The Hindu Business Line : Banks, coops get more time to file quarterly returns of deposits

ONE of the two anti-tax evasion measures introduced by the Government through the Union Budget for 2005-06 appears to be facing implementation problems.

The Finance Ministry has once again extended the due date for filing of quarterly return (by banks, co-operative societies and certain public companies) of all deposits on which interest is paid without deduction of tax at source.

The Central Board of Direct Taxes has now extended the due date for the quarterly return that was to be filed for the April-June 2005 period to December 31. The initial deadline for filing the return was July 31, but was later extended to September 30.

Similarly, the Finance Ministry has also extended the due date for filing the quarterly return for the July-September period to December 31.

As an anti-tax evasion measure, the Government had, through the Finance Act 2005, required banks and certain other entities to report to the Government all deposits that were exempt from tax deduction at source (TDS) on interest.

The Finance Act 2005 mandated banks, co-operative societies and certain public companies that are responsible for paying interest (interest other than interest on securities) not exceeding Rs 5,000 to a resident to prepare returns for the period ending on June 30, September 30, December 31 and March 31 in each financial year.

These quarterly returns are to be filed with the tax department on or before July 31, October 31, January 31 and June 30 following the respective quarter of the financial year.

Currently, the income tax law specifies that a bank would not be required to deduct tax at source in those cases where the interest (other than interest on securities) paid or credited by a branch to a person in a financial year does not exceed Rs 5,000.

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Banks, coops get more time to file quarterly returns of deposits