Tuesday, 27 July 2021 01:12 AM IST

CBDT amends TDS Rule 31A & Annexures to Form 26Q, 27EQ, 27Q

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

Notification No. 71/2021-Income Tax, Dated: June 08, 2021
G.S.R. 395(E).- In exercise of the powers conferred by sections 194, 194A, 194Q, 196D, 206AB and 206CCA read with section 295 of the Income-tax Act, 1961, (43 of 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 commencement. — (1) These rules may be called the Income-tax (17th Amendment) Rules, 2021.

(2) Save as otherwise provided in these rules, they shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 31A, in sub-rule (4) —

(a) for clause ‘(x)’ the following clause shall be substituted namely: –

‘(x) furnish particulars of amount paid or credited on which tax was not deducted or deducted at lower rate in view of the notification issued under sub-section (5) of section 194A or in view of exemption provided under clause (x) of sub-section (3) of section 194A.’;

(b) after clause (xiii), the following clauses shall be inserted namely: –

“(xiv) furnish particulars of amount paid or credited on which tax was not deducted in view of clause (d) of the second proviso to section 194 or in view of the notification issued under clause (e) of the second proviso to section 194;

(xv) furnish particular of amount paid or credited on which tax was not deducted in view of proviso to subsection (1A) or in view of sub-section (2) of section 196D.;

(xvi) furnish particulars of amount paid or credited on which tax was not deducted in view of sub-section (5) of section 194Q with effect from 1st day of July,2021.”.

3. In the principal rules, in Appendix II, in form 26A, in Annexure A, in clause (ii), the words “, who is a resident,” shall be omitted.

4. In the principal rules, in Appendix II, in form 26Q —

(a) 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, 197A 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, 194Q, 197A, 206AA, 206AB and rule 31A]”;

(b) 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
Verification

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

Place: …………………..

Date: …………………..

…………………………………

Signature of the person responsible for deducting tax at source

…………………………………

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 197.

2. Write “B” if no deduction is on account of declaration under section197A other than the cases mentioned in sub-section (1F) of section 197A.

3. Write “C” if deduction is on higher rate under section 206AA on account of non-furnishing of PAN.

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 194A.

5. Write “E” if no deduction is on account of payment being made to a person referred to in Board Circular No. 3 of 2002 dated 28th June 20002 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, 1961.

7. Write “T” if no deduction is on account of deductee/payee being transporter. PAN of deductee/payee is mandatory[section 1 94C(6)].

8. Write “Z” if no deduction or lower deduction is on account of payment being notified under section197A(1F).

9. Write “M” if no deduction or lower deduction is on account of notification issued under second proviso to section 194N.

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 section194Nor on account of notification issued under fourth proviso to section194N.

11. Write “O” if no deduction is as per the provisions of sub-section (2A) of section 194LBA.

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 194.

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 194A.

14. Write “S” if no deduction is in view of the provisions of sub-section (5) of section 194Q.*

15. Write “U” if the deduction is on higher rate in view of section 206AB for non-filing of return of income*.

16. List of section codes is asunder:
SectionNature of PaymentSection Code
192APayment of accumulated balance due to an employee192A
193Interest on securities193
194dividend194
194AInterest other than interest on securities94A
194BWinnings from lotteries and crossword puzzles94B
194BBWinnings from horse race4BB
194CPayment of contractors and sub-contractors94C
194DInsurance Commission94D
194DAPayment in respect of life insurance policy4DA
194EEPayments in respect of deposits under National Savings Schemes4EE
194FPayments on account of repurchase of Units by Mutual Funds or UTIs94F
194GCommission, prize etc., on sale of lottery tickets94G
194HCommission or Brokerage94H
194-I(a)Rent4-IA
194-I (b)Rent4-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
194KIncome in respect of units94K
194LAPayment of Compensation on acquisition of certain immovable property4LA
194LBA(a)Certain income in the form of interest from units of a business trust to a resident unit holder4BA1
194LBA(b)Certain income in the form of dividend from units of a business trust to a resident unit holder4BA2
194LBIncome in respect of units of investment fundLBB
194LBCIncome in respect of investment in securitization trustLBC
194NPayment of certain amounts in cash94N
194N First ProvisoPayment of certain amounts in cash to non-filers94N-F
194-OPayment of certain sums by e-commerce operator to e-commerce participant94O
194Q*Payment of certain sums for purchase of goods94Q”

* Note:- In relation to section 194Q and section 206AB, the changes shall come into effect from 1st July, 2021.

5. In the principal rules, in Appendix II, in form 27EQ,-

(a) for the brackets, words, figures and letters”[See section 206C and rule 31AA]”, the following brackets, words, figures and letters, shall be substituted namely:-

“[See section 206C, 206CC, 206CCA and rule 31AA]”;

(b) for the “Annexure”, the following “Annexure” shall be substituted, namely:-

“ANNEXURE -: PARTY WISE BREAK UP OF TCS

(Please use separate Annexure for each-line item in Table at Sl. No. 04 of main Form 27EQ) Details of amount received/debited during the quarter ended  ………………….. (dd/mm/yyyy) and of tax collected 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 TCS to be allocated among deductees as in the vertical total of Col. 677
Total interest to be allocated among the parties mentioned below
Name of the Collector
TAN
Verification

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

Place: ………………….. Signature of the person responsible for collecting tax at source …………………..

Date: ………………….. Name and designation of the person responsible for collecting tax at source …………………..

Notes:

1. Write “A” if “lower collection” is on account of a certificate under sub-section (9) of section 206C.

2. Write “B” if “non-collection” is on account of furnishing of declaration under sub-section (1A) of section 206C.

3. Write “C” if collection is at higher rate under section 206CC on account of non-furnishing of PAN/Aadhaar by the collectee

4. Write “D” if no collection is on account of the first proviso to sub-section (1G) of section 206C.

5. Write “E” if no collection is on account of the fourth proviso to sub-section (1G) of section 206C.

6. Write “F” if no collection is on account clause (i) or clause (ii) of the fifth proviso to sub-section (1G) or in view of notification issued under the clause (ii).

