New Pay Commission Updates

CBDT Orders

Extension of Due Date of Deposit of TDS and issue of Form 16 & 16A – CBDT

by

Extension of Due Date of Deposit of TDS and issue of Form 16 & 16A – CBDT

Extension of Due Date of Deposit of TDS and issue of Form 16 & 16A in respect of deductors of the state of Odisha – CBDT Notification

F.No.275/38/2017-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi
24th May, 2019

ORDER UNDER SECTION 119 OF THE INCOME-TAX ACT, 1961

With a view to redress genuine hardship faced by the deductors due to the severe disruption of normal life and breakdown of communication systems caused by cyclone “Fani” hitting the state of Odisha on 3rd of May, 2019, the Central Board of Direct Taxes, in exercise of its powers under section 119 of the Income Tax Act, 1961, hereby-

(i) Extends the due date of depositing tax deducted at source (TDS) for the month of April, 2019 from 7th of May, 2019 to the 20th of May, 2019,

(ii) Extends the due date of filing of Quarterly Statement of TDS for the last quarter of financial year 2018-19 from 31st of May, 2019 to the 30th of June, 2019, and

(iii) Extends the due date for issue of TDS certificates in Form 16 and 16A from 15th of June, 2019 to 15th of July, 2019 in respect of deductors of the state of Odisha.

sd/-
(Sandeep Singh)
Under Secretary to the Government of India

Certificate for Tax Deducted at Source in Part B of Form No. 16 through TRACES

by

Certificate for Tax Deducted at Source in Part B of Form No. 16 through TRACES

Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 through TRACES – CBDT Circulars dt. 6.5.2019

Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules, 1962 through TRACES

Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems) New Delhi

Notification No. 09/2019

New Delhi, 06th, May, 2019

Subject: Procedure, format and standards for issuance of certificate for tax deducted at source in Part B of Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules, 1962 through TRACES- reg.

Section 203 of the Income-tax Act.1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc.

The relevant forn1 for TDS certificate in case of deduction under section 192 of Chapter XVII-B of the Act is Forn1 No. 16 which is to be issued annually. TDS Certificate in Form No 16 has two parts viz. Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

2. Vide Central Board of Direct Taxes Notification No. 36/2019 dated 12.04.2019, ‘Pait B (Annexure) of Form 16’ and ‘Annexure II of Form no. 24Q’ in Appendix II to the Income tax Rules, 1962 have been amended.

3. In exercise of the powers delegated by the Central Board of Direct Taxes, under sub-rule (6A) of Rule 31 of the Income-tax Rules, 1962, the Principal Director General of Income-tax (Systems) hereby specifies the procedure, formats and standards for the purposes of generation and download of certificates from “TDS Reconciliation Analysis and Correction Enabling System” or (https://www.tdscpc.gov.in) (hereinafter called TRACES Portal), as below:

3.1 ISSUE OF PART b OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE MADE ON OR AFTER 1st day of April, 2018:

All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall be able to issue the TDS certificate in Part B of Form No. 16 (by generation and download through TRACES Portal) in respect of all sums deducted on_or after the 1st day of April, 2018 under the provisions of section 192 of Chapter XVII-B provided that the relevant TDS statement for the fourth quarter i.e.

Form 24Q is furnished alongwith duly filled in Annexure II of Form 24Q as substituted vide Central Board of Direct Taxes Notification No. 36/2019 dated 12.04.2019.

To ensure generation of accurate TDS certificate in Part B of Form No. 16, the deductor(s) need to report correct data in Annexure II of Form 24Q. The TRACES generated Form No. 16 shall have a unique TDS certificate number.

3.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:

The deductor, issuing the TDS certificate in Form No. 16 by downloading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents mentioned therein and verify the same either by using manual signature or by using digital signature in accordance with sub-rule (6) of Rule 31.

3.3 ‘Part B (Annexure)’ of Form No. 16 item nos. 2(f) and 10(k):

The item nos. 2(f) and 10(k) in Part B (Annexure) of Form 16 required to be filled-in by the deductor manually shall be made available at the bottom of the TRACES generated Form 16 (Part B) and the deductor shall duly fill details, where available, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.

The deductors who opt to authenticate Part B of Form No. 16 manually will be provided with the download of the Part B of Form No. 16 alongwith these item nos. 2(f) and 10(k) appearing at the bottom of the Form. The deductor shall duly fill details, where applicable, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.

