Section 397(1)(a) read with Rule 216(1)

Every person deducting or collecting tax

shall apply for allotment of a TAN to the AO in–

(a)  Form No. 134, in case of a Government entity; or

(b)  Form No. 135, in case of a person other than a Government entity.

within such time as may be prescribed,

if that person has not already been allotted such number;

TAN = Tax deduction and collection account number

Section 397(1)(c)

Clause (a) shall not apply–

(i) to a person who is required to deduct tax u/s 393(1) [TSN 2(i), 3(i) and 6(ii)];

(ii) to a person referred to in section 393(4) [TSN 12.C(a)]; and

(iii) a person notified in this regard by the CG

Rule 216(6)

For the purposes of this rule, "Government entity" means––

(a) an entity of the Central Government; or

(b) an entity of the State Government; or

(c) any local authority (Central Government); or

(d) any local authority (State Government),

But shall not include any company or any statutory or autonomous body constituted by any Act of the Central Government or State Government.

Rule 216(2)

An application for allotment of a TAN may also be made through a common application form as notified by the CG,

by such persons as mentioned in the said notification.

Rule 216(3)

An application referred to in sub-rule (1) or (2) shall be made to such officer to whom function of allotment of TAN under section 397(1)(a) has been assigned by the DGIT(S)

Rule 216(4)

The application referred to in sub-rule (1) or (2) shall be made––

(a)  prior to the deduction or collection of tax; and

(b)  Where it has not been so made, then within 30 days from the end of the month in which the tax was deducted or collected, as the case may be.

Rule 216(5)

The application referred to in sub-rule (1) shall be accompanied by the documents mentioned in column D of the Table u/r 158(8), as proof of identity, address and date of birth or date of incorporation, as the case may be,

in respect of an applicant mentioned in column B of the said Table.

Section 397(1)(b)

where a TAN has been allotted to a person,

such person shall quote such number in

all challans, statements, certificates referred to in this Chapter, and

in all documents pertaining to such transactions as may be prescribed in the interests of revenue;

Section 397(2)(a)

Irrespective of anything contained in any other provision of this Act,

every person,

entitled to receive any amount on which tax is deductible or,

paying any amount on which tax is collectible,

shall furnish his valid PAN to the person responsible for deducting or collecting tax;

Section 397(2)(h)

the deductee or collectee shall furnish his valid PAN to the deductor or collector, as the case may be,

and the same shall be indicated in all bills, vouchers, correspondence and other documents which are sent to each other.

Section 397(2)(b)(i)

in case of failure to comply with provisions of clause (a) [i.e Non furnishing of PAN]

tax shall be deducted at the higher of the following rates: —

(A) at the rate specified in the relevant provision of this Act; or

(B) at the rate or rates in force; or

(C) at the rate of

5% where tax is required to be deducted u/s 393(1) [TSN 8(ii) or 8(v)]; or

20% in any other case;

Section 397(2)(c)

The provisions of section 397(2)(b)(i) [Provision of higher rate]

shall not apply to a non-resident, not being a company or a foreign company, (the deductee)

in respect of—

(i) payment of interest on long-term bonds as specified in S-393(2) (TSN 2, 3 and 4); and

(ii) any other payment subject to such conditions, as may be prescribed;

Rule 217(1)

where such deductee does not have a PAN, in respect of payments in the nature of interest, royalty, fees for technical services, dividend and payments on transfer of any capital asset,

if the deductee furnishes the details and the documents specified in sub-rule (2) to the deductor.

Rule 217(2)

The details and documents referred to in sub-rule (1) shall be the following:—

(a)  name, e-mail id, contact number;

(b) address in the country or specified territory outside India of which the deductee is a resident;

(c) a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory, if the law of that country or specified territory provides for issuance of such certificate; and

(d) Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

Rule 217(3)

The provisions of section 397(2)(b)(i) [Higher Rate]

shall also not apply in respect of payments made to a person being a non-resident, not being a company, or a foreign company,

if such person is not required to apply for PAN in view of the provisions of section 262 and rules prescribed therein.

Section 397(2)(b)(ii)

in case of failure to comply with provisions of clause (a)—

tax shall be collected at the higher of the following rates, not exceeding 20%––

(A) at twice the rate specified in the relevant provision of this Act; or

(B) at the rate of 5%;

Section 397(2)(d)

Clause (b)(ii) shall not apply to a non-resident

who does not have PAN in India (which includes a fixed place of business through which the business of the enterprise is wholly or partly carried on)

Section 397(2)(e)

in respect of rent specified in S-393(1) [TSN 2(i)],

if the tax is required to be deducted as per clause (b)(i),

then such deduction shall not exceed the amount of rent payable for the last month of

the tax year or

the tenancy, as the case may be;