7. Write “G” if no collection is on account of the second proviso to sub-section (IH) of section 206C..

8. Write “H” if no collection is on account of sub-clause (A) or sub-clause (B) or sub-clause (C), or in view of notification issued under sub-clause (c), of clause (a) of the Explanation.

9. Write “I” if collection is at a higher rate in view of section 206CCA*.

10. Write collection code as mentioned below
SectionNature of collectionCollection Code
206CCollection at source from alcoholic liquor for human consumption6CA
206CCollection at source from timber obtained under forest lease6CB
206CCollection at source from timber obtained by any mode other than a forest lease6CC
206CCollection at source from any other forest produce (not being tendu leaves)6CD
206CCollection at source from scrap6CE
206CCollection at source from contractors or licensee or lease relating to parking lots6CF
206CCollection at source from contractors or licensee or lease relating to toll plaza6CG
206CCollection at source from contractors or licensee or lease relating to mine or quarry6CH
206CCollection at source from tendu leaves6CI
206CCollection at source on sale of minerals, being coal or lignite or iron ore6CJ
206CCollection at source on cash sale of bullion and jewellery6CK
206CCollection at source on sale of motor vehicle6CL
206CCollection at source on remittance under LRS for purchase of overseas tour program package6CO
206CCollection at source on remittance under LRS for educational loan taken from financial institution mentioned in section 80E6CP
206CCollection at source on remittance under LRS for purpose other than for purchase of overseas tour package or for educational loan taken from financial institution6CQ
206CCollection at source on sale of goods6C

* Note In relation to section 206CCA, the changes shall come into effect from 1st July, 2021.

6. In principal rules, in Appendix II, in Form 27Q, –

(a) for the brackets, words, figures and letters”[See section 194E, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194N, 195, 196A, 196B, 196C, 196D, 197A and rule 31A]”, the following brackets, words, figures and letters shall be substituted, namely:-

“[See section 194E, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194N, 195, 196A, 196B, 196C, 196D, 197A, 206AA, 206A B and rule 31A]”;

(b) for the “Annexure”, the following “Annexure” shall be substituted, namely:-

“ANNEXURE: DEDUCTEE WISE BREAK UP OF TDS

(Please use separate Annexure for each line item in Table at Sl. No. 04 of main Form 27Q)

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 TDS to be allocated among deductees as in the vertical total of Col. 726
Total interest to be allocated among the deductees mentioned below
Name of the Deductor/Payer
TAN
Verification

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

Place: …………………………

Date: ………………………………………………………..

………………………………………………………..

Signature of the person responsible for deducting tax at source

………………………………………………………..

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 section197.

2. Write “C” if grossing up has beendone.

3. Write “D” if deduction is on higher rate under section 206AA on account of non-furnishing of Permanent Account Number or Aadhaar Numberor non-linking of PAN with Aadhar.

4. Write “E” if no deduction is in view of sub-section (2A) of section 194LBA.

5. Write “M” if no deduction or lower deduction is on account of notification issued under second proviso to section 194N.

6. 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 the fourth proviso to section 194N.

7. Write “O” if no deduction is in view of clause (a) or (b) of sub-section (1D) of section 197A.

8. Write “H” if no deduction is in view of proviso to sub-section (1A) of section 196D in respect of an income paid to a specified fund which is exempt under clause (4D) of section 10.

9. Write “I” if no deduction is in view of sub-section (2) of section 196D in respect of income of the nature of capital gains on transfer of securities referred to in section 115AD paid or payable to a Foreign Institutional Investor.

10. Write “J” if deduction is at higher rate in view of section 206AB for non-filing of return of income by the non-resident having a permanent establishment in India*.

11. List of section codes is asunder:
SectionNature of PaymentSection Code
192APayment of accumulated balance due to an employee192A
194EPayments to non-resident Sportsmen/Sport Associations94E
194LBIncome by way of interest from infrastructure debt fund4LB
194LBA(a)income referred to in section 10(23FC)(a) from units of a business trust.LBA1
194LBA(b)Income referred to in section 10(23FC)(b) from units of a business trustLBA2
194LBA(c)Income referred to in section 10(23FCA) from units of a business trustLBA3
194LBBIncome in respect of units of investment fundLBB
194LBCIncome in respect of investment in securitisation trustLBC
194LCIncome by way of interest from Indian company4LC
194LDIncome by way of interest on certain bonds and Government securities.4LD
194NPayment of certain amounts in cash94N
194N First ProvisoPayment of certain amount in cash to non-filers.4N-F
195Other sums payable to a non-resident195
196AIncome in respect of units of Non-Residents96A
196BPayments in respect of Units to an Offshore Fund96B
196CIncome from Foreign Currency Bonds or shares of Indian Company payable to Non-Resident96C
196D(1)Income of foreign institutional investors from securities under sub-section (1)96D
196D(1A)Income of specified fund from securities referred to in clause (a) of sub-section (1) of section 115AD (other than interest income referred to in section 194LD)96DA

12. In case of deductees covered under rule 37BC, Permanent Account Number or Aadhaar Number NOT AVAILABLE should be mentioned.”

* Note In relation to section 206AB, the changes shall come into effect from 1st July, 2021.


Notification No. 71/2021/F. No. 370142/19/2021–TPL]


KAMLESH CHANDRA VARSHNEY,Jt.Secy.(Tax Policy and Legislation Division)


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 last amended vide notification number G.S.R. 338(E) dated 24th May, 2021