The deductors who opt to authenticate Part B of Form No. 16 using Digital Signature Certificate (DSC) will be provided with the download of Part B of Form No. 16 without item nos. 2(f) and 10(k) and therefore these details shall be required to be prepared by the employer and issued to the employee, where applicable, before furnishing of Part B to the employee.

3.4 Sub rule (3) of Rule 31 of the Income tax Rules, 1962 prescribes the time limit for issuance of Form 16 by the deductor to the employee.

Currently, Form 16 should be issued by 15th June of the Financial Year immediately following the financial year in which income was paid and tax deducted.

4. This issues with approval of the Principal Director General of Income-tax (Systems).

(Ravi Kant Choudhary)
JCIT (OSD) (CPC-TDS),
O!o the Pr. Director General of lncome-tax (Systems),
New Delhi

Preference form of Stenographer Grade-II in CBDT through Stenographer Grade ‘C’ & ‘D’ Examination – 2017

by

Preference form of Stenographer Grade-II in CBDT through Stenographer Grade ‘C’ & ‘D’ Examination – 2017

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
CENTRAL BOARD OF DIRECT TAXES
DIRECTORATE OF INCOME TAX
(HUMAN RESOURCE DEVELOPMENT)
2nd Floor, Jawahar Lal Nehru Stadium, Gate No.1, New Delhi -110003.
email: [email protected]
F. No. HRD/CM/127/15/2019-20/ 2-

Dated 09th May 2019

MEMORANDUM

With reference to their application for recruitment to the post of Stenographer Grade-II in CBDT on the basis of Stenographer Grade ‘C’ and ‘0’ Examination 2017, the candidates selected as Stenographer Grade-II in CBDT are directed to indicate/exercise their preferences, in order of priority for allotment of regions under CBDI for 18 regions under Income Tax Department all over the country, in the enclosed format.

The preference format duly filled/ complete in all respects, may be sent urgently by speed post! registered post or courier/by hand or personally so as to reach the following address latest by
24.05.2019:

Deputy Director of Income Tax (CMD-II),
Room No. 141, 2nd Floor,
Jawahar Lal Nehru Stadium, Gate No.1,
New Delhi – 110003.

2. Candidates are cautioned that if they fail or do not indicate their preferences in the said format for whatever reasons by 24.05.2019, region will be allotted to them, on the basis of merit-cum-preference.

By this Directorate and no request for change of allotted region will be entertained at any stage of recruitment. The option once exercised shall be final and will not be allowed to be changed.

Encl: Preference Format.

sd/-
(Priyanka Durbey)
Deputy Director of Income Tax (HRD) (CMD-II)
New Delhi

Amendment of Rules for Profit attribution to Permanent Establishment

by

Amendment of Rules for Profit attribution to Permanent Establishment

Public Consultation on the proposal for amendment of Rules for Profit
attribution to Permanent Establishment

F.No.500/33/2017-FTD.I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(Foreign Tax and Tax Research-I)

New Delhi, dated the 18th April, 2019

Subject: Public Consultation on the proposal for amendment of Rules for Profit attribution to Permanent Establishment-reg.

Taxation of non-residents in India is governed by the provisions of the Income-tax Act, 1961 (“the Act”) and the provisions of the Double Taxation Avoidance Agreement(s) [DTAA(s)] concluded or adopted by the central government under the ‘X)wers conferred under Section 90 or 90A of the Act, respectively.

Under the Act, the income tax is charged for the assessment year in respect of the total income of the previous year of every-person. In respect of a who is a non-resident, the total income includes all income from whatever source derived which is received or deemed to be received or accrues or arises or deemed to accrue or arise in India.

The incomes that shall be deemed to accrue or arise in India are specified in Section 9 of the Act which. inter alia, provides that all income accruing or arising whether directly or indirectly, through or from any business connection in India shall be deemed to accrue or arise in India.

However, in cases where a DTAA is also applicable, taxes on business income of a non-resident can be levied to the extent the same is permissible under such agreement.

Thus, business income of a non- resident can be taxed in India if it satisfies the requisite thresholds provided under the Act as well as the threshold provided in the applicable tax treaty, by a concept of Permanent Establishment (PE). which is defined in Article 5 of Model Tax Conventions and tax treaties.

2. Under Article 7 in the Indian treaties, profits are to attributed to the PE as if it were a distinct and separate entity on the basis of the accu.nts of the PE and where such accounts are not available to enable determination of profits attributable to the PE, the profits attributable to the PE can be determined under the domestic laws. For the application of this method, the Assessing Offiær in India can resort to Rule 10 of Income- tax Rules, 1962.