Section 397(2)(f)

if a person does not furnish his valid PAN in—

(i) any declaration

u/s 393(6) [Declaration for no deduction of tax, if tax on total income = nil] or

u/s 394(2) [Declaration by Buyer for no collection of tax for TSN 1 to 5]

then such declaration becomes invalid;

(ii) any application made

u/s 395(1) [TDS at lower rate] or

u/s 395(3) [TCS at lower rate],

then no certificate under such provisions shall be granted;

Section 397(2)(g)

if any declaration becomes invalid under clause (f)(i),

then the deductor or collector shall deduct or collect tax [at higher rate] as per the provisions of clause (b)(i) or (ii) as the case may be;

Section 397(3)(a)

Every [Deductor/ Collector/Employer] person responsible for deduction or collection of tax or employer referred to in section 392(2)(a)

shall pay the amount so deducted or collected or determined as per section 392(2)(b)

to the credit of the CG, in such time as may be prescribed;

Rule 218(1)

All sums deducted or collected under the provisions of Chapter XIX-B of the Act or construed as deductible u/s 392(2),

by an office of the Government,

shall be paid to the credit of the Central Government—

(a) on the same day, where the tax is paid without production of an income-tax challan; and

(b) On or before 7 days from the end of the month in which the deduction or collection is made or income-tax is due u/s 392(2)(a), where tax is paid accompanied by an income-tax challan.

Rule 218(2)

All sums deducted or collected under the provisions of Chapter XIX-B of the Act or construed as deductible u/s 392(2),

by deductors or collectors other than an office of the Government

shall be paid to the credit of the Central Government—

(a) on or before 30 April, where the income or amount is credited or paid, or debited or received in the month of March; and

(b)  in any other case, on or before 7 days from the end of the month in which—

(i) the deduction or collection is made; or

(ii) income-tax is due u/s 392(2)(a)

Rule 218(3)

Irrespective of anything contained in sub-rules (1) and (2),

where any sum is deducted u/s 393(1) in respect of following nature of income or sum,—

the payment of such sum to the credit of the CG,

shall be made within 30 days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 141.

Rule 218(4)

Irrespective of anything contained in sub-rule (2),

in special cases, the AO may, with the prior approval of the Joint Commissioner of Income-tax,

permit quarterly payment of the tax deducted u/s 392(1) or 393(1) [TSN (1)(i) and (ii), and 5(ii) and (iii)]

for the quarters of the tax year specified to in column B of the following Table

by the date referred to in column C of thereof:

TABLE

Rule 218(9)

Where tax is to be deposited along with an income-tax challan,

it shall be remitted into any branch of the RBI or SBI or any authorized bank.

Rule 218(10)

Where tax is to be deposited

along with an income-tax challan by persons referred to in rule 333 or

along with by an income-tax challan-cum-statement in accordance with sub-rule (3),

it shall be remitted electronically into the RBI or SBI or any authorized bank.

Rule 218(11)

DGIT(S), shall specify the procedure, formats and standards for the purposes of remitting the amount electronically to RBI or SBI or any authorized bank, and

shall be responsible for the day-to-day administration in relation to the remitting of the amount electronically in the manner so specified.

Section 397(3)(b)

Every [Deductor/ Collector/Employer] person responsible for deduction or collection of tax or employer referred to in section 392(2)(a),

after paying the tax to the credit of the CG as per clause (a),

shall deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority,

a statement for such period, in such form, verified in such manner, giving such particulars, and within such time, as may be prescribed;

Rule 219(1)

With respect to the sections referred in column B of the following Table,

[Deductor/ Collector] Every person responsible for deduction of tax or collection of tax at source under Chapter XIX-B of the Act

shall, as per section 397(3)(b), deliver, or cause to be delivered, to DGIT(S) or the person authorized by him,

the quarterly statements in the Form as referred to in column C thereof:

Table

Rule 219(2)

Where under the guidelines issued u/s 400(2) read with section 393(1) [TSN (8)(vi)],

the exchange has agreed to pay tax in relation to a transaction of transfer of a virtual digital asset, owned by it,

as an alternative to tax required to be deducted by the buyer of such asset u/s 393(1) [TSN (8)(vi)],

the exchange shall deliver or cause to be delivered, a quarterly statement of such transactions in Form No. 142

Rule 219(3)

The exchange referred to in sub-rule (2) shall, at the time of preparing the quarterly statement in Form No. 142,

furnish particulars of the amount paid or credited, on which tax was not deducted in accordance with guidelines issued u/s 400(2).

