TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

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

FAQ on Late TDS payment

What is the Late payment interest?

When deductor deposits the TDS after due date of deposit, it is a case of late payment and interest will be charged accordingly.

What is the Interest Rate for Late Payment?

  • Prior to 1st July 2010-1% per month
  • After 1st July 2010-1.5% per month

What is the procedure of calculating interest on Late Payment?

Late Payment interest is calculated @ 1.5% per month or Part of the month from the date of deduction +1 day till date of Deposit.

Late TDS paymentProcedure of calculating Late Payment:

Calculation

No. of months in Defaults = 3 i.e., 4-Mar-12+1 day to 12-May-12

4000*1.5%*3(Months) =180.00

What should I do in case of Late Payment Intimation Received?

Follow the steps mentioned below:

  • The default amount will have to be deposited through challan number ITNS – 281 by ticking minor head ‘400’
  • Add Challan to statement (C9 correction) using “Online Correction Functionality” available on TRACES as C9 correction has been stopped in Offline Correction
  • For closure of late payment default, fill up the fee amount in “interest” column in challan details through Online Correction by clicking on “Request for Correction” under “Default” tab and select Pay 220/LP/LD/LF/ Interest u/s 220 category
  • Please note that once the challan is added to the statement using the “Online Correction Functionality” further corrections can also be done by downloading latest Conso File.
  • Note: In case of paper return, interest amount should be mentioned in annexure.

What are the facts that should be considered for calculating Late payment interest raised by TDSCPC? 

Interest is calculated as per sec. 201 (1A) (ii) of IT act 1961, considering the below mentioned facts:

  • Interest is charged from date on which such tax was deducted to the date on which such tax was actually paid
  • Interest is chargeable for every month or part of the month on the amount of such tax.
  • A month is considered to be a calendar month as per general clauses act

What is the due date for the Quarterly deposit of TDS in special case under rule 30(3)?

Quarterly date of deposited of TDS:-Q1 (Apr to Jun) – 7 July, Q2 (Jul to Sep)- 7 OCT, Q3 (Oct to Dec)- 7 Jan, Q4 (Jan to Mar)- 30th April.

If Extension is given, and then the Due date of Deposited will be considered from?

Late Payment interest will be calculated from the date of deduction but eligibility for extension will be considered from the date of payment/credit.

What is the additional Late Payment Interest?

Additional late payment will arise, while in correction statement, deductor has added new deductee rows and has given credit to deductee against newly paid challan or modified Date of Deduction or have made changes in any unmatched challan against which the TDS payment made.

Source: TRACES

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Basic duties of the person who is liable to deduct tax at source

Following are the basic duties of the person who is liable to deduct tax at source:

  • He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS.
  • He shall deduct the tax at source at the applicable rate.
  • He shall pay the tax deducted by him at source to the credit of the Government (by the due date specified in this regard*).
  • He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*).
  • He shall issue the TDS certificate to the payee in respect of tax deducted by him (by the due date specified in this regard*).

*Refer tax calendar for the due dates.

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NSDL Email – Last date of TCS Returns

This post is NULLIFIED – based on the rejoinder email of NSDL (tin_returns@nsdl.co.in) dated 19th July, 2016 which can be accessed as under:

http://blog.tdsman.com/2016/07/rejoinder-email-dated-19th-july-2016-change-tcs-return-filing-dates/

After the release of the new File Validation Utility (FVU Ver 5.1 & FVU Ver. 2.147) on  28th June 2016, NSDL (tin_returns@nsdl.co.in), through an email has informed Tax Deductors / Collectors about this release.

Apart from explaining the key features of the new release, it has mentioned that the due date for filing Quarterly TDS/TCS statement for Q1 (April to June) of FY 2016-17 is July 31, 2016 for all categories of Deductors / Collectors.

It clears the doubt on the due date for TCS Returns which has been also revised similar to TDS Returns (there had been confusion over the CBDT Notification dated 29th April 2016).

Based on this email from NSDL, the due dates for TDS / TCS Return filing from FY: 2016-17 onwards is summarized as under:

Q1 (Apr – Jun)   :               31st July
Q2 (Jul – Sep)    :               31st October
Q3 (Oct – Dec)   :               31st January
Q4 (Jan – Mar)  :               31st May

Note: The above is based on NSDL’s email and no official notification / clarification has been issued by CBDT.

The text of NSDL’s email is as under:

 

From: tin_returns@nsdl.co.in [mailto:tin_returns@nsdl.co.in]
Sent: 28 June, 2016 4:00 PM
To: info@pdsinfotech.com
Subject: Intimation about the release of new TDS/TCS RPU and FVU versions at NSDL e-Gov.

 

Dear Deductor/Collector,

This is to inform you that due date for filing Quarterly TDS/TCS statement for Q1(April to June) of FY 2016-17 is July 31, 2016 for all the categories of Deductors/Collectors. 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

New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) have been made available at TIN website applicable from June28, 2016 at the following URL 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.

  • RPU Version 1.6 (Java based): This is used for preparing and validating e-TDS/TCS Statement(s) and also contains inbuilt FVUs.
  • FVU Version 5.1 : Applicable for quarterly e-TDS/TCS Statement(s) pertaining to FY 2010-11 onwards.
  • FVU Version 2.147 : Applicable for quarterly e-TDS/TCS Statement(s) from FY 2007-08 upto FY 2009-10.

Key features of new version of RPU and FVUs are as given below:-

  1. Addition of new section codes applicable for Financial Year 2016-17 onwards for statements pertaining to Form 26Q, 27Q and 27EQ (Regular and Correction):

                  a. Section Code 194LBC (Income in respect of investment in securitization trust):

                         (i) This section code is applicable for Form 26Q and 27Q.
                         (ii) The value to be quoted in TDS/TCS statement is ‘LBC’.

                 b. Section Code 206CL (Tax Collection at Source (TCS) on sale of Motor vehicle):

                          (i) This section code is applicable for Form 27EQ.
                          (ii) The value to be quoted in TDS/TCS statement is ‘L’

                c. Section Code 206CM (TCS on sale in cash of any goods other than                     bullion/Jewellery):

                          (i) This section code is applicable for Form 27EQ.
                          (ii) The value to be quoted in TDS/TCS statement is ‘M’

              d. Section Code 206CN (TCS on providing of any services other than                    Chapter-XVII-B):

                          (i) This section code is applicable for Form 27EQ.
                          (ii) The value to be quoted in TDS/TCS statement is ‘N’.

For and on behalf of Tax Information Network

nsdl-logo

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TDSMAN updated with FVU ver. 5.1 & FVU ver. 2.147

TDSMAN has been updated for the following newly released File Validation Utilities:

FVU ver. 5.1 – For statement pertaining to FY 2010-11 onwards
FVU ver. 2.147 – For statement up to FY 2009-10

Steps to Update:

1. Click on “Update File Validation Utility” in “Utilities” menu to update these utilities.

2. Click on “Update Software” in “Utilities” menu to update software for these utilities.

Click here to view the key features of FVU ver. 5.1
Click here to view the key features of FVU ver. 2.147

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