Income-Tax (16th Amendment) Rules, 2020 – Gazette Notification

Income-Tax (16th Amendment) Rules, 2020 – Change in TDS Return Form 26Q & Form 27Q – Gazette Notification No. 43/2020

THE GAZETTE OF INDIA : EXTRAORDINARY

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 3rd July, 2020

INCOME-TAX

G.S.R. 429(E).— In exercise of the powers conferred by sections 194A, 194J, 194K, 194LBA, 194N, 194-O, 197A and 200 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 (16th Amendment) Rules, 2020.

(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) in clause (viii), after the words “not deducted”, the words “or deducted at lower rate” shall be inserted;

(b) for clause (ix) the following shall be substituted from the 1st day of July, 2020, namely:-

“(ix) 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 second proviso to section 194N or in view of the exemption provided in third proviso to section 194N or in view of the notification issued under fourth proviso to section 194N”;

(c) after clause (ix), the following clauses shall be inserted, 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.

(xi) furnish particulars of amount paid or credited on which tax was not deducted under sub-section (2A) of section 194LBA.

(xii) furnish particulars of amount paid or credited on which tax was not deducted in view of clause (a) or clause (b) of sub-section (1D) of section 197A.

(xiii) furnish particulars of amount paid or credited on which tax was not deducted in view of the exemption provided to persons referred to in Board Circular No. 3 of 2002 dated 28th June 2002 or Board Circular No. 11 of 2002 dated 22nd November 2002 or Board Circular No. 18 of 2017 dated 29th May 2017.”

3. In the principal rules, in Appendix II,

(I) 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, 194LA, 194LBA, 194LBB, 194LBC, 194N and rule 31A]” the following 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]” shall be substituted;

(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	Name of the Deductor/Payter
Date on which challan deposited/Transfer voucher date (dd/mm/yyyy)	TAN
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

 

Sl. No.

Deductee /payee reference number provided by the deductor/payer, if available

Deductee/ payee code (01-Company 02-Other than company)

PAN of the deductee/ payee

Name of the deductee/ payee

Section code (See Note 12)

Date of payment or credit (dd/mm/ yyyy)

Amount paid or credited

Amount of cash withdrawal in excess of Rs. 1 crore as referred to in section 194N (in cases not covered by the first proviso to section 194N)

Amount of cash withdrawal which is in excess of Rs. 20 lakhs but does not exceed Rs. 1 crore for cases covered by sub-clause (a) of clause (ii) of first proviso to section 194N

Amount of cash withdrawal which is in excess of Rs. 1 crore for cases covered by sub-clause (b) of clause (ii) of first proviso to section 194N

Total tax deducted

Total tax deposited

Date of deduction (dd/mm/yyyy)

Rate at which deducted

Reason for non-deduction/ lower deduction/ Higher Deduction/ Threshold/ Transporter etc. (See notes 1 to 11)

Number of the certificate under section 197 issued by the Assessing Officer for non-deduction/ lower deduction

[412]

[413]

[414]

[415]

[416]

[417]

[418]

[419]

[419A]

[419B]

[419C]

[420]

[421]

[422]

[423]

[424]

[425]

1

2

3

Total

 

Verification

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

Place: …………………..

…………………………………………..
Signature of the person responsible for deducting tax at source

Date: …………………..

………….………………………………..
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 section 197A other than the cases mentioned in sub-section (1F) of section 197A.
3. Write “C” if deduction is on higher rate on account of non-furnishing of PAN by the deductee/payee.
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, 2002 or Board Circular no. 11 of 2002 dated 22nd November, 2002 or Board Circular no. 18 of 2017 dated 28th 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 194C (6)].
8. Write “Z” if no deduction or lower deduction is on account of payment being notified under section 197A (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 section 194N or on account of notification issued under the fourth proviso to section 194N.*
11. Write “O” if no deduction is as per the provisions of sub-section (2A) of section 194LBA.

List of section codes is as under:

Section

Nature of Payment

Section Code

192A

Payment of accumulated balance due to an employee

192A

193

Interest on securities

193

194

dividend

194

194A

Interest other than interest on securities

94A

194B

Winnings from lotteries and crossword puzzles

94B

194BB

Winnings from horse race

4BB

194C

Payment of contractors and sub-contractors

94C

194D

Insurance Commission

94D

194DA

Payment in respect of life insurance policy

4DA

194EE

Payments in respect of deposits under National Savings Schemes

4EE

194F

Payments on account of repurchase of Units by Mutual Funds or UTIs

94F

194G

Commission, prize etc., on sale of lottery tickets

94G

194H

Commission or Brokerage

94H

194-I(a)

Rent

4-IA

194-I (b)

Rent

4-IB

194J(a)

Fees for Technical Services(not being professional services), royalty for sale, distribution or exhibition of cinematographic films and call centre (@2%)

94J-A

194J (b)

Fee for professional service or royalty etc. (@10%)

94J-B

194K

Income in respects of units.

