TDS :- Email received "Tds Intimation Challan Mismatch/Overbooked /PAN Error have been identified in the preliminary check of Regular statement"

Friends,   

                Deductor receives TDS intimation from Centralized Processing Cell- TDS when Income Tax Department found Some error in TDS Statement / Return earlier submitted by him.  In case return filer do not enter email address  in TDS return of deductor  then deductor become helpless to avail  benefit of  ALERT provided by TDSCPC. 

               Through this email it is informed that there is some error / defaults  in your return and your STATEMENT  has been put on hold for 7 days .  You can apply online correction within 7 days to avoid potential defaults of Short Payment and PAN Error.

                Statement put on hold is good thought provided by Income Tax Department or Processing Cell. 

Sample of e-mail is given below : -

__________________________________. Challan Mismatch/Challan Overbooked/PAN Error have been identified in the preliminary check of Regular statement filed by you for Quarter Q4 of F.Y 2015-16 for Form 26Q.  Your statement has been put on hold. You can apply online correction within 7 days to avoid potential defaults of Short Payment and PAN Error.  In case you do not avail this opportunity the statement would be processed with TDS defaults on account of Challan Mismatch/Challan Overbooked/PAN Error.  Justification Report & Consolidated TDS file will be available only after complete processing of TDS statement. Regards,  Kailash V. Gautam Assistant Commissioner of Income Tax Centralized Processing Cell - TDS

Note: 1. This is a system generated message, hence it may not require signature. Please do not reply to it directly. In case of any queries, you may reach out to us at contactus@tdscpc.gov.in. Visit TRACES at www.tdscpc.gov.in 2. This e-mail contains privileged and confidential information intended solely for the use of the addressee(s). If you are not the intended recipient, notify us immediately and delete the original message. Further, you are not to copy, disclose, or distribute this e-mail or its contents to any other person and any such actions are unlawful.

To know further online correction (Click Here)

Latest New NSDL Return Prepration Utility

NSDL has recently provided new RPU Ver 1.0 for preparing TDS/TCS statements from Financial Year 2007-208 onwards.  No doubt RPU (Version 4.2) is already running but new is with new look.   In the first attempt I have checked that only original return can be prepared with the latest RPU Ver 1.0.   Picture view of new utility is available below :- 

Download (new TDS RPU Ver. 1.0) Click here 

Solution of Defaults

I was in wait that NSDL will provide latest RPU with the solution of defaults issued by Income Tax Department.   RPU 4.2 is not generating  some FVU's  of  correction TDS return relating to F.Y. 2007-08 or onwards which are urgently required for solution of Defaults.  The same has also informed to NSDL. 

Despite issuing RPU with solution , NSDL has provided RPU only for Regular statements.  Still new RPU has no value with RPU 4.2.

e-TDS :- Online TDS Statement correction without Digital Signature

CPC (TDS) provides with enhanced features, to further add to the convenience of online facility of filing corrections to the TDS Statements. With this feature, you will be able to submit Online Corrections at TRACES without even having a Digital Signature. Currently over 20,000 deductors are already using the online facility for corrections.

To avail the facility, it is requested 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:

• 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:

• 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.
• Additional Functionalities available with Digital Signature:

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 can be viewed by clicking on “Show Edited Rows” on the screen

Action Summary:

• After carrying out all the corrections, Action Summary can be referred for all changes carried out.
• Please click “Confirm” for all intended changes and the statement is ready for submission.

Actions to complete Submission:

• Please navigate to “Defaults” tab to locate “Corrections Ready for Submission”
• Click on “Submit for Processing”, which will prompt to digitally sign the submission.
• Once the correction is submitted successfully, a Token Number for the same will be available

e-TDS : Statements Processed with Defaults or Processed without Defaults.

