Processing of statements of tax collected at source [Section 206CB] :
(i) Enabling provision has been introduced for processing of TCS statements in the like manner provided in section 200A for processing of TDS statements. Accordingly, new section 206CB has been inserted for facilitating processing of statements of tax collected at source.
(ii) The manner of processing a statement of tax collection at source or a correction statement made by a person collecting any sum under section 206C, as provided in section 206CB(1), is as follows –
(a) the sums collectible under Chapter XVII-BB shall be computed after making the following adjustments, namely:—
(i) any arithmetical error in the statement;
(ii) an incorrect claim, apparent from any information in the statement (i.e., a claim, on the basis of an entry, in the statement—
(1) of an item, which is inconsistent with another entry of the same or some other item in such statement;
(2) in respect of rate of collection of tax at source, where such rate is not in accordance with the provisions of the Income-tax Act, 1961).
(b) the interest, if any, shall be computed on the basis of the sums collectible as computed in the statement;
(c) the fee, if any, shall be computed in accordance with the provisions of section 234E;
(d) the sum payable by, or the amount of refund due to, the collector, shall be determined after adjustment of such interest and fee against any amount paid under section 206C or section 234E and any amount paid otherwise by way of tax or interest or fee;
(e) an intimation shall be prepared or generated and sent to the collector specifying the sum determined to be payable by, or the amount of refund due to, him; and
(f) the amount of refund due to the collector in pursuance of such determination shall be granted to the collector:
However, no intimation under section 206CB(1) shall be sent after the expiry of the period of one year from the end of the financial year in which the statement is filed.
(iii) The CBDT is empowered to make a scheme for cent ralised processing of statements of tax collected at source to expeditiously determine the tax payable by, or the refund due to, the collector, as required under section 206CB(1).