BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Sl. No.

Section Of Act Nature of Payment in brief Cut Off Amount Rate % 01.04.2012 01.07.2012 HUF/IND Others 1 192 Salaries Salary income must be more then exemption limit after deductions. Average Rate 2 193 Interest on debentures 2500 5000 10 10 3 194 Deemed dividend - - 10 10 4 194A Interest other than Int. on securities (by Bank) 10000 10000 10 10 4A 194A Interest other than Int. on securities (By others) 5000 5000 10 10 5 194B Lottery / Cross Word Puzzle 10000 10000 30 30 6 194BB Winnings from Horse Race 5000 5000 30 30 7 194C(1) Contracts 30000 /75000 30000 /75000 1 2 8 194C(2) Sub-contracts/ Advertisements 1 2 9 194D Insurance Commission 20000 20000 10 10 10 194EE Payments out of deposits under NSS 2500 2500 20 11 194F Repurchase of units by MF/UTI 1000 1000 20 20 12 194G Commission on sale of lottery tickets 1000 1000 10 10 13 194H Commission or Brokerage 5000 5000 10 10 14 194I Rent (Land & building) 180000 180000 10 10 Rent (P & M , Equipment, furniture & fittings) 180000 180000 2 2 15 194J Professional/Technical charges/Royalty & Noncompete fees 30000 30000 10 10 16 194J(1)(ba) Any remuneration or commission paid to director of the company(Effective from 1 July 2012) NA NIL 10 10 17 194LA Compensation on acquisition of immovable property 100000 200000 10 10 Page 1 of 18 Download From :www.simpletaxindia.net

10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Note: 1. Yearly Limit u/s 194C: where the aggregate of the amounts paid/credited or li kely to be paid/credited to Contactor or Sub-contractor exceeds Rs.75,000 during the financ ial year, TDS has to be deducted u/s 194C. 2. TDS at higher rate ie., 20% has to be made if the deductee does not provide P AN to the deductor. (read detail u/s 206AA) 3. No TDS on Goods Transport :No deduction shall be made from any sum credited o r paid or likely to be credited or paid during the previous year to the account of a contr actor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.(read details here No TDS on Goods Transport ) 4. Surcharge on Income-tax is not deductible/ collectible at source in case of i ndividual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than sal ary. 5. In the case of Company other than Domestic Company, the rate of surcharge is @ 2.5% of Income-tax, where the income or the aggregate of such income paid or likely to b e paid exceeds Rs.1,00,00,000. 6. No Cess on payment made to resident: Education Cess is not deductible/collect ible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of p ayment of income other than salary. Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company. Other Point to be noted 1. TDS on Job work(194C) Tds on Job work has been relaxed read new definition u/ s 194C. 2. TDS on Cold Storage (194C clarification) 3. TDS on Rent without service tax(194 I)(clarification 4/2008) 4. Tds on Professional service (194J) including service tax (clarification) 5. TDS on Rent (various circulars by department on tds on rent ) 6. Do and Dont's Tax deposit of Taxes 7. E-payment of TDS mandatory from 01.04.2008 8. E-Payment Auto Filler for Tds Challan 9. E-Payment From Other Banks Account Allowed 10. TDS challan ITNS 281 In excel & 11. How to Fill TDS CHALLAN-ITNS 281 12. How To pay Income Tax/Tds Online FAQ 13. Nil TDS on Transporter and others to be reported in ETDS quarterly returns 14. TDS changes by Budget 2012 (detailed) 15. TCS changes by Budget 2012(detailed) Page 2 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES TCS Rate for Financial Year 2012-13 Sl.No. Nature of Goods Rates in %

