Role of PAOs

Ajay G. Dhoke IRS Asst Commissioner of Income Tax, Nagpur

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Provision of TDS:
Section 192 to196 of IT Act 1961 provides various heads under which TDS required to be deducted. The relevant section for govt deductors are:
1. 2. 3. 4. Section 192:TDS on salary Section 193: Interest on securities Section 194A:Interest other than securities Section 194C: Payment to contractors

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Provision of TDS:
5. Section 194D: Insurance commission 6. Section 194E: payment in respect of deposits under National Saving Scheme 7. Section 194I:Rent 8. Section 194J: Fee for professional or Technical services 9. Section 194L:payment of compensation on acquisition of capital assets 10.Section 194LA:payment of compensation on acquisition of certain immovable property
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Role of deductors
Deduct of Tax on the payments as mentioned above Issue TDS certificate Deduct tax at lower rate in certain cases if certificate issued by AO u/s 197 No TDS in certain cases: u/s 197A Tax so deducted to be paid to the central govt u/s 200
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Role of deductor
Prepare & submit quarterly statement u/s 200(3) r.w.r 30A:a) Form No. 24Q: for salary b) Form No.26Q: other than salary c) Form No.27Q: statement in respect of deductees who is a non resident(not being a company or foreign company) or resident but not ordinarily resident.

The due date of filing quaterly statement is 15th of next month of quarter end.
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Role of deductor
Issue TDS certificate u/s 203 r.w.r 31:
a) Form No. 16, if the tax deduction or payment of tax is u/s 192 (to be issued annually) b) Form No.16A for any other deduction or payment of tax (to be issued quarterly)

Obtain Tax Deduction and Collection Account Number(TAN) and quote the same in all challans of payments, all TDS certificate issued, statement filed with IT authority, in all returns and in all other documents which may be required to furnish with IT authority u/s 203A
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 All sum deducted by an office of government shall be paid to the credit of central govt as under(Rule 30 )
a) same day without production of an ITax challan. b) seventh day from the end of the month where tax is paid accompanied by income tax challan
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Why PAO/TO/CDDO ?
PAO/TO/CDDO is the most important bridge between deductors and IT department Deductors deduct TDS and statement transfer to PAO/TO/CDDO PAO/TO/CDDO credit it through book entry to the account of central govt Fill Form No.24G online, after filing form 24G the deductee get credit of TDS so deducted.
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Role of PAO/TO/CDDO
PAO or TO or CDDO or any other person to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the central govt shall:
a) Submit a statement in Form No. 24G within 10 days from the end of the month to IT authority.

b)

Intimate Book Identification Number(BIN) to the deductors in

respect of whom the sum deducted has been credited.

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Procedures
(use TAN, deduct tax, amount transfer by book entry to PAO/TO/CDDO about tax so deducted, issue TDS certificate to deductees, statements file on form no 24Q,26Q&27Q)

Deductors

PAO/TO/CDDOs(obtain AIN, file Form 24G monthly, intimate BIN to

Deductors

Deductors

(use BIN received from PAO/TO/CDDO in quarterly statement in Form No.24Q,26Q and 27Q) granted to deductee and deductees can see their

Result :the TDS credit will be

TDS in Form AS 26
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Consequence of failure to deduct or pay

No TDS credit to deductees (including PAO himself) Penalty to the extent of tax payable but not paid u/s 221. Interest will be charged on such default as under:
a) b) 1% for every month from the date on which such tax was deductible till the date on which such tax is deducted. 1.5% for every month from the date on which such tax was deducted till the date of tax actually paid

Prosecution: if a person fails to pay the tax deducted or collected, he shall be punishable with rigorous imprisonment of minimum 3 month and maximum 7 years with fine
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 AIN= Account Officer Identification Number BIN= Book Identification Number

TAN=Tax Account Number

PAN= Permanent Account Number

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Deductee
TDS

PAN can view Form 26AS

Deductor
Quarterly statements 24Q

TAN can view statements

PAO
Form 24G

AIN can view 24G forms

Govt a/c
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Deductee

TDS Credit
BIN

TDS IT Return

Deductor
Form No 24Q, 26Q, 27Q Quarterly statement

PAO
Form 24G MONTHLY STATEMENT

Govt a/c
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 BIN (Book Identification Number) is unique number

generated for each Form 24G statement accepted at TIN.

Book Identification Number (BIN)

NSDL will e-mail BIN details to the respective PAOs at the

e-mail ID present in the Form 24G accepted at TIN.

BIN is to be quoted in the quarterly TDS/TCS statement

filed by the DDO. While filing quarterly e-TDS/TCS statement DDO has to quote BIN in transfer voucher details Facility to PAO to view/download BIN at TIN website provided. PAO has to disseminate BIN to respective DDOs
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Where to use BIN in form 24Q?

BIN
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Where to use BIN in form 26Q?

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BIN

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Where to use BIN in form 27EQ?

BIN
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Challan Identification Number(CIN) 1. When TDS deposited through challan

Book Identification Number (BIN) 1. 2. When TDS not deposited through challan Done by govt deductors Shows status of Book Transfer to Govt A/c BIN will be generated only for those DDO records for which valid TAN is provided. Amount matched will be displayed, else Mismatch in Amount will be displayed User will be able to request BIN (view/download) maximum for a period of 12 months
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2.

assessee can track online the status of their challans deposited 3. in banks
Assessee can view the following details: i. BSR Code ii. Date of Deposit iii. Challan Serial Number iv. Major Head Code with description v. Assessee code vi. Name of Assessee vii. Received by NSDL on viii. Confirmation that the amount entered is correct 4.

3.

5.

6.

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In Form 24Q
If payment by challan By book transfer CIN BIN

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Person Responsible for filing Form No' 24G in case of State Govt' Departments"

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Person Responsible for filing Form No' 24G in case of State Govt' Departments"

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Circulars
For detailed information, please refer CBDT Circular No.8/2010 dt.13.12.2010 &1/2012 dt. 09.04.2012. (created liability on PAO to file Form 24G)

From 01.04.2012, Certificate in Form 16A manually issued is invalid. It should be mandatorily issued through TIN (online) from 01.04.2012
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Certificate u/s 16A (online)

To be downloaded from TIN-NSDL websie
Wrong PAN entries will be identified The certificate you issue & return submitted This error will be automatically removed Cases of return revision Default demand notice

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Form 24G
An
office of the Government, where tax has been paid to the credit of Central Government without the production of a challan is required to file Form 24G as per Income-tax Department Notification no. 41/2010 dated May 31, 2010.

To be filed by PAO/ DTO/ CDDO to confirm TDS/TCS by book

entry

Any Office whom deduction has been reported & who in turn is
reporting such deduction to Accountant General

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Why Form

24G?

TDS/TCS

paid to the credit of Central Government through Transfer Voucher

No physical transfer of money

Verification
government
of TDS/TCS remitted to

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U CAN
File form 24G

Simple process Outsourcing also doesnt cost much Late filing fees Rs 200/- per day after 1st July 2012
Wont be allowed as expense Ull have to bear it

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Any questions?

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Thank you

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