A Glance On TDS Related Issues - PowerPoint Presentation

1. A Glance On TDS Related IssuesPREPARED BY CA Darshan M. Panchal B-16 Ground Floor,(B.Com,L.L.B, ISA (ICAI), A.C.A) Vasupujya Chambers(M) 9974012893 I.T Circle, Ashram roadEmail : cadarshanpanchal@yahoo.co.in Ahmedabad - 380014.

2. 1.AIN registrationAO to provide the user ID as well as password at the time of registration. Option available to provide two email IDs.On registration e-mail with user ID in password protected PDF file is sent. Within 24 hours AO registration account is activated. Online facility to download BIN details available. Online upload for Form 24G statements is available.

3. For Government Deductor to File quarterly Statements following are some of the pre-requisites :Obtain Account officer Identification number (AIN).File 24 G in Prescribed Format.Now file TDS quarterly Statement.At Glance :

4. BackgroundGovernment deductors – mandatory to file electronic returns (TDS/TCS).Government deductors normally deposit tax through book entry (not through banks).No independent source to confirm tax payment except BIN view.Form 24G

5. ... continuedPAO / DTO / CDDO to file statement in Form 24G. (ITD Notification no. 41/2010 dated May 31, 2010).Form 24G can be filed from F. Y. 2005-06 and onwards.Accounts officer identified by AIN (Account Officer Identification No.).Frequency - Monthly and in electronic form only.Due date of filing of Form 24G is 10th of subsequent month. Form 24G

6. Details of the AO filing Form 24G : AIN, Name of AO, demographic information, category of AO (Central/State, Ministry name etc).Statement details :- Month and Year for which Form 24G is being filed.Nature of deduction: - TDS (Salary, Non Salary) / TCS.DDO wise payment details:- TAN, DDO number, Name of DDO, tax deducted and remitted.Details to be filled in Form 24G

7. PreparationFile format NSDL RPU, in-house or third party software File Validation Utility (FVU)Acceptance through SAM - Generation of Provisional Receipt NumberUpload by TIN-FCPreparation and Filing of Form 24G

8. Submission of Form 24G statementStatement should be submitted in CD/Pen Drive Single computer media may contain multiple statements After acceptance of statement, CD / Pen Drive should be returned to Accounts Office (AO)Documents to be submitted to TIN-FC are Statement Statistics report FVU fileProcedure for Submission of Form 24G statement

9. Submission of e-TDS/TCS statementStatement should be submitted in CD/Pen Drive Single computer media may contain multiple statements After acceptance of statement CD / Pen Drive should be returned to deductor by Tin- FCDocuments to be Submitted to TIN-FC are Form 27AFVU FileCopy of original provisional receipt (in case of correction statement)Statistical Report generated through HTML File(in case of correction statement).Procedure for submission of e-TDS/TCS statement

10. DEDUCTORTAX PAYERERACSTIN - FCDIRECTUPLOADOLTAS(BANKS)TIN Central SystemTIN VIEWSDEDUCTORS + CHALLAN STATUS VIEW (STATEMENT STATUS)ITD VIEW TDS/TCS RETURNTAXTAX (TDS/TCS)RETURNCHALLANSTATUSFILERAIR

11. Modes Of Filling TDS ReturnPaper ReturnE-tds Return Through Tin-FcOnline filling along with DSC at Tin-NSDL website

12. Paper Return1.What is Paper Return ?Manual Submission Of TDS quarterly statement in form 24Q/26Q2. Who Can File Paper Return ?All Assessee, except Those who are required to get books of a/c audited u/s 44ABGovernment DeductorRequired to gettheir books of account audit under any other act.Deductor having more than 20 deductee entries

13. What is pre-requirement of paper return ?Complete, legible and signed Mandatory fields - TAN, Name, Form No., F. Y. and Quarter No enclosures - Bank challan / TDS/TCS certificate etc.Correction, if required, in full and in paper form onlyCopy of original Provisional Receipt (if correction statement).

14. Errors in paper returns resulting non-upload to central systemDeductor details – TAN, Name of deductorChallan details – CIN, amounts, section codeDeductee details, Salary details – Name of deductee/ employee, PAN and amountsImpact of errors in digitization Impact on booking of challansImpact on tax credit to underlying deductees (view in Form 26AS)Impact on assessmentRevised statement uploaded before cancellation of original paper statement

15. TDS/TCS Forms and PeriodicityForm No.PeriodicityDue Date24QQuarterlyFor first three quarters: within 15 days from end of quarter for Non-Government deductors. within 30 days for Government deductors. For last quarter: up to 15th May in the succeeding F. Y. 26Q27Q27EQ27AWith each e-TDS/TCS statement.Due dates are for deductors / collectors.Quarterly (From F. Y. 2007-08 onwards)

