Few TDS related Amendment by Notification No. 67/2022: An overview

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Few TDS related Amendment by Notification No. 67/2022: An overview

 

Income Tax Department issued Notification number 67 of 2022 to effectuate certain TDS related amendments brought vide Finance Act 2022. For this purpose vide the said notification certain rules have been inserted /amended.

Some of the key points as per the notification are:

  1. Form 26QE has been notified as the challan cum statement form for TDS deducted on transfer of Virtual Digital Assets(VDA) by specified persons u/s 194S of the Act.
  2. TDS deducted by specified person u/s 194S shall be deposited to the credit of the Central Government within 30 days from the end of the month in which TDS was deducted.
    3. Form 16E to be issued by specified person as the Tds certificate within 15 days from the due date of filling of challan cum statement Form 26QE.
  3. Changes in Form 26Q have been introduced to ensure that the amount deducted as TDS u/s 194R, 194 S and 194B has been deposited before releasing benefits or perquisites u/s 194R, winnings from lotteries u/s 194B or consideration on transfer of VDA u/s 194S.
  4. New Forms notified for TDS on sale of immovable property (Form 26 QB, section 194-IA) and renting of immovable property ( Form 26 QC, section 194 IB) and TDS on contractual and professional payments by individuals and HUFs ( not required to get their books audited) if payment more than 50 lakhs during the financial year( Form 26 QD , section 194 M)

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 21st June, 2022

INCOME-TAX

G.S.R. 463(E).–– In exercise of the powers conferred by section 295 read with sections 194B, 194-IA, 194R, 194S and section 206AB of the Income-tax Act, 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 –– (1) These rules may be called the Income-tax (19th Amendment) Rules, 2022. (2) Save as otherwise provided in these rules, they shall come into force from the date of their publication in the Official Gazette.
  1. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules),
  • in rule 30, with effect from the 1st July, 2022––
    • after sub-rule (2C), the following sub-rule shall be inserted, namely:––

“(2D) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194S by a specified person referred to in that section shall be paid to the credit of the Central Government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QE.”;

  • after sub-rule (6C), the following sub-rule shall be inserted, namely:––

“(6D) Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QE, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2D) into the Reserve Bank of India or the State Bank of India or any authorised bank.”;

  • in rule 31, after sub-rule (3C), the following sub-rule shall be inserted with effect from the 1st July, 2022, namely:–

“(3D) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person, being a specified person referred to in section 194S and responsible for deduction of tax under that section shall furnish the certificate of deduction of tax at source in Form No.16E to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QE under rule 31A after generating and downloading the same from the web portal specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him.”;

  • in rule 31A, with effect from the 1st day of July, 2022––
    • in sub-rule (4), after clause (xvi), the following clause shall be inserted, namely:–– “(xvii) furnish particulars of amount deposited being prerequisite for releasing––
  • winnings in terms of proviso to section 194B;
  • benefit or perquisite in terms of first proviso to sub-section (1) of section 194R; and
  • consideration in terms of proviso to sub-section (1) of section 194S along with the challan details such as BSR code of the bank, date of payment and challan serial number.”
    • after sub-rule (4C), the following sub-rule shall be inserted, namely,––

“(4D) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) of sub-rule (4), every specified person referred to in section 194S and responsible for deduction of tax under that section shall furnish to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or the Director General of Income- tax (Systems), a challan-cum-statement in Form No. 26QE electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within thirty days from the end of the month in which the deduction is made.”.

  1. In the principal rules, in Appendix II, after Form 16D, the following Form shall be inserted with effect from the 1st July, 2022, namely,––

 

“Form No. 16E
[See rule 31(3D)]
Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source
Certificate No. Last updated on
Name and address of the Deductor Name and address of the Deductee
Permanent Account Number or Aadhaar

Number of the Deductor

Permanent Account Number or Aadhaar

Number of the Deductee

Financial Year of deduction
Summary of Transaction(s)
S. No. Unique Acknowledgement Number Amount paid/credited Date of payment/credited (dd/mm/yyyy) Amount of tax deducted and

deposited in respect of the deductee

Total (Rs.)
DETAILS OF TAX DEPOSITED TO THE CREDIT OF THE CENTRAL GOVERNMENT FOR WHICH CREDIT IS TO BE GIVEN

TO THE DEDUCTEE

S. No. Amount of tax deposited in respect of deductee (Rs.) Challan Identification number (CIN)
BSR Code of the Bank

Branch

Date on which tax deposited

(dd/mm/yyyy)

Challan Serial

Number

1.
2.
Total (Rs.)
Verification
I, …………….., son/daughter of …………. in the capacity of ……. (designation) do hereby certify that a sum of (Rs.)…….. [Rs.

