simpleincometax

ACIT Promotion : no Adhoc, only regular promotion

2012-01-27T07:52:00.000-08:00

It is learnt that CBDT is going to implement only regular promotion in the grade of ACIT. For this letter sent to UPSC for date of DPC.
ITGOA has convened a secretariat meeting on thursday, the 31st January to decide further course of action.

It is also confirmed that DOPT has approved the cadre review proposal. Approval of Cabinet is required to implement the same. It is learnt that posts in the highest level have been reduced by DOPT. Further details are still awaited

DOPT approves Cadre Review Proposal of I.T. Dept.

2012-01-27T00:15:00.000-08:00

FLASH NEWS
It is learnt from reliable sources in Delhi that DOPT has approved the Cadre Review proposal of I.T. Dept. with some modification. Detailed information is awaited.
It is now confirmed that DOPT has approved the cadre review proposal. Approval of Cabinet is required to implement the same. It is learnt that posts in the highest level have been reduced by DOPT. Further details are still awaited

ITO to ACIT promotion : Update as on 27.01.12 (1P.M.)

2012-01-26T23:48:00.000-08:00

There will be a meeting between ITGOA and Chairman, CBDT on the current status of ITO to ACIT DPC on Friday (27/01/2012). Details likely by today evening.

It is learnt that Vigilance Clearance & APARs from North and East Zone still to be received at CBDT
DPC file likely to be sent to CBDT from Law Ministry by Friday. Regular DPC by UPSC in about two weeks time thereafter

CBDT Chairman assures early cadre review order.

2012-01-23T22:08:00.000-08:00

"22/01/2012 - Chairman, CBDT assures about the early release of Cadre Review Orders. About 18,000 additional posts are being released."
Source : ITGOA

ITO to ACIT Promotion : ITGOA to revive agitation from 27.01.12 if no development takes place

2012-01-23T07:00:00.000-08:00

Despite of written assurance from The Chairman, CBDT, no adhoc promotion or finalization of date of regular DPC has been notified by the board till today [23/01/2012].
ITGOA has written to CBDT today that they will restart the agitation from 27th January if nothing conclusive takes part in between.
View the ITGOA Letter dated 23.01.12 to the Chairman, CBDT

ITGOA wins CAT case on revised pay of ITIs and ITOs

2012-01-22T22:46:00.000-08:00

ITGOA wins CAT case in Mumbai on implementation of revised pay scales of ITIs and ITOs with effect from 1.1.1996.
View the CAT Order

I-T dept may not go for review of judgement on Vodafone case

2012-01-21T22:45:00.000-08:00

The Income Tax department may not go in for filing a review petition on the Supreme Court's judgement on the Vodafone taxation case.

Top sources in the department said that a ten-member "core committee", which has been specially constituted, will go into the details of the order.

But the department may take a view not to file a review petition against the order which was delivered by a three-member Supreme Court bench headed by Chief Justice S H Kapadia Friday, the sources said.

"We will have to study the whole judgement and then decide (on the course of action that needs to be taken)," CBDT Chairman M C Joshi told PTI.

"We take the judgement of the Supreme Court in our stride and there is no chance of the I-T department going in for a review petition in the case," a top official involved in the case said.

I-T sources said they had prepared a "ready reckoner" compendium of the timeline of the case, since 2007, and had submitted almost eight spiral-bound volumes so that the Supreme Court bench could go through all the points of the case in fine details.

"The bench has given the order after going through all of these documents. The core committee will go through the order of the apex court and suggest lessons to be drawn from the judgement," the official said.

In a landmark judgement, the Supreme Court on Friday had set aside the Bombay High Court ruling asking Vodafone International Holdings to pay Rs 11,000 crore in income tax on acquisition of interests in Hutchinson-Essar Limited in 2007 overseas.

It asked the Income Tax department to return Rs 2,500 crore deposited by Vodafone International Holdings within two months along with 4 per cent interest.

Experts too felt that it was unlikely that the government would file a review petition as the three-judge bench was headed by the Chief Justice of India (CJI) and extensive hearings had already taken place on the matter.

"There is no error in the judgement, so there is no question of going in for a review," Dinesh Kanabar, deputy CEO and Chairman Tax at KPMG said.

"Technically the government can go in for a review but I do not think this is a fit case for that because extensive hearings have already taken place," Rahul Garg, Executive Director, PricewaterhouseCoopers said.

"It is unlikely that the government would go in for a review," Aseem Chawla, Partner Tax Practices at Amarchand Mangaldas said.

