I-T department introduces 'Unique Transaction Number' for TDS assesses

The income tax department has introduced a 'Unique Transaction Number' for assessees whose taxes are deducted at source and hence they will have to wait for some time before filing returns this year.

The I-T department has made the UTN number mandatory for all assessees whose tax is deducted at source to overcome the problem of individual asseessees having more than one permanent account number (PAN), sources said.

All individual assesses whose tax is deducted or collected at source will have to quote the UTN, the department said.

The National Securities Depository  Ltd will give the UTN to all assessees whose tax is deducted or collected at source through tax deductors.

"Assesses must ensure that the deductor and the collector have provided them with separate UTNs in respect of each TDS and TCS transaction," the income tax department said in a circular.

NSDL has started giving UTNs and the I-T department expects the process to get over by 30 June. Taxpayers have about 40 days to file tax returns as of now.
 
The government, meanwhile, is considering a proposal to streamline rates applicable for tax deducted at source (TDS).

The income tax department has recommended that TDS rates should be structured in three slabs of between one and five per cent for any stream of income.

At present, there are multiple tax rates for TDS starting from one per cent to over 30 per cent.