INDIA BUSINESS WORLD - MAY - JUNE 2007
The Month that was ...

EMPLOYERS NOW CAN ISSUE E-TDS FORM

The income tax department has allowed employers to provide digitally-signed statements of tax deducted at source to their employees. This is because tax payers are no longer required to attach Form 16 with their returns.

"As the field formations are aware, the requirement of annexing TDS certificates with the return of income has been dispensed with... the income tax authorities shall treat such certificate (Form 16) with digital signatures as a certificate issued in accordance with the relevant rules," a circular issued by the Central Board of Direct Taxes said.

The step is taken after representations received by the board from companies that issuance of Form 16 with manual signatures is becoming time consuming. TDS certificates are now issued only for the purpose of personal record of the deductees subject to the condition that they may be required to produce them on demand before the assessing officer.

The claim made in returns is also required to be matched with the e-TDS returns furnished by the deductors, the circular said.