Moreover, they said that under the proposed Direct Tax Code, there is a provision to tax transactions of this nature. However, if any amendments are made, they would not have any retrospective effect.

"The only plausible option before the government is to make legislative amendments. Such amendments would be substantive in nature and therefore cannot have any retrospective effect," Chawla said.

Chapter XI of the draft DTC Bill, which is under consideration of a Parliamentary Standing Committee, provides for general anti-avoidance rules.

"According to the (DTC) provision, if there is an overseas transfer of shares with an underlying value in India of more than 50 per cent, it is liable to be taxed," Kanabar said.

Source : Times of India

ITGOA elected office bearers for 2012 - 2014

2012-01-21T04:57:00.000-08:00

In the BGM held at Mumbai from 18 to 20th January 2012, following Office Bearers have been elected to perform there duty for the next two years.

President	A.Sitarama Rao
Vice-President	S.N.Bhadra
Vice-President	Rajiv Puri
Secretary General	Rajesh D Menon
Additional Secretary	Raj Singh Meel
Joint Secretary	Diwakar Singh
Joint Secretary	V.M.Jayadevan
Assistant Secretary	Basawanand
Assistant Secretary	Sathish Bhalla
Treasurer	N.V.Anantharaman Iyer
Auditor	C.K.Singh
Zonal Secretary (North)	J.B.Singh
Zonal Secretary (East)	Amitava Dey
Zonal Secretary (West)	Ravi Shankar
Zonal Secretary (South)	K.E.Rajan
Zonal Secretary (Central)	Krishnakumar

Inspector/P.S/A.O likely to get minimum fixation as 13,860 w.e.f 01.01.2006

2012-01-18T20:10:00.000-08:00

View details in PaycommissionUpdate

ITO to ACIT Adhoc promotion : Vigilance Clearance sought by CBDT

2012-01-10T07:23:00.000-08:00

In order to proceed with more than 400 Ad hoc promotion in the grade of ACIT, CBDT has urgently sought vigilance clearance for the ITOs who are in the consideration zone for promotion. Significantly, CBDT has officially confirmed that the vacant post of ACIT is above 400.
Who are in the consideration zone ?
Sl No. 1360 to 1828 for Gen.
Sl No. 1666 to 2467 for SC
Sl No. 1807 to 2200 for ST
[as per the CBDT letter] [A large number of persons in between have been retired, so the list is so long]
The vigilance clearance is to be submitted by 13th January by the DGIT[Vigilance]
So, certainly the ball is rolling.
View the CBDT Letter Dated 10th January 2012
Download Latest ITO Seniority List here

ITGOA suspends agitation, ITO to ACIT promotion may be done shortly

2012-01-09T22:25:00.000-08:00

With assurance from CBDT that they will finalize the matter of ad hoc promotion to ACIT after getting approval from law ministry within 20th january,2012, ITGOA has temporarily withdrawn the ongoing agitation.
Meanwhile CBDT has asked for ACRs/APARs for the ITOs particularly who may be considered for promotion to the cadre of ACITs positively within 9th January. It indicates that the ball is certainly rolling.
Though there are rumors in the air about the clearance of Cadre review proposal from DOPT, nothing could be confirmed from the official source yet.
View the letter of CBDT asking ACRs/APARs

90% of I-T arrears owed by just 12 people: CAG

2011-12-16T08:03:00.000-08:00

The Comptroller and Auditor General has said that 90 per cent of the country's income tax (I-T) arrears are owed by just a dozen individuals, led by Pune-based stud farm owner Hasan Ali Khan.

Government auditor CAG also noted in a report that these demands are "unrealisable 100 per cent".

Khan, with a tax arrear demand of Rs 50,345.73 crore (Rs 503.46 billion) is followed by Chandrika Tapuriah, wife of his associate Kashi Nath Tapuria, with an outstanding of Rs 20,540.83 crore (Rs 205.41 billion), while late stock broker Harshad Mehta owes Rs 15,944.38 crore (Rs 159.44 billion) in arrears.

"The demand against individuals is highly skewed, with 12 individuals (4.3 per cent of the total cases) accounting for 90 per cent of the arrear demand.

One individual Hasan Ali Khan accounts for 43 per cent of the total arrear demand... interestingly all of this demand is categorised as unrealisable," CAG said in the report tabled in Parliament.

Khan, along with the Tapuriah couple, is embroiled in a number of cases ranging from money laundering, tax evasion and passport forgery which are being probed by various agencies like the Enforcement Directorate and Income Tax Department.