…………. (in words)] has been deducted and deposited to the credit of the Central Government. I further certify that the information given above is true, complete and correct and is based on the books of account, documents, challan-cum-statement of

deduction of tax, TDS deposited and other available records.

Place (Signature of person responsible for deduction of tax)
Date Full name:                           ”.

 

  1. In the principal rules, in Appendix II, in form 26Q, with effect from the 1st day of July, 2022 ––
  • for the brackets, words, figures and letters “[See sections 192A, 193, 194, 194A, 194B, 194BB, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 194LA, 194LBA, 194LBB, 194LBC, 194N, 194-O, 194P, 194Q, 197A, 206AA, 206AB and rule 31A]”, the following brackets, words, figures and letters, shall be substituted, namely:––

[See sections 192A, 193, 194, 194A, 194B, 194BB, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194 -I, 194J, 194K, 194LA, 194LBA, 194LBB, 194LBC, 194N, 194-O, 194P, 194Q, 194R, 194S, 197A, 206AA, 206AB

and rule 31A]”;

 

  • for the “Annexure”, the following “Annexure” shall be substituted, namely:––

ANNEXURE: DEDUCTEE/PAYEE WISE BREAK UP OF TDS

(Please use separate Annexure for each line-item in Table at Sl. No. 4 of main Form 26Q)

Details of amount paid/credited during the quarter ended…      (dd/mm/yyyy) and of tax deducted at source

 

BSR Code of branch/Receipt Number of Form No. 24G
Date on which challan deposited/Transfer voucher date (dd/mm/yyyy)
Challan Serial Number / DDO Serial No. of Form No. 24G
Amount as per Challan
Total tax to be allocated among deductees/payees as in the vertical total of Col. 421
Total interest to be allocated among the deductees/payees mentioned below

 

Name of the Deductor/Payer
TAN

 

Sl.

No.

Deductee

/payee referen ce numbe r provide d by the deduct or/ payer, if availab

le

Deduct ee/ payee code (01- Comp any 02-

Other than company)

PAN of the deductee

/ payee

Name of the deduct ee/ payee Section code (See Note 17) Date of payment or credit (dd/m m/ yyyy) Amount paidor credited Amount of cash withdrawal in excess of Rs. 1 crore as referred to in section 194N

(in cases not covered by the first proviso to section 194N)

Amount of cash withdrawal which is in excess of Rs.

20 lakh but does not exceed Rs 1 crore for cases covered by

sub-clause

(a)  of clause (ii)of first proviso to section 194N

Amount of cash withdrawal in excess of Rs. 1 crore for cases coveredby sub- clause

(b) of clause

(ii) of first proviso to section 194N

Total tax deducte d Total tax deposit ed Date of deduction (dd/mm/ yyyy) Rate at which deducted
[412] [413] [414] [415] [416] [417] [418] [419] [419A] [419B] [419C] [420] [421] [422] [423]
1
2
3
Total

 

Reason for non- deduction

/ lower deduction/ Higher Deduction/ Threshold/ Transporter etc. (See notes 1 to

16)

Number ofthe certificate under section 197issued by the Assessing Officer fornon- deduction

/ lower deduction

If section code 94B-P is selected, then provide If section code 94R-P is selected, then provide If section code 94S-P is selected, then provide
Amount of tax deposited BSR

Code of bank

Date of payment Challan serial number Amount of tax deposited BSR

Code of bank

Date of payment Challan serial number Amount of tax deposited BSR

Code of bank

Date of payment Challan serial number
[424] [425] [426A] [426B] [426C] [426D] [427A] [427B] [427C] [427D] [428A] [428B] [428C] [428D]

 

 

Verification

 

I, ………………………………………………………………… , hereby certify that all the particulars furnished above are correct and complete.

 

Place:   …………………..                                                                                 …………………………………………..

Signature of the person responsible for deducting tax at source

Date:   …………………..                                             ………….………………………………..