Friends,  Income Tax Department as provided a link to know whether your TDS statement submitted by  you has been processed with defaults or processed without defaults or pending for Processing etc.   On Traces (TDS Reconciliation Analysis and Correction Enabling System), Statement Status link is available under " Statement / Payments " as shown in below pictures.  This functionality is important in a way either you have received status of statement processed with defaults or processed without defaults etc. have been received or not from Income Tax Department, you may check  at any time at your end and submit correction statement accordingly to avoid further correspondence with Income Tax Department. To inquire the TDS statement status four type of selections are given :-

1. Statement
2. Token Number
3. Statement Status
4. During Last 3 Months.

                                  Status of Statement is also available in colours.   Green colour shows that your TDS statement has been processed without Defaults and other shows that statement has been processed with Defaults.  It is excellent way of presentation of TDS statement status. 

Help for Statement Status

  Fields marked by asterisk (*) are mandatory
  Enter Financial Year, Quarter and Form Type of the statement for which status is to be displayed
  Status of regular statement can be:

• Not Available - Statement has not yet been received at TDS CPC
• Pending for Processing - Statement has been received at TDS CPC / Statement received at TDS CPC is accepted and pending for challan matching / After challan matching is done for the accepted statement
• Processed for Form 26AS - After generation of Form 26AS
• Processed Without Defaults - Statement has been processed with no defaults
• Processed With Defaults - Statement has been processed with defaults

 Status of correction statement can be:

• Not Available - Statement has not yet been received at TDS CPC
• Pending for Processing - Statement received at TDS CPC is accepted and pending for challan matching / After challan matching is done for the accepted statement
• Pending for Analysis - Statement has been received at TDS CPC but rejected / on hold
• Processed for Form 26AS - After generation of Form 26AS
• Processed Without Defaults - Statement has been processed with no defaults
• Processed With Defaults - Statement has been processed with defaults

Status of regular statement and all correction statements received at TDS CPC displayed for the selected Financial Year, Quarter and Form Type

Income Tax :- Aggregate TDS Compliance at PAN level for all TAN associated with the PAN

Dear Deductor,

Greetings from CPC(TDS) team,

In our endeavor to facilitate improved TDS administration, CPC(TDS) feels glad to provide you with the feature of "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

-The respective TANs with Defaults in their TDS Statements can be pursued to get the above resolved by taking following actions:

• 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.

How to use the feature:

• You are requested to Log in to TRACES as a Taxpayer, using your credentials.
• Navigate to Aggregated TDS Compliance menu on the webpage.
• Choose the views according to Financial Year (Download Option 1) or Default Type (Download Option 2) from the drop down lists.
• Submit the Request to generate a Request Number.
• The submitted request will be made "Available" in MS Excel format, under "Requested Downloads" in the "Download" menu. The reports will usually be made available within four hours of submission.
• The report will be "Not Available" if there are No Defaults or there are statements yet to be processed. If you believe that either of the two is not true, the same can be reported to CPC (TDS).
• The feature provides for the above information for Financial Year 2007-08 onwards.

The steps to use the functionality are easy and convenient, however, e-Tutorials for the above release will shortly be made available on the portal. You can reach out to us on 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 : - Important Points For Correction TDS/TCS statement.

How many times can I furnish a correction TDS/TCS statement?

A correction TDS/TCS statement can be furnished multiple times to incorporate changes in the regular TDS/TCS statement whereas a regular TDS/TCS statement will be accepted at the TIN central system only once.

What are the important points to be kept in mind while preparing correction statement more than once on the same regular statement?

You have to kept in mind, the following points while preparing correction statement more than once on the same regular statement:

1. The TDS/TCS statement on which correction is to be prepared should be updated with details as per all previous corrections.

2. Modifications/addition/deletion in correction statements accepted at the TIN central system only should be considered.

The first correction filed by me contains three types of correction (three PRNs / Token Number) and one of the types of correction has got rejected at the TIN central system. What should I do?

The steps as under should be followed:

1. You have to update modifications as per the accepted corrections in the TDS statement.

2. Identify the record for which correction was rejected earlier by its sequence no. and fields for identification

3. Correct the said record.

4. Correction statement should contain updated values as well as value of identification field as per regular statement.

Which Provisional Receipt Number / Token Number should I quote while preparing correction statement more than once on the same regular statement?