1 Alcoholic liquor for human Consumption 1 2 Tendu leaves 5 3 Timber obtained under forest lease 2.5 4 Timber obtained by any mode other than a forest lease 2.5 5 Any other forest produce not being timber or tendu leaves 2.5 6 Scrap 1 7 Parking lot 2 8 Toll plaza 2 9 Mining & Quarrying 2 10 Minerals, being coal or lignite or iron ore 1 wef 01.07.2012 11 jewellery (if the sale consideration is paid in cash exceeding INR 5 lakh 2 lakh in case of Bullion ) 1 wef 01.07.2012 New Section for Penalty for non submission of ETDS /ETDS return (section 271H)(a pplicable from 01.07.2012) Failure to deliver statement within time prescribed u/s 200 (3) or to the provis o to sub-section (3) of section 206C may liable to penalty which shall not be less than Rs. 10,000/- but which may extend to Rs. 1,00,000/-. No penalty if payment of tax deducted or collected along with fee or interest and delivering the statement aforesaid before the expiry of 1 year from the time prescribed for delivering the such statement. However No penalty shall be imposed u/s 271H if the person proves tha t there was reasonable cause for the failure.(section 273B) Assessee In default (amendment in section 201) The Deductor will not to be treated as assessee in Default provided the resident payee has furnished his return u/s 139 and has taken into account such amount for computing income in su ch Return of Income and has paid the Tax Due on the income declared by him in such return of income and furnishes a certificate to this effect, duly certified by a CA, in the prescribed form. This form is yet to be notified. However, the interest for not deducting tax would be payable from the date on wh ich such tax was collectible till the date of furnishing of return of income by the resident payee. The limit of passing orders under section 201(1) increased from 2 years to 6 yea rs (retrospective amendment wef 1-04-2010) Page 3 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Due date to Deposit TDS and TCS Rule :30. (1) All sums deducted in accordance with the provisions of Chapter XVIIB by an of fice of the Government shall be paid to the credit of the Central Government (a) on the same day where the tax is paid without production of an incometax chal

lan; and (b) on or before seven days from the end of the month in which the deduction is made or incometax is due under subsection (1A) of section 192, where tax is paid accompanied by an inc ometax challan. Tax to be deducted by Govt Office 1 Tax deposited without challan Same day 2 Tax deposited with challan 7th of next month 3 Tax on perquisites opt to be deposited by the employer 7th of next month (2) All sums deducted in accordance with the provisions of Chapter XVIIB by deduc tors other than an office of the Government shall be paid to the credit of the Central Government (a) on or before 30th day of April where the income or amount is credited or pai d in the month of March; and (b) in any other case, on or before seven days from the end of the month in whic h 1. the deduction is made; or 2. Incometax is due under subsection (1A) of section 192. Tax deducted by other 1 tax deductible in March 30th April of next year 2 other months & tax on perquisites opted to be deposited by employer 7th of next month (3) Notwithstanding anything contained in subrule (2), in special cases, the Asse ssing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the ta x deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table: SrNo Quarter ended On Date of payment 1 30th June 7th July 2 30the September 7th October 3 31st December 7th January 4 31st March 30Th April Page 4 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Person required to file ETDS Return Filing due Dates NOTIFICATION No. 238/2007, dated 30-8-2007.Now following person are liable to fi le etds/etcs return. 1. All Government department/office or 2. All companies. or 3. All person required to get his accounts audited under section 44AB in the imm ediately preceding financial year; or 4 The number of deductees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty, The Due Dates for filing Quarterly Statements for TDS/TCS are as under: read ful l rule and notification 41/2010 dated 31.05.2010) Due Dates For ETDS returns (Form 24Q for salary and 26Q for contractors others ,

27Q for Non-resident Due date ETDS return 24Q, 26Q 27Q and Form16 ,Form 16A Sl. No. Quarter ending From 01.11.2011 on wards For Govt offices For other deductors Etds return Form 16A Etds return Form 16A 1 30th June 31st July 15th August 15th July 30th July 2 30th September 31st October 15th November 15th October 30th October 3 31st December 31st January 15th February 15th January 30th January 4 31st March 15th May 30th May (31st May for form 16) 15th May 30th May (31st May for form 16) ETDS SOFTWARE :TDSMAN is a simple to use software ideally suited for filing eTDS returns. This software is fully updated to support latest FVU version. It also has an inbuilt module for Correction Returns which is extremely helpful in correcting the regular returns. 1. Download Free Trial of TDSMAN 2. Watch Video Demo of TDSMAN software 3. Place an order for TDSMAN software Page 5 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Issuance Of TDS certificate Form 16 and Form 16A Tax deducted on or after 01.04.2012, it is mandatory for all type of deductors t o issue quarterly form 16A (non salary tds certificate) only after downloaded the same from the TIN-NSD L website. Earlier this