Name and designation of the person responsible for deducting tax at source

Notes:

  1. Write “A” if “lower deduction” or “no deduction” is on account of a certificate under section
  2. Write “B” if no deduction is on account of declaration under section 197A other than the cases mentioned in sub-section (1F) of section
  3. Write “C” if deduction is on higher rate under section 206AA on account of non-furnishing of
  4. Write “D” if no deduction or lower deduction is on account of payment made to a person or class of person on account of notification issued under sub-section (5) of section
  5. Write “E” if no deduction is on account of payment being made to a person referred to in Board Circular 3 of 2002 dated 28th June 2002 or Board Circular No. 11 of 2002 dated 22nd November 2002 or Board Circular No. 18/2017 dated 29th May 2017.
  6. Write “Y” if no deduction is on account of payment below threshold limit specified in the Income-tax Act,
  7. Write “T” if no deduction is on account of deductee or payee being transporter. PAN of deductee or payee is mandatory [section 194C(6)].
  8. Write “Z” if no deduction or lower deduction is on account of payment being notified under section 197A(1F).
  9. Write “M” if no deduction or lower deduction is on account of notification issued under second proviso to section
  10. Write “N” if no deduction or lower deduction is on account of payment made to a person referred to in the third proviso to section 194N or on account of notification issued under fourth proviso to section 194N.
  11. Write “O” if no deduction is as per the provisions of sub-section (2A) of section
  12. Write “P” if no deduction is on account of payment of dividend made to a business trust referred to in clause (d) of second proviso to section 194 or in view of any notification issued under clause (e) of the second proviso to section
  13. Write “Q” if no deduction in view of payment made to an entity referred to in clause (x) of sub -section (3) of section
  14. Write “S” if no deduction is in view of the provisions of sub-section (5) of section
  15. Write “T” if the deduction is on higher rate in view of section 206AB for non-filing of return of
  16. List of section codes is as under:
Section Nature of Payment Section Code
192A Payment of accumulated balance due to an employee 192A
193 Interest on securities 193
194 dividend 194
194A Interest other than interest on securities 94A
194B Winnings from lotteries and crossword puzzles 94B
Proviso to section 194B Winnings from lotteries and crossword puzzles where consideration is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released 94B-P
194BB Winnings from horse race 4BB
194C Payment of contractors and sub-contractors 94C
194D Insurance Commission 94D
194DA Payment in respect of life insurance policy 4DA

 

 

194EE Payments in respect of deposits under National Savings Schemes 4EE
194F Payments on account of repurchase of Units by Mutual Funds or UTIs 94F
194G Commission, prize etc., on sale of lottery tickets 94G
194H Commission or Brokerage 94H
194-I(a) Rent 4-IA
194-I (b) Rent 4-IB
194J(a) Fees for Technical Services (not being professional service), royalty for sale, distribution or exhibition of cinematographic films and call center (@2%) 94J-A
194J(b) Fee for professional service or royalty etc. (@10%) 94J-B
194K Income in respect of units 94K
194LA Payment of Compensation on acquisition of certain immovable property 4LA
194LBA(a) Certain income in the form of interest from units of a business trust to a resident unit holder 4BA1
194LBA(b) Certain income in the form of dividend from units of a business trust to a resident unit holder 4BA2
194LB Income in respect of units of investment fund LBB
194LBC Income in respect of investment in securitization trust LBC
194N Payment of certain amounts in cash 94N
First proviso to

section194N

Payment of certain amounts in cash to non-filers 94N-F
194-O Payment of certain sums by e-commerce operator to e-commerce participant 94O
194P Deduction of tax in case of specified senior citizens 94P
194Q Payment of certain sums for purchase of goods 94Q
194R Benefits or perquisites of business or profession* 94R
First Proviso to

sub-section (1) of section 194R

Benefits or perquisites of business or profession where such benefit is provided in kind or

where part in cash is not sufficient to meet tax liability and tax required to be deducted is paid before such benefit is released*

94R-P
194S Payment of consideration for transfer of virtual digital asset by persons other than specified persons* 94S
Proviso to sub-

section(1) of section 194S

Payment for transfer of virtual digital asset where payment is in kind or in exchange of

another virtual digital asset and tax required to be deducted is paid before such payment is released*

94S-P

 

* Note:–– In relation to section 194R and section 194S, the changes shall come into effect from 1st July, 2022.”.