There are two fields for Provisional Receipt Number (PRN) / Token Number in a correction statement as under:

a. Original Provisional Receipt Number / Token Number - PRN of the regular statement should be mentioned in this field.

b. Previous Provisional Receipt Number / Token Number - PRN of the last accepted correction statement should be mentioned in this field. In case the value in this field is incorrectly mentioned, the statement will get rejected at TIN central system for the reason: "Either Previous Provisional Receipt No. provided is incorrect or combination of Original Provisional Receipt Number / Token Number and Previous Provisional Receipt Number / Token Number is not in sequence"

Example:

Single batch correction statement - Only one type of correction in the file

a. You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a single batch correction statement having PRN / Token Number 010010300074112. While preparing correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and the PRN / Token Number 010010300074112 in the field Previous PRN.

Multiple batch correction statement - different types of correction in a single file

b. You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a multi batch correction statement having three batches and corresponding PRNs / Token Numbers as 010010300074112, 010010300074123 and 010010300074134. While preparing the correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and check the status of all the three PRNs of correction statement.

>>If all the three PRNs / Token Numbers are accepted at the TIN central system, you may mention any of the three PRNs / Token Numbers in the field previous PRN.

>>If any of the three PRNs / Token Numbers is rejected, then you should mention the PRN / Token Number which has been accepted at the TIN central system in the field Previous PRN.

>>If all the three PRNs / Token Numbers are rejected, then you must mention the PRN / Token Number of the regular statement, i.e. 010010200083255 in the field Previous PRN.

How many times can I update PAN of a deductee/transacting party?

Structurally valid PAN of a deductee in the regular statement can be updated to another structurally valid PAN only once.

When does a statement get ‘Partially Accepted’?

A correction statement containing updates in PAN of deductee/employee may get Partially Accepted. This is possible when the PAN in the any of the records being updated by you in the correction statement is invalid, i.e. PAN not present in PAN Master Database. In such a scenario, the said record gets rejected resulting in partial acceptance of the statement.

What should I do if the status of correction statement filed by me is ‘Partially accepted’?

In case correction statement is in status ‘Partially accepted’, you have follow steps as under:

1. You have to update modifications as per the accepted records in the TDS statement.

2. Identify the deductee/salary record which has got rejected due to invalid PAN.

3. Rectify the incorrect PAN

4. Correction statement should contain value of identification keys as per regular statement along with the updated values.

What could be the cause of rejection of TDS/TCS statement for the reason “Total Deposit amount of deductees is more than Challan amount actually deposited in bank”?

The total tax deposited amount as per challan should be greater than or equal to the total tax deposited amount as per deductee details, else a regular TDS/TCS statement will not get validated through FVU.

If you file a correction statement for adding deductee records under a particular challan, the total tax deposited as per challan in regular statement should be greater than or equal to the total tax deposited in deductee details as per regular as well as correction statement.

Note: Amount in the fields Interest and others in the challan is not considered in the total tax deposited as per challan.

e-TDS :- Delete Matched or Over Booked TDS Challan

Friends,    Income Tax Department has raised demand on account of Short payment of TDS challans.  After checking it has been found that some demands have been issued due to double entry of single challan in TDS return.  On processed by Income Tax Department, the said challans have been marked in Blue Color with remarks "Over Booked".    Earlier there was no control in TDS RPU, deductor can update or delete any challan having Matched or Over Booked etc.  But now deductor can not update all fields of  challan remarked as Matched or Over booked.  Only some fields like section code,  Interest Amount and Others Amount. 

Status of Challan may be easily clarified in following manner :-

What information does 'Challan Consumption Details' table provide?

• Challan Consumption Details table displays the statement(s) in which the particular challan was consumed.
  
  
• Challan status is displayed as 'Over Booked' when sum of tax deposited for underlying deductee rows against challan ('Amount Claimed') is greater than balance available for the challan in OLTAS.
  