The government, in August this year, had also disclosed the names of the "top 10 individual defaulters" for Income Tax assessment year 2009-10.

Apart from Hasan Ali and Harshad Mehta, they included Kashinath Tapuriah (Rs 602.80 crore), A D Narrotam (Rs 5,781.86 crore), Hiten P Dalal (Rs 4,200.04 crore), Jyoti H Mehta (Rs 1,739.57 crore), Ashwin S Mehta (Rs 1,595.51 crore), B C Dalal (1,535.89 crore), S Ramaswamy (Rs 1,122.48 crore) and Uday M Acharya (Rs 683.22 crore).

CAG said the government has a huge tax demand of Rs 1.96 lakh crore, of which 84 per cent can't be realised due to various reasons like death, insolvency and liquidation of company.

Source : Rediff.com

ITGOA agitation for promotion and cadre review : An Update

2011-12-05T06:25:00.000-08:00

It is learnt from ITGOA site that CBDT called Secretary General of ITGOA and informed that they are puruing the matter with UPSC and DOPT for an early promotion. The Secy Gen. insisted for adhoc promotion for withdrawal of ongoing agitattion.
A reliable source also informed that adhoc promotion from ITO to ACIT is likely to be materialize in the last week of December.

ITGOA continues agitation to fill up more than 700 ACIT posts

2011-11-02T01:56:00.001-07:00

The Income Tax Gazetted Officers Association, the organization representing about 8,500 promottee officers of the Income Tax Department, has embarked upon an agitation programme from 25/10/2011, demanding filling up of more than 700 posts of Assistant Commissioners of Income Tax. Vacancy for the years 2010-11 and 2011-12 have not been filled up, with a delay of 17 months and 7 months respectively. The department is already facing acute shortage of manpower both at the staff and officers level, especially at the cutting edge level i.e. Assistant Commissioners of Income Tax, who are looking after the very big assessments, thus play a very crucial role in revenue collection.

These vacant positions are being shared by the existing officers, by holding additional charges, which due to acute shortage of staff members results in unmanageable workload, causing disruption in tax payer service and revenue collection. The much needed cadre review & restructuring exercise to provide additional manpower, to meet growing number assesses and related assessment work, has been pending for more than two years.

Considering the utter frustration of Income Tax Officers who are languishing without any promotion for around 13/14 years, despite sufficient vacancies, ITGOA had served a notice dated 10-10-2011, on the Chairman, CBDT informing about the proposed agitation starting from 25-10-2011, if the promotion from ITO to ACIT is not granted by that date. As the CBDT has failed to meet the deadline, ITGOA is constrained to adopt the following mode of agitation :

a. Boycott & protest in front of Chairman & Members-CBDT on their official visits.

b. Non-submission of statistical reports including dossier reports.

c. Only time-barring assessment work to be undertaken.

d. Black-badge & Candle-light march on 03-11-2011.

e. Non-conduct of Survey u/s.133-A including TDS Survey/Verification etc.

f. Mass Walk-out from 2.00 PM on 15-11-2011

The agitation will be further intensified thereafter, including strike.

ITEF (Income Tax Employees Federation) has committed moral support for the above agitation, as the promotion from ITO to ACIT will be percolating upto the juniormost official in the Department and Cadre Review & Restructuring will provide adequate staff & officers, thereby taking care of the work-load. Besides, these demand will surely boost the Revenue, which is primary for sustaining the developmental work undertaken by the Government.

(Rajesh Menon)

Secretary General

ORDER NO. 175 OF 2011- Ad. VI.(adhoc promotion to the grade of JCIT (OSD))

2011-10-27T08:03:00.000-07:00

Long awaited promotion from DCIT to JCIT released
ORDER NO. 175 OF 2011- Ad. VI.(adhoc promotion to the grade of JCIT (OSD))

New form for PAN application, with two colour photos.

2011-10-24T08:51:00.000-07:00

Income Tax Dept has notified new form and instruction for PAN application. This will come into effect from 1st day of November 2011

View the Notification

View the Instructions

Download New Form 49A for PAN application

Government increases collection target, silent on cadre review proposal

2011-10-14T08:07:00.000-07:00

The finance ministry has revised the Budget estimate of direct tax collection upwards by Rs 53,000 crore to Rs 5.85 lakh crore. The higher target is an increase of 31% over last yearas collection of Rs 4.46 lakh crore. The increase is intended to bridge the shortfall that might occur due to reduction in customs duty on crude oil to offset price rise. But it has invited strong reaction from Income Tax officials, who are grappling with staff shortage.

