Friday, May 29, 2009

UTN(unique transaction number) mandatory for ITR AY 2009-10

Dear Friends,In new ITR for Ay 2009-10 new columns has been inserted in TDS schedule regarding UTN(inique Transaction Number) ,at the time of releasing of Form Every body assume that this is a error by Income tax Department but Now department has clarified vide circular 2/2009 that UTN is mandatory to be filled in New ITR for AY 2009-10 ,otherwise TDS credit will not be given.But after these circular Following new point arises which requires clarification.

1. Department has issued clarification circular on 21/05/2009 ,however person can file his return for Ay 2009-10 from 1st April 2009 ,so what will be the remedy for tax payers who have filed their return between Ist April 2009 to 21st may 2009 without the detail of UTN.
2. Department has started New form 26AS from the year 2005-06 ,In which TDS and entries are being posted from TDS return uploaded by the Deductor ,so if the Credit has been shown in form 26AS for tax deduction then credit should be given to the deductee even he has not filled UTN detail in ITR.
3. Last quarter return for previous year 2008-09 regarding TDS (24Q and 26Q) can be submitted by the deductor upto 15th June 2009.As per detail given below UTN number of AY 2009-10 can be alloted by NSDL only after receipt of TDS return from deductor and thereafter deductor will provide UTN numbers to deductee either in seprate sheet or in New form 16 Format with UTN by 30th June 2009.So in best possible scenario deductee can get detail of UTN by 30th June2009 where as last date to file Income tax return is 31.07.2009 so deductee has only one month time to file the return.so In my opinion this time should also be extended and date to file Income tax Return for Ay 2009-10 should be extended to 30.09.2009 for taxpayer which is presently fixed as 31st July 2009.

UTN MANDATORY TO FILE ITRs FOR A.Y.2009-10
. The return of income in Form No. ITR-1 to Form No.ITR-8 for Assessment Year 2009-10 have been notified which requires, amongst other, the quoting of the relevant UTN for every TDS or TCS claim made by the assessee. Therefore, the credit for any TDS or TCS claim will be allowed, amongst others, if the assessee quotes the relevant UTN for every TDS and TCS claim and the said UTN matches with the UTN in the database of the Income Tax Department. With a view to enabling the processing of returns relating to Financial Year 2007-08 (Assessment Year 2008-09) and enabling the assessee to receive the UTN for TDS and TCS transactions in the Financial Year 2008-09 (relevant for Assessment Year 2009-10), the following procedure shall be followed: -

(a) National Securities Depository Limited (NSDL) shall assign an UTN for every TDS and TCS transaction records in Financial Years 2007-08 and 2008-09, reported in the quarterly returns received by it.
(b) NSDL will create a facility to e-mail the UTN file to the deductor if the e-mail address of the deductor is available with them. In addition, they will also create a facility for the deductor to download the UTN file.
(c) Upon receipt of the UTN, the deductor will inform the UTN to the deductee. In cases where the UTNs are available to the deductor before the issue of the TDS/TCS certificate to the deductee, the deductor will indicate the UTNs on the certificate. However, if the UTNs are not available to the deductor before the issue of TDS/TCS certificate, the deductor shall, subsequently, send a consolidated statement of all TDS/TCS transactions indicating the UTNs.
(d) NSDL will also create a facility to allow independent viewing of the UTNs by the deductee. As a result, even if the UTNs are not received by the deductee from the deductor, they can be directly obtained from the NSDL database and quoted while making claims of TDS and TCS in the return of income

1 comment:

Sunil Chowdhary said...

Creating more workload for deductor and more inconvenience for deductee. imagine bulk deductors like Banks getting lakhs of UTN numbers from NSDL and having to sort them out and furnish them to the deductees. The department provides space for only 2 UTN Numbers as if an average person will have only 2 TDS entries per annum. If this is a 16 digit number, it will be really difficult to squeeze it in and would require great writing skills for those writing the returns. We can sum this in a few sentences
"Planners in our government are corrupt and they apply their minds in a very advanced fashion"
"Those who have to support planners are equally corrupt and do not apply their minds at all in designing forms"