• Challan status is displayed as 'Matched' when:
  
  The challan is not consumed by the deductor, i.e., sum of tax deposited for underlying deductee rows against the challan ('Amount Claimed') is 'Zero',
  
  Or
  
  The challan is Partially Consumed by the deductor, i.e., sum of tax deposited for underlying deductee rows against the challan ('Amount Claimed') is less than challan amount the challan,
  
  Or
  
  The Challan is Fully Consumed by the deductor, i.e., sum of tax deposited for underlying deductee against challan, i.e., 'Amount Claimed' is equal to the challan amount.

How can I Delete Matched or Over Booked TDS Challan Amount. 

          No doubt, there is no provision of deletion of Matched or Over Booked challan in NSDL RPU or in FVU.  But effect of the same or to remove the demand of Income Tax Department raised on account of Over Booked TDS Challan, the following fields may be updated as under :-

1. Amount Paid/Credited is equal to Zero
2. TDS Amount is equal to Zero
3. Surcharge Amount is equal to Zero
4. Education Cess Amount is equal to Zero
5. Total Tax Deposited Amount is equal to Zero
6. Date of Deduction Amount is equal to Blank
7. Rate on which Tax Deducted is equal to Zero

In this way effect of Matched or Over Booked TDS challan can be removed and fresh challan detail can be entered as an Addition of new TDS Challan etc. 

What are the reasons to reject the correction in challan detail by TDS-CPC?

1) Rejection reasons pertaining to challan details are as follows:

•  Challan detail record on which correction has been filed does not exist in regular / previous statement
•  In a correction statement, verification keys from challan data should match with the corresponding            fields in regular statement

1. Verification keys for Non Nil Statement - Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
2. Verification keys for Nil challan - Last date of transfer voucher number / bank challan, last total deposit amount as per challan

2) If an unmatched challan is being corrected, then the sum of deposit amount of all the active deductee rows in the regular and correction statement and corrected values of claimed TDS interest and claimed TDS Others amount should be less than or equal to Total deposit amount of challan given in statement

3) If a matched challan is being corrected, then available balance amount in the challan should be sufficient for consumption of updated sum of deposit amount of all the active deductee rows in correction and corrected values of claimed TDS interest and claimed TDS Others amount

4) In case of existing matched / partially matched challan, deductor can only update Cheque / DD Number, claimed TDS Interest amount, claimed TDS Others amount and Section code

5) If deductor updates only deductee details, then claimed TDS Interest amount and claimed TDS Others amount as given in the challan should match with the corresponding values present in regular / previous return

e-TDS :- "Invalid Details in Part 1 and/or Part 2" error message while downloding NSDL Conso. File

                On inquiry from TDS(CPC), the following solution has been received for solution of error message "invalid Details in Part 1 and/or Part 2" for downloading  NSDL consolidated file.  It may be helpful for deductors for submitting TDS correction statement.  

1. This is to inform you that the issue related to “Invalid details in Part 1 and/or Part 2” while downloading Consolidated file in your case has been acknowledged.

2. Particulars in Part 1 and Part 2 of downloading Consolidated file are required to be exactly the same as reported in the TDS statement. Please enter the challan details and unique PAN-Amount combination as reported in the regular statement. However if challan details and the unique amount combination reported in the regular statement have been modified in the correction statement, then use the modified particulars of challan details and unique PAN -Amount combination.

3. A) Challan Identification Number (CIN) – gets generated on payment of tax through Bank Challan. It consists of:-

               a) BSR Code

               b) Date of Payment

               c) Challan Serial Number

   B) Book Identification Number (BIN) / Transfer voucher details – gets generated on filing of Form No. 24G by Pay & Account Officer (PAO)/ District Treasury Officer (DTO)/ Cheque Drawing & Disbursing Officer (CDDO). It consists of:-

              a) 24G Receipt Number

              b) Date of Transfer voucher

              c) DDO Serial Number

4. Please enter a Challan with at least three distinct valid PAN-Amount combinations corresponding to the statement mentioned above in point 2. If there is no such Challan, mention a challan with at least two valid PAN-Amount combinations. If there is no such challan, mention a challan with at least one valid PAN-Amount combination. If you do not have any such challan, mention a challan with no valid PAN-Amount combination and also select the checkbox (no valid PAN Dedcutee row) in the PAN Details section in Part 2, where you are suppose to enter the unique PAN-Amount combination.