  1. In the principal rules, in Appendix II, for Form 26QB, the following Form shall be substituted, namely,––

“Form No. 26QB

[See section 194-IA, rule 30 and rule 31A]

Challan-cum-statement of deduction of tax under section 194-IA

 

Financial Year

Major Head Code* Minor Head Code*
Permanent Account Number or Aadhaar Number of Transferee /Payer/Buyer
Category of Permanent Account Number* Status of PAN*
Full Name of Transferee/Payer/Buyer
Complete Address of Transferee/Payer/Buyer
PIN
Mobile No. Email ID
Whether more than one transferee/payer/buyer (Yes/No)
Permanent Account Number or Aadhaar Number of Transferor /Payee/Seller
Category of Permanent Account Number* Status of

PAN*

Full Name of Transferor/Payee/Seller
Complete Address of Transferor/Payee/Seller
PIN
Mobile No. Email ID
Whether more than one Transferor/Payee/Seller (Yes/No)
Complete Address of Property transferred

 

 

PIN
Date of agreement/ booking** Total Value of Consideration (amount in Rs.) Payment in installment or lump-

sum

Whether TDS is deducted at Higher rate as per section 206AB (Yes/No)***
Whether it is last instalment? Yes No
Total amount paid/

credited in previous installments, if any (in Rs.)

(A)

Amount

paid/ credited currently (B)

Total Stamp duty

value of the Property (in Rs.) (C)

Amount on

which TDS to be deducted (D)

(see note 1)

Date of

payment/ credit**

Rate at

which deducted (see note 2)

Amount of

tax deducted at source

(see note 3)

Date of

Deduction**

Whether stamp duty value is higher than sale consideration Yes No
Date of

Deposit**

Mode of payment Simultaneously e-tax payment          e-tax payment on subsequent date
Details of payment of tax deducted at source (amount in Rs.)
TDS (Income Tax)(Credit of tax to the deductee shall be given for this amount
Interest
Fee
Total Payment
Total payment in words (in Rs.)
Crores Lakhs Thousands Hundreds Tens Units
Unique Acknowledgement no. (generated by TIN)

*To be updated automatically

**In dd/mm/yyyy format

*** From 1st April, 2022, provisions of section 206AB are not applicable in case of tax deduction under section 194- IA.

Notes:

  1. (a) In case of installment, where it is not last installment, (A+B);

(b) in any other case (i.e., last installment or lump sum payment), (A+B) or (C), whichever is higher.

  1. Tax to be deducted at higher rates in case provisions of section 206AB is ***
  2. (a) In case of installment, where it is not last installment, TDS on (A+B) as reduced by the TDS in earlier instalments, if any;

(b) In any other case (i.e., last installment or lump sum payment), TDS on (A+B) or (C), whichever is higher, as reduced by TDS paid on earlier instalments, if any.”.

  1. In the principal rules, in Appendix II, for Form 26QC, the following Form shall be substituted, namely:––

“FORM NO. 26QC

[See section 194-IB, rule 30(2B) and (6B) and rule 31A(4B)]

Challan-cum-statement of deduction of tax under section 194-IB

 

Financial Year Major Head Code* 2 0 Minor Head Code* 8 0 0
[Permanent Account Number or Aadhaar Number] of Tenant/lessee/Payer
Full Name of Tenant/lessee/Payer*
Complete Address of Tenant/lessee/Payer
PIN
Mobile No. Email ID
Whether more than one Tenant/lessee/Payer (Yes/No)
Permanent Account Number or Aadhaar Number of Landlord/Lessor/Payee
Category of Permanent Account Number* Status of Permanent Account Number*
Full Name of Landlord/Lessor/Payee

 

 

Complete Address of Landlord/Lessor/Payee
PIN
Mobile No. Email

ID

Whether more than one Landlord/Lessor/Payee (Yes/No)
Complete Address of property rented
PIN
Period of Tenancy*** Total Value of Rent Paid (Amountin Rs.) Value of Rent Paid in Last Month (Amountin Rs.)
Whether TDS is deducted at Higher rate as per section 206AB (Yes/No)****
 

Amount Paid/Credited (in Rs.)

Date of payment/credit

**

 

Rate at which deducted

(see note 1)

Amount of tax

deducted at source

 

Date of Deduction**

Date of Deposit** Mode of payment Simultaneous e-tax payment
e-tax payment on subsequent date
Details of Payment of Tax Deducted at Source (Amount in Rs.)
TDS (Income Tax) (Credit of tax to the deductee shall be given for this amount)
Interest
Fee
Total payment
Total Payment in words (in Rs.)
Crores Lakh             T housands Hundreds Ten Units

*To be updated automatically

**In dd/mm/yyyy format.

***Against period of tenancy, the number of months the property is rented for the financial year may be mentioned.

****From 1st April, 2022, provisions of section 206AB are not applicable in case of deduction under section 194-IB.

Note: Tax to be deducted at higher rates in case provisions of section 206AB is applicable. ****”.

