Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 8th March, 2016
Subject: Issue of clarification on contentious TDS issues-regarding-.
With a view to bring about clarity in the interpretation of certain contentious issues relating to tax deduction at source (TDS) on payments made by television channels, broadcasters and newspapers, Central Board of Direct Taxes has issued two Circulars.
Circular No.4/2016 dated 29.02.2016 deals with TDS on payments by broadcasters or television channels to production houses for production of content or programme for telecasting. It has been clarified in the Circular that in a situation where the content/programme is produced as per the specifications provided by the broadcaster/ telecaster and the copyright of the content/ programme also gets transferred to the telecaster/ broadcaster, such contract is covered by the definition of the term ‘work’ in section 194C of the Income-tax Act and, therefore, subject to TDS under section 194C at 2%, rather than at a rate of 10% under section 194J as payment for ‘professional or technical services’.
Circular No.5/2016 dated 29.02.2016 deals with TDS on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements. It has been clarified through the Circular that no TDS is attracted on payments made by television channels/ newspaper companies to the advertising agency for booking or procuring of or canvassing for advertisements. This clarification puts at rest the litigious issue as to whether such payments/ discounts are in the nature of ‘commission’ and so, subject to TDS at the rate of 10% under section 194H.
Both the Circulars are available on the website of the Departmentwww.incometaxindia.gov.in.
Pr. Commissioner of Income Tax
(Media and Technical Policy)
and Official Spokesperson, CBDT
1. THE TIMING FOR ACCEPTANCE TDS RETURN WILL BE FROM 10.00 AM -6.00 PM IN WEEKDAYS & ON SATURDAY 10.00 AM TO 3.00PM.
2. Clients are requested to take follow up of TDS Return Filling on same day. Next day we are not responsible for it.
3. From now onwards the limit for re-generation of Provisional / Acknowledgement Receipts will not be provided after 5 Days from the Date of Receipt of Statement /Application.
4. Clients are requested to send Clear Scan Copy of 27A form with sign OR stamp in PDF format only (JPG Format or Camera Pic will not be accepted).
5. Clients are requested to make one folder of 27A forms & one folder of FVU File so that we can upload at a time.
6. The FVU File name should be minimum 8-9 character & maximum 11-12 character WITH NO SPL CHARACTER OR MENTION ONLY OR NUMERIC NUMBERS – 123456 Etc…
7. We are requesting you to make deposit of amt in advance (for eg 500-2000/-) so that it will be easy to maintain records & we will maintain a ledger of your name & will be mailed to you every Saturday.
8. After depositing the amt kindly provide us deposit details on email without fail.
9. The payment should be done within 7 working days in case you don’t option got point no -7.
The order has asked Assessing Officers of each region to take “immediate steps” and reduce the grievance of taxpayers.
CBDT has instructed the Income Tax department to expedite cases of TDS mismatch and reduce taxpayers grievances in this regard. The instructions have been issued after a review of the Tax Deducted at Source (TDS) subject by Central Board of Direct Taxes Chairperson Atulesh Jindal sometime back.
“The taxpayers are facing problems due to mismatch of TDS/other taxes. These problems may be due to the non-reporting of TDS and uploading the TDS details improperly by their deductors. As a result, demand notices are being sent to the taxpayers due to non-availability of the tax credits for claim in Income Tax Returns,” a recent CBDT communication to the taxman said.
A senior official said the Central Processing Centre (CPC) in Bengaluru is not able to process some refunds of taxpayers because of the pending mis-match entries. The order has asked Assessing Officers of each region to take “immediate steps” and reduce the grievance of taxpayers.
The CBDT, in the recent past, has taken a number of steps to fasten the issuance of refunds to the tax paying public and this directive is a initiative in this regard.
Raise the ceiling of tax rebate under section 87A from Rs. 2000 to Rs. 5000 to lessen tax burden on individuals with income upto Rs. 5 laks.
BIG LOSS TO PENSIONER’S
Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.