TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

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

Update TDSMAN immediately for the new TRACES integration

In the evening of 12th July 2013, TRACES has restructured their website which resulted in changes in the links of the different functions (such as downloading of consolidated statement, TDS certificate, etc.) within their website. For these reasons, integration to TRACES through TDSMAN was affected owing to which users were facing difficulties.

On emergency basis, the TDSMAN software has been updated to take care of all these link modifications in TRACES and has been uploaded today.

All users should immediately update TDSMAN through the online update option provided in the software.

Do call / email our helpline for any assistance.

 Extended hours for our Helpline:

Our helpdesk will be open on all days upto 15th July 2013 (including Saturday & Sunday) from 9.30am till 8.00pm

Helpline Nos.: (033) 22623535, 64596006
Additional Nos.: (033) 22434150, 22430007, 9836490007
Email: info@tdsman.com

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Persons responsible to deduct TDS and the responsibilities of the deductor

The persons responsible to deduct TDS are mainly:
  • Principal Officer of a company for TDS purpose including the employer in case of private employment or an employee making payment on behalf of the employer.
  • DDO (Drawing & Disbursing Officer), In case of Govt. Office any officer designated as such.
  • In the case of “interest on securities” other than payments made by or on behalf of the Central govt. or the State Government, it is the local authority, corporation or company, including the Principal Officer thereof.

Such person is called Deductor while the person from whom the tax is deducted is called Deductee.
Tax must be deducted at the time of payment in cash or cheque or credit to the payee’s account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee’s account and TDS must be made at the time of such credit.

Responsibilities of the Deductor:

  • A Deductor is required to a obtain TAN in order to deduct taxes.
  • He should obtain PAN of the deductee and deduct tax at the correct rate
  • The taxes do deducted has to be deposited to the designated banks within specified time limit in the following manner:
    • By or on behalf of the Govt. – on the same day.
    • By or on behalf of any other person – before 7th of the following month.

However, if the amount is credited in the books on 31st March then the tax should be remitted by 30th April and the TDS return needs to be filed by 15th May.

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Consequences of TDS defaults

Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure Section
Nature of Demand Quantum of demand or penalty

Failure to deduct tax at source

201(1) Tax demand Equal to tax amount deductible but not deducted
201(1A) Interest @1 % p.m. of tax deductible
271C Penalty Equal amount of tax deductible but not deducted
Failure to deposit tax at source 201(1) Tax demand Equal to tax amount not deposited
  201(1A) Interest @1.5% p.m. of tax not deducted
  276B Prosecution Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine
Failure to apply for TAN No. u/s 203A 272BB Penalty Rs. 10000
Failure to furnish prescribed statements u/s 200(3) 272A(2)(k) Penalty Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to issue TDS certificate u/s 203 272(A)(g) Penalty Rs. 100 every day during which the failure continues subject to maximum of TDS amount.
Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C) 272(A)(i) Penalty Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to mention PAN of the deductee in the TDS statements and certificates 272B Penalty

Rs. 10000

 If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.

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