3. Recognizing the significance of issues relating to attribution of profits to a permanent establishment as well as the need to bring greater clarity and predictability in the applicable tax regime, a Committee was formed to examine the existing scheme of profit attribution to PE under Article 7 of DTAAs and recommend changes in Rule 10 of the Income-tax Rules. The Committee has submitted its report (enclosed herewith) and it has been decided to seek stakeholder’s comments on the Report of the committee.

4. In this regard, suggestions/comments of the stakeholders and the general
public are invited on the following question:

a. What are your views on the recommendations of the Committee as contained in Section 11 ofthe Report? In answering this question please consider the objectives and policy rationale behind the change which have been elaborated in detail in the Report.

5. Comments and suggestions may sent electronically (in word format) at
[email protected] within 30 days of the publication of this the email address
document on website of the Income Tax Department (www.incnmetaxindia.gov.in).

(Deepak Kapoor)
Under Secretary
Foreign Tax & Tax Research Division
Central Board of Direct Taxes

CBDT Notification 2019 – Important Amendment in Form 16

by

CBDT Notification 2019 – Important Amendment in Form 16

CBDT Notification No.36/2019 Dt. 12.4.2019 – Important Amendment in Form 16 and Form No. 24Q
Notification No.36/2019 Amendment of Form No. 16 and Form No. 24Q

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 12th April, 2019

G.S.R. 304(E).—In exercise of powers conferred by sections 200 and 203 read with section 295 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. Short title and commencement
(1) These rules may be called the Income-tax (3rd Amendment) Rules, 2019.
(2) They shall come into force on 12th day of May, 2019.
2. In the Income-tax Rules, 1962, in Appendix II–
(A) in Form No. 16,–
(i) the “Notes” occurring after “Part A” shall be omitted;
(ii) for “Part B (Annexure), the following shall be substituted, namely:–

“Part B (Annexure)

Notes:
1. Government deductors to fill information in item I of Part A if tax is paid without production of an income-tax challan and in item II of Part A if tax is paid accompanied by an income-tax challan.

2. Non-Government deductors to fill information in item II of Part A.

3. The deductor shall furnish the address of the Commissioner of Income-tax (TDS) having jurisdiction as regards TDS statements of the assessee.

4. If an assessee is employed under one employer only during the year, certificate in Form No. 16 issued for the quarter ending on 31st March of the financial year shall contain the details of tax deducted and deposited for all the quarters of the financial year.

5. (i) If an assessee is employed under more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers.
(ii) Part B (Annexure) of the certificate in Form No.16 may be issued by each of the employers or the last employer at the option of the assessee.

6. In Part A, in items I and II, in the column for tax deposited in respect of deductee, furnish total amount of tax, surcharge and health and education cess.

7. Deductor shall duly fill details, where available, in item numbers 2(f) and 10(k) before furnishing of Part B (Annexure) to the employee.”;

(B) in Form No. 24Q, for “Annexure II”, the following “Annexure” shall be substituted, namely:–

Notes:
1. Salary includes wages, annuity, pension, gratuity (other than exempted under section 10(10)), fees, commission, bonus, repayment of amount deposited under the Additional Emoluments (Compulsory Deposit) Act, 1974 (8 of 1974), perquisites, profits in lieu of or in addition to any salary or wages including payments made at or in connection with termination of employment, advance of salary,

any payment received in respect of any period of leave not availed (other than exempted under section 10 (10AA)), any annual accretion to the balance of the account in a recognized provident fund chargeable to tax in accordance with rule 6 of Part A of the Fourth Schedule of the Income-tax Act, 1961, any sums deemed to be income received by the employee in accordance with sub‐rule (4) of rule 11 of Part A of the Fourth Schedule of the Income-tax Act, 1961,

any contribution made by the Central Government to the account of the employee under a pension scheme referred to in section 80CCD or any other sums chargeable to income-tax under the head ‘Salaries’.

2. Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to any approved superannuation fund, all such deductions or payments should be included in the statement.

3. Permanent Account Number of landlord shall be mandatorily furnished where the aggregate rent paid during the previous year exceeds one lakh rupees.

4. Permanent Account Number of lender shall be mandatorily furnished where the housing loan, on which interest is paid, is taken from a person other than a Financial Institution or the Employer.”.

[Notification No. 36/2019/F.No. 370142/4/2019-TPL]

SAURABH GUPTA,

Under Secy. (Tax Policy and Legislation)

Note: The Principal Rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 969(E) dated the 26th of March, 1962 and were last amended vide notification number G.S.R No. 279(E) dated 01/04/2019.