was mandatory for only companies ,Banks and co-operative societies engaged in Ba nking services with effect from 01.04.2011 through circular number 3/2011. Form 16A downloaded from TIN-NSDL can be signed manually or can be authenticated through digital signature only. Though this will be an increase in work load on small traders also but it is wel come step as it will reduce arbitrary demands by department due to mismatching of TDS claimed and TDS shown on form 26AS. Moreover small traders are also not small now .TDS is to be deducted by HU F and Individual only if their turnover/Receipt is during the immediately preceding year more than lim it prescribed under section 44AB .Present limit for FY 2012-13 is proposed to be increased to 1 cror e for business and 25 lakh for Professionals. FY 2010-11 FY 2011-12 FY 2012-13 Download Form 16A from TIN Web Site Optional Mandatory for Companies and Banks. Optional for others Mandatory for all type of deductors Digitally Sign Form 16A Optional but only if downloaded from TIN Web site Optional but only if downloaded from TIN Web site Optional but only if downloaded from TIN Web site Manually Issue TDS Certificate(Form 16A) All deductors can manually issue TDS Certificate Companies and Banks cannot manually issue TDS Certificate No deductor can issued manually TDS certificate Manually Issue TDS Certificate(Form 16 salary) All deductors can manually issue TDS Certificate All deductors can manually issue TDS Certificate All deductors can manually issue TDS Certificate So manually field form 16A cannot be issued for tax deducted on or after 01.04.2

012. However form 16 salary can be issued without downloading from the TIN_NSDL site. Now you are interested in how you can download Form 16A from TIN -NSDL site. 1. First you have to register your TAN at TIN_NSDL website .complete procedure f or registration is TAN at TIN-NSDL website available here 2. After registration process and login to download form 16 A, you have to fill Provision receipt number of Tds return filed and detail of One challan of on the concerned quarter and three deductee pan and amount deducted(check power point presentatio n on "how to download form 16A from tin -nsdl website) Page 6 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Changes in TDS related Provision in Budget 2012 Section 193 of the Act- Tax deduction at source from payment of interest on debe ntures Existing Provision Presently, under Section 193 of the Income- tax Act, 1961 ('the Act') a person r esponsible for paying any income by way of interest on securities to a resident is required to deduct inco me- tax at the rates in force on the amount of the interest payable. However, certain payments are exclu ded from tax deduction at source by virtue of proviso to Section 193. As per clause (v) of the proviso, any interest payable to: (a) A resident individual; (b) On debentures listed on a recognised stock exchange; (c) Where such debentures are issued by a company in which the public are substa ntially interested was not subject to tax deduction at source if the aggregate amount of interest paid during a financial year does not exceed Rs 2,500 and the interest is paid by way of an account payee che que. Amendment by Finance Act 2012 Finance Act 2012 amended clause (v) of the proviso to Section 193, whereby tax s hall not be required to be deducted on any interest payable: (a) To an individual or a Hindu undivided family, who is resident in India; (b) On any debenture issued by a company in which the public are substantially i nterested; (c) Where the aggregate amount of interest paid during a financial year does not exceed Rs. 5,000 and the interest is paid by account payee cheque. This amendment is effective from 01 July 2012. Impact of the amendment The above amendment has brought about the following main changes: 1. Interest payment made to resident Hindu Undivided Family ('HUF') has now been exempted from tax deduction at source requirement. 2. The withholding tax exemption would now apply to debentures issued by a compa ny in which the public are substantially interested, irrespective of the fact whether such deben tures are listed on a recognized stock exchange or not. 3. The exemption limit of Rs 2,500 has been increased to Rs 5,000. This would re duce the tax burden (by way of withholding tax) on the small tax payers and also reduce compliance oblig

