TDSMAN Blog

smart & easy software for eTDS & eTCS returns

CPC (TDS) reminder for raising Flag “B” in TDS Quarterly Statements against 15G/H Forms for FY 2013-14

CPC (TDS) has issued a reminder to the deductors regarding raising of Flag “B” in TDS Quarterly Statements against 15G/H Forms for FY 2013-14. 

The issued communication has been given below:

Dear Deductor,

As you may be aware that the depositors submit form 15G/H to the bank for no deduction of tax to be made on the interest payments made to them.

However, it has been observed in your case that you have not raised Flag ‘B’(No deduction on account of 15G/H) even against a single transaction as reported in the TDS Statement(s)(Form 26Q) submitted for various quarters of Financial Year 2013-14.

It is highly improbable that not even a single depositor has submitted form 15G/H to you for non-deduction of tax on the interest payments. Accordingly, you are advised to take the following action:

Actions to be taken:

  • Check the details of 15G/H cases from your source data.
  • Download the Conso File from our portal. Please use the download-nsdl-conso-file-etutorial.html for necessary help.
  • Prepare the correction statement with appropriate changes. Please ensure that the TDS Deposited amount equals the TDS Deducted amount in your correction statement.
  • Submit the Correction Statement at TIN Facilitation Centre.

For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

facebooktwittergoogle_plusredditpinterestlinkedinmail

CPC (TDS) communication to Govt. Deductors for quoting AIN details in the TDS Statements

CPC (TDS) asks government deductors to quote AIN details in TDS Statements. The letter issued by CPC (TDS) is as follows:

Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), it has been observed that the Accounts Office Identification Number (AIN) has not been mentioned in the TDS statements submitted by you.

What is AIN and its relevance:

  • AIN is a unique seven digit number allotted by NSDL, to the Pay and Accounts Office (PAO), District Treasury Office (DTO) or Cheque Drawing and Disbursing Office (CDDO). It is mandatory  for the PAO / CDDO / DTO to have an AIN.

Why is AIN important to be quoted in TDS Statement:

  • Quoting of AIN in TDS Statement facilitates complete reporting and results into correct mapping of the TAN with the AIN.
  • The AIN details in Form 24G, filed by the PAO / CDDO / DTO forms part of G-OLTAS database. CPC (TDS) processes TDS statements on the basis of information contained in G-OLTAS.

In view of the above, you are requested to provide AIN details in point 2(b) of the Forms 24Q and 26Q of the TDS Statements.

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

CPC (TDS) TEAM

facebooktwittergoogle_plusredditpinterestlinkedinmail

CPC (TDS) mandates closure of Short Payment Defaults in the quarterly TDS statements

The Centralized Processing Cell (TDS), in its endeavour to enforce TDS Compliance, is shortly mandating closure of “Short Payment defaults” in the quarterly TDS statements due to Unmatched Challans, before the Conso files can be downloaded from TRACES for the relevant statements.

Following are key information to be noted in this regard:

  • CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (without digital signature).
  • In case there is no available challan for consumption, the deductor is required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit.
  • CPC(TDS) mandates to close the above default by Matching or Payment of challans.
  • The user will not be able to download Conso file for the relevant TDS statement until the above default is closed.
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.
  • User will subsequently be able to download the Conso file for relevant period only after the default is closed.

Why the Short Payment needs to be paid:

  1. CPC (TDS) intends to enforce compliance towards payment of taxes to the Government.
  2. In accordance with provisions of section 201(1) of the Act, where any person, including the principal officer of a company, who is required to deduct any sum in accordance with the provisions of the Act; does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall be deemed to be an assessee in default in respect of such tax.
  3. As per the provisions of section 220 of the Act,
    1. Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
    2. If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
  4. If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
  5. Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
  6. Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

What Actions to be taken:

  1. During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
  2. Details of defaults will be provided during Online Correction process.
  3. In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
  4. Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down list. 

Online Challan Corrections:

  1. A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
  2. Unmatched challans can be corrected and tagged to Deductee rows in the statement.
  3. The corrections in TDS statements can be raised even without Digital Signature.
  4. Correct KYC information needs to be submitted for the purpose of validation.
  5. All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.

You are requested to take appropriate actions to avoid any inconvenience in absence of Conso files for carrying out any other corrections to your TDS statements.

facebooktwittergoogle_plusredditpinterestlinkedinmail

Guidelines to avoid common mistakes while submitting TDS Statements

Following are some useful guidelines to avoid common mistakes, while submitting TDS Statements:

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 (7th Jan, 2014) 07/01/2013 (7th Jan, 2013) Wrong Year (2013 instead of 2014)
07/01/2014 (7th Jan, 2014) 01/07/2014 (1st July, 2014) Wrong Date Format (MM/DD/YYYY)

 

facebooktwittergoogle_plusredditpinterestlinkedinmail
  • RSS
  • Facebook