Details required for registration with TRACES for TDS Deductor & Tax Payer

The following details are required for registration with TRACES:

For Deductors

Step-1:

TAN of Deductor

Step-2:

1. Token Number of the regular statement corresponding to the Financial Year, Quarter and Form Type displayed on screen.

2. Challan details of one particular CIN which has been mapped to at least three deductee rows. If there is no such challan, please enter details of challan having maximum number of deductee rows.

Step-3:

1. PAN of Deductor
2. PAN of Authorised Person (person responsible for deduction of tax at source)
3. Date of Birth of Responsible Person as in PAN database
4. Designation of Responsible Person
5. Communication Address
6. Mobile Number
7. Email Id

For Tax Payers

Step-1:

1. PAN of Tax Payer
2. Date of Birth as on PAN Card
3. Name as in PAN database

i) Option 1-Details from Form 26AS or salary slip (in case of salaried persons). Provide TAN of deductor who has deducted TDS / TCS, month & year of deduction and amount of tax deducted.

ii) Option 2-Details of any tax paid by you. Provide Assessment Year for which payment was made by you, Challan Serial Number of the challan using which payment was made and amount as per the challan.

Step-2:

1. Communication Address
2. Mobile Number
3. Email Id

Steps for Preparing Correction Returns

TCS on sale of goods – Amendment from 1st October 2020

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Tips to avoid Defaults in TDS Returns

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  • Make sure taxes are deducted on time and at correct deduction rates /amount. The applicable section under which the deduction falls should be correctly applied.
  • Tax needs to be deducted either when payment is made or when the amount is credited, whichever is earlier. It implies that the tax needs to be deducted on the same day when advance payments are made. The late deduction is a default and will attract interest.
  • Taxes deducted during the course of the month should be deposited on time. Typically it is by 7th of the following month. The only exception is that for deductions in March, it needs to be deposited by 30th April.
  • TDS Returns needs to be filed on completion of each quarter. Returns for Salary & Non-Salary TDS is to be filed separately in Form 24Q & Form 26Q respectively.
  • Use a proper TDS Return preparing software/tool that helps in predicting possible errors/defaults. This would prevent unnecessary hassles later.
  • Make sure TDS Returns are filed on time to avoid penalty on the delayed filing. Typically, TDS Returns are to be filed by the end of the month following the quarter. Returns for 1st quarter is to be filed by 31st July.

  Use TDSMAN. one of the leading software for preparing error-free TDS Returns

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Challan ITNS 281- Important Points

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Important points to note related to ITNS-281 are as follows:

1. Company Deductee/Non-Company Deductee – Although this appears in the Challan format, however it has lost its relevance as now one can include Company / Non-Company Deductee in the same Challan. It does not matter whatever one may select.

2. Assessment Year – The Assessment Year as mentioned in the Challan is important as the TDS deposited through the Challan, can only be used for deductions made in the mentioned assessment year, the immediate next year and all earlier years.

3. TAN (Tax Account No.) – This determines the identification of the Tax Deductor / Collector. Any error in the TAN is as good as not making payment of TDS/TCS dues. As such its correctness is of prime importance.

4. Type of Payment – Although it still appears in the Challan format, it has lost its relevance ever since the ‘type of payment’ is linked to each Deductee instead of all dedicates of the same ‘type of payment’ was clubbed under one Challan. One still needs to specify the ‘type of payment’, which in any case will be ignored by the IT Department, while processing the Challan. Also it is important to note the same Challan can be used for multiple ‘types of payments’.

5. Details of Payment
– Tax, Surcharge & Cess: The sum total of the Tax, Surcharge & Cess may be clubbed together and placed under Tax for convenience.
– Fee under Section, 234E: This is the fee for delay in submitting the TDS/TCS Returns.
– Interest: This amount includes:
Interest on delay of deposit of TDS/TCS.
Interest on late Deduction of Taxes.

6. BSR Code & Challan Identification No. (CIN)
After Challan is paid, the receiving bank acknowledges the receipt by providing the following information:

– BSR Code – This is a 7-digit code number that identifies the receiving bank
– CIN – This is a unique transaction serial number provided by the bank.
– Date of Payment – The date of receipt of payment by the bank

The above information is very important and needs to be specified correctly while preparing the TDS / TCS Returns. Make sure it is properly readable (especially for Challans used for Cheque / Cash payments across the counter)

Online payment using Challan ITNS 281

Fees for Late Filing of TDS Returns (Section 234E)

 

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Steps for Preparing Correction Returns

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Steps for Preparing Correction Returns

  1. Request for TDS (Consolidated) file from TRACES
  2. Download requested TDS (Consolidated) file from TRACES
  3. Upload TDS (Consolidated) file for correction into the software. This file is password protected [Password: TAN_Request Number]. While uploading, the software will automatically determine the password and read the data at the time of uploading
  4. Make corrections & validate
  5. Generate the correction return
  6. File the Correction Return / Statement

Types of Corrections in TDS Returns

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