ations of the company Page 7 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 194E of the Act - Tax deduction at source from payment to non- resident entertainer Existing Provision Presently, under Section 194E of the Act, where any income referred to in Sectio n 115BBA is payable to a non-resident sportsman (including an athlete), who is not a citizen of India o r a non-resident sports association or institution, the person responsible for making the payment is req uired to deduct incometax at source at the rate of 10%. Amendment proposed by Finance Act 2012 The Finance Act 2012 amended to extend the scope of Section 194E to cover paymen ts made to 'entertainer' within its ambit. The rate of deduction of tax for all payments co vered under Section 194E of the Act is proposed to be increased to 20%. This amendment is effective from 01 July 2012. Impact of the amendment By virtue of this amendment, any payment to an entertainer, who is not a citizen of India and is a nonresident, for his performance in India shall also be subject to tax deduction at source in India. Further, the quantum of tax deduction on payment made to a non-resident sportsma n, sports association or institution or to an entertainer has been doubled from 10% to 20% . In this regard, it may be noted the term entertainer has not been defined anywhe re. This is may lead to ambiguity and consequent litigation on interpretation and scope of the term 'ent ertainer'. Page 8 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 194J of the Act - Tax deduction at source from payment to director Existing Provision Presently, as per Section 194J of the Act any person (other than an Individual o r a Hindu undivided family) responsible for paying to a resident any income by way of: (a) Fees for professional services; or (b) Fee for technical services; or (c) Royalty; or (d) Any sum referred to in clause (va) of Section 28, is required to deduct Inco me-tax at the rate of 10% of such income. However, there is no specific provision for deduction of tax on remuneration paid to a director, which is not in the nature of salary. Amendment proposed by Finance Act 2012 Finance Act 2012 amended to insert another clause under sub-section (1) of Secti on 194J, whereby any remuneration or fees or commission payable to a director of a company, other tha n those on which tax is deductible under section 192, shall also be liable for tax deduction under th e provisions of Section 194J. This amendment effective is from 01 July 2012.

Impact of the amendment By insertion of the new clause, now any amount payable to a director of a compan y, by way of remuneration or fees or commission, which is not in the nature of salary, shall be liable for tax deduction under Section 194 at the rate of 10%. Accordingly, any payment to a director (whether whole-time or not) including sit ting fee made by a company would be liable for tax deduction at source. This would levy an extra co mpliance burden and responsibility on the companies for deducting taxes on payment made to its direc tors. Page 9 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 194LA of the Act- Exemption on enhanced compensation Existing Provision Presently, as per Section 194LA of the Act, a person responsible for paying any sum to a resident in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition of any immovable property (ot her than agricultural land) is required to deduct an amount equal to 10%of such sum as income-tax. However, as per the proviso to the Section, no deduction is to be made in case t he amount of payment does not exceed Rs 100,000 during the financial year. Amendment proposed by Finance Act 2012 Finance Act 2012 amended to increase the exemption limit from Rs 100,000 to Rs 2 00,000. This amendment is effective from 01 July 2012. Page 10 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 194LAA- Tax deduction at source from payment for immovable property in c ertain cases Proposal by the Finance Bill 2012 (not passed later and withdrawn at the time of Final bill passing) The Finance Act 2012 amended to insert a new Section 194LLA with effect from (wi thdrawn at the time of passing Bill )whereby any person responsible for paying any sum to a res ident transferor by way of consideration for transfer of any immovable property (other than agricultural land), shall deduct an amount equal to 1% of such sum as income-tax thereon. It is further provide that no deduction shall be made where the consideration fo r transfer of an immovable property is less than Rs 50 lakh in case such property is situated in a 'specified urban agglomeration area' or is less than Rs 20 lakh in case such property is situated in any area other than specified areas. 'Specified areas' have been categorically listed down and inclu de metro and cities and other areas. It is further proposed to provide that where the consideration paid or payable f or the transfer of such property is less than the value adopted or assessed or assessable by any authori ty of a State

