Income Tax – Interest on time deposits – banks to maintain records
The Income Tax Rules have been amended to prescribe that:-
1. Every bank branch required to file a return in respect of interest on time deposits without deduction of tax at source, shall keep and maintain the particulars of such time deposits in Form No. 26QA.
2. Every branch maintaining its daily accounts on computer media, shall keep and maintain the particulars in Form No. 26QA on computer readable media.
3. The quarterly return to be furnished by a banking company in respect of time deposits shall be in Form No. 26QAA
4. The quarterly return shall be furnished on or before the 31st July, the 31st October, the 31st January and the 30th June following the respective quarter of the financial year.
5. where the data relating to the return is copied using data compression or backup software utility, the corresponding software utility or procedure for its decompression or restoration shall also be furnished along with the return made on computer readable media
6. The return is accompanied with a certificate regarding clean and virus free data. (What will happen if a virus is detected later?)
NOTIFICATION NO. , Dated : March 17, 2006