Rule 219(9)

(a)  "exchange" means a person that operates an application or platform for transfer of virtual digital assets, which matches buy and sell trades and execute the same on their application or platform; and

(b)  "virtual digital asset" shall have meaning assigned to it in section 2(111)

Rule 219(4)

The statements referred to in sub-rules (1) and (2)

for the quarter of the financial year ending with the date specified in column B of the following Table

shall be furnished by the due date specified in the corresponding entry in column C thereof:

Table

Rule 219(8)

A duly-signed verification in the following Form shall be annexed to the statement referred to in sub-rule (1):

FORM OF VERIFICATION

We/I, the trustee(s) of the above named fund, do declare that what is stated in the above statement is true to the best of our/my information and belief.

Rule 219(5)

Irrespective of anything contained in sub-rule (1) or (2) or (4),

a challan-cum-statement in Form No. 141 shall be furnished

within 30 days from the end of the month in which the deduction is made by the person responsible for deduction of tax

under the following sections:

(a)  Section 393(1) [TSN (2)(i)];

(b) Section 393(1) [TSN (3)(i)];

(c) Section 393(1) [TSN (6)(ii)]; and

(d) Section 393(1) [TSN (8)(vi)].

Section 397(3)(e) read with Rule 218(5)(a)

in case of an office of the Government, —

(i) where the sum deducted under this Chapter or tax referred to in section 392(2)(a); or

(ii) where the sum collected u/s 394(1) (TSN 1 to 5 or 9),

has been paid to the credit of the CG without the production of a challan,

the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person,

who is responsible for crediting such sum or tax to the credit of the CG,

shall deliver or cause to be delivered to the prescribed authority or the person authorised by such authority,

a statement in Form No. 137,

verified in such manner, giving such particulars and within such time, as may be prescribed;

Rule 218(5)(b)

Such statement shall be submitted to the DGIT(S) or any other person authorized by him

Rule 218(6)

Statement referred to in sub-rule (5) shall be furnished—

(a)  on or before the 30th April, where the statement relates to the month of March; and

(b) In any other case, on or before 15 days from the end of relevant month.

Rule 218(7)

The persons referred to in sub-rule (5),

shall intimate the number (herein referred to as the Book Identification Number), generated by the DGIT(S), or any other person authorized by him,

to each of the deductors or collectors in respect of whom the sum deducted or collected has been credited.

Rule 218(8)

[Pay & Account officer] The persons referred to in sub-rule (5), shall–

(a)  obtain an Account Office Identification Number (AIN) for filing Form No. 137;

(b)  file Form 136 for obtaining AIN;

Section 397(3)(d)

Every person responsible for paying to a non-resident, not being a company or a foreign company,

any sum, whether or not chargeable under this Act,

shall furnish the information relating to payment of such sum, in such form and manner as may be prescribed;

Rule 220(1)

The person responsible for paying to a non-resident, not being a company, or to a foreign company,

any sum chargeable under the Act, shall furnish the following:—

.

Rule 220(2)

The person responsible for paying to a non-resident, not being a company, or to a foreign company,

any sum which is not chargeable under the provisions of the Act,

shall furnish the information in Part D of Form No. 145.

Rule 220(3)

No information shall be required to be furnished for any sum that is not chargeable under the Act, irrespective of sub-rule (2), if,—

(a)  the remittance is made by an individual and it does not require prior approval of RBI as per the provisions of section 5 of the FEMA, 1999  read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000 made under the said Act; or

(b) the remittance is made by a Unit of an IFSC referred to in section 147(1)(b); or

(c) the remittance is of the nature specified in column C of the specified list below:

Sl. No.

Purpose code as per RBI

Nature of payment

A

B

C

1

S0001

Indian investment abroad - in equity capital (shares).

2

S0002

Indian investment abroad - in debt securities.     

3

S0003

Indian investment abroad - in branches and wholly owned subsidiaries.

4

S0004

Indian investment abroad - in subsidiaries and associates.

5

S0005

Indian investment abroad - in real estate.

6

S0011

 Loans extended to non-residents

7

S0101

Advance payment against imports.

8

S0102

Payment towards import (settlement of invoice).

9

S0103

Imports by diplomatic missions.

10

S0104

Intermediary trade.

11

S0190

Imports below Rs. 5,00,000. - (For use by Exchange Control Department offices).

12

S0202

Payment for operating expenses of Indian shipping companies operating abroad.

13

S0208

 Operating expenses of Indian Airlines companies operating abroad.

14

S0212

Booking of passages abroad - Airlines companies.

15

S0301

Remittance towards business travel.

16

S0302

Travel under basic travel quota (BTQ).

17

S0303

Travel for pilgrimage.

18

S0304

 Travel for medical treatment.

19

S0305

Travel for education (including fees, hostel expenses, etc.).

20

S0401

Postal services.

21

S0501

Construction of projects abroad by Indian companies including import of goods at project site.

22

S0602

Freight insurance - relating to import and export of goods.

23

S1011

Payments for maintenance of offices abroad.

24

S1201

Maintenance of Indian embassies abroad.

25

S1202

Remittances by foreign embassies in India.