5. Downloading process requires you to input “Token No. of your regular Statement. 

6. A) Following could be the reasons for getting “Invalid details in Part 1 and/or Part 2” message in Downloading Consolidated file:

      a. You might have not entered the token no. of your regular Statement. 

      b. Challan details entered are not as mentioned in Point no.2.

      c.Incorrect unique PAN Amount combination. 

7. B) However, if the problem still exists after following the above said rules, please provide screen shot of the same with the complete details, like Token No., Challan Details & Unique PAN Amount combination on email ID contactus@tdscpc.gov.in‎.

8. You may also access the E-tutorials published on our website for any assistance/guidance using the following link:

https://www.tdscpc.gov.in/en/user-manual.html

9. Further for your information, guide to identify a suitable challan option (Guide 1) and guide to identify the unique PAN-amount combinations (Guide 2) have been attached with this mail.

e-TDS : - Mandatory Form 16 or 16A from TRACES

Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), TDS Statements have been filed for Q3, FY 2012-13, however, no TDS Statements have been filed for Q3, FY 2013-14 as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

Mandatory filing of TDS Statements:

• You are advised to refer to Section 200(3) of the Act, read with Rule 31A, which reads as follows:

1. Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax  (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:
   
2. Statement of deduction of tax under section 192 in Form No. 24Q;
   
3. Statement of deduction of tax under sections 193 to 196D in- 

• Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or  resident but not ordinarily resident; and

• Form No. 26Q in respect of all other deductees.

It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

Implications of Non/Late filing of TDS Statements:

For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees (employees / vendors) for claiming the amount of tax already deducted from the payments made to them besides generating correct TDS Certificates for them.

For Deductors: In case of default on account of Non / late filing of TDS Statements, a fee shall also be levied on the deductor u/s 234E of the IT Act which reads as under: 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.

Issuance of TDS Certificates downloaded from TRACES:

CBDT Circulars 04/2013 dated 17.04.2013, 03/2011 dated 13.05.2011 and 01/2012 dated 09.04.2012 refer to Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from "TDS Reconciliation Analysis and Correction Enabling System" or www.tdscpc.gov.in (hereinafter called TRACES Portal).

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time. The TDS Certificates can be downloaded by registering yourself with TRACES Portal.

You are accordingly advised to file TDS Statements and also get Registered on TRACES Portal, if not done already. The procedure of registration can be accessed by clicking the link www.tdscpc.gov.in/en/user-manual.html. You may obtain BIN (In case of Government deductors that are mapped to Accounts Officers Identification Number) from PAOs and quote the same in the respective TDS Statement.

For any assistance, you can 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 : - Correction in Interest Amount or Other Amount.

Friends 

Recently someone has asked a problem that he has submitted his TDS return with wrong placement of Interest amount.  His question in his word is given below :-

Question :-

I had filled one TDS return for the FY 2008-09 including tax & interest both & by mistake I had written the interest amount in the others column (405) in form 26Q.

Now, I had received demand notice from IT department to pay the interest which i had paid earlier with challan but not able to include in the interest (403) column.

Pl guide me how to rectify my mistake done in filling the return.

Regards,

Answer :- 

                     The following fields can be updated through correction return  after matching challan :-

1. Section Code.
2. Interest Amount.
3. Other Amount. 

In case, other fields are changed in correction TDS return after successful matching of challan,  TDS return will be rejected.  Therefore take care while correcting any TDS return. 

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 : - Security Exception error for Online Upload TDS return

In case you are facing error of Security Exception for uploading TDS FVU file, the same can resolved with the help of below mentioned detail.

Error Screen shows as below :-

The above problem has been raised due to Java Temporary Files setting.    Steps to remove the same is as under :- 

1.  Open control panel.

2.  Click on Java.

3.  Click on Setting. 

4.  Click "Delete Files"

5.  Delete Temporary Files. 

6.  Then click  Ok, Ok, Ok. 

7.  Finally Clear the browser cache and restart the browser. 

Download word file with pictures for removing Java Temp. Files (Click Here)

e-TDS :- Online Correction Statement at TRACES

Friends,    TRACES as provided online facility to submit correction statement at www.tdscpc.gov.in to the deductors.  This facility can only be used only after registration of DSC for TAN.  It means that digital signature is mandatory to register on TRACES for raising online correction on TRACES. 

