The Central Board of Direct Taxes (CBDT) has notified the Income Tax (17th Amendment) Rules, 2021 that further amends the Income Tax Rules, 1962.
As per the notification, the deductor while preparing statements of tax deducted at source shall provide facts and figures related to the amount paid or credited on which tax has not been deduced or deducted at a lower rate considering the notification issued under sub-section (5) of section 194A or in view of the exemption provided under clause (x) of sub-section (3) of section 194A.’
The notification makes it compulsory that the deductor while preparing statements of tax deducted should furnish particular amounts paid or credited on which tax was not deducted
- Due to proviso to subsection (1A) or
- Due to sub-section (2) of section 196D.
Lastly and importantly, the deductor while preparing statements of tax deducted needs to disclose particulars of the amount paid or credited on which tax was not deducted considering sub-section (5) of the section 194Q with immediate effect from July 1, 2021, onwards.
The CBDT has amended the Rule 31A of Income Tax Rules, 1962 in respect of TCS, Form 26A, form 26Q and annexures to Form 26Q namely Deductee/Payee Wise Break Up Of TDS, Form 27EQ, annexures to Form 27EQ Party Wise Break Up Of TCS, Form 27Q and annexures to Form 27Q-Deductee Wise Break Up of TDS vide Notification No. 71/2021-Income Tax, Dated June 08, 2021.
