TDS / TCS :- LATEST RETURN FILING NSDL SOFTWARE VERSION RPU2.2

Friends,   Latest version of TDS return filing software is RPU 2.2.  To download free of cost , the same alongwith its Key Feature  is given below :-

Key Features – Return Preparation Utility (RPU) version 2.2

In case of non-availability of PAN of deductee for Form 27EQ, two new fields are introduced under deductee details which are as below: 

               >>>> Column no. 32) Deductee is Non-Resident (under this column two dropdown options will be provided i.e. Yes/No) 

           >>>> Column no. 33) Deductee is having Permanent Establishment in India (under this column two dropdown options will be provided i.e. Yes/No) 

              >>>>  This will be applicable to correction (C3) and regular statements pertains to FY 2017-18 onwards. 

Incorporation of latest File Validation Utility (FVU) version 5.7 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.153 (applicable for TDS/TCS statements from FY 2007-08 up to FY 2009-10).

Click here to Download RPU 2.2

New / Revised TDS rates for the F.Y. 2015-16 or A.Y. 2016-17

Friends     Deductor always think about the TDS Rates.  Deductor deduct TDS on behalf of Income Tax Department and deposit the same accordingly.   But there is fear regarding change of TDS rates.  In case TDS rates have been reduced and deductor deduct / deposit higher rates (as earlier applicable) then Income Tax department has no problem.  In other side in case TDS rates goes on higher side and deductor deduct / deposit lower rate (as earlier applicable) then Income Tax department raises demand notice to deductor that you have not deducted TDS accordingly to TDS rates and you have to deposit the balance TDS with Interest. 

                  However Deductor should read below TDS  Rates before deducting TDS for the Financial Year 2015-16 or Assessment Year 2016-17

Click here to view the table of TDS Rates (Click Here)

e-TDS / e-TCS : -Non reporting of 15G / 15H transaction in contravention of rule 31A (4) of Income Tax Rules read with section 200 of Income Tax Act

CPC (TDS) Team has traced that bank is not reporting proper transactions related to  15G or 15H.   Even than Flag "B" is also required for these transaction.  Keeping in view these things TDS (CPC) teams has instructed to bankers to submit correct data with appropriate Flag etc. 

To know more regarding Value of Flags (Click Here)

To,

(Bank Name)
(PAN:XXXXXXXXXX),

Dear Sir/ Madam,

Please refer the subject mentioned above.

1) In this regard, it is to inform you that ________ branches out of ________ active branches of your bank have not reported transaction of payment of interest on which tax was not deducted in view of declaration of 15G or 15H form by the payee. We are also sending a separate communication to the non-compliant branches, attached in the list.

2) __________ branches have in all reported __________ transactions involving declaration of 15G or 15H. The amount involved in such transactions is to the tune of Rs. _______ Crore for F.Y. 2013-14. Form 15G/15H can be submitted by the payee only if the income including the interest income is less than the taxable amount.

3) You are requested to reconcile the amount of Rs. ______ Crore reported by your bank branches with the interest amount paid to payees who declared 15G or 15H as per core banking solution of your bank. In case of discrepancy, it is requested that the relevant branches may be instructed on top priority to comply to the provisions of Income tax act in respect of complete & correct reporting of transactions involving 15G or 15H declaration.

Since the due date of filing Q2 2014 TDS Statements (October 15) is approaching fast, you are requested to ensure the details of 15G/H transactions from your source data and raise Flag "B" in the Original TDS Statements. Also, please ensure submission of Correction Statements for previous Quarterly TDS Statements of the branches.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

e-TDS / e-TCS :- Mandatory Pan Ref: for invalid or not available PAN cases

Now, it is mandatory to mention Pan Reference in which cases where PAN numbers are not valid or PAN numbers are not available.  This compulsion has been done in latest NSDL TDS RPU 4.1.  Exact words has been used by NSDL in Data Structure as under :- 

Mandatory to mention PAN reference number, in case of invalid PAN (filed no. 10 of deductee details) i.e. "PANAPPLIED", "PANINVALID" and "PANNOTAVBL"                             To download latest RPU 4.1 (Click Here)

e-TDS / e-TCS :- Clarity regarding Different Challan , Different Years & Different Branch

Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), it has been observed that you have used multiple challans in a month, for payment of Tax Deducted.