94K

194LA

Payment of Compensation on acquisition of certain immovable property

4LA

194LBA(a)

Certain income in the form of interest from units of a business trust to a residential unit holder

4BA1

194LBA(b)

Certain income in the form of dividend from units of a business trust to a resident unit holder

4BA2

194LB

Income in respect of units of investment fund

LBB

194LBC

Income in respect of investment in securitization trust

LBC

194N

Payment of certain amounts in cash

94N

194N First proviso*

Payment of certain amounts in cash to non-filers

94N-F

#194-O

Payment of certain sums by e-commerce operator to e-commerce participant

94O”

 

(II) in form 27Q —

(a) for the brackets, words, figures and letters

“[See sections 194E, 194LB, [194LBA, 194LBB, 194LBC], 194LC, 195, 196A, 196B, 196C, 196D, and rule 31A]” the brackets, words, figures and letters

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

(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/ payers

PAN

 

l. No.

Deductee reference number provided by the deductor, if available

Deductee code (01- Company 02-Other than company)

[Permanent Account Number or Aadhaar Number] of the deductee [see note 9]

Name of the deductee

Section code (See Note 8)

Date of payment or credit (dd/mm/yyyy)

Amount  of cash withdrawal in    excess of    Rs.    1 core as referred to in section 194N     (in cases not covered by the first proviso to section

Amount  of       cash withdrawal which is in excess    of Rs.        20 lakhs   but does     not exceed Rs. 1 crore for cases covered by sub-clause (a)         of

Amount of cash withdrawal which is in excess    of Rs. 1 crore for    cases covered by sub-clause (b)         of clause (ii) of first proviso to section

Amount paid or credited

Tax

Surcharge

Education Cess

Total tax deducted [722+ 723 + 724]

Total tax deposited

194N)*

clause  (ii) of       first proviso  to section 194N*

194N *

[714]

[715]

[716]

[717]

[718]

[719]

[720]

[720A]

[720B]

[720C]

[721]

[722]

[723]

[724]

[725]

[726]

1

2

3

Total

 

Date of deduction (dd/mm/yyyy)	Rate at which deducted	Reason for non-deduction/ lower deduction/grossing up/Higher Deduction (See notes 1 to 3)	Number of the certificate issued by the Assessing Officer for non-deduction/ lower deduction	Whether the rate of TDS is as per IT Act(a) DTAA(b)	Nature of Remittance	Unique Acknowledgement of the corresponding Form No. 15CA, if available	Country to which remittanceis made	Email ID of deductee	Contact number of deductee	Address of deductee in country of residence	Tax  Identification Number/ Unique identification number of deductee
[727]	[728]	[729]	[730]	[731]	[732]	[733]	[734]	735	736	737	738
1
2
3
Total

 

Verification

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

……………………………………………………………………………

Signature of the person responsible for deducting tax at source

Place: …………………………

Date:…………………………….

………………………………………………………………………….
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 “C” if grossing up has been done.
3. Write “D” if deduction is on higher rate on account of non-furnishing of [Permanent Account Number or Aadhaar Number] by the deductee.
4. Write “O” 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 provision 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 “G” if no deduction is in view of clause (a) or clause (b) of sub-section (1D) of section 197A.
8. List of section codes is as under:

Section

Nature of Payment

Section Code

192A

Payment of accumulated balance due to an employee

192A

194E

Payments to non-resident Sportsmen/Sport Associations

94E

194LB

Income by way of interest from infrastructure debt fund

4LB

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 trust

LBA2

194LBA(c)

Income referred to in section 10(23FCA) from units of a business trust

LBA3

194LBB

Income in respect of units of investment fund

LBB

194LBC

Income in respect of investment in securitisation trust

LBC]

194LC

Income by way of interest from Indian company

4LC

194LD

Income by way of interest on certain bonds and Government securities.

4LD

194N

Payment of certain amounts in cash

94N

194N First Proviso*

Payment of certain amount in cash to non-filers.

94N-F

195

Other sums payable to a non-resident

195

196A

Income in respect of units of Non-Residents

96A

196B

Payments in respect of Units to an Offshore Fund

96B

196C

Income from Foreign Currency Bonds or shares of Indian Company payable to Non-Resident

96C

196D

Income of foreign institutional investors from securities

96D

 

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

*in relation to section 194N, the changes shall come into effect from 1st July, 2020.
#in relation to section 194-O, the changes shall come into effect from 1st October, 2020.

[Notification No. 43/2020/F. No. 370142/11/2020-TPL]
ANKIT JAIN, Under 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 number S.O. 969 (E), dated the 26th March, 1962 and were last amended vide notification number G.S.R. 423 (E), dated 30.06.2020.

Click here to view/download the pdf