Transcript LATEST ISSUES OF TDS FILING

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Nil Returns can be prepared provided some
records are there to fill in with certain flags
as we don't have Tax Challans/Vouchers.
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Nil challans/transfer vouchers with deductee
record:
Validation as below will be applicable:
 Nil challans/transfer vouchers need to
mandatorily have deductee records.
 In deductee records, flag in the remarks for
lower or non-deduction should be “A”, “B”, “Y”,
“S”, “T” or “Z” (as applicable)
This validation will apply for regular and
correction statements.
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The validations with respect to Nil
challan statements have been relaxed
for Form 24Q Q4 for all financial years.
Deductors will be permitted to submit
Form 24Q Q4 for all Financial Years with
NIL challans and no corresponding
deductee records with the release of
New RPU nad FVU from 26th April, 2014
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A new facility(option) has been opened at TDS CPC on
traces in respect of Nil Returns . The deductor after
logging into his account simply has to declare/update the
record regarding Nil return in a particular quarter , in
turn the deductor will be free from the notices which
otherwise are being sent for non filing of TDS return for
that quarter. It is going to be big sigh of relief for the
deductors, saving of paper, cost and valuable man
power. Further more TDS CPC will also be acquainted
with the information about the deuctor otherwise earlier
TDS CPC has no option but to send the notices for non
filing of Returns.
Option once availed can be changed depending upon the
requirements if later need tobe.
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The default amount will have to be deposited
through challan no 281 by ticking minor head
'400'. Download conso file from TRACES for
filing correction and update the challan
detail. While filing correction, fill up interest
amount in column no. 403 in Form 26Q, column
no. 304 in Form 24Q, column no. 705 in Form
27Q and column no. 655 in Form 27EQ. Mention
default interest amount in second last
interest column in challan detail of conso file.
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THE Honbl'e HIGH COURT OF KARNATAKA in the case of ADITHYA BIZORP
SOLUTIONS INDIA PVT has stayed the enforcement of notices issued u/s 234E till
further order . Order passed by the honbl'e court is as under:
Petitioners have questioned the constitutional validity of the provision of Section
234E of the income Tax Act and a notice to the petitioner levying fee vide
annexure A1 to A21 and Annexure - B.
Pending consideration of the grounds in the writ petition, it is desirable that
enforcement of notices referred to above issued by the 4th respondent are
stayed until further orders.
Similar type of stay has already been granted by the THE Honbl'e HIGH COURT OF
KERALA in the case of NARATH MAPILA LP SCHOOL Vs. UNION OF INDIA
Further more Ex-post facto extension of due date for filing TDS/TCS statements for
FYs 2012-13 and 2013-14 has been granted by CBDT vide Circular No. 7/2014 dated
5th March 2014 For Govt deductors for filing the TDS Return From Q2 of FY 2012-13
to Q3 of FY 2013-14 till 31st March 2014. Big sigh of relief for the Govt defaulters
but no relief to the other Tax deductors. Double Standards on the part of the
Board. However, any fee under section 234E of the Act already paid by a
Government deductor shall not be refunded.
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Discontinuation of “Y” type of
correction statement w.e.f. 01/07/2013
Now only NSDL has the power to
delete the return in extreme
circumstances if the authorities deem it
to be fit case
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With effect from February 1, 2014, 27A files
which are generated by latest .fvu version
with duly signed will be only accepted at
TIN-FC
Any other 27A format would be treated as
invalid and the same return could not be
process
With this amendment now the person
responsible can check from the 27A about
the accuracy of the data punched.
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Form 16 /16A : TDS certificate in Part A of
Form 16 shall be generated only for those
PANs that have been reported in
Annexure II of 24Q statement for 4th
Quarter. The deductors are, therefore,
advised to ensure that they provide
salary details of their employees
employed for whole or part of the year in
Annexure II of Quarterly TDS Statement
for 4th Quarter
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Online Verification of TDS Certificate
has been enabled on TRACES
Users can verify the TDS Certificate on
click of 'Verify TDS Certificate' link on
 'View TDS / TCS Credit' page
 'View Form
26AS' page
 Expired/ Exhausted/Out of Range/Rate
Variation of Deduction/Wrong Certificate
No.
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While filing TDS returns filers/Deductors has to be extra careful as the wrong Pan once stated in the
return even though amended/corrected by revising the return later on may not discharge the
deductor from the liability of penal provisions of deducting TDS @ 20%, as the returns recently being
processed by CPC is not adjusting the demand after processing of revising returns in such cases.
Rectification of demand is not done if the mismatch is of more than two alpha characters and two
numerics in Pan. Therefore, out of 10 characters in case of structurally invalid PAN, 4 characters are
being considered for rectification of demand.
This is being done on the pretext of provisions of section 206AA which apply at the time of tax
deduction and this all happens prior to the filing of statement.
Thus, the deductor is expected to have a Valid PAN at the time of deduction. Only a typographical
error is expected at the time of filing the TDS statement.
This sort of processing by TDSCPC is totally uncalled for and against the natural justice and needs to
reviewed immediately. Section 206AA does not state that only 4 characters of a PAN can be
amended. If the intention of legislature should have been so then no provision could have been
provided in the Act for rectification of the return. What is meaning of allowing correction up to 4
characters.
This harsh processing is only for the deductors not for the deductees as the deductee is being allowed
full credit on revision of returns. There may be case that the deductee might have provided the
Structurally wrong Pan at www.taxvani.com
the time of deduction , then why the penal provisions for Deductor only.
To avail the facility, you are supposed to Login to TRACES and navigate to "Defaults" tab to
locate "Request for Correction" from the drop-down list. Click to "Proceed" in absence of Digital
Signature.