For Deductor's convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in following circumstances :

• Payment of Tax Deducted under different sections of the Income Tax Act, 1961:
  
   • The CPC(TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
   • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also. 

Situation prior to Financial Year 2012-13	Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details
Situation after Financial Year 2012-13	Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement.

• Payment of Tax Deducted for different Assessment Years:
  
   • In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement.
   • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2,3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.

• Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:
  
   • The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.
   • A single challan can be used for the purpose of reporting Tax Deducted for such deductees.
   • Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.

Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. For any assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

e-TDS :- Who is a Tax Payer (Deductee)

Who is a Tax Payer (Deductee)?

                           A Tax Payer (Deductee) is the person, from whom the tax is being deducted or accrued for deduction. Depending on the nature of the deduction being made, deductees and respective submission forms are categorized into three types:

• Salaries: In case of salaries, the deductee is termed as an Employee. All the information of deductions and payments in this category should be submitted in Form 24Q to the government.
  
• Non-Salaries - Resident: In case of non-salaries and payment being made to a resident in India, the deductee is termed as a Deductee or a Party. All the information of deductions and payments in this category should be submitted in Form 26Q to the government.
  
• Non-Salaries - Non-Resident:In case of non-salaries and payment being made to a non-resident of India, the deductee is termed as a Deductee or a Party. All the information of deductions and payments in this category should be submitted in Form 27Q to the government.

TDS :- Late e-filing of TDS/TCS return

What should I do on receipt of demand notice u/s 234E Late Filing?

The default amount will have to be deposited through challan no. 281. Download conso file from TRACES for filing correction and tag the paid challan detail without adding any deductee records. While filing correction, fill up the fee amount in 'Fee' column in challan detail. (Refer e-tutorial - https://www.tdscpc.gov.in/en/download-nsdl-conso-file-etutorial.html)

Note: There is no. need to send any communication to TDSCPC separately

While filing a correction statement I quoted Late Fee amount in interest column. How can I rectify?

File a correction statement, delete the amount from 'Interest' column and mention fee amount in 'Fee' column no. 404 in Form 26Q, column no. 305 in form 24Q, column no. 706 in Form 27Q and column no. 656 in Form 27EQ.

TDS :- Short Payment or Short Deduction of TDS

Short Payment

How much amount do I pay for intimation received on Short Payment with Provisional Interest?

Provisional interest is calculated till the date of processing of statement. Deposit principal amount of short payment along with interest @ 1.5% per month from date of deduction till date of deposit and file the correction for the same.

I have received an intimation u/s 200A with the demand raised due to short payment. I have made the payment within the prescribed time-limit. Now what should I do?

Short Payment defaults may be raised due to challan mismatch. You are requested to check the details filed in statement corresponding to the challan

Is the rounding off under section 288B allowed at the transaction level?

The system will not allow rounding off under section 288B at the transaction level but at the statement level.

Short Deduction

How much amount do I pay for intimation received on Short Deduction with provisional interest?

Deposit principal amount of short payment along with interest @ 1 % per month from date of deduction till date of deposit and file the correction for the same.

I have received an intimation of Short Deduction but payment amount is not eligible for TDS as the amount is below the threshold limit. What should I do?

You can file correction statement and raise threshold flag ('Y') in column no. 326 (24Q), column no. 424 (26Q), column no. 729 (27Q) and column no. 680 (27EQ) for 'Reason for no / lower deduction'.

I have received an intimation of Short Deduction u/s 194C however deductee is a transporter what should I do?

You can file correction statement and raise transporter flag ('T') for the particular deductee, who is a transporter, in column no. 424 (26Q) for 'Reason for no / lower deduction'.

What should I do in case of Short Payment / Short Deduction intimation received?

The default amount (along with the interest applicable till the date of payment of short payment default) 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 details. While filing correction fill up principal amount in column no. 402 in Form 26Q, column no. 302 in Form 24Q, column no. 702 in Form 27Q and column no. 652 in Form 27EQ and 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. After adding the new challan, you will have to add new deductee rows for which short payment / short deduction has been raised and map to the corresponding challan.

