Points to remember before filing the quarterly TDS statement

Given below are the points one should remember before filing quarterly TDS statement:

  • Correct Reporting: Cancellation of TDS return and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS return
  • Quote correct and valid lower rate TDS certificate in TDS return wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer
  • Last Provisional Receipt Number to be quoted in regular TDS / TCS returns: While filing new regular (original) TDS return, it is mandatory to quote the last accepted Provisional Receipt Number of the regular quarterly TDS / TCS return of any form type
  • TDS return cannot be filed without quoting any valid challan and deductee row
  • Late TDS filing fee, being statutory in nature, cannot be waived
  • Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN
  • Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement
  • Download TDS certificate from TRACES (http://www.tdscpc.gov.in) bearing unique TDS certificate number and issue to the taxpayers within due date
  • File correction statements promptly in case of incomplete and incorrect reporting
  • Download the justification report to know the details of TDS defaults, if any, on processing of TDS return
  • Do view your Dashboard regularly to know about your TDS performance
  • Government deductors should obtain BIN (Book Identification Number) from their Accounts Officer (AIN holder) in time and quote the same correctly in TDS statement

Budget 2019 – TDS from withdrawals of cash exceeding Rs. 1 Crore

A new Section 194N proposed to be included in Income Tax Act. If the withdrawal of cash exceeds Rs. 1 crore in a financial year a 2% of TDS will be deducted  by a bank or post office from withdrawn cash of savings or current account.

However no TDS will be deducted if cash is withdrawn by following recipients from bank or post office:
a. Union or State Govt.
b. Banks
c. Co operative Banks
d. Post Office
e. Banking Correspondents
f.  White label ATM operators
g. Other persons notified by Govt. in consultation with RBI.

This amendment will take effect from 1st September, 2019


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Budget 2019 – Relaxation of Section 201 in respect of payments to non-residents

If the deductor fails to deduct whole or any part of the tax or he fails to deposit the tax to credit of Central Govt. he will be considered to be assessee-in-default. The deductor will not be treated as assesse-in-default if payment is made to a resident who paid tax on such income and has mentioned it in return submitted u/s 139. The payer will get a certificate from a Chartered Accountant in Form 26A and submit it. At present it was only for payment made to resident person. In case of failure on payments made to non-resident such relaxation was not for the deductor.

The amendment is made thus where deductor fails to deduct tax from sum paid to resident or non-resident but he is not considered as assessee-in-default, he will be responsible to pay interest from date on which tax was needed to be deducted to the date of filing of return of income by payee.

This amendment will take effect from 1st September, 2019