The Central Board of Direct Taxes has written to the Department of Personnel and Training for raising as preliminary objections to the finance ministryas request for 18,000 additional posts for the tax department. CBDT has created several new investigative departments, including a Directorate of Criminal Investigation with the mandate of inducting a marine and armed unit, in the last two years to tackle white-collar crimes and deal with tax evaders even on foreign shores.

The request to enhance the manpower was personally vetted by finance minister Pranab Mukherjee and the file was moved to DoPT for final approval. However, DoPT, according to sources, has been sitting on the file for over a year now.

Tax mop-up in the first half of the current fiscal has not been too encouraging though. The growth in net direct tax collection in the April-September period was only 7% or Rs 1.94 lakh crore. But the overall gross collection rose by 23% to Rs 2.57 lakh crore. The collection was 36% of the budget estimates of Rs 5.32 lakh crore for 2011-12.

However, senior CBDT officials claim the revised budget estimates may be met but the government will have to move fast on increasing the strength of the department. There are 1,200 posts of additional commissioners, considered the backbone of tax collection, of which there are at least 600 vacancies.

Meanwhile, the government is hopeful of achieving 8% GDP growth and also meeting its revenue target. Prime Minister addressing the combined commandersa conference here on Tuesday, said that the fundamentals of the economy remained strong. asDespite the global slowdown, we will still achieve growth rate close to 8% this year,a? he said.

A senior revenue department official said meeting revised direct tax target was within reach as already the growth in gross collection was 23% in the first six months. Due to high refunds in the first half, to the tune of Rs 62,230 crore, the net collection figure was low, he added.

Source : Times of India.

Dept. Exam for ITOs and ITI's : Download Admit Card.

2011-09-10T06:19:00.000-07:00

Download Admit Cards for DE 2011.

Calculator Allowed in examination
"You are aware that the "Examination Rules" notified by the Board for the year 2011 prohibits the use of Calculator by the candidates in the Examination. Upon representation from various circles, we took up the matter with the Chairman and the same was subjected to discussion in the quarterly meeting with the Chairman held on 20^th July, 2011. The Chairman was of the opinion that calculators should be allowed since the same is being used for the day to day work also. The official version contained in the minutes of that meeting circulated by the Board vide F No. B-12020/2/2011-Ad.IX dated 17.08.2011 is as under:

"The staff side demanded that calculators should be allowed in the exam.

The Chairman opined that in view of present scenario of technology upgradation, the demand could be considered justified as it would test their skill in the use of such gadgets. He asked DIT (Exam) to examine this issue and make appropriate proposal."

We are yet to hear from the Directorate whether it has got the proposal approved and instructions issued to the field formations.Meanwhile you may inform the candidates that they may use the calculator in the Departmental Examination wherever necessary."

Source : ITEF

Digital Signature mandatory for efiling of Firms/Indvs u/s 44AB

2011-07-31T20:47:00.000-07:00

Digital Signature Certificate made mandatory w.e.f 1st July 2011 for Firms and Individuals whose accounts are required to be audited u/s 44 AB of the Income Tax Act' 1961.
Earlier it was mandatory only for companies.
View the Notification

IT Cadre review and restructure : information regarding field structure sought.

2011-07-26T08:36:00.000-07:00

DIT(HRD), CBDT urgently sought information regarding field structure for proposed restructuring of the Income Tax Dept.

This information is to be sent by all CCIT/CITs on an urgent basis. Only today(26/07) evening it has been faxed from Delhi. In this light it can be assumed that the process is very near to finalization.

View the details

Rs 80 crores to be disbursed against 1% incentive scheme for 09-10.

2011-07-22T01:22:00.000-07:00

Committee to recommend schemes for utilization of 1% incremental revenue of Rs.80.63 crore earned during F.Y. 2009-10 - reg.
View the details

Department has sought suggestion from all officers/officials in this regard, which has to be submitted within 25th July 2011 for consideration by a high powered committee. It may be mailed to navneet.manohar@nic.in

A section of employees have demanded laptop for Group C employees....."

"a proposal to the empowered committee to provide laptop/notebook to all Group C employees in the department out of the amount sanctioned for incremental revenue of Rs 80.63 crores earned during F.Y. 2009-10.

It may be mentioned that only the Group C and formerly Group D employees were left out from the earlier scheme of distributing incentive. As the department is putting thrust and more importance in outdoor activities like search/survey, enquiries/ holding seminars and awareness programmes, it will be an added infrastructural boost up for the employees who have to work outside the normal duty hours and workplace."

