PERFORMA CERTIFICATE OF TAX COLLECTED/DEDUCTED: The Performa Certificate of Collection/Deduction of Tax is given below. The information contained in the certificates are sufficient enough to depict the particulars of both ie the persons from wham tax is collected/deducted tax and who has deposited the tax collected/deducted.
THE SECTION AND COLUMN ARE EXPLAINED BELOW:
Division III- Quarterly, six monthly and annual statements of tax collected or deducted.
It can be well imagined how much time and money of nation can be saved. Just guess the volume and information which are given under the present formats of the returns and compare it with the new proposed procedure. The tax challan and all of the returns given below will not be required under the new procedure.

==============================================================================================================
Rule       Section            Returns
==============================================================================================================
51A        149                Annual statement under section 165 read with section 149 regarding salary
                               during the financial year.
51B        149                Quarterly statement under section 165 read with section 149 regarding salary.
52         150                Annual statement of tax deduction from dividends
53         151(c)(d)          Quarterly and annual statements of tax deducted from profit on Bonds,
           sub-section(1)     Certificates, Debentures, Securities, or Instruments.
54         151(a)(b)          Quarterly and annual statements of tax deducted from profit on debt, broker
           sub-section(1)     age, commission or professional fees.
           233
55         151(1)(b) or (c),  Quarterly / Annual statement of deduction of tax under Section 151(1)(b)
           152 or 233         or (c), 152 or 233 of the Income Tax Ordinance, 2001.
56         153                Statement under Section 153 regarding deduction of tax made from contrac
                              tors, suppliers etc.
57         155                Quarterly and annual statements of tax deducted from rent of immovable
                               property.
58         152                Quarterly and annual statements of tax deducted from payments to
                              non-resident persons.
59         154 (1)(2)         Annual statement of tax deducted from certain export payments.
60         154(3)             Annual statement of tax deducted in relation to the sale of goods to exporters
                              under inland back to back letter of credit.
61         156                Annual statement of tax deducted from prize bonds, or winnings from a
                              raffle, lottery or cross-word puzzle.
62         148                Six monthly and annual returns statements of tax collected.
63         232                Quarterly and annual statements of collection of tax in relation to the issue or
omitted             clearance of certain financial instruments.
64         234                Quarterly and annual statements of tax collected in relation to motor
                              vehicles.
65         157                Quarterly and annual statements of tax deducted from commission or
           omitted            discount allowed to petrol pump operators.
66         236                Quarterly and annual statements of tax collected with telephone bills.
           235                No return
           156B               No return
==============================================================================================================

A) The top portion contains the period, the certificate number and the date of issue. In case the requirement is monthly the period will be month and if annually the period will be the whole year. The certificate numbers will be distinct, however more than one certificate can be issued to one person based on deduction under different sections and/or different months. The zone and circle number is also mentioned. This is the same information as is mentioned in return cum payment challan.
B) Issued by portion contains all the particulars of the person collecting/deducting and issuing the certificate.
C) Issued to portion contains all the particulars of the person from whom the tax is collected/deducted.
D) Boxes 13to 17 contains the information about the payment made, payment subject to tax, section under which the tax is collected/deducted, rate and amount collected or deducted.
E) The declaration portion contains information of the person issuing the certificate and the information as to that the same has been deposited in the treasury and showed in the monthly return.
F) Four copies are proposed to be made for the certificate, two copies (original & duplicate) be given to the person from whom the tax is collected/deducted. One for his record and one to be filed with his tax return. Third copy be sent along with the summary of tax collected/deducted and the fourth retain by the issuer. In this way the department can always cross check from their records the genuineness of each certificate thus relieving them of the verifications of tax challan.
ANNUAL SUMMARY OF CERTIFICATES OF TAX COLLECTED/DEDUCTED:
This is the third and the last of the return which is proposed to be filed at the end of the year. This return will give the yearly total all the returns with details of section, person and amount. The Performa given annual return is as Annexure-III.
This return will contain all the details which are of use to CBR and the person issuing the return. It will contain the section wise total of tax collected/deducted the serial number of certificate issued and the total of tax collected/deducted from any person
As is mentioned before if it is determined that of Tax Certificates is required as for section 235 or 236, than for the same the summary will not be filed. Alternately the certificate can be left and summary will be mandatory.
It will be noticed from the above that 17 types of returns are required to be filed under the present system. With four returns per year the number of returns comes to around 68. Under the new system these 68 returns will be replaced by a consolidated one return which will reconcile with the tax Certificates issued and these certificates will in turn reconcile with the monthly return cum payment challan
The new proposed system of collection and deduction of tax will be as easy as one, two and three.
THE THREE STEPS ARE.
ONE:
-- File the monthly return cum payment challan.
TWO:
-- Issue the certificate of deduction and collection of tax. (Monthly but preferably annually)
THREE:
-- File the annual summary of tax certificates issued.
A small software developed on some data base can easily handle the above three jobs. By a single entry in payments the monthly return, the tax certificate and the summary of tax certificates issued can be taken out. Further more this data base which will be uniform for all can easily be uploaded on CBR website.
(Concluded)