Role of PAO

04/11/2023 Ajay G. Dhoke IRS 1

Role of PAOs

Ajay G. Dhoke IRSAsst Commissioner of Income Tax,

Nagpur


Provision of TDS:

• Section 192 to196 of IT Act 1961 provides various heads under which TDS required to be deducted.

• The relevant section for govt deductors are:1. Section 192:TDS on salary2. Section 193: Interest on securities3. Section 194A:Interest other than securities4. Section 194C: Payment to contractors


Provision of TDS: 5. Section 194D: Insurance commission6. Section 194E: payment in respect of deposits

under National Saving Scheme7. Section 194I:Rent8. Section 194J: Fee for professional or Technical

services9. Section 194L:payment of compensation on

acquisition of capital assets10.Section 194LA:payment of compensation on

acquisition of certain immovable property


Role of deductors

• Deduct of Tax on the payments as mentioned above

• Issue TDS certificate• Deduct tax at lower rate in certain cases if

certificate issued by AO u/s 197• No TDS in certain cases: u/s 197A• Tax so deducted to be paid to the central govt

u/s 200


Role of deductor• Prepare & submit quarterly statement u/s

200(3) r.w.r 30A:-a) Form No. 24Q: for salaryb) Form No.26Q: other than salaryc) Form No.27Q: statement in respect of deductees

who is a non resident(not being a company or foreign company) or resident but not ordinarily resident.

The due date of filing quaterly statement is 15th of next month of quarter end.


Role of deductor• Issue TDS certificate u/s 203 r.w.r 31:

a) Form No. 16, if the tax deduction or payment of tax is u/s 192 (to be issued annually)

b) Form No.16A for any other deduction or payment of tax (to be issued quarterly)

• Obtain “ Tax Deduction and Collection Account Number”(TAN) and quote the same in all challans of payments, all TDS certificate issued, statement filed with IT authority, in all returns and in all other documents which may be required to furnish with IT authority u/s 203A


• All sum deducted by an office of government

shall be paid to the credit of central govt as

under(Rule 30 )

a) same day without production of an ITax

challan.

b) seventh day from the end of the month

where tax is paid accompanied by income tax

challan


Why PAO/TO/CDDO ?

• PAO/TO/CDDO is the most important bridge

between deductors and IT department

• Deductors deduct TDS and statement transfer to

PAO/TO/CDDO

• PAO/TO/CDDO credit it through book entry to the

account of central govt

• Fill Form No.24G online, after filing form 24G the

deductee get credit of TDS so deducted.


Role of PAO/TO/CDDO

• PAO or TO or CDDO or any other person to

whom the deductor reports the tax so

deducted and who is responsible for crediting

such sum to the credit of the central govt shall:

a) Submit a statement in Form No. 24G within 10 days from

the end of the month to IT authority.

b) Intimate Book Identification Number(BIN) to the deductors

in respect of whom the sum deducted has been credited.


Procedures

Deductors (use TAN, deduct tax, amount transfer by book entry to PAO/TO/CDDO about tax so deducted, issue TDS certificate to deductees, statements file on form no 24Q,26Q&27Q)

PAO/TO/CDDOs(obtain AIN, file Form 24G monthly, intimate BIN to Deductors

Deductors (use BIN received from PAO/TO/CDDO in quarterly statement in Form No.24Q,26Q and 27Q)

Result :the TDS credit will be granted to deductee and deductees can see their TDS in Form AS 26


Consequence of failure to deduct or pay • No TDS credit to deductees (including PAO himself)

• Penalty to the extent of tax payable but not paid u/s 221.

• Interest will be charged on such default as under:a) 1% for every month from the date on which such tax was deductible till

the date on which such tax is deducted.b) 1.5% for every month from the date on which such tax was deducted till

the date of tax actually paid

• Prosecution: if a person fails to pay the tax deducted or collected, he shall be punishable with rigorous imprisonment of minimum 3 month and maximum 7 years with fine


• AIN= Account Officer Identification Number

• BIN= Book Identification Number

• TAN=Tax Account Number

• PAN= Permanent Account Number


Deductee

Deductor

PAO

Govt a/c

TDS

Quarterly statements24Q

Form 24G

PAN can view Form 26AS

TAN can view statements

AIN can view 24G forms


Deductee

Deductor

PAO

Govt a/c

TDSIT Return

Form No 24Q, 26Q, 27QQuarterly statement

Form 24G MONTHLY STATEMENT

TDS Credit

BIN

Very important

link


Book Identification Number (BIN)BIN (Book Identification Number) is unique number

generated for each Form 24G statement accepted at TIN.NSDL will e-mail BIN details to the respective PAOs at the

e-mail ID present in the Form 24G accepted at TIN.BIN is to be quoted in the quarterly TDS/TCS statement

filed by the DDO. While filing quarterly e-TDS/TCS statement DDO has to quote BIN in transfer voucher details

Facility to PAO to view/download BIN at TIN website provided.

PAO has to disseminate BIN to respective DDOs


Where to use BIN in form 24Q?

BIN


Where to use BIN in form 26Q?

BIN


Where to use BIN in form 27EQ?

BIN


Challan Identification Number(CIN) Book Identification Number (BIN)

1. When TDS deposited through challan

2. assessee can track online the status of their challans deposited in banks

3. Assessee can view the following details:i. BSR Codeii. Date of Depositiii. Challan Serial Numberiv. Major Head Code with

descriptionv. Assessee codevi. Name of Assesseevii. Received by NSDL onviii. Confirmation that the

amount entered is correct

1. When TDS not deposited through challan

2. Done by govt deductors

3. Shows status of Book Transfer to Govt A/c

4. BIN will be generated only for those DDO records for which valid TAN is provided.

5. ‘Amount matched’ will be displayed, else ‘Mismatch in Amount’ will be displayed

6. User will be able to request BIN (view/download) maximum for a period of 12 months


In Form 24Q• If payment by challan CIN • By book transfer BIN


Person Responsible for filing Form No' 24G in case of State Govt' Departments"


Circulars• For detailed information, please refer CBDT

Circular No.8/2010 dt.13.12.2010 &1/2012 dt. 09.04.2012. (created liability on PAO to file Form 24G)

• From 01.04.2012, Certificate in Form 16A manually issued is invalid.

• It should be mandatorily issued through TIN

(online) from 01.04.2012


Certificate u/s 16A (online)

• To be downloaded from TIN-NSDL websie

– Wrong PAN entries will be identified

– The certificate you issue & return submitted

– This error will be automatically removed

– Cases of return revision

– Default demand notice


Form 24GAn office of the Government, where tax has been paid

to the credit of Central Government without the production of a challan is required to file Form 24G as per Income-tax Department Notification no. 41/2010 dated May 31, 2010.

To be filed by PAO/ DTO/ CDDO to confirm TDS/TCS by book entry

Any Office whom deduction has been reported & who in turn is reporting such deduction to Accountant General


Why Form 24G?

TDS/TCS paid to the credit of Central Government through Transfer Voucher

No physical transfer of money

Verification of TDS/TCS remitted to government


U CANFile form 24G

• Simple process• Outsourcing also doesn’t cost much• Late filing fees Rs 200/- per day after 1st July

2012– Won’t be allowed as expense– U’ll have to bear it


Any questions?


Thank you

Role of PAO

Documents

Transcript of Role of PAO