Page 25 - Union Budget_2019
P. 25
Union Budget 2019
The above stated process is currently manual i.e. the payer has to manually approach the AO, file the
application, submit the relevant documents and follow-up in person for the certificate. In order to
streamline the entire process, it is proposed to amend the provisions of Section 195(2) to prescribe the
form and manner of application to the AO and also for the manner of determination of appropriate portion
of sum chargeable to tax by the AO.
Similar amendment is proposed in Section 195(7) which is applicable for payments made by specified class
of persons or under specified cases to a non-resident.
These amendments will take effect from 1st November, 2019.
The prescribed manner may be an online gateway whereby the application as well as the relevant
documents shall be uploaded and the AO shall communicate to the payer online.
This will certainly reduce the time for processing of such applications and help tax administration in
rightful monitoring such payments.
5.3 Electronic filing of statement of transactions on which TDS has not been deducted
At present, Section 206A provides for furnishing of quarterly return in respect of payment of interest to
residents without deduction of tax by banking company, co-operative society or specified public company,
in excess of specified amount. Such furnishing is to be made on a floppy, diskette, magnetic tape, CD-ROM,
or any other computer readable media.
It is proposed to substitute this section so as to provide for:
• filing of statement in prescribed form in the prescribed manner, in order to enable online filing
• correction of such statements for rectification of any mistake or to add, delete or update the
information furnished in the prescribed manner
Further, consequential amendment shall be proposed to increase the threshold for TDS on payment of
interest by a banking company or co-operative society from Rs. 10,000 to Rs. 40,000.
These amendments will take effect from 1st September, 2019.
The proposed amendments shall reduce the obstacles faced in manual filing of returns especially the
revision of returns
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