      Finally it is easy to remember that interest @ 1.50% p.m.  will be charged in Payment either Short Payment or Late Payment and interest @ 1.00% p.m. will be charged in deduction either short deduction or late deduction.

TDS Rates 

TDS :-CPC (TDS) Communication for payment of outstanding Demand related with Late Filing

Dear Deductors, 

 

As per the records of Centralized Processing Cell (TDS), the TDS Statement(s) for some of the quarters have not been submitted within the prescribed due date. 

  

Intimation u/s 200A of the Income Tax Act, 1961 intimating an outstanding demand for the relevant quarters, including demand under section 234E towards Fee for delayed filing of TDS Statement(s), have already been sent by CPC (TDS) on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement. 

  

  

Your attention is hereby drawn towards the provisions of section 234E of the Act, which reads as follows: 

 

• Levy for Late filing of TDS Statement (Section 234E of Income Tax Act)

  

1)     Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues. 

2)     The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be. 

3)     The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C. 

4)     The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012 

  

You are advised to pay the outstanding demand at an early date to avoid Penal Interest u/s 220(2) of the Act apart from intimation of other recovery proceedings as per Income Tax Act, 1961. If the demand has already been paid, you are requested to file a Correction Statement by tagging the challan and the Justification report can be verified for closure of demand, if the revision has already been submitted and processed. 

  

 

• How to pay the demand:

  

The following steps shall help you analyze and pay the demand: 

  

·         Download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance on downloading the Justification Report. 

·         Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available 

·         Download the Conso File from our portal. Please use the e-tutorial for necessary help. 

·    In case of payment towards late filing fee, please Tag the challan towards the payment, in the “Fee” column” (Column Number 305 for 24Q, 404 for 26Q, 706 for 26Q) using RPU Ver. 3.8, mentioning appropriate amount in such column and validate to generate the FVU. 

·         Submit the Correction Statement at TIN Facilitation Centre. 

·         The demand can also be paid by using the Online Correction facility. Please refer to the e-tutorial for assistance. 

  

  

For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344. 

  

CPC (TDS) is committed to provide the best possible services to you. 

  

 

CPC (TDS) TEAM 

 

  

Notes: 

·         Please maintain updated email address and Contact Number on TRACES to receive regular periodic updates and guidelines from TRACES. 

·         Please refer to our FAQs and e-tutorials for detailed screen-driven assistance, before seeking further help. 

  

e-TDS :- TDS challan deposited in one Section Code can be adjusted in another Section Code.

Friends,  In the new RPU 3.8 or FVU version 4.1 & FVU version 2.137 it has been clarified that in case deductor has deposited any TDS amount in a section code, the same can be adjusted in another section code. 

         For example,  a TDS challan deposited under Section Code 192 (for salary) can be used for any other Section  Codes like 193, 194 etc in the challan detail row.

e-TDS :- Default Notice

Friends,  Today I have checked a new Demand Notice for the financial year 2011-12 or Assessment Year 2012-13 worth Rs. 2.75 Lakh.   On inquiry, it is found that this demand has been raised mainly due to Technical errors of TRACES.   I mean to say, PAN numbers already corrected in 24Q4 return through submission of correction return.  But tdscpc.gov.in still showing wrong pan numbers (which have already been corrected through correction return and accepted by TRACES)  marking in Red Color and have charged maximum of tax between 20% or Tax Slab charged on employee.   This percentage has been calculated on taxable amount of the each employee.   

           Secondly, major error was that TRACES has shown wrong Category of employee.  Deductor had entered  category of employee as Women and demand notice has been issued  assuming the same employee as Male.  

            Finally It has been decided that deductor should check their record deeply and should not pay any demand notice without his satisfaction.  However justification report is also not satisfactory report till date. 

e-TDS :- Solution of Default Notice issued by Income Tax Department regarding 24Q4

I have recently received a TDS Demand Notice from Income Tax Department for a amount on account of Short Payment.  I checked my record or TDS return data and found that all payments/deposits of TDS have been made in time.  There was no such amount which was shown in notice as short payment.  In the first attempt, I made a request at www.tdscpc.gov.in for download justification report.  Before getting justification report, I checked my TDS data again and found that Tax on Taxable Income is not correct.  Tax has been entered on the basic of "Others" instead of  "Senior Citizen".   Now I got relaxed and feel that there is no need of justification report.   Finally I have again made request to download NSDL Consolidated File and submit correction return.   