Income Tax Departmental Examination in September this year.

2011-07-02T07:34:00.000-07:00

In the year 2011, the dept. exam for ITOs/ITIs will commence on 14th September and Ministerial Exam will start on 21st September.

Ministerial Exam will be held as per the existing rules and will be descriptive as usual.

Last Date of application for exam : 29.07.2011

View the detailed circular and Time Table.

Income Tax Cadre Review and Restructuring may be cleared in a month

2011-07-01T00:54:00.000-07:00

Following are the excerpts from the ITEF blog.
"...Shri. Prakash Chandra, Chairman, CBDT was in Mumbai on 28^th and 29^thJuly, 2011(It must be a typing error, please consider it as "June".). We took the opportunity to meet him and discuss certain issues: We give hereunder the issues raised and his response thereon:

1. Cadre restructuring Proposal: Chairman informed us that the Director in CBDT has been asked to interact with the concerned in DOPT to clarify the points raised by them so as to avoid the delay. He expects to get the clearance of DOPT within a month's time.

2. Pending Issues: We have handed over him a copy of the minutes of the last formal meeting with his predecessor. He has assured to get the orders/instructions issued by the Board wherever further discussions are not needed. He will meet the representatives of ITEF on 8^th July,2011 at New Delhi and if the ongoing JPC meetings are concluded he would meet and address the pending issues on that day itself or shall indicate the date convenient to him.

3. Video Conferencing: We have pointed out the futility of participating in the present format of video conferencing as there is little time to present the case and get response. We have suggested that in view of the paucity of time, the representatives of a particular zone alone may be permitted to raise the issue, so that over a period everybody will get time to interact with the Chairman. Chairman was appreciative of this suggestion and would like to be presented the same for his consideration formally. We seek you view in the matter. What we intend to propose is as under.

A. The date and time of video conferencing will be intimated well in advances.

B. Only the issues a particular zone will be discussed in one conference. The others will have to await their turn for the next and subsequent conferences.

C. The issues concerning a particular charge taken up with the CCITs but not resolved due to the absence of approval or clarification from Board will be raised.

D. The query with the relevant information maybe e-mailed to the Chairman well in advance so that a proper decision could be conveyed in the conference itself.

E. All India issues, which are being addressed formally in the bilateral meetings need not be raised unless the action on decisions are delayed or decisions taken are not followed up by the section heads of the Board.

We feel that if this arrangement is agreed upon, the conference will have a smooth and orderly functioning and everybody will get an opportunity to get their long pending issues projected before the Chairman...."

Income Tax Return relief for salaried taxpayers

2011-06-23T22:24:00.001-07:00

The Central Board of Direct Taxes (CBDT) yesterday notified that salaried individuals having a total income up to Rs 5 lakh after allowable deductions, including salary from one employer and interest income from deposits in a savings bank account of up to Rs 10,000, need not file income tax returns.

However, they should get from their employer Form 16 — the certificate of tax deducted at source. The returns-exempt salaried will also have to give details of their interest income from bank deposits to their employer for deduction of income tax at source.

If the new rule had not come into force, salaried persons earning more than Rs 3.15 lakh a year would have had to file returns by July 31 this year.

Filing returns is a hassle that involves seeking the services of a tax consultant for a fee ranging between Rs 250 and Rs 500, though it can be done by individuals on their own either manually or through an online process which requires the purchase of a digital signature.

According to CBDT officials, the revised rule, which was announced in the budget, will benefit 85 lakh income tax assessees. The notification mentions only the assessment year 2011-12 but the government is expected to extend the relief.

View the CBDT Notification

TDS certificate From 16A to be downloaded and issued.

2011-06-01T20:43:00.000-07:00

Form No. 16A now generated from Tax Information Network (TIN). Mandatory for Companies and Banks to issue Form 16A from TIN to their deductees for deductions made from April 1, 2011 (F.Y. 2011-12).

CIRCULAR NO. 03 /2011

F. No 275/34/2011-( IT-B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, dated the 13^th May, 2011

Subject: Issuance of TDS Certificates in Form No. 16A downloaded from TIN Website and option to authenticate the same by way of digital signature – Circular under section 119 of the Income-tax Act 1961.

