KHADI AND VILLAGE INDUSTRIES COMMISSION

IRLA ROAD, VILE PARLE(WEST), MUMBAI-56.

No.Adm-II/283/2004-2005/17                                                                                       Date:- 08/06/2004

STANDING ORDER NO.1644

Sub :i) Tax deduction at source every month on equated monthly installments

                                           from salaries under Section 192 of Income Tax Act’ 1961.

                                       ii) Filing of Annual TDS Return (Form No.24).

           A reference is invited to Circular No.Adm-IV/Income tax/2003-04 and No.Adm-II/283-04(17) dated 19.01.2004 on the above subject.  As per instructions contained in the Circulars referred to above, it is the duty of all Drawing and Disbursing Officers of Central Office as well as Field Offices to deduct Tax at source and remit to Income Tax Office every month.  But it is noticed that, only a very few Officers are showing deduction of Tax every month in their pay bills.  Therefore, the following guidelines are issued :-

DEDUCTION OF INCOME TAX EVERY MONTH:

1.       All the officers in Central Office as well as Field offices shall, on the basis of rates in force for the year 2003-04 start showing deduction of Income Tax every month in equal installments starting from the pay bill for the month of June 2004 onwards by calculating estimated income from the salary for the whole year reduced by permissible deductions, and likely savings.

2.       Officers shall declare likely savings for the year 2004-05 by 20^th June, 2004 and enclose alongwith the pay bill for the month of June’ 2004.

3.       In January’ 2005, each officer will submit income tax statement alongwith all required enclosures (such as receipts of school fees, mediclaim, Rent paid if any, Insurance premium, savings on pension funds, bonds, PPF and other savings etc) so as to make final adjustment of the tax and make final recovery of tad for the year 2004-05 from the pay bills of January and February’ 2005.

4.       If the salary of February’ 2005 is less than the final adjustment of the Income tax to be deducted, the concerned officer shall remit the tax in cash before 31^st March’ 2005 and produce receipt  to the DDOs so as to issue Form No.16.  Income Tax remitted after 31^st March’ 2005 will not be taken into consideration for the year 2004-05.

FILING OF ANNUAL RETURN ON TDS

5.       It is the statutory obligation on the part of DDOs to deduct Tax at Source as per above and also guidelines contained in the Circulars issued from time to time on the subject.  DDOs shall also file Annual TDS return as required u/s 206 of I.T. Act-1961.

6.       DDOs in Central Office are directed to prepare and certify annual TDS Return (Form No.24) for the financial year 2003-04 by 15^th June’ 2004 and by 5^th June’ 2005 for financial year 2004-05 and handover to Administration (Adm-IV Section) for forwarding the same to Income Tax Department.

7.       As far as non-gazetted staff are concerned, the same procedure shall be adopted by the concerned DDOs to get declaration and deduct tax from the pay bills wherever applicable.

8.       In case of failure to deduct tax at source or after deduction, failure to remit tax to Govt. Treasury and failure to file Annual TDS Return, the concerned Drawing & Disbursing Officer will be held personally responsible for the lapse and will be liable for penal action as laid down under the Act.

          All the Officer/ Staff of KVIC and DDOs may take note of the above directives for immediate compliance.

                                                                                                                                Sd/-

CHIEF EXECUTIVE OFFICER

To,