Budget 2010-11 Certificate of tax deduction at source (TDS) and Tax collection at source(TCS)

In view of online filing of TDS returns, it was earlier planned to dispense with the requirement of furnishing of TDS certificates by the deductor to the deductee from 1st April, 2005. Due to lack of proper integration of the data the date was postponed from time to time. From 1st April 2005 to 1st April,  2006  then  to  1st April 2008  and  then  to  1st  April  2010.  The  existing  provisions  of  section 203(3) of the Income-tax Act dispense with the requirement of furnishing of TDS certificates by the deductor to the deductee on or after 1st April, 2010. Similarly, under section 206C(5) of the Act, a collector of tax at source will also not be required to issue tax collection certificate to the person
from whom tax has been collected on or after 1st April, 2010.   However, it seems that probably the desired level of electronisation, synchronisation and data integrity is not achieved.

It  is  proposed  that  the  deductor/collector  will  continue  to  furnish  TDS/TCS  certificates  to  the deductee/collectee even after 1st April, 2010 .

These amendments are proposed to take effect retrospectively from 1st April, 2010.