Permanent Solution of demand notice regarding 24Q4

                In my view,  this demand has been raised due to lake of NSDL software i.e. RPU or FVU.  Neither FVU support it Nor RPU.   I mean to say Income Tax in 24Q4 should be calculated system based or should be checked through File Validation Utility(FVU).  Man is made for errors but system can avoid errors done by Man.

e-TDS :- Online Request for Refund of TDS deposited in Excess

Friends,   TRACES (www.tdscpc.gov.in) has provided a link to apply online Request for refund of TDS.  Earlier this facility was only available offline through Form 26B. 

Form 26B to be filed by the deductor, if he claims refund of sum paid under Chapter XVII-B of the Income-tax Act, 1961.

Download Form 26B (Click Here)

To apply online Login at www.tdscpc.gov.in  and Request for Refund is available under "Statements / Payments " as shown in below picture.

Basic Requirements for using this facility. 

             Registration of Digital Signature is required to online Request for refund of TDS deposited in Excess. 

Digital Signature:

            Registration of Digital Signature has already been enabled on TRACES for deductors. Deductors can register their Digital Signature in PROFILE after registration

e-TDS :- What is Authentication Code and What is Advantage of Authentication Code ?

What is Authentication Code?

Authentication code is generated when you clear validation details for a statement for certain functionalities such as Download Form 16 / 16A, Download NSDL Conso File, Download Justification Report, etc. Authentication code generated for a particular statement will be valid for the calendar day (i.e., an authentication code generated on 10-Dec-2012 can be used only on 10-Dec-2012 to clear validation details for the same statement. It will not be valid the next day).

What is the advantage of Authentication Code?

Authentication Code is generated to facilitate users to avoid filling up of validation details repeatedly in case user logs in again at different time of the day.

e-TDS :- Late filing of TDS Return

What should I do on receipt of demand notice u/s 234E Late Filing?

The default amount will have to be deposited through challan no. 281. Download conso file from TRACES for filing correction and tag the paid challan detail without adding any deductee records. While filing correction, fill up the fee amount in 'Fee' column in challan detail. (Refer e-tutorial - https://www.tdscpc.gov.in/en/download-nsdl-conso-file-etutorial.html)

Note: There is no. need to send any communication to TDSCPC separately

While filing a correction statement I quoted Late Fee amount in interest column. How can I rectify?

File a correction statement, delete the amount from 'Interest' column and mention fee amount in 'Fee' column no. 404 in Form 26Q, column no. 305 in form 24Q, column no. 706 in Form 27Q and column no. 656 in Form 27EQ. You have to also mention demand amount of fee in last column of 'Other' in challan details.

e-TDS / e-TCS :- FAQ's regarding Late Payment / Short Payment / Late Deduction / Short Deduction

Q1- What should I do in case of Late Payment / Late Deduction intimation received?

Ans:-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. (Refer e-tutorial - https://www.tdscpc.gov.in/en/download-nsdl-conso-file-etutorial.html).

Note: In case of paper return, interest amount should be mentioned in annexure.

Q2- What is the procedure of calculating interest on Late Deduction?

Ans:-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:

Correct Calculation
No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012
10000*1%*1(Months) =100.00

Q3-How much amount do I pay for intimation received on Short Deduction with provisional interest?

Ans:-Deposit principal amount of short payment along with interest @ 1 % per month from date of deduction till date of deposit and file the correction for the same.

Q4-I have received an intimation of Short Deduction but payment amount is not eligible for TDS as the amount is below the threshold limit. What should I do?

Ans:-You can file correction statement and raise threshold flag ('Y') in column no. 326 (24Q), column no. 424 (26Q), column no. 729 (27Q) and column no. 680 (27EQ) for 'Reason for no / lower deduction'.

