TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

Where TDS is applicable and how to avoid it

Salary income: Employer deducts TDS on total income, including income other than salary after taking into account all deductions and exemptions. This saves the individual the hassle of paying tax himself.

TDS rate: As applicable to individual based on his income and deductions.

Interest income: TDS is deducted by banks on FDs and RDs if the interest exceeds Rs 10,000 a year. TDS does not end tax liability. Someone in a higher tax slab will need to pay additional tax. Those in lower income bracket can seek a tax refund.

TDS rate: If PAN has been provided, TDS is 10% of income. Otherwise it is 20% of income.

EPF withdrawals: Withdrawals from Employee Provident Fund are subject to TDS if you withdraw before five years of service. However, no TDS is deducted on withdrawals of less than Rs 30,000.

TDS rate: If PAN has been provided, TDS is 10% of the withdrawal. Otherwise it is 20% of the amount.

Property sale: TDS is applicable if the value of the property exceeds Rs 50 lakh. If instalments are being paid TDS is deducted on each instalment. The buyer must obtain a Tax Deduction Account Number to deduct TDS. TDS has to be de -posited along with Form 26QB within a week from the end of the month in which TDS was deducted. Buyer must give TDS certificate to the seller.

TDS rate: If PAN has been provided, TDS is 1% of sale value. Otherwise it is 20% of the sale value.

On NRIs: NRIs are not permitted to submit Form 15G/H for NRO deposits and TDS is mandatory on all incomes. In case of resident Indians, TDS kicks in only if interest exceeds Rs 10,000 a year. But there are no such threshold for NRO deposits. Easwar committee has recommended easing of TDS rules for NRIs.

TDS rate: 30% on interest income from bank deposits, 20% from corporate deposits, 15% on short-term capital gains if securities transaction tax (STT) has been paid and 10% on longterm capital gains. If no STT is paid on short-term gains, TDS is 30%. Flat rate of 20% on sale of property.

How to avoid it

TDS can be avoided by submitting Form 15G or 15H. Form 15H is for senior citizens. It can be submitted if there is no tax on total income. Form 15G is for everybody else, except NRIs. It can be filed if tax on total income is nil and total interest income is less than the basic exemption limit.

Source: The Economic Times

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Intimation about the Quarterly TDS/TCS due dates

NSDL has sent an intimation to all the deductor/collector regarding due dates and filing of quarterly TDS  return and TCS return

The intimation sent by NSDL has been given below:

Dear Deductor/Collector,

It’s time to file the quarterly TDS/TCS statement. The quick steps are as follows:

Due Date:

Periodicity Due date for TDS statements (all Deductors) Due date for TCS statements
Quarter II (July to September) 31st October of the Financial Year 15th October of the Financial Year

To submit the statement:

  You need to know about Quick links
  TIN Facilitation Centers (TIN-FCs) nearest to your location https://www.tin-nsdl.com/tin-facilities.php
  New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) https://www.tin-nsdl.com/etds-etcs/eTDS-download-regular.php.

These RPU and FVUs are freely downloadable utilities and can be used for preparation of   e-TDS/TCS statement(s) pertains to Financial Year 2007-08 onwards.

Different software When and why to use it
RPU Version 1.7 (Java based) This is used for preparing and validating e-TDS/TCS Statement(s) as it contains inbuilt FVUs
FVU Version 5.2 Used for validating TDS/TCS Statement(s). Applicable for quarterly e-TDS/TCS Statement(s) pertaining to FY 2010-11 onwards.
FVU Version 2.148 Used for validating TDS/TCS Statement(s). Applicable for quarterly e-TDS/TCS Statement(s) from FY 2007-08 upto FY 2009-10.

Please refer attached pdf, to know about the Key features of new version of RPU and FVUs. 

In case of any query with regards to the feature or to submit the statement please call us at 020-27218080.

For and on behalf of Tax Information Network

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Updation of address regarding Non-Delivery of Intimation hard copy

CPC (TDS) has issued a communication to the deductors regarding updation of the address mentioned in the statement filed by them.

The issued communication has been given below:

Date of communication : 23/08/2016

Dear Deductor (TAN: XXXXXXXXXXXX),

Centralized Processing Cell (TDS) has observed that intimations sent to you have not been delivered / served as per the address mentioned in the statement filed by you. Please ensure that you provide correct and complete postal address while filing your statements.

Implications of reporting Incomplete/Incorrect address in TDS Statements:

  • You will not be able to clear defaults on time in case of non-receipt of intimations which may lead to increase in defaults amount in form of Interest and Penalty
  • It will impact Form 26AS of deductee as the deductee will not be able to get the credit of Tax in his/her ITR

Hence it is advised:

  • To mention current, correct and complete postal address at the time of filing Quarterly Statement
  • Update the Traces Profile as and when there is change in the address

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Source: TRACES

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CBDT launches ‘e-nivaran’ facility to resolve income tax grievances

CBDT has launched the ambitious ‘e-nivaran’ facility for online redressal of taxpayers’ grievances related to refunds, ITRs and PAN among others as part of its initiative to reduce instances of harassment of the public when it comes to complaints related to the I-T Department.

An exclusive ‘e-nivaran’ (electronic resolution) link has recently been activated on the e-filing portal of the department — https://incometaxindiaefiling.gov.in — where taxpayers can register their complaints through their personal computer systems and receive a special PIN number on their registered mobile and email, as their unique number to keep track of the issue.

The ‘e-nivaran’ module, a senior official said, will work on the lines of the internet-based Income Tax Returns (ITRs) filing system and taxpayers can register all complaints related to delay in refunds, filing of e-returns, Tax Deducted at Source (TDS), PAN issues, and those pertaining to their Assessing Officer (AO).

“People who do not have a Permanent Account Number (PAN) but have some problem in connection with their I-T case can also use the e-nivaran facility. Documents can be uploaded in a PDF format and clubbed as a ZIP file,” the official said.

A special space has also been provided for ‘grievance description’ along with furnishing of details like mention of the Assessment Year (in case of individual) or the Financial Year (in case of deductor).

Address, postal PIN code, mobile number and email are mandatory fields to be filled up.

“The new system will ensure, like e-filing, that the taxpayer gets his grievance redressed by just using an internet-enabled computer and does not require them to travel to a tax office. The ‘e-nivaran’ has been now connected to all electronic databases and the modern business application software platform of the department to ensure quick resolution,” the official said.

The ‘e-nivaran’ form is also expected to be provided at the Aaykar Sampark Kendras (ASK) (tax facilitation centre), located in over 300 cities, in a physical form which will later fed into the system by tax officials.

Once the grievance is registered, the system will also issue an acknowledgment number which can be quoted by the taxpayer for all his future communications with the taxman and also to track the progress of the complaint.

Source: The Economic Times

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