Pre-requisites for filing online Corrections:
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Digital Signature is not mandatory to be registered on TRACES for raising online corrections.
Only Challan Correction is permissible in absence of Digital Signature. Digital Signature enables
you to carry out PAN Corrections as well.
Correct KYC information needs to be submitted for the purpose of validation.
Online request can be submitted, only if there is a regular statement already filed and processed.
All previous corrections pertaining to the statement should have been processed and the
processing status can be verified from the Dashboard.
Functionalities available without Digital Signature:
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Challan/BIN Correction
 A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
 Matched challans can be corrected for "Amount Claimed as Interest and Others". Please note
that Matched challans cannot be tagged.
 Unmatched challans can be corrected and tagged to Deductee rows in the statement.
 In addition, NO CHALLAN, which has been used for other purposes outside the system, should
be tagged.
 The corrections to above challans can be reset by clicking the Reset tab, if this requires to be
further corrected.
 A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
Additional Functionalities available with Digital Signature:
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PAN Correction
Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in "Name as per
changed PAN".
Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the "Action
Status". Please note that there is only one opportunity for a Valid to Valid PAN correction.
All the corrected rows www.taxvani.com
can be viewed by clicking on "Show Edited Rows" on the screen.
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Department of Income Tax through TRACES has launched this
new facility to claim Refund of Excess TDS. This is again a
welcome step on the part of the Department and major sigh
relief to the deductors. Now they will not have to visit the
Department for claiming the refund of Excess TDS. News is
flashing at the TRACES in this regards as
Refunds of challans has been enabled on TRACES. Deductors
can navigate to 'Statement / Payments' - 'Request for Refund‘
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This facility can be availed by the deductor after logging into its
account created at Traces and then by registering his digital
signatures . Registration of Digital Signature has been enabled
on TRACES for deductors. Deductors can register their Digital
Signature in PROFILE after registration
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Deposit late payment interest @ 1.5% per month or part of the month from the date of
deduction till
date of deposit.
Procedure for calculating Late Payment:
Amount Paid /
Credited(Rs.)
100000.00
TDS Deducted(Rs.)
10000.00
TDS Deposited(Rs.)
5000.00
TDS Credit Allowed to the
Extent of Available
Balance (Rs.)
4000.00
Interest Calculation
Date of
Deduction
(dd-mmm-yyyy)
4-Mar-2012
Due Date for
TDS Deposit
(dd-mmm-yyyy)
Date of Deposit
as Per OLTAS
(dd-mmm-yyyy)
Period of Delay
in Months
30-Apr-2012
7-May-2012 3
3 months
Interest on Late Payment U/S 201 Calculation
No. of months in Defaults = 3 i.e., Mar-12 to May-12
4000*1.5%*3(Months) =180.00
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You have to deposit late deduction interest @ 1% per month or part
of the month from the date of payment / credit to deductee till
date of deduction.
Procedure for calculating Late Deduction:
Amount Paid / TDS Deducted(Rs.)
Credited(Rs.)
100000.00
10000.00
Interest Calculation
Date of Payment Due Date of Deduction Date of Deduction
(dd-mmm-yyyy)
(dd-mmm-yyyy)
(dd-mmm-yyyy)
3-Mar-2012
3-Mar-2012
4-Mar-2012
Period of Delay in Months
Interest on Late Deduction U/S
201 (1A)(Rs.)
1
100.00
Correct Calculation
No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012
10000*1%*1(Months) =100.00
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In order to request for Duplicate Provisional Receipt, the
Deductor may send the letter at [email protected] mentioning
all the below details.
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TAN & name of the Deductor/collector
Letter should be provided on the original letterhead of
company
Letter should be signed by authorized signatory along
with name and designation of authorized person.
Token number (of Regular statements only)
Financial Year
Form No.
Period (Quarter)
Purpose for requesting copy of provisional receipt
Email ID
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To facilitate improved TDS administration, CPC(TDS) has launched "Aggregated TDS
Compliance" at PAN level for all TANs associated with the referenced PAN. Following
are additional details related to the new feature.
What is meant by Organization's PAN:
The above indicates the PAN of an entity, having more than one TANs of its
branches, associated with the referenced PAN. This will be the PAN of the Central
Office, Headquarter etc., as may be appropriate. The said PAN must review the
"Aggregated TDS Compliance" report on a regular basis to improve TDS compliance
at Organization level.
What does the new feature offer:
The above stated PAN can view TDS performance for all of its respective TANs by
logging into TRACES as a Taxpayer.
The Defaults generated for all the TANs can be viewed by using the feature. The
following type of Defaults for the branches can be viewed:
Total Default
Short Payment Default
Interest on Payment Default u/s 201
Interest on Deduction Default u/s 201
Late Filing Fee u/s 234E
Interest u/s 220(2)
PAN Errors
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The respective TANs with Defaults in their TDS Statements can
be pursued to get the above resolved by taking following
actions:
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Carrying out necessary corrections in the records reported
in the TDS statements,
Paying the outstanding demand and
Submitting the Correction Statements at the earliest.
The feature thus provides for a summary of Defaults, which
assists in effective TDS administration, monitoring, control
and compliance at Organization level.
The feature will be extremely useful for the purpose of
complying with the provisions of Section 40(a)(ia) of the Income
Tax Act, 1961 by the concerned entity, to ensure that correct
information is disclosed in paragraph 27A/B of the Tax Audit
Report (Form 3CD) u/s 44AB of the Act.
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Payment of Taxes deducted/ collected
Timely Filing
Correct Reporting
Complete Reporting
Downloading TDS Certificates from TRACES
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