Furnishing and Verification of Form 27BA for Removing of Default
of Short Collection and/or Non Collection of Tax at Source
CBDT has laid down the new Procedure for furnishing
and verification of Form 27BA for
removing defaults of short collection or non collection of tax at source and for removing mismatch.
Section 206C of Income Tax Act if, any
person, responsible for collecting tax fails to collect the whole or any part
of the tax on the amount received from a buyer or licensee or lessee or on the
amount debited to the account of the buyer or licensee or lessee-
(i) has furnished his return of income under
section 139;
(ii) has taken into
account such amount for computing income in such return of income; and
(iii) has paid the
tax due on the income declared by him in such return of income,
and the person furnishes a
certificate to this effect from an accountant in such form as may be
prescribed.
2. As per sub-rule (1) of Rule
37J of Income-tax Rules, 1962, the certificate from an accountant section 206C
shall be furnished in Form 27BA in accordance with the procedures, formats and verified
in accordance with the procedures, formats.
3. The procedure for electronic
filing of Form 27BA is as follows:
1.1 Role of Collector
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STEPS
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PLACE OF ACTION
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ACTION
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1
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TRACES Portal
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Get
Details of Short Deduct ion:
Collector needs to submit request to get details of short Collection.
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2
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TRACES Portal
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Enter
No Collection transactions:
Collector needs to enter details of No-Collection transaction at TRACES
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3
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TRACES Portal
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Submit
Request: On submitting request, a Unique
Request Number will be generated and A unique DIN will be generated by TDSCPC
for unique Short Collection transaction. Similarly Unique Alpha-Numeric
String (combination of TAN, PAN and F.Y.) will be generated for No-Collection
transaction. These unique DINs and Alpha-Numeric Strings will be communicated
electronically to E-Filing Portal and available for further act ion by Collector.
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4
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Offline
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The Collector will
communicate the DINs and/or Alpha-Numeric St rings generated in step no. 3
for each of the Short-Collection and/or Non-Collection transact ions to the
accountant identified for certifying Annexure A and obtain the membership no.
of such accountant to be used in step no. 5.
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5
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E-Filing Portal
(Login as Collector)
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locate
DIN on which Form 27BA
effect is to be given : Locate and
select relevant DIN in menu driven opt ion for which request for Form 27BA is
to be submitted.
locate
No Collection Transactions on which Form 27BA effect is to be given :
locate and select
No-Collection transaction for which request for Form 27BA is to be submitted.
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6
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E-Filing Portal
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Authorize
Membership Number of Accountant [4] : Collector, after ascertaining
the membership
number of the accountant who is to certify Annexure A of Form 27BA, needs to
authorize such accountant by entering his membership number in respect of each of the Short -Collection and
Non-Collection transactions(in one or more sessions) and submit these
authorizations.
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7
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E-Filing Portal
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Certification
from Authorized Accountant
: On successful authorization by Collector, the Account ant so authorized on
E-Filing Portal may fill in the relevant details in Annexure A to Form 27BA
with respect to the buyer in question
and certify by digitally signing Annexure A. The details of unique DINs
and Alpha-Numeric
Strings will become visible to the authorized
accountant(when he
logs into his own account as a registered accountant on E-Filing Portal) only
when Collector has authorized such an accountant with respect to any Short-Collection
and/ or Non-Collection transaction.
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8
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E-Filing Portal
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Submit
Digitally signed Form 27BA
: Once registered Accountant/Accountants certify DINs and/or Alpha-Numeric St
rings, Collector needs to digit ally sign the form and submit its final
request . Consequently, these submitted records will be shared with the FAOs
concerned.
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9
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TRACES Portal
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View
Modified Status of default
: Once request has been processed,
short collection
will be re-calculated and Late collection Interest will be generated
accordingly, which can be viewed by Collector.
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10
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NSDL\TRACES Portal
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Make
payment for Modified Late Collection Interest : Collector needs to pay Late collection Interest amount,
according to the modified computation.
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4.2 Role of Accountant at E-Filing:
1.
Accountant has to get himself registered at E-Filing Portal
and share his membership
number
with the collector desiring to authorize him with respect to Short - Collect ion and/o r Non- Collection.
2.
Receive DINs and/or Alpha-Numeric St rings with respect to
each of the Short- Collection and/ or Non- Collect ion from the Collector.
3.
After being so authorized by Collector and upon receiving
DINs and/or Alpha-Numeric
St
rings from Collector; login to E- Fling Portal wit h Accountant credentials.
4.
Use DINs and/or Alpha-Numeric St rings to identify the buyer
rows which are to be verified.
5.
Complete Annexure A to Form 27BA with respect to the
concerned Buyer.
6.
Submit the Annexure A so completed by digitally signing it.
4.3 Role of e-filer:
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For Collector
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Validations
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TRACES
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1. Provide
view of Short-Collection and/or Non-Collection transactions to Collector
2. Allow Collector to locate and select
Short-Collection and/or
Non-Collection transactions
3. Allow
Accountants so authorized to view Annexure A to Form 27BA on the basis of DIN
and/or Alpha-Numeric String; complete the Annexure; and submit it by
digitally signing it.
4 Allow Collector to view Form 27BA including Annexure A to
Form 27BA so submitted by authorized Accountant(s) and submit this Form 27BA
by digitally signing it.
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Check
mandatory compliance :
ITR of buyer (PAN)
should have been filed u/s 139 and no demand should be payable at the time of
assessment.
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Share digitally
signed Form 27BA with CPC-TDS.
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4.4 Role of TRACES:
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For Collector
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Backend Processing
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1. Display
identified Short-Collection transactions
2. Provide
option of adding No-Collection transactions
3. Provide
DIN and Alpha-Numeric String
4. Display
updated status of Form 27BA
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Processing the request: Once Collector
submits request of Form 27BA, TDSCPC will
reprocess the statement and Short Collection will be modified.
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Contributed by Suhasini CA Finalist
