Credit for TCS or TDS for electronic returns: Since no documents are required to be furnished along with the return
of income, the credit for Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax and selfassessment
tax (hereinafter collectively referred to as ‘pre-paid taxes’) shall be allowed on the basis of information
relating to pre-paid taxes furnished in the relevant schedules of the return forms subject to matching with the information
provided by the deductor, collector and the banks.
(i) Therefore, taxpayers are advised to ensure that the information relating to pre-paid taxes is complete in all respect
and correct.
(ii) With a view to enabling the matching of information relating to pre-paid taxes furnished by the taxpayers, the
Income-tax Department has created a system of Unique Transaction Number (UTN) and Challan
Identification Number (CIN). Assessees must ensure that the deductor and the collector have provided
them with separate UTNs in respect of each TDS and TCS transaction.
(iii)Similarly, they must also ensure that the UTN for every TDS and TCS claim in the return is correctly filled in.
(iv) Similarly, they must ensure that they correctly fill in the CIN in respect of payments of advance tax and selfassessment
Further, no disallowance of claim for pre-paid taxes shall be made by the Assessing Officer only on the
ground that the TDS/TCS certificates and challans have not been furnished along with the return of income
or Form ITR-V.
The return of income in Form No. ITR-1 to Form No. ITR-8 for assessment year 2009-10 have been notified which
require, 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 will be followed :—
(a) National Securities Depository Limited (NSDL) shall assign an UTN for every TDS and TCS transaction record 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.
i. 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.
ii. 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.
In the past, instances have come to the notice of the Board that in spite of specific directions contained in the
Instructions for filling the return forms, the practice of accepting returns, along with annexures is still continuing.
Taxpayers have in the past also complained that staff and officials in certain stations are refusing to accept returns
which are not accompanied with annexures. These practices are against the expressed policy of the Government and
are not in consonance with the legal provisions. Therefore, it is emphasized that Chief Commissioners of Income-tax
must ensure strict compliance with the provisions of law. It may be reiterated that all annexures accompanying the
Income-tax return forms should be detached and returned to the taxpayers by the receiving official.
The contents of this circular are for strict compliance by all officers and staff of the Income-tax Department. Any violation
by the officers and staff of Income-tax Department will be seriously viewed.