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Important Due Dates for the month of August 2015

7 August 2015 – Due date for deposit of Tax deducted/collected for the month of July, 2015

15 August 2015 – Quarterly TDS certificate (in respect of tax deducted for payments other than salary) by a person being an office of the Government for the quarter ending June 30, 2015

22 August 2015 – Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of July, 2015

31 August 2015 – Annual information return under section 285BA for the financial year 2014-15

31 August 2015 – Due date for filing returns of income-tax and wealth tax for the assessment year 2015-16 for all assessees other than – (a) Company; or (b) A person other than company whose books of account are required to be audited; or (c) A working partner of a firm whose accounts are required to be audited; or (d) Assessee who is required to furnish a report under section 92E.



Things to note to avoid notice from Department

With the Income Tax Department becoming net savvy and going online, it has become very easy for them to identify discrepancies in your papers and to keep a close eye on almost every financial transaction. Therefore, while filing return, one needs to be extra careful. Any wrong details furnished might put you in trouble.

From past few years, almost every taxpayer is receiving notices from Department. Now, it has become important that every provision and clause of tax laws shall be strictly abided. There are few reasons due to which notices are being issued and these reasons are very common among taxpayers.

Find below, things to note to avoid notice from Department:

1. Always file your return timely and correctly – Every assessee liable to file return shall do the same within due date. While filing return due care must be taken to avoid any mistake. Details required in return shall be truly and fully disclosed. Notice shall be issued, if any default found.

2. Balance between Income and Expenses/investments – Ignorance regarding balance between income and expense/ investments may become an issue. Many times it is found that assessee invests more than what they earn and then they have to justify the source of funds which has been used for investment. If balance is not properly maintained then be ready to receive notice.

3. Gifts credited to your account – Assessee are generally found taking gifts from friends and relatives. Gifts taken may be in cash or kind. If such gifts appear in your account then do not forget to document the evidence for the same. Department may ask for details and source of gifts received. If proper and satisfactory evidence not provided then department shall issue notice regarding the same.

4. Check your Form 26AS (Tax Credit Statement) – Form 26AS is an easy way to find out the details of TDS deposited on your behalf. You should always go through your 26AS to match the TDS with the books of accounts. Any mismatch found may appear in the notice from department.

5. Pay Advance Tax – Advance tax shall be paid if the tax liability for a financial year is more than Rs. 10,000. Such tax shall be paid within the same year on the basis of self assessment. Any assessee liable to pay advance tax shall pay it within due date as specified. Failure to which you can get notice from department. 

6. Non-Declaration of Exempt Income – All income earned are generally taxed but there are few income which are exempt from payment of tax. Assessee generally does not disclose such income while filing their return thinking that as no tax is paid on such income it is not necessary to disclose it. But this is a myth which needs to be cleared. Incomes like long term capital gains tax from equity, dividends received on equity shares of Indian companies, saving bank account interest up to Rs. 10000 etc. though exempt shall be disclosed while filing your return. 

7. High value transactions – If there is high value transactions either for investments or spending then chances of you getting the notice from IT Department are very high. There are few transactions which are reported to the IT department under Annual information Returns filed by respective companies and may attract an enquiry ranging from simple to exhaustive by IT department. Any high value transaction should be incurred in planned way. Examples of such transactions are:

• Credit card usage of more than Rs. 2 lakhs p.a.
• Investing in FDs for more than Rs. 5 lakhs
• Depositing more than Rs. 10 lakhs in your bank account
• Investing more than Rs. 2 lakhs in MFs or Rs. 1 lakh in shares
• Buying or selling property over Rs. 30 lakhs

8. Interest from FDs or Savings A/C – Utmost care shall be given in interest received from banks. Assessee believe that as banks deduct 10% TDS on the deposits interest, there is no need to pay tax on the same by them. In such case, facts are other way round which shall necessarily be understood to avoid notices. Though bank deducts TDS but you are suppose to pay any additional tax depending on your income tax bracket.

For instance, If you are 30% tax bracket and you have FD in bank of Rs. 10 lakhs. Interest rate on the same is 10%. This means interest received is Rs. 1,00,000. Now, the bank pays Rs. 90,000 after deducting TDS @ 10% i.e. Rs. 10,000 and pay to the government. As you are in 30% tax bracket, you actually need to pay 30% to government, which means that at the end of the year you need to pay additional Rs 20,000. If you are not doing the same, then you might be inviting trouble for future in form of notice.

Mistakes are common, if due care taken then it can be avoided to a great extent. Therefore, small points as stated above shall be kept in mind to escape from notices.

Source: Mr. Alok Patnia, founder of


Deposit TDS by 7th August, 2015 for tax deducted during July 2015

The due date for payment of TDS deducted during July 2015 is 7th August, 2015

Please Note:

For delayed payments, interest @ 1.5 for each month or part thereof will apply.

Detailed information in this regard has been given below:

Interest on Late Payment of TDS

In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.

Earlier, the Interest liable to be paid was 1% but this has been increased to 1.5% pm with a view to discourage the practice of delaying the deposit of tax after deduction.

Interest @ 1.5% is liable to be paid from the date on which the TDS was deducted and not from the date the TDS was due.

For example: TDS was deducted on 25th June and the due date for TDS Payment was 7th July. The assessee fails to deposit the TDS by 7th July. In such a case, the Interest would be calculated from 25th June and not from 7th June.

The interest is to be calculated as per illustrations below:

Case 1:

Tax Deducted on 26th June, TDS deposited on 9th July (due date was 7th July)

The period of 26th June to 30th June will be calculated as one month (being part of a month) & from 1st July to 9th July will also be treated as one month. As such in this case, the interest payable is for two months. Total interest would be 3%. Sounds odd, but it is true – for a delay of 2 days, one has to pay interest for two months.

Case 2:

Tax Deducted on 20th March, TDS deposited on 5th May (due date was 30th April)

The period of 20th March to 31st March will be calculated as one month, 1st April to 30th April will be another month & from 1st May to 5th May will be treated as another one month. As such in this case, the interest payable is for three months. Total interest would be 4.5%. For a 5 day delay, the interest payable is for 3 months.

Logic behind this calculation is that, if dues are not paid on time, the interest for each month (or part thereof) is to be paid right from the date of deduction till date of deposit of the TDS. Each month is treated based on the ‘Calendar Month’ instead of counting the number of days.


Reasons to reject the correction in challan detail by TDS-CPC

Rejection reasons pertaining to challan details are as follows:

  • Challan detail record on which correction has been filed does not exist in regular / previous statement
  • In a correction statement, verification keys from challan data should match with the corresponding fields in regular statement
    • Verification keys for Non Nil Statement – Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
    • Verification keys for Nil challan – Last date of transfer voucher number / bank challan, last total deposit amount as per challan
  • If an unmatched challan is being corrected, then the sum of deposit amount of all the active deductee rows in the regular and correction statement and corrected values of claimed TDS interest and claimed TDS Others amount should be less than or equal to Total deposit amount of challan given in statement
  • If a matched challan is being corrected, then available balance amount in the challan should be sufficient for consumption of updated sum of deposit amount of all the active deductee rows in correction and corrected values of claimed TDS interest and claimed TDS Others amount
  • In case of existing matched / partially matched challan, deductor can only update Cheque / DD Number, claimed TDS Interest amount, claimed TDS Others amount and Section code
  • If deductor updates only deductee details, then claimed TDS Interest amount and claimed TDS Others amount as given in the challan should match with the corresponding values present in regular / previous return
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