Traces has not provided only online submission of correction return, but also other facilities have also been provided  which is shown in above picture. 

Click Here to download e-Tutorial for complete knowledge of online submission of TDS correction return.  

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 / 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 / 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.

e-TDS :- Correction of arithmetic mistakes and adjustment of incorrect claim during computerized processing of TDS statements [Section 200A]

(i) At present, all statements of tax deducted at source are filed in an electronic mode, thereby facilitating computerised processing of these statements.

(ii) Therefore, in order to process TDS statements on computer, electronic processing on the same lines as processing of income-tax returns has been provided in section 200A with effect from 1st April, 2010.

(iii) The following adjustments can be made during the computerized processing of statements of tax deducted at source –

(1) any arithmetical error in the statement; or

(2) an incorrect claim, if such incorrect claim is apparent from any information in the statement.

The term “an incorrect claim apparent from any information in the statement” shall mean such claim on the basis of an entry, in the statement, –

(a) of an item, which is inconsistent with another entry of the same or some other item in such statement;

(b) in respect of rate of deduction of tax at source, where such rate is not in accordance with the provisions of the Act.

(iv) After making such adjustments, tax and interest [say, under section 201(1A)] would be calculated and sum payable by the deductor or refund due to the deductor will be determined.

(v) An intimation will be sent to the deductor, informing him of his tax liability or the refund due, within one year from the end of the financial year in which the statement is filed. The refund due shall be granted to the deductor.

(vi) For this purpose, the CBDT is empowered to make a scheme for centralized processing of statements of TDS to determine the tax payable by, or refund due to, the deductor.

e-TDS :- New correction statement of tax deducted at source procedure

CBDT has issued new instructions vide Notification No 03/2013 bearing S.O. 169 (E) dated 15-01-2013 regarding submission of etds correction statements. 

Furnishing of correction statement of tax deducted at source.— 

(1) A deductor shall furnish the correction statement  of tax deducted at source in the  form specified by the Director General—

             (a) at the authorised agency through electronic mode; or

             (b) online through the  portal.

(2)  The correction statement referred to in  sub-paragraph (1) shall be furnished under digital signature or verified through a process in accordance with the procedure, formats, and standards specified by the Director General.

e-TDS :- Procedure & New Password to download Form 16/16A and NSDL Consolidated Fvu File

As everyone knows that a new website has been launched to download form 16/16A or consolidated fvu from tdscpc.gov.in.    Not only website but also style of their passwords to open zip files have been changed. at tdscpc.gov.in.   Details procedure and New Password style have been given below :-

• Enter Request Number or Request Date to filter records
• Both From & To Date are mandatory
• Click on ‘View All’ to view all download requests
• Download buttons will be enabled only if Status is ‘Available’
• Select a row by clicking on it
• Select a row and click on download button to download the requested file

e-TDS:- Tax Deducted at Higher Rate in the absence of PAN

Friends

               As a deductor, if you have submitted TDS with Flag "C" a Higher Rate in absence of PAN number and TDS deducted less than 20%.   Now Income Tax department has sent demand for the same and now you have  collected PAN number from deductee.   

           No doubt that in present FVU power has been increased and FVU checks rate of Tax while generating FVU, but earlier it was not possible.   

                After getting notice from income tax department,  if deductor want to submit correction statement he faces following problems as shown in below pictures :-

1. Rows can not be deleted in case of  tax deducted/collected at higher rate. 
2. Flag already marked "C" of higher rate, can not be changed. 

It is crucial  position,  what should be done by deductor to submit correction return without paying higher rate of tax @ 20%, 

Solution is under question 

            Presently, we do not know proper solution of  this problem, but if anyone knows solution of this problem, he can reply through comment on this post in the interest of deductor.