26

S1301

Remittance by non-residents towards family maintenance and savings.

27

S1302

Remittance towards personal gifts and donations.

28

S1303

Remittance towards donations to religious and charitable institutions abroad.

29

S1304

Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.

30

S1305

Contributions or donations by the Government to international institutions.

31

S1306

Remittance towards payment or refund of taxes.

32

S1501

Refunds or rebates or reduction in invoice value on account of exports.

33

S1503

Payments by residents for international bidding.

Rule 220(4)

The information in Form No. 145 shall be furnished,—

(a)  electronically under digital signature in accordance with the procedures, formats and standards specified by the DGIT (S) u/r 332 and thereafter the said Form shall be submitted to the authorized dealer electronically or otherwise, prior to remitting the payment; or

(b)  electronically in accordance with the procedures, formats and standards specified by the DGIT(S) under rule 332 and thereafter a signed printout of the said Form shall be submitted to the authorized dealer electronically or otherwise, prior to remitting the payment.

Rule 220(5)

An income-tax authority may require the authorized dealer to furnish a copy of Form No. 145 referred to in sub-rule (4)(b) for the purposes of any proceedings under the Act.

Rule 220(6)

A quarterly statement, for each quarter of the financial year shall be furnished in respect of all remittances referred to in sub-rules (1), (2) and (3) by—

(a) the authorized dealer in Form No. 147; or

(b) a Unit of an IFSC referred to in section 147(1)(b), responsible for paying to a non-resident (not being a company) or to a foreign company, in Form No. 148,

To the DGIT(S) or the person authorised by him,

within 15 days from the end of the quarter of the tax year to which such statement relates.

Rule 220(7)

For the purposes of this rule,—

(a)  "authorised dealer" means a person authorised as an authorised dealer u/s 10(1) of the FEMA, 1999;

(b)  "International Financial Services Centre" shall have the same meaning as assigned to it in section 2(q) of the SEZ Act, 2005; and

(c) "Unit" shall have the same meaning as assigned to it in section 2(zc) of the SEZ Act, 2005.

Rule 219(7)

In cases, where the trustees of an approved superannuation fund pay any contributions made by an employer, including interest on such contributions, to an employee during his life-time,

they shall send within 2 months from the end of the FY to DGIT(S) or the person authorized by him,

a statement giving the following particulars:—

(a)  name of the superannuation fund;

(b) name and address of the employee;

(c) the period for which the employee has contributed to the superannuation fund

(d) the amount of contribution repaid on account of principal and interest;

(e) the average rate of deduction of tax during the preceding three years; and

(f) The amount of tax deducted on repayment.

Section 397(3)(c)

Every prescribed authority as per clause (b),

shall deliver a statement in such form and manner as may be prescribed,

to the buyer or licensor or lessee referred to in section 394(1) (TSN 1 to 4 or 9);

Section 397(3)(g)(i)

any banking company or co-operative society or public company referred to in note 1 to section 393(1) (TSN 5)

responsible for paying to a resident any income by way of interest, not exceeding the threshold limit mentioned in section 393(1) [TSN 5(ii) and (iii)],

shall deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority,

a statement in such form, verified in such manner, giving such particulars and within such time, as may be prescribed;

Section 397(3)(g)(ii)

the Board may require any person, other than the person mentioned in sub-clause (i),

responsible for paying to a resident any income which is liable for deduction of tax at source under this Chapter to deliver or cause to be delivered to the income-tax authority or the authorised person under sub-clause (i),

a statement in such form, verified in such manner, giving such particulars and within such time, as may be may be prescribed;

Section 397(3)(f)

every person referred to in clause

(b) [Furnishing of statement of TDS/ TCS deposited by Challan] or

(e) Furnishing of Statement by Pay & Account officer where Tax deposited without Challan

may correct any discrepancy or update the information furnished, in the statement delivered under the said clauses,

by delivering a correction statement in such form and verified in such manner as may be prescribed, to the prescribed authority under the said clauses,

within 2 years from the end of the tax year in which such statement is required to be delivered under the said clauses or u/s 200 of the Income-tax Act, 1961;

Section 397(3)(g)(iii)

the person referred to in sub-clause (i) or sub-clause (ii)

may deliver a correction statement to correct any discrepancy or update the information furnished, in the statement delivered under sub-clause (i) or (ii) in such form and manner of verification, as may be prescribed to the income-tax authority referred to in sub-clause (i);

Section 397(3)(h)

any person responsible for collecting the tax who fails to collect the tax as per the provisions of section 394, shall,

irrespective of such failure, be liable to pay the tax to the credit of the CG as per the provisions of clause (a).

Rule 219(6)

A claim for refund, for the sum paid to the credit of the CG under Chapter XIX-B of the Act

shall be furnished by the deductor in Form No. 139.