association of persons, or in the hands of trustees, as the case may be; (c)the income from an asset held in the name of a deductee, being a partner of a firm or a karta of a Hindu undivided family, is assessable as the income of the firm, or Hindu undivided family, as the case may be; (d)the income from a property, deposit, security, unit or share held in the name of a deductee is owned jointly by the deductee and other persons and the income is assessable in their hands in the same proportion as their ownership of the asset: Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax referred to in sub-rule (1). (ii) The declaration filed by the deductee under clause (i) shall contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person. (iii) The deductor shall issue the certificate for decuction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. (3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of (i)the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorized by such authority: and (ii)the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management strategy formulated by the Board from time to time. (B) after rule 37H, the following rule shall be inserted, namely: Credit for tax collected a source for the purposes of sub-section (4) of section 206C. 37I. (1) Credit for tax collect at source and paid to the Central Government in accordance with provisions of section 260C of the Act, shall be given to the person form whom the tax has been collected, on the basis of the information relating to collection of tax at source (hereinafter referred to as the collector) to the income-tax authority or the person authorized by such authority. (2) (i) Where tax has been collected at source and paid to the Central Government, credit for such tax shall be given for the assessment year for which the income is assessable to tax. (iii)Where tax has been collected at source and paid to the Central Government and the lease or license is relatable to more than one year, credit for tax collected at source shall be allowed across those years to which the lease or license relates in the same proportion. (3)Credit for tax collected at source and paid to the account of the Central Government shall be granted on the basis of (i)the information relating to collection of tax furnished by the collector to the income-tax authority or the person authorized by such authority; and (ii)the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management strategy formulated by the Board from time to time.

WISH ALL OF YOU BEST OF LUCK FOR YOUR BANK AUDIT. AA KAR PARTY JAROOR DENA

Major changes in TDS Compliance CBDT has issued Notification No 31 dated March 25, 2009 bringing out several changes in TDS compliance. The notification amends various rules w.e.f 01-04-2009. TDS Payment TDS payment is now to be made electronically by all deductors. Earlier only corporate and persons covered under mandatory tax audit were required to make payment electronically. Electronic payment is now to be made in Form No 17 Form No 17 Form No 17 requires deductor to provide deductee wise PAN, Name and TDS amount There are two columns Unique Transaction Number and PAN Valid Y/N . To comprehend these columns more information is needed. New TDS Compliance Statement New Form 24C in introduced This form is to be submitted every quarter electronically For each TDS section , monthly figures are to be given in respect of Total expense or capital outgo under the section Total amount on which TDS was to be deducted Total amount on which TDS deducted at normal rate / TDS amount Total amount on which TDS deducted at lower rate / TDS Amount Total TDS = TDS at normal rate + TDS at lower rate eTDS Statements Form 24Q/ 27Q formats have been modified In deductee wise details , Unique Transaction No is to be given eTDS Statements in Form 24Q, 26Q,27Q are to be submitted only once a year on or before 15th June Form 16 / 16A Formats of 16/16A have been amended Gross amount and TDS amount is to be given unique Transaction Number Wise Whether PAN uploaded was validated by income tax department is to be shown separately Several details not be given like : Date of payment, Chq No, BSR Code, CIN etc Unique Transction Number ( UTN ) It seems the whole system is now going to be based in UTN From the following chart it is clear that UTN is a common link between Challan, TDS certificate and eTDS Statement. UTN will be provided by the income tax department.

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.