It is pointed out that as per section 203(3) ,TDS certificates (form 16,Form 16A)is not required to be issued by deductor after a Cut off date.At present the date in the act is 2010.But the Govt system is not established to handle the situation without the TDS forms ,so instead of extending dates to phase out tds forms every year ,Finance Minister rightly taken a right action and deleted this provision.
The existing provisions of section 203(3) of the Income-tax Act dispense with the requirement of furnishing of TDS certificates by the deductor to the deductee on or after 1st April, 2010. Similarly, under section 206C(5) of the Act, a collector of tax at source will also not be required to issue tax collection certificate to the person from whom tax has been collected on or after 1st April, 2010
Considering the fact that the TDS/TCS certificate constitutes an important document for the deductee/collectee, it is proposed that the deductor/collector will continue to furnish TDS/TCS certificates to the deductee/collectee even after 1st April, 2010 .These amendments are proposed to take effect retrospectively from 1st April, 2010.
relevant clause of Finance Bill reproduced hereunder
43. In section 203 of the Income-tax Act, sub-section (3) shall be omitted.Test your knowledge on Life Insurance and Taxatation Benefits(Quiz)and Get Free prizes
44. In section 206C of the Income-tax Act, in sub-section (5),—
(a) the first proviso shall be omitted;
(b) in the second proviso, for the words “Provided further”, the word “Provided” shall be substituted.
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