Published On : Sat, Dec 9th, 2017

CA’s should motivate their clients for timely compliances of TDS/TCS Provisions – Satish Goyal

Nagpur: In the recent times the contribution from Tax Deducted at Course i.e. TDS as well as Tax Collected at Source i.e. TCS has increased substantially. It is important that proper systems should be developed by the Assessee and they should understand the importance of timely compliances of the TDS provisions. It is seen many time that silly mistakes are committed by the TDS deductors in respect of mentioning of PAN, non filing of timely return etc. Such silly mistakes results into genuine hardship being faced by the deductees which is easily avoidable. Chartered Accountants play an important link between the Assessee as well as the Income Tax Department. CA’s should guide their clients and should update them with the latest developments through which timely compliances can be done said Satish Goyal, Commissioner of Income Tax (TDS).

He was talking as Chief Guest at a seminar cum Interactive meet organized by Nagpur Branch of ICAI. It is seen that due to such mistakes being committed by the deductors, the department is also saddled with huge demands on this count which can be avoided by the Assessee by proper compliance while filing of returns. Goyal explained various important provisions specifically Sec 194 IB & Section 194 IC which were recently introduced in Budget 2017. He mentioned that Individual or HUF responsible for paying to a resident any income by way of rent exceeding Rs.50,000/- for a month or a part thereof, shall deduct an amount equal to 5% of such income as TDS and should deposit the same to the Government treasury vide Form 26 QC which is challan cum statement. He further informed that for such compliance, obtaining Tax Deductor Account Number (TAN) is not compulsory. With regard to transfer of Immovable Property being land or building or both under joint development agreement, apart from sharing of constructed flats, payment is also made by the developer in cash or cheque. In such cases, TDS will be deducted @ 10% from the amount paid by the developer. He also covered various practical cases in relation to the aforesaid sections

S.R Singh, Joint Commissioner of Income Tax (TDS) in his address discussed various important provisions relating to TDS / TCS and nuances involved in interpretation of the various provisions. Income Tax Officer’s Pranav Kumar and Alam Hussan, also presented a power point presentation covering various technical aspects. The officials duly answered the queries of the participants and also discussed the practical issues being faced by them.

CA. Abhijit Kelkar, Regional Council Member in his brief remarks mentioned that with the changing times the department has really worked hard for creating awareness about the provision of laws and also in getting smooth compliance of the provisions. It is because of all these efforts being taken by the department that today the compliance is being done in a smooth manner and also fewer issues are being faced at the ground level.

CA. Sandeep Jotwani, Chairman of Nagpur Branch in his welcome address appreciated the efforts of the department and congratulated them for organizing such kind of programs where the department is trying to create awareness and to understand the practical issues being faced that too on regular basis. In the initial days, when TDS was introduced there were multiple issues being faced in interpretation as well as the compliances, especially after the e-filing was introduced. But with time all such issues were duly addressed and are almost resolved. It’s very important the Assessee should adopt proper system and develop the habit of timely filing of returns to avoid penalty and other legal actions. He assured all possible support from the CA members as well as the institute in organizing more such programs for creating necessary awareness amongst the public.

CA. Umang Agrawal, Vice Chairman of Nagpur Branch co-ordinated the program whereas CA. Suren Duragkar, Secretary of Nagpur Branch proposed formal vote of thanks.

Prominently present over the occasion were CA. Kirit Kalyani, CA. Saket Bagdia, CA. Jiten Saglani, CA. Sanjay Agrawal, Satish Bharatan, CA. Naresh Jakhotiya and members in large numbers.