Chalan Forms for payment of income-tax deducted at source from payments other than salaries--Clarification regarding the use of fourth counterfoil - Income Tax - 292/1981

Chalan Forms for payment of income-tax deducted at source from payments other than salaries--Clarification regarding the use of fourth counterfoil Circular No. 292 Dated 5/2/1981 To All Chambers of Commerce. Sir, Subject : Chalan Forms for payment of income-tax deducted at source from payments other than salaries--Clarification regarding the use of fourth counterfoil. The persons responsible for making payments of interest on securities, dividends, interest other than interest on securities, winnings from lotteries and cross-word puzzles, winning from horse race, payments to contractors and sub-contractors, insurance commission, and "other sums" are required at the time of payment, to deduct income-tax at appropriate rates under sections 193, 194, 194A, 194B, 194BB, 194C, 194D and 195, respectively. The tax so deducted at source is required to be paid to the credit of the Central Government at RBI/SBI or a public sector bank authorised in this behalf, through a chalan. 2. Two chalan forms have been prescribed for payment of such tax deducted at source:- (1) Chalan No.2 (ITNS 39A)--for tax deducted at source on payments made to companies, and (2) Chalan No. 8 (ITNS 39)--for tax deducted at source on payments made to non-companies. These chalan forms have now been got printed with four counterfoils. The bank receiving the payment retains the 1st and 2nd counterfoils for transmission to the Income-tax Department in the prescribed manner and returns the 3rd and the 4th counterfoils to the taxpayer. Whereas the 3rd counterfoil is to be retained by the taxpayer for his own record, the 4th counterfoil is meant to be attached by the taxpayer with statement/certificate of the tax deducted at source in one of the forms prescribed in rule 37 of the Income-tax Rules. 3. However, in the chalan Forms Nos. 2 8 which have been printed in 1977-78 (5-7-78) and 1979-80 (10-12-79), respectively, and are at present in supply for use by the taxpayers, it has been erroneously printed at the top of the 4th counterfoil that it would be attached with the "Return of Income." It is hereby clarified that the 4th counterfoil of each of the chalan Nos. 2 8 is meant for being attached with the statement/certificate of deduction of tax at source in one of the prescribed forms, viz., Form Nos. 25, 26, 26A, 26B, 26BB, 26C, 26D and 27, as may be applicable and not with "Return of Income". 4. It is, however, possible that during the current year some payments of such TDS may have been made in the old chalan forms which had only 3 counterfoils. In such cases, it would not be necessary for the taxpayer to attach any counterfoil with the statement/certificate of tax deduction at source. However, as the new forms have now been printed and are in supply at all places, it is expected that all-tax deducted at source (other than TDS from salary) which is paid to the credit of the Central Government after 31-3-81 will be paid only through the revised chalan forms which have four counterfoils and the 4th counterfoil of all chalans will be attached with the relevant statement/certificate of tax deduction at source. Yours faithfully, (Sd.) S.R. Wadhwa Director, Central Board of Direct Taxes.