Q5-I have received an intimation of Short Deduction u/s 194C however deductee is a transporter what should I do?

Ans:- You can file correction statement and raise transporter flag ('T') for the particular deductee, who is a transporter, in column no. 424 (26Q) for 'Reason for no / lower deduction'.

Q6-I have received an intimation of Short Deduction however reported deductee has a lower rate certificate what should I do?

Ans:-You can file a correction statement and raise 'A' flag for respective deductees, in column no. 326 (24Q) & column no. 424 (26Q) for 'Reason for no / lower deduction'.

Q7-While filing a correction statement I quoted Late Deduction Interest amount in 'Other' column. How can I rectify?

Ans:-'Deductor can file a correction statement, delete the amount from 'Other' column and mention interest amount in interest 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. You also need to mention demand amount of interest in second last column of interest in challan details.

Q8-What should I do in case of Short Payment / Short Deduction intimation received?

Ans:-The default amount (along with the interest applicable till the date of payment of short payment default) 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 details. While filing correction fill up principal amount in column no. 402 in Form 26Q, column no. 302 in Form 24Q, column no. 702 in Form 27Q and column no. 652 in Form 27EQ and 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. After adding the new challan, you will have to add new deductee rows for which short payment / short deduction has been raised and map to the corresponding challan.

Q9-How much amount do I pay for intimation received on Short Payment with Provisional Interest?

Ans:-Provisional interest is calculated till the date of processing of statement. Deposit principal amount of short payment along with interest @ 1.5% per month from date of deduction till date of deposit and file the correction for the same.

Q10-What is the procedure of calculating interest on Late Payment?

Ans:-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:

Calculation

No. of months in Defaults = 3 i.e., Mar-12 to May-12

4000*1.5%*3(Months) =180.00

Q11-I have received an intimation u/s 200A with the demand raised due to short payment. I have made the payment within the prescribed time-limit. Now what should I do?

Ans:-Short Payment defaults may be raised due to challan mismatch. You are requested to check the details filed in statement corresponding to the challan.

Q12-Is the rounding off under section 288B allowed at the transaction level?

Ans:-The system will not allow rounding off under section 288B at the transaction level but at the statement level.

e-TDS :- Income is less than Taxable Income but Deductor is deducting TDS

There is some confusion in the hand of deductee that deductee income is less than taxable income but deductor is deductor is deducting TDS from his income.  What should he do ?.  The answer of question is explained here with given below two FAQ's :- 

Q.1>> I have made some deposits with a bank on which annual interest is around 15000. My income is below taxable limit. The banker wants to deduct tax. What do I do?

Ans >> You can file a self-declaration to the banker in Form 15G or 15H (for Senior Citizens) stating that your income is below taxable limit. The form is available with your banker, the local Income Tax office and can be downloaded from the website www.incometaxindia.gov.in This form should be filed before the interest begins to accrue in the fixed deposit account, since the declaration has no retrospective effect.

Q.2>> I have let out a property for 20,000 per month. The tenant is deducting tax that is more than my tax liability. What can I do under this circumstance?

Ans >> If you compute your tax liability and find it to be lower than the tax being deducted, you may approach your Assessing Officer by filing Form 13. He will issue a certificate directing the tenant to make TDS at a lesser rate. This form is available with the local Income Tax office or can be downloaded from the website www.incometaxindia.gov.in

e-TDS / e-TCS :- Has Regular Statement for Form 24Q or 26Q filed for earlier period

Friends,   In New NSDL RPU 3.7, a new field has been inserted in FORM named "Has Regular Statement for Form 24Q or 26Q filed for earlier period".  Lot of deductors are in confusion what is to be selected here.  I just want to clear that regarding selection of Y or N, "N"  will be selected only when deductor is submitting first time FORM 24Q or 26Q under a new TAN.   After submitting any regular statement, Y will be selected in next time and will be entered Acknowledgement Number / Token Number of Last accepted regular statement for FORM 24Q or 26Q.  To more clarify some examples are also given below :- 

