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Verification of TAN’s TDS Statements filed for FY 2011, 2012 and 2013

CPC (TDS) has issued an advisory communication to the deductors stating about the verification of TAN’s TDS Statements filed for FY 2011, 2012 and 2013.

The issued communication has been given below:

Dear Deductor,(TAN: XXXXXXXXXXXX)

As per the records of the Centralized Processing Cell (TDS), discrepancies have been observed with respect to your TAN in the “TDS claimed by the taxpayers in their IncomeTax Returns” vis-á-vis “Tax Credits available as per 26AS Statements”, for the Financial Years 2011, 2012 and 2013.

The above discrepancies have arisen due to the difference in the TDS claimed by the taxpayers in their Income Tax Returns vis-á-vis TDS reported by you in the quarterly TDS Statements. You may be aware that the transactions, available in 26AS statements, are based on the information reported by you in the TDS statements.

The discrepancies observed against your TAN are attached in the following format, to enable you to check your records for respective PANs and take appropriate action.

TAN                TAN Name TAN Address PAN PAN Name                Financial Year Tax Credit Claimed Credit available in 26AS Statement
  •  Your attention is hereby drawn to the Order of the Hon’ble Delhi High Court, dated 14th March 2013, wherein serious note had been taken of the failure of deductors to report correct transactions. The Hon’ble court had observed that the default on part of the deductor causes unwarranted harassment and inconvenience to the taxpayer
  • You are, therefore, required to verify the transactions reported by you for these PANs in the TDS statement for the respective Financial Years. You may appreciate that taxpayers are not able to get the credit for erroneous data uploaded by you in TDS statements.
  • In order to enable the taxpayers to claim correct TDS, you are advised to take below mentioned action.

Actions to be taken:

  • Verify the TDS transactions for these PANs in the TDS statements filed by you for the respective Financial Years.
  • If you have actually entered into the transaction and have not reported the same; you are advised to take appropriate corrective action by filing a Correction Statement.

Please note that TRACES provides a user friendly Online Correction facility with Digital Signatures for correction of PANs. To avail the facility, you are requested to Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.

  • If you have not entered into the transactions, as above, then the same should be reported to the respective Field TDS Officers immediately.

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

Source: TRACES

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Verification of PAN in TDS Statements filed for FY 2011, 2012 and 2013

CPC (TDS) has issued an advisory communication to the deductors stating about the verification of PAN in TDS Statements filed for FY 2011, 2012 and 2013.

The issued communication has been given below:

Dear Deductor,(TAN: XXXXXXXXXXXX)

As per the records of the Centralized Processing Cell (TDS), discrepancies have been observed with respect to your TAN in the “TDS claimed by the taxpayers in their Income Tax Returns” vis-á-vis “Tax Credits available as per 26AS Statements”, for the Financial Years 2011, 2012 and 2013.

The above discrepancies have arisen due to the difference in the TDS claimed by the taxpayers in their Income Tax Returns vis-á-vis TDS reported by you in the quarterly TDS Statements. You may be aware that the transactions, available in 26AS statements, are based on the information reported by you in the TDS statements.

The discrepancies observed against your TAN are attached in the following format, to enable you to check your records for respective PANs and take appropriate action.

PAN PAN Name Financial Year Tax Credit Claimed Credit available in 26AS Statement
  • Your attention is hereby drawn to the Order of the Hon’ble Delhi High Court, dated 14th March 2013, wherein serious note had been taken of the failure of deductors to report correct transactions. The Hon’ble court had observed that the default on part of the deductor causes unwarranted harassment and inconvenience to the taxpayer
  • You are, therefore, required to verify the transactions reported by you for these PANs in the TDS statement for the respective Financial Years. You may appreciate that taxpayers are not able to get the credit for erroneous data uploaded by you in TDS statements.
  • In order to enable the taxpayers to claim correct TDS, you are advised to take below mentioned action.

Actions to be taken:

  • Verify the TDS transactions for these PANs in the TDS statements filed by you for the respective Financial Years.
  • If you have actually entered into the transaction and have not reported the same; you are advised to take appropriate corrective action by filing a Correction Statement.

Please note that TRACES provides a user friendly Online Correction facility with Digital Signatures for correction of PANs. To avail the facility, you are requested to Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.

  • If you have not entered into the transactions, as above, then the same should be reported to the respective Field TDS Officers immediately.

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

Source: TRACES

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CPC (TDS) Advisory to deductors making TDS payment through multiple challans in a month

CPC (TDS) has issued an advisory communication to deductors stating about the establishment of  processing logic in the system that can accept a Single Challan per month for reporting of Tax Deposited. 

The issued communication has been given below:

Dear Deductor,(TAN: XXXXXXXXXXXX)

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 Deductors’ convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan per month for reporting of Tax Deposited in following circumstances :

1. Situation 1: Where Payment of Tax Deducted is required 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 with effect from 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

2. Situation 2: Where Payment of Tax Deducted is required 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.

3. Situation 3: Where different challans have been 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 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

Source: TRACES

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CPC (TDS) follow up for closing Short Payment Default due to Insufficient Challans

CPC (TDS) has observed from its records that there are outstanding Short Payment Defaults with respect to TDS Statements filed by deductors.  The Short Payment Defaults are due to “Insufficient Challans”.

CPC (TDS) has released a follow up communication to deductors in this regard which has been given below:

Dear Deductor, (TAN: XXXXXXXXXXXX)

As per the records of the Centralized Processing Cell (TDS), there are outstanding Short Payment Defaults exceeding Rupees 1 Crore with respect to TDS Statements filed by you from Financial Year 2007-08 onwards.

The referenced Short Payment Defaults are due to “Insufficient Challans”. This could be due to the following reasons:

  • You have adequate balance available in OLTAS challans, however, some other challans may have been incorrectly used, which are already consumed.
  • You have tried to consume more than the available challan amount for reporting TDS deducted in the statements.

In this respect, you are requested to take not of the following provisions of the Income Tax Act, 1961:

Consequences of failure to pay the demand:

  • As per the provisions of section 220 of the Act, Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
    • If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
  • If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
  • Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
  • Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

Action to be taken at the earliest:

  • 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 demand with your relevant Banker, if there are no challans available for consumption.
  • If there are unconsumed Challans available, please use Move Deductee facility using Online Corrections, as specified below
  • Download the Conso File from our portal. Please use the e-tutorials for necessary help
  • Prepare a Correction Statement using the latest Return Preparation Utility (RPU) and File Validation Utility (FVU).
  • Submit the Correction Statement at TIN Facilitation Centre.
  • You can use the Online Corrections facility on TRACES to submit corrections, to payoff the demand. To avail the facility, please Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down list. You can refer to our e-tutorials for necessary help

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 best possible services to you.

CPC (TDS) TEAM

Source: TRACES

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