 

  1. In the principal rules, in Appendix II, for Form 26QD, the following Form shall be substituted, namely,––

Form No.26QD

[See section 194M, rule 30(2C), rule 30(6C) and rule 31A (4C)]

Challan-cum-statement of deduction of tax under section 194M

 

 

Financia lYear  

Major Head Code* Minor Head Code*
Permanent Account Number(PAN) or Aadhaar No. of deductor
Full Name of Deductor*
Complete Address of

deductor

PIN

 

 

Mobile No. Email ID
Permanent Account Number(PAN) or Aadhaar no. of Deductee
Category of PAN* Status of PAN*
Full Name of Deductee
Complete Address of  Deductee
PIN
Mobile No. Email ID
Nature of payment (work in pursuance of a contract/ commission/ brokerage or fees for professional services)
 

 

Date of contract/agreement**

Aggregate of payments/credit during theperiod from 1st April to the end of the month in which the payment has been made/ credited.
Is it a case of non-deduction/Lower deduction onaccount of certificate under section 197?

(Please Tick Yes/No)

 

 

Yes

 

No

Number of the certificate under section 197 issued by the Assessing Officer fornon-deduction or lower deduction.
Whether TDS is deducted at higher rate as per section 206AB (Yes/No)***
Amount paid/credited (in Rs.) Date of payment/cr edit** Rate at which deducted (see note 1) Amount of tax deducted at source Date of deduction**
Date of deposit** Mode of payment Simultaneous e-tax payment
e-tax payment on subsequent date
Details of Payment of Tax Deducted at Source (Amount in Rs.)

TDS (Income Tax) (Credit of tax to the deductee shall be given for this amount) Interest

Fee

Total payment

Total payment in Words (in Rs.)

rores Lakhs Thousands Hundreds Tens Units

 

* To be updated automatically

** In dd/mm/yyyy format.

*** From 1st April, 2022, provisions of section 206AB are not applicable in case of deduction under section 194M.

Note: Tax to be deducted at higher rates in case provisions of section 206AB is applicable. ***”.

 

  1. In the principal rules, in Appendix II, after Form 26QD, the following Form shall be inserted with effect from 1st July, 2022, namely:––

“Form No. 26QE

[See section 194S, rule 30 (2D) and (6D) and rule 31A(4) and (4D)]

Challan-cum-statement of deduction of tax under section 194S by specified persons

 

Financial Year Major Head

Code*

Minor Head Code*
Permanent Account Number or Aadhaar Number of deductee
Category of Permanent Account Number* Status of PAN*
Full Name of deductee
Complete Address of deductee
PIN
Mobile No. Email ID
Permanent Account Number or Aadhaar Number of deductor
Category of Permanent Account Number* Status of PAN*
Full Name of deductor

 

 

Complete Address of deductor
PIN
Mobile No. Email ID
Date of transfer of Virtual digital asset

(VDA)

Total Value of Consideration (amount in Rs.) Whether payment made in kind or in exchange of another VDA YES

 

NO

If yes, then provide Challan

identification number

BSR code of

bank branch

Date on which tax deposited Challan serial number
Amount of tax paid (in

Rs.)

Amount paid/ credited either in cash or kind or in exchange of another VDA (in Rs.) Date of payment/ credit** Rate at which deducted Amount of tax deducted at source Date of Deduction**
Date of Deposit** Mode of payment Simultaneously e-tax payment
e-tax payment on subsequent date
Details of payment of tax deducted at source (amount in Rs.)
TDS (Income Tax)(Credit of tax to the deductee shall be given for this amount)
Interest
Fee
Total Payment
Total payment in words (in Rs.)
Crores Lakhs Thousands Hundreds Tens Units
Unique Acknowledgement no. (generated by TIN)

 

*To be updated automatically

**In dd/mm/yyyy format”.

 

[Notification No. 67/2022/F. No. 370142/23/2022-TPL]

 

ANKIT JAIN, Under Secy.

 

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 March, 1962 and was last amended vide notification number G.S.R. 458(E) dated 17.06.2022.

 

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