Government for the purposes of payment of stamp duty, the value so adopted or as sessed or assessable shall be deemed as consideration paid or payable for the transfer of such immova ble property. For effective administration and to ensure compliance with these provisions, it is proposed that a registering officer appointed under the Indian Registration Act, 1908 (Registrar ) shall not register the transfer of any immovable property, where taxes are required to be deducted unde r this provision, unless the transferee furnishes proof of deduction and payment of TDS. It is proposed that the provisions of Section 203A (Tax deduction and collection account number) shall not apply to the person required to deduct tax in accordance with the provisions of this section. As per Memorandum Explaining the provisions of Finance Act 2012, it is proposed that a simple one page challan for payment of TDS would be prescribed containing details (includin g PAN) of transferor and transferee and also certain details of the property. The transferee would no t be required to obtain any Tax Deduction and Collection Account Number (TAN) or to furnish any TDS stat ement as this would be mostly a one- time transaction. The transferor would get credit of TDS like a ny other pre-paid taxes on the basis of information furnished by the transferee in the challan of paymen t of TDS. Impact of the amendment The present Act has provisions for deduction of tax at source on transfer of imm ovable property situated in India by a non-resident. However, there is no such requirement of de duction of tax on transfer of immovable property by a resident except in the case of compulsory ac quisition of certain immovable properties. The proposed amendment would help in reducing the flow of black money in the mar ket and would ensure the adequate reporting of these sale / purchase transactions. The proposed amendment seeks to widen the scope of withholding tax on payments m ade on transfer of immovable property by a resident. This would also ensure collection of tax at the earliest point of time and proper reporting mechanism. However, the proposed amendment would have an adverse impact on the individuals who purchase a property above the specified limit since this would result in an extra complianc es burden on them. Note: This amendment has been withdrawn at the time of passing of Finance Bill 2 012. Page 11 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 194LC- Tax deduction at source from payment of interest to a non-residen t by an Indian companyNew provision Provision proposed by Finance Act 2012 Finance Act 2012 amended Section 115A of the Act by inserting a new clause in su b-section (1) as per

which tax shall be charged at the rate of five per cent on any income of a non-r esident (not being a company) or a foreign company by way of interest of the nature and extent referr ed to in section 194LC of the Act. In line with amendment in Section 115A, it is also proposed to insert a new Sect ion 194LC with effect from 01 July 2012 as per which tax would require to be deducted at source by a s pecified company from any income payable to a non-resident (not being a company) or a foreign company, by way of interest. The tax deduction is required to be made at the rate of five per cent. The interest shall be the income by way of interest payable by the specified com pany 1. in respect of monies borrowed by it at any time on or after the 1st day of Ju ly, 2012 but before the 1st day of July, 2015 in foreign currency, from a source outside India under a loan agreement approved by the Central Government in this behalf; and 2. to the extent to which such interest does not exceed the amount of interest c alculated at the rate approved by the Central Government in this behalf, having regard to the ter ms of the loan and its repayment. Impact of proposed provision In order to augment long-term low cost funds from abroad for the infrastructure sector, it is proposed to provide tax incentives for funding certain infrastructure sectors from borrow ings made abroad subject to certain conditions. A new clause inserted in sub-section (1) of Section 115A would result in relief in tax rate from 20% to 5% on interest payable to a non-resident and to a foreign company by specified c ompany. Further a new Section 194LC is inserted for deduction of tax at source on paymen t of such interest to a non-resident. No tax shall be deducted under Section 195 of the Act on this inte rest. The provisions of this Section would apply to an Indian company engaged in the b usiness of construction of dam, or operation of Aircraft, or manufacture or production of f ertilizers, or construction of port including inland port, or construction of road, toll road or bridge, or generation, distribution of transmission of power, or construction of ships in a shipyard or developing and building an affordable housing project as is presently referred to in section 35AD(8)(c)(vii). The amendment would help players in the above sectors to garner funds at lower i nterest rates to help finance their operations. This would result in higher flow of funds in the infrastructure sector for devel opment purpose. Page 12 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 195 - Amendment Scope of Section 195 of the Act Applicability of Section 195 of the Act on non- resident An amendment has been made in Section 195 of the Act, through which it is propos ed to clarify, by

