The provisions relate to cases where no tax is deducted based on declarations furnished by the payee in Part A of Form No. 121 to the payer under Rule 211. The payer is required to facilitate furnishing of such declarations and ensure compliance with PAN requirements. Prior to this notification, procedural clarity on generation of Unique Identification Number (UIN) and reporting mechanism for such declarations was not specified in detail.

1. Generation and allotment of UIN

“The payer shall allot a 26-character UIN to each declaration (Part A of Form No. 121) received by him during the tax year. The UIN shall consist of the following three fields, namely:
(a) Sequence Number – Ten alphanumeric characters beginning with the letter ‘D’ followed by nine digits;
(b) Tax Year – Six digits representing the tax year for which the declaration is furnished;
(c) Tax Deduction and Collection Account Number (TAN) of the payer – Ten alphanumeric characters.”

“The running sequence number series… shall be reset to ‘1’ for each TAN of the payer at the beginning of every tax year.”

     2.Digitisation requirement

“Where the declaration in Form No. 121 is received in paper form, the payer shall digitize such declaration and allot a Unique Identification Number (UIN)… Such declarations shall bear sequence numbers in continuation to running sequence number series as used for electronically furnished declarations.”

      3.Furnishing of Part B of Form No. 121

“The payer shall furnish Part B of Form No. 121 containing the details of declarations received in Part A of Form No. 121 (whether digitized or electronic) within the prescribed timelines under the provisions of section 393(7)… in the prescribed file format on the Income-tax e-filing portal.”

       4.Quarterly reporting requirement

The payer is required to furnish details of declarations along with UIN in quarterly statements of tax deduction, irrespective of whether tax has been deducted.