In an effort to bring greater transparency and accountability in income tax deduction, the Central Board of Direct Taxes has notified new guidelines and the forms for tax deduction and tax collection at source.

Now, TDS certificates ? Form 16 and From 16 A will have to be furnished to the deductee or the employee within one week or latest within one month from the end of the financial year in which in which the payment is made by the employer. At present, it often takes about two to three months for the certificates to reach the deductee.

The CBDT has also replaced Form 16, Form 16A and Form 16AA with Form 17, as a certificate of tax deduction and tax collection at source. But on Tuesday the CBDT clarified that ?the new Form 17 is applicable only for payment of tax deducted or collected at source on or after April 1, 2009. Any TDS or TCS made before April 1, 2009, the payment will continue to be made to the credit of the Central Government by using the existing challan in Form No. 281 even is it is done after March 31, 2009.?

While the employee can get a duplicate Form 16 or 16 A from the employer in case it is lost, he will have to provide an indemnity bond or a certificate of payment from the tax department when the assessing officer gives credit for the TDS on the basis of the duplicate From 16 or 16A.

As per the new norms, the tax deducted at source would also have to be deposited with the department within one week from the end of the month in which it is deducted or is due.

?The person responsible for collecting the tax will have to deposit it with the Central government within one week from the end of the month when it is collected,? the CBDT circular states. He will also have to electronically furnish an income tax challan in Form No 17.

A detailed circular on the amended rules relating to TDS and TCS is also expected soon.

Taxing points

• Now, TDS certificates?Form 16 and From 16 A will have to be furnished to the deductee within one week or latest within one month from the end of the financial year

•The CBDT has also replaced Form 16, Form 16A and Form 16AA with Form 17, as a certificate of tax deduction and tax collection at source

• As per the new norms, the tax deducted at source will also have to be deposited with the department within one week from the end of the month in which it is deducted or is due