way of an explanation, that the obligation to comply with withholding tax provis ions under Section 195 of the Act and to make deduction there under applies and shall be deemed to have always applied and extends and shall be deemed to have always extended to all persons, resident or non-resident, whether or not the non-resident person has1. a residence or place of business or business connection in India; or 2. ii. any other presence in any manner whatsoever in India; The amendment is brought into retrospective effect from 1 April 1962. The amendment widens the withholding tax provisions of Section 195 of the Act by applying it to all persons whether resident or non- resident. It is further clarified that such non - resident may or may not have a residence or place of business or business connection or any other presen ce in India. Determination of sum chargeable to tax A new sub- section has been introduced as per which the Central Board of Direct Taxes ('the Board') may, by notification in the Official Gazette, specify a class of persons or case s, where the person responsible for paying to a non-resident, not being a company, or to a foreign c ompany, any sum, whether or not chargeable under the provisions of the Act, shall make an applica tion to the Assessing Officer to determine, by general or special order, the appropriate proportion of sum chargeable, and upon such determination, tax shall be deducted under sub-section (1) on that pro portion of the sum which is so chargeable. Accordingly, the Board shall in future specify the class of persons or cases whe re the person responsible for paying to a non-resident, shall make an application to the Asses sing Officer to determine the appropriate proportion of sum chargeable to tax. The amendment has been brought into effect from 1 July 2012. Page 13 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Amendment in Section 197A of the Act Existing Provision Presently, as per sub-section (1C) of Section 197A of the Act, no deduction of t ax shall be made in the case of an individual resident in India, who is of the age of sixty-five years o r more at any time during the previous year, if such individual furnishes to the person responsible for paying any income of the nature referred to in section 193 or section 194 or section 194A or section 194EE or se ction 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verifie d in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil. Amendment proposed by Finance Act 2012 and impact Finance Act 2012 amended to reduce the age limit from sixty-five to sixty. This amendment is effective from 01 July 2012. This is a welcome change for the individual tax payers of the age of sixty, who are in receipt of income in

the nature of interest on securities, dividends, interest other than interest on securities, in respect of deposits under National Savings Scheme and units of mutual funds specified in Se ction 10(23D). They have to furnish a declaration in Form 15H verified by him to the effect tha t the tax on his estimated total income in the previous year will be Nil. Page 14 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 201- Assessee in Default- Amendment Existing Provision Under the Act, in case person fails to deduct taxes on specified payments, he is considered as 'assessee in default' and interest and penalty implications follow such default. Amendment proposed by Finance Act 2012 The Finance Act, 2012 amended to dilute the responsibility of the 'assessee in d efault' by providing that a person, including the principal officer of a company, who fails to deduct tax on the sum paid to a resident shall not be deemed to be an 'assessee in default' in respect of such t ax if such residenti. has duly furnished his return of income; ii. has taken into account such sum for computing income in such return of incom e; and iii. has paid the tax due on the income declared by him in such return of income , Further, the person is required to furnish a certificate to this effect from a C hartered Accountant in the prescribed form. Impact of the amendment The amendment seeks to absolve the 'assessee in default' in case the tax has bee n duly paid to the Government Exchequer, though by the payee and not by the payer. Accordingly, in case the taxes have been paid and the income has been duly repor ted in the return of income by the resident payee, the person making the default would not be regarde d as 'assessee in default'. Thus, no interest and penalty would be leviable. Page 15 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES Section 154 of the Act Rectification of mistake in intimation with respect to TD S statement Existing Provision As per the provisions of Section 154 of the ITA, Income- tax authority referred to in Section 116 may amend any order passed by it or amend any intimation issued under Section 143(1) of the ITA. Amendment proposed by Finance Act 2012 Finance Act 2012 amended to include another clause under sub-section (1) of Sect ion 154, whereby Assessing Officer may amend any intimation issued under sub-section (1) of Secti on 200A of the ITA. Further, amendments are proposed in other sub-sections of Section 154, whereby i t is specified that provisions of Section 154 shall also apply to the deductors Further, under sub-section (1) of Section 246 of the Act an amendment has been m

