SB Order No.10/2007 : Issue of TDS certificate in respect of Commission paid to agents, TDS from SCSS and NSS-87 accounts

SB ORDER NO. 10 /2007 

No.107-2/2007-SB 

Government of India 

Ministry of Communications & IT 

Department of Posts 

Dak Bhawan, Sansad Marg, 

New Delhi-110001. 

Date: 27.6.2007 

To 

All Heads of Circles/Regions 

Addl. Director General, APS, New Delhi. 

Subject:- Issue of TDS certificate in respect of Commission paid to agents, TDS from SCSS and NSS-87 accounts. 

Sir / Madam, 

This office is receiving number of complaints regarding non/late issue of TDS certificate by post offices. This office is issuing instructions time and again for issue of TDS certificate in the prescribed form 16A by the incharge of post office who is deducting TDS. The relevant rules and instructions on this subject are once again reiterated below:- 

2. As per Rule 31 of Income Tax Rules (copy enclosed), the authority deducting TDS is required to issue certificate in Form 16A within the prescribed limit. The prescribed limit for the NSS-87, SCSS and Commission paid to agents is as under:- 

(i) NSS-87:- In this case withdrawal is made once in a year and TDS certificate is required to be issued within one month from the end of the month during which amount is paid. 

(ii) SCSS/ Commission paid to Agents:- In this case, TDS is deducted many times in a financial year. TDS certificate in these categories should be issued within a week after the expiry of two months from the month in which tax is deducted OR a consolidated TDS certificate for the whole financial year may be issued within one month of the end of the financial year on request from the payee. 

3. As per Section 272A of IT Act, if the certificate is not issued within the prescribed limit mention above, a penalty of Rs. 100/- per day may be imposed on the authority responsible for issue of certificate. 

4. In the form 16 A (Copy enclosed), TAN (Tax Deduction account number) of the authority issuing certificate is required to be mentioned. It was circulated vide this office letter number 35-58/94-SB II dated 23.3.1995 that Postmasters should only obtain TAN and mention it at the appropriate place in Form 16 A. However, TDS in respect of NSS-87, SCSS 2004 and commission paid to agents is being deducted at the level of Sub Post Offices and as per provisions of I.T.Act, SPMs are also required to issue TDS certificate for the TDS deducted in their offices. 

5. It is therefore informed that all the Postmasters should intimate their TAN to SPMs under their jurisdiction and SPMs will issue TDS certificate in form 16A by mentioning TAN intimated by the Postmaster. Against the column PAN/GIR, they may mention” Not Applicable”. In the column for particulars of Tax deposited, they may mention “ Transferred to Department of Income Tax by book adjustment through DAP______________” (name of concerned DAP should be written).

6. It is requested that this may kindly be brought to the notice of all post offices for information, guidance and necessary action. Suitable action may be taken against the officials against whom the complaints of non/late issue of certificate are received.

7. This issues with the approval of DDG(FS)

Yours faithfully,

(Kawal Jit Singh)

Assistant Superintendent Posts (SB&CC)

Copy to-

(i) Director of Audit (P&T), Delhi.

(ii) All Directors/Dy. Directors of Accounts, Postal

(iii) Director, Postal Staff College, Ghaziabad.

(iv) All Directors, Postal Training Centres.

(v) DDG(PG)/DDG(VIG)

(vi) ADG(BS)

(vii) AD PG/Inspection/PF/Vigilance/Postal Accounts Section

(viii) All Accounts Officers ICO(SB)

(ix) All recognized Staff Unions and Associations.

(x) Min. of Finance (DEA) NS-II section, North Block, New Delhi.

(xi) PS to Member (D)