Examples :-

Sr.No.	Particulars	Has Regular Statement for Form 24Q or 26Q filed for earlier period	Receipt No. of Earlier Statement filed for Form 24Q or 26Q
		(Selection of Y or N)	(Acknowledge No. or Token No.)
1	Deducor has never filed any form / return earlier due to new TAN allotment	N	Not Applicable
2	Deductor has submitted 26Q earlier and Now goging to Submit 24Q first time	N	Not Applicable
3	Deductor has submitted 24Q earlier and Now goging to Submit 24Q second time	Y	Token Number of Last Accepted Regular Statement
4	Deductor has not submit 26Q for Quarter 2 due to Nil Data and have already filed statement for Quarter 1. Now he want to submit return / Statement for Quarter 3.	Y	Token Number of first Quarter of Regular Statement of FORM 26Q if accepted by TIN center
5	Deductor has not submit 26Q for Quarter 2 due to Nil Data and have already filed statement for Quarter 1 which was rejected by TIN with any reason. Now he want to submit return / Statement for Quarter 3.	N	Not Applicable, As deductor has not any Valid Token Number or Acknowledgement Number of Accepted Regular Statement
6	Deductor had filed 26Q in Financial Year 2008-09 and now going to submit 26Q in Financial Year 2013-14	Y	Token Number of Last Accepted Regular Statement filed in Financial Year 2008-09
7	Deductor had filed 26Q in Financial Year 2008-09 and now going to submit 24Q in Financial Year 2013-14 first time under his TAN	N	Not Applicable as Deductor has not never filed 24Q earlier

In case any deductor wants to clarification on above topic , he may ask through email at easyjain@gmail.com.

TDS on Rent Under Section 194-I

Rent [Section 194-I]

(1) Any person, other than an individual or a HUF not subject to tax audit under section 44AB in the immediately preceding year, who is responsible for paying to a resident any income by way of rent shall deduct income tax at the rate of:

(i)     2% in respect of rent for plant, machinery or equipment;

(ii) 10% in respect of other rental payments (i.e., rent for use of any land or building, including factory building, or land appurtenant to a building, including factory building, or furniture or fixtures).

(2) This deduction is to be made at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of cheque or draft or by any other mode, whichever is earlier.

(3)   No deduction need be made where the amount of such income or the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of the payee does not exceed ` 1,80,000.

(4) “Rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any –

(a)     land; or

(b)     building (including factory building); or

(c)     land appurtenant to a building (including factory building); or

(d)     machinery; or

(e)     plant; or

(f)      equipment; or

(g)   furniture; or

(h)   fittings,

whether or not any or all of the above are owned by the payee.

(5) Where any such income is credited to any account, whether called “Suspense account”

or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section will apply accordingly.

Applicability of TDS provisions under section 194-I to payments made by the customers on account of cooling charges to the cold storage owners.

CBDT Circular No.1/2008 dated 10.1.2008 provides clarification regarding applicability of provisions of section 194-I to payments made by the customers on account of cooling charges to the cold storage owners.

The main function of the cold storage is to preserve perishable goods by means of a mechanical process, and storage of such goods is only incidental in nature. The customer is also not given any right to use any demarcated space/place or the machinery of the cold store and thus does not become a tenant. Therefore, the provisions of 194-I are not applicable to the cooling charges paid by the customers of the cold storage.

However, since the arrangement between the customers and cold storage owners are basically contractual in nature, the provision of section 194-C will be applicable to the amounts paid as cooling charges by the customers of the cold storage.

Applicability of TDS provisions under section 194-I to service tax component of rental income

CBDT Circular No.4/2008 dated 28.4.2008 provides clarification on deduction of tax at source (TDS) on service tax component of rental income under section 194-I.

As per the provisions of 194-I, tax is deductible at source on income by way of rent paid to any resident. Further, rent has been defined in 194-I to mean any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,-(a)   land; or

(b)     building (including factory building); or

(c)     land appurtenant to a building (including factory building); or

(d)     machinery; or

(e)     plant; or

(f)      equipment; or

(g)     furniture; or

(h)   fittings,

whether or not any or all of the above are owned by the payee.

Service tax paid by the tenant doesn’t partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore, tax deduction at source under section 194-I would be required to be made on the amount of rent paid/payable without including the service tax.