ade wherein the assessee may appeal to Commissioner (Appeals) against the intimation issued unde r sub-section (1) of Section 200A. This amendment is effective from 01 July 2012. Impact of the amendment As per Memorandum explaining the Finance Act, Section 200A was inserted Vide Fin ance (No.2) Act, 2009 to provide for processing of TDS statement. After processing of TDS stateme nt, intimation is generated specifying the amount payable or refundable. The intimation generated after processing of TDS statement is not: (i) subject to rectification under section 154; (ii) appealable under section 246A; and (iii) deemed as notice of demand under section 156. In order to reduce the compliance burden of the deductor and also to rationalise the provisions of processing of TDS statement, it is proposed to provide that the intimation gener ated after processing of TDS statement can be rectified under section 154, shall be appealable under sect ion 246A and deemed to be a notice of demand under section 156 of the ITA. Page 16 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES TCS changes in Budget 2012 Introduction: As per the provisions of Section 206C, tax is required to be collected at source by the seller at the specified rate on certain goods like alcoholic liquor, tendu leaves, scrap etc. at the time of sale of such good. This is done in order to collect tax at the earliest point of time and to ensure more transparency in the system. Existing Provisions: under the existing provisions of the ITA, tax is required to be collected at sou rce by the seller, at the specified rates, from the buyer of certain goods like alcoholic liquor, tendu le aves, scrap etc. such tax has to be collected at the time of debiting of the amount receivable fr om the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier. Finance Act 2012 amended the following Amendments in Section 206C of ITA (w.e.f 1 July 2012): 1. TCS on sale of certain minerals: It is proposed that TCS provisions shall be made applicable on sale of minerals being coal or lignite or iron ore at the rate of 1%. In other words, seller of minerals being coal or lig nite or iron ore shall be required to collect TCS @1% at the time of debiting the amount receivable from t he buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a chequ e or draft or by any other mode, whichever is earlier However, the seller shall not collect tax on sale of the said minerals if the sa me are purchased by the buyer for personal consumption.

2. TCS on cash sale of bullion and jewellery [Sub-section (1D) to Section 206C] It has been proposed that the seller of jewellery shall, at the time of receipt of such amount in cash, collect tax at the rate of 1% of sale consideration from every buyer of bullion and jewellery, if sale consideration exceeds (jewellery )Five lakh rupees. However in case of bullion t he Limit is 2 Lakh. Any person collecting any amount under this sub-section shall also pay within th e prescribed time the amount so collected to the credit of the Central Government or as the Board dire cts "jewellery" shall have the meaning assigned to it in the Explanation to sub-clau se (ii) of clause (14) of section 2 As per Memorandum Explaining the provisions of Finance Act 2012, this amendment is being proposed to reduce the quantum of cash transaction in bullion and jewellery sector and fo r curbing the flow of unaccounted money in the trading system of bullion and jewellery. It is further provided in the Memorandum that the provisions of TCS would apply irrespective of the fact wheth er buyer is a manufacturer, trader or purchase is for personal use. 3. A proviso to Sub-section (6A) has been inserted in the proposed Finance Act t hat any person (other than a person required to collect tax on cash sale of bullion and jewellery) res ponsible for collecting tax, who fails to collect the whole or any part of the tax on the amount received fro m a buyer shall not be deemed to be an assessee in default in respect of such tax if such buyer a. has furnished his return of income under section 139; b. has taken into account such amount for computing income in such return of inc ome; and c. has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed. "accountant" shall have the meaning assigned to it in the Explanation to sub-sec tion (2) of section 288; Page 17 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail BY : www.Simpletaxindia.net TDS/TCS RATE CHART FY 2012-13 TDS DEPOSIT & RETURN D UE DATES 4. A proviso to Sub-section (7) has been inserted to the effect that in case any person (other than a person required to collect tax on cash sale of bullion and jewellery) who fails to collect the whole or any part of the tax but is not deemed to be an assessee in default under the first p roviso of sub-section (6A), the interest shall be payable from the date on which such tax was collectible to the date of furnishing of return of income by such buyer. Analysis: 1. Mining sector is an important segment of Indian economy but the trading of mi nerals remained largely unregulated resulting in non-reporting or under-reporting of trading in minerals trading transactions for the taxation purpose. The proposed amendment with respect to Tax collected on sale of certain minerals has been proposed

in order to collect tax at the earliest point of time and also to improve report ing mechanism of transactions in mining sector. 2. The insertion with respect to Tax collected on sale of bullion and jewellery has been proposed in order to curb the rampant use of unaccounted money in bullion and jewellery sector. Th e proposed amendment would result in checking the use of unaccounted money in this sector a nd result in adequate reporting and minimizing of tax evasion. Page 18 of 18 Download From :www.simpletaxindia.net 10 % Discount on TDSMAN Etds Software/Download Trail