16. Preliminary Checks OKFormat Level Verification passedTAN verification OKName and address verification OKControl Total matched with Form 27A TIN-FCDeductor submitsreturn to TIN-FCPreliminary Checks not OKFormat level error Neither TAN is in data base nor any proof of TANMismatch in name/address – no proofControl Total do not match with Form 27AAcceptance / Non-Acceptance of Returns Billing on the basis of number of deductees in the accepted statement Provisional ReceiptNon- Acceptance MemoProcessing of e-TDS/TCS Statements (Regular)

17. Acceptance of Correction StatementsNeed for correction statement In case of mistake in original return, if mistake is in… Challan Detail.Deductee Detail.Deductor Detail.Payment of Interest reply to notice.

18. Process to make correction Statement.Register TAN at TRACES site.Log in to Traces with USER Id and Pass ward.Request consolidated file by providing detail of challan and Deductee pan and corresponding TDS AMOUNT.Download consolidated .tds file from TRACES. Default file can be download shows default amount.

19. Prepare correction file using latest RPU and FVU provided from NSDL time to time. No. of Batches = No. of provisional receiptsMore than one type of correction in one TDS correction statement possible .eg. Change of PAN, Change in deductee details, Change in challan detail, Change in Deductor return etc.Copy of TDS provisional receipt is to be attached with the form 27A with reference of the same in computer generated .fvu file.More than one time correction possible. There is no such provision to restrict correction in original TDS return.Multi Batch Corrections -

20. Online Views at NSDL Challan Status Enquiry TAN BASED VIEW CIN BASED VIEWStatement Status ViewBIN view (For those who have filed 24G)Online views at TRACESCredit of TDS to deductee.Unclaimed challans.Verification of Lower Deduction Certificate No.Default generated for TDS/TCS statement.Pan VerificationOnline request for RefundOnline correction in Pan or Challan amount with DSC

21. Rectification of errorsErrors in physical challan by Bank or Taxpayer For any other error, deductor needs to contact Assessing OfficerSr. No.Type of Correction on Challan Period for correction request (in days) 1PAN/TAN Within 7 days from challan deposit date 2Assessment Year Within 7 days from challan deposit date 3Total AmountWithin 7 days from challan deposit date 4Major HeadWithin 3 months from challan deposit date5Minor HeadWithin 3 months from challan deposit date6Nature of PaymentWithin 3 months from challan deposit date

22. PAN Errors Taxies / Interest payment or MismatchNon Submission of Statement or challanReasons for Defaults

23. Outcome of DefaultsShow Cause Notice u/s 201(1) of I.T. Act,1961.Normally Show Cause Notice is not Responded by Assessee and no Attention is paid to the direction in show cause notice.Photo copy of Return and Challans are submitted to A.O. and system is blamed for default which is not correct.

24. Default Details can be download from TRACES through Deductor Log-in in excel format.This default shows list of short payment records, short deductions records and list of Late payment records.Cont….

25. Process of Rectification of DefaultDeductor to file Correction statement in Consolidated file available from TRACES and respective correction madeFile correction statement at NSDL TIN-FC Return is process at TRACESDefault is Remove after validation

26. 1.Deletion of deductee record:Feature of deletion of the deductee record is removed. To nullify a deductee record update the amount and related fields to “0”(zero) and add new row and update record in that row with updated value.2.Date of deduction: Date of deduction of previous quarter or next quarter is not allowed.3. Correction or Regular returns to be prepared only using latest available FVU versions from TRACES or NSDL site.Important changes from 03.01.2014

27. 4. 27A is generated on Validation of Statement by TDS/TCS FVU. And this are Barcoded statement so need to generate fresh 27A every time there is fresh Validation.5. There is no need to provide copy of Original Token Receipt or copy of statistical reports print.Cont…..

28. In Default menu request for correction to be selected through Digital Sign.Respective Financial year, Quarter and form type is required to be selected.Only two types of correction allowed. Challan correction PAN correctionOnline Correction of Return

29. After editing PAN and challan details correction confirm button to be click to submit correction return for submission page.Again in default menu “correction ready for submission” filed selected and row of return corrected is selected and then submit for processing button is to be click.After successful submission message will be displayed of successful submission. Cont…..

30. Filling of E-tds returns, Problems and Issuescurrent issues.docx

31. Thank YOUQUERIES / SUGGETIONSCONTACT B-16, Ground Floor,Vasupujya Chambers,Nr. Income Tax Circle,Ashram Road,Ahmedabad – 380014E-Mail : cadarshanpanchal@yahoo.co.in Ph no. 079-27543422 079-27543522M. no. 9974012893