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Smart & Easy TDS Software for Preparing TDS Returns

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

Useful guidelines to avoid common mistakes while submitting TDS Statements

Following are some useful guidelines to avoid common mistakes, while submitting TDS Statements and you are requested to go through the following in detail.

Incorrect reporting of 197 Certificates:

Please refer to the following guidelines for correct reporting of 197 Certificates:

  • The Certificate Number should be of 10 digits with Alpha-numeric structure. Please refer to the following examples:
      • Correct Format 1111AA111A;
      • Incorrect Format: 1111AA111A/194C
    • Certificate Number should be valid during the period for which it is quoted.
    • The Certificate Number should be for the same PAN, Section Code and Section Rate for which it has been mentioned in the statement
    • Threshold limit Amount of the Certificate should not be exceeded.
    • Please ensure that the Certificate is not expired. Please refer to the following illustration:
      • Lower deduction Certificate under section 197, issued in April 2013 (e.g. Certificate Number – 1) stands cancelled by Assessing Officer on 10/11/2013.
      • A fresh certificate Under Section 197 (e.g. Certificate Number – 2) is issued with effect from 11/11/2013.
      • Deductor quotes Certificate Number – 2 against the transactions recorded during the period from 01/11/2013 to 10/11/2013 in Q3 TDS statement.
      • Deductor should have quoted Certificate Number – 1 for the transactions conducted till 10/11/2013.

Common errors resulting into Short Payment Defaults:

  • Typographical errors committed by deductor, in reporting the date ‘20032014’    in the “Tax Deducted” column.
  • Total of “Amount Paid / Credited” reported in the “Tax Deducted” column of the statement. This results into short payment and Deductors need to ensure that the TDS/TCS Deducted/Collected amount should be equal to TDS/TCS Deposited Amount.

The above mistakes are illustrated below:

Amount Paid/ Credited

TDS Deducted

TDS Deposited

Remarks

1,55,000.00 1,55,000.00 15,500.00 Wrong TDS Deducted Amount
2,20,420.00 20032014.00 22042.00 Date mentioned in the TDS Deducted Column

 Actions to be taken:

  • CIN Particulars (BSR Code, Date of Deposit and Challan Serial Number) mentioned in the TDS statement should exactly match with the CIN Particulars as available on ‘Challan Status’ at www.tdscpc.gov. in or ‘Challan Status Enquiry’ at www.tin-nsdl.com
  • For BIN (Book Identification Number), the particulars (24G receipt number, Date of transfer voucher and DDO Serial Number) mentioned in the TDS statement by the Govt. Deductors should exactly match with the BIN Particulars as available on ‘Challan Status’ at www.tdscpc.gov. in or ‘BIN View’ at www.tin-nsdl.com
  • Amount of Tax deposited pertaining to different BIN’s/ CIN’s should not be clubbed together while reporting in the TDS statements.
  • Few other common mistakes in reporting dates are as follows:

Actual Date of Deposit 
(As per Challan)

Date of Deposit mentioned in TDS Statement

Observations

07/01/2014 (07th Jan, 2014) 07/01/2013 (07th Jan, 2013) Wrong Year (2013 instead of 2014)
07/01/2014 (07th Jan, 2014) 01/07/2014 (01st July,2014) Wrong Date Format (MM/DD/YYYY)
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Rejoinder Email dated 19th July 2016 – no change in TCS Return Filing Dates

Subsequent to the email of 28th June 2016, wherein NSDL specifically mentioned about the change in the last dates of TDS / TCS Returns, a rejoinder email dated 19th July 2016 has been received that the changed date is only applicable for TDS and not TCS. Subsequently, even the corresponding date for TCS Certificate will also change.

This implies the last dates are as under:

TCS due dates

Periodicity Due date (Return file) Due date (TCS Certificate)
Q1 (Apr – Jun) 15th July 30th July
Q2 (Jul – Sep) 15th October 30th October
Q3 (Oct – Dec) 15th January 30th January
Q4 (Jan – Mar) 15th May 30th May

TDS due dates

Periodicity Due date (Return file) Due date (TDS Certificate)
Q1 (Apr – Jun) 31st July 15th August
Q2 (Jul – Sep) 31st October 15th November
Q3 (Oct – Dec) 31st January 15th February
Q4 (Jan – Mar) 31st May 15th June

As this rejoinder email has come only after the due date for TCS, it would be interesting to see as to what stand the CBDT takes for TCS Returns filed after 15th July pertaining to Quarter 1.

The text of NSDL’s email dated 19th July, 2016 is as under:

 

From: tin_returns@nsdl.co.in [mailto:tin_returns@nsdl.co.in]
Sent: 19 July 2016 18:11
To: info@pdsinfotech.com
Subject: Intimation about the Quarterly TDS/TCS due dates

 

Dear Deductor/Collector,

We refer to the earlier email communicating the due date for filing TDS/TCS statements. However, it has now been clarified by Income Tax Department (ITD) that the due dates for filing Quarterly TCS statements remain unchanged with the implementation of the CBDT notification no. 30/2016, F.No.142/29/2015-TPL dated 29th April, 2016. As per the said clarification, please find the due dates for furnishing Quarterly TDS/TCS statement(s) from Quarter I of Financial Year 2016-17 onwards are as below:

Periodicity Due date for TDS statements (all Deductors) Due date for TCS statements
Quarter I (April to June) 31st July of the Financial Year 15th July of the Financial Year
Quarter II (July to September) 31st October of the Financial Year 15th October of the Financial Year
Quarter III (October to December) 31st January of the Financial Year 15th January of the Financial Year
Quarter IV (January to March) 31st May of the Financial Year immediately following the Financial Year in which the Deduction is made 15th May of the Financial Year immediately following the Financial Year in which the collection is made

 

Do submit quarterly TDS/TCS statement on or before due date to avoid late filing fee under section 234E of Income Tax Act.

In order to locate the nearest TIN Facilitation Centers (TIN-FC) for furnishing of quarterly TDS/TCS statement(s), please click here https://www.tin-nsdl.com/tin-facilities.php

For and on behalf of Tax Information Network

nsdl-logo

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Points to remember before filing the quarterly TDS statement

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

  • 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 etds 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 (Form 16A) 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

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Do’s & Don’t’s for TDS Returns

Given below are some dos and don’t for filing of TDS returns:

Dos

  1. Ensure that TDS return is filed with same TAN against which TDS payment has been made.
  2. Ensure that correct challan particulars including CIN and amount is mentioned.
  3. Correct PAN of the deductee is mentioned.
  4. Correct section is quoted against each deductee record.
  5. Tax is deducted at correct rate for each deductee record.
  6. File correction statement as soon as discrepancy is noticed.
  7. Issue TDS certificate downloaded from TRACES website.

Dont’s

  1. Don’t file late returns as it affects deductee tax credit.
  2. Don’t quote incorrect TAN vis-à-vis TDS payments.
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