Section 203 of the Income-tax Act 1961 (‘the Act’) read with the Rule 31 of the Income-tax Rules 1962 (‘the IT Rules’) provides for furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars like amount of TDS, permanent account number (PAN), tax deduction and collection account number (TAN), etc. The relevant form for such TDS certificate is Form No.16 in case of deduction under section 192 and Form No.16A for deduction under any other provisions of Chapter XVII-B of the Act. TDS certificate in Form No.16 is to be issued annually whereas TDS certificate in Form No.16A is to be issued quarterly.

2. Currently, a deductor has an option to authenticate TDS certificate in Form No.16 by using a digital signature. However, no such option of using a digital signature is available to a deductor for issuing TDS certificate in Form No.16A and it, therefore, needs to be authenticated by a manual signature. The Central Board of Direct Taxes (the Board) has received representations to allow the option of using digital signature for authentication of TDS certificate in Form No.16A as issuance of TDS certificate in Form No.16A by manual signature is very time consuming, specially for deductors who are required to issue a large number of TDS certificates.

3. The Department has already enabled the online viewing of Form No.26AS by deductees which contains TDS details of the deductee based on the TDS statement (e-TDS statement)filed electronically by the deductor. Ideally, there should not be any mismatch between the figures reported in TDS certificate in Form No. 16A issued by the deductor and figures contained in Form No.26AS which has been generated on the basis of e-TDS statement filed by the deductor. However, it has been found that in some cases the figures contained in Form No.26AS are different from the figures reported in Form No.16A. The gaps in Form No.26AS and TDS certificate in Form No. 16A arise mainly on account of wrong data entry by the deductor or non-filing of e-TDS statement by the deductor. As at present, the activity of issuance of Form No.16A is distinct and independent of

Contd p-2

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filing of e-TDS statement, the chances of mismatch between TDS certificate in Form No.16A and Form No.26AS cannot be completely ruled out. To overcome the challenge of mismatch a common link has now been created between the TDS certificate in Form No.16A and Form No.26AS through a facility in the Tax Information Network website (TIN Website) which will enable a deductor to download TDS certificate in Form No.16A from the TIN Website based on the figures reported in e-TDS statement filed by him. As both Form No.16A and Form No.26AS will be generated on the basis of figures reported by the deductor in the e-TDS statement filed, the likelihood of mismatch between Form No.16A and Form No.26AS will be completely eliminated.

4. In view of the above, for proper administration of the Act, the Board have, in exercise of powers under section 119 of the Act, decided the following :-

4.1 ISSUE OF TDS CERTIFICATE IN FORM NO. 16A

(i) For deduction of tax at source made on or after 01/04/2011:

(a) The deductor, being a company including a banking company to which the Banking Regulation Act,1949 applies and any bank or banking institution, referred to in section 51 of that Act or a co-operative society engaged in carrying the the business of banking, shall issue TDS certificate in Form No.16A generated through TIN central system and which is downloaded from the TIN Website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2011 under any of the provisions of Chapter-XVII-B other than section 192.

(b) The deductor, being a person other than the person referred to in item (a) above, may, at his option, issue TDS Certificate in Form No.16A generated through TIN central system and which is downloaded from the TIN Website with a unique TDS certificate number in respect of all sums deducted on or after the 1st day of April, 2011 under any provisions of Chapter-XVII-B other than section 192.

(ii) For deduction of tax at source made during financial year 2010-11:

The deductor, may, at his option, issue the TDS certificate in Form No.16A generated through TIN central system which is downloaded from the TIN Website with a unique TDS certificate number in respect of all sums deducted during the financial year 2010-11 under any of the provisions of Chapter-XVII-B other than section 192.

Contd p-3

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4.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO.16A

(i) The deductor, issuing the TDS certificate in Form No.16A by downloading from the TIN Website shall authenticate such TDS certificate by either using digital signature or manual signature

(ii) The deductor being a person other than a person referred to in item 4.1(i)(a) above and who do not issue the TDS Certificate in Form No.16A by downloading from the TIN Website shall continue to authenticate TDS certificate in From No.16A by manual signature only.

5. The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of issuance of TDS certificate in Form No.16A which is downloaded from the TIN Website and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for issuance of TDS certificate in Form No.16A in electronic form.

6. It is further clarified that TDS certificate issued in Form No. 16A by the deductors covered by para 4.1(1)(a) in accordance with this circular and procedure, format and standards specified by the Director General of Income-tax (Systems) shall only be treated as a vilid TDS certificate in Form No. 16A for the purpose of section 203 of the Act read with Rule 31 of the IT Rules,1962.

7. Hindi version shall follow.

(AJAY KUMAR)

Director (Budget)

Tel.No.2309-2641