Interest on Late Deduction of TDS

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The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. The interest for the delay in deduction is charged at the rate of 1% per month or part of a month of the delay. For Example if the due date for a deduction is 2nd of June and it is deducted on 8th of July in the same year, then the interest is charged at the rate of 1% for each month i.e. (June & July) aggregating to 2% interest.

Important: there is a difference between late deduction and late payment. Learn more

Interest on Late Payment of TDS

Difference between Late Payment & Late Deduction

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Types of Corrections in TDS Returns

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There are 6 types of corrections namely C1, C2, C3, C4, C5, C9. The following table briefly talks about each correction type:

Type Corrections in:
C1 Deductor details: All details of deductor except the TAN No. can be modified.
C2 Challan details: All details of the challan can be modified. C2 can include C1 type correction
C3 Deductee details: All details except the PAN number of the  Deductee can be modified. One may add/delete/modify a deductee in the existing challan.
C4 Salary Details: This type of correction is only applicable to correction of 4th Quarter statement of Form 24Q. All the details of the salary can be modified here except the PAN number of the employee. Here there is no provision of updating the record, a record has to be deleted and a new record has to be added with updated details.
C5 PAN: In this type of correction deductee PAN is updated. When Pan is updated for Salary record the same will also get updated in the deduction record. PAN has to be updated quarterwise i.e a separate correction return needs to be filed for each quarter where the PAN number is mentioned incorrectly.
C9 Addition of new Challans and/or Deductions: Any new addition of Challan and/or deductions forms Correction type C9. When a deduction is added with Tax amount zero then automatically a NIL challan is generated
It may be noted the C1,C2, C3,C4,C5 and C9 type of correction may be made in the same single correction.

Steps for Preparing Correction Returns

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Steps for requesting Form 16

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The procedure for requesting Form 16 from TRACES website has been given below:

From FY:18-19 onwards, the Income Tax department is now providing both Part A and Part B of Form 16 (TDS certificate for employee)

The steps for requesting Form 16 are:

  1. Login to TRACES after giving User ID, Password, TAN of the Deductor and CAPTCHA code
  2. Check statement status under Statement/Payment option before requesting for Form 16
  3. Click on Form 16 available under Downloads option
  4. Request for Form 16 through Search PAN download or Bulk PAN downloads option
  5. Click on Submit to proceed
  6. Give Token Number of Regular Statement related to Financial year, Quarter and Form type displayed
  7. Fill CIN/valid PAN details related to Financial year, Quarter and Form type displayed on basis of latest correction filed
  8. An authentication code will be generated after giving correct KYC details
  9. A unique Request number will be generated after submission of request for Form 16
  10. Go to Requested Download option and Form 16 will be available there
  11. Form 16 can be downloaded using HTTP download or Download Manager option
  12. Now convert Form 16 into PDF

To convert Part A of Form 16 into PDF deductor can download Form 16 PDF Converter Utility 1.4 L

To convert Part B of Form 16 into PDF deductor can download TRACES-PDF-CONVERTER V 1.1L (PART B)

Rather than going through the above mentioned steps, deductors can easily download TDS certificate from the TRACES website using TDSMAN software. The software is fully integrated with TRACES and helps downloading of TDS certificate from the software itself.

The steps for requesting Form 16 from TDSMAN Software are mentioned below:

  1. Go to TRACES Information and click on Request for Form 16 and click on Request
  2. Then go to Download Requested Files
  3. Give TRACES log in id and password and enter CAPTCHA code
  4. Both Form 16 Part A and Part B will be available to download
  5. Now  convert  Part A and Part B Zip files to PDF.

To convert Part A to PDF go to Downloads section of TDSMAN Website and then click on download beside Latest PDF Converter Utility to generate TDS Certificate provided by TRACES department

To convert Part B to PDF go to Downloads section of TDSMAN Website and then click on download beside PDF Converter Utility to generate TDS Certificate – Part B option provided by TRACES department.

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Last date for issuance of TDS certificates for Q1 of FY: 2019-20

Last date for issuance of TDS certificates for Q1 of FY: 2019-20 – 15th August, 2019

Note: The above is applicable for deductors other than the Office of the Government

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted.

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