TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

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

Avail the Benefit of CPC(TDS) Analytics for Correction of PANs in your TDS Statements

Date of Communication: 23/09/2016

Dear Deductor, TAN (XXXXXXXXXX)

Centralized Processing Cell (TDS) has observed from its records that you have reported “Structurally Correct, however Invalid PANs” in your TDS Statement filed for Quarter 3 and 4 of Financial Year 2015-16. To correct such errors, CPC (TDS) Analytics provides facility of correct PAN suggestions for the Deductees, while submitting Online PAN Corrections based on your statement filing history.

Action to be taken:

  • “Online Correction” facility of TRACES can be used with Digital Signatures for correction of PANs. To avail the facility, you are requested to “Login to TRACES” and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu. For assistance, please refer to the e-tutorial available on TRACES.
  • While submitting PAN Corrections, CPC (TDS) Analytics identifies the above referred errors for you and provides suggestions for Valid PANs. This will reflect as follows while submitting corrections:

Implications, if Errors are not corrected:

Deductor would not have been able to generate TDS Certificates for deductees with such incorrect PANs. In case, you have issued TDS Certificates outside TRACES, they will not be valid. In view of CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012, TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

  • Correct TDS Credits in 26AS statements to such taxpayers will not be available and they will not be able to avail the same, while filing their Income Tax Returns.
  • As per section 206AA of the Income Tax Act, tax is to be deducted at a higher rate, in case of “Not Available/ Invalid PANs”. Therefore, default of Short Deduction, including Interest is charged on the deductor, if the tax has not been deducted at higher rate, as per the provisions of section 206AA.

Therefore, to avoid generation of defaults against you and to avoid any inconvenience to your deductees, please make full use of the above referred facility.

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

Source: TRACES

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Where TDS is applicable and how to avoid it

Salary income: Employer deducts TDS on total income, including income other than salary after taking into account all deductions and exemptions. This saves the individual the hassle of paying tax himself.

TDS rate: As applicable to individual based on his income and deductions.

Interest income: TDS is deducted by banks on FDs and RDs if the interest exceeds Rs 10,000 a year. TDS does not end tax liability. Someone in a higher tax slab will need to pay additional tax. Those in lower income bracket can seek a tax refund.

TDS rate: If PAN has been provided, TDS is 10% of income. Otherwise it is 20% of income.

EPF withdrawals: Withdrawals from Employee Provident Fund are subject to TDS if you withdraw before five years of service. However, no TDS is deducted on withdrawals of less than Rs 30,000.

TDS rate: If PAN has been provided, TDS is 10% of the withdrawal. Otherwise it is 20% of the amount.

Property sale: TDS is applicable if the value of the property exceeds Rs 50 lakh. If instalments are being paid TDS is deducted on each instalment. The buyer must obtain a Tax Deduction Account Number to deduct TDS. TDS has to be de -posited along with Form 26QB within a week from the end of the month in which TDS was deducted. Buyer must give TDS certificate to the seller.

TDS rate: If PAN has been provided, TDS is 1% of sale value. Otherwise it is 20% of the sale value.

On NRIs: NRIs are not permitted to submit Form 15G/H for NRO deposits and TDS is mandatory on all incomes. In case of resident Indians, TDS kicks in only if interest exceeds Rs 10,000 a year. But there are no such threshold for NRO deposits. Easwar committee has recommended easing of TDS rules for NRIs.

TDS rate: 30% on interest income from bank deposits, 20% from corporate deposits, 15% on short-term capital gains if securities transaction tax (STT) has been paid and 10% on longterm capital gains. If no STT is paid on short-term gains, TDS is 30%. Flat rate of 20% on sale of property.

How to avoid it

TDS can be avoided by submitting Form 15G or 15H. Form 15H is for senior citizens. It can be submitted if there is no tax on total income. Form 15G is for everybody else, except NRIs. It can be filed if tax on total income is nil and total interest income is less than the basic exemption limit.

Source: The Economic Times

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Intimation about the Quarterly TDS/TCS due dates

NSDL has sent an intimation to all the deductor/collector regarding due dates and filing of quarterly TDS  return and TCS return

The intimation sent by NSDL has been given below:

Dear Deductor/Collector,

It’s time to file the quarterly TDS/TCS statement. The quick steps are as follows:

Due Date:

Periodicity Due date for TDS statements (all Deductors) Due date for TCS statements
Quarter II (July to September) 31st October of the Financial Year 15th October of the Financial Year

To submit the statement:

  You need to know about Quick links
  TIN Facilitation Centers (TIN-FCs) nearest to your location https://www.tin-nsdl.com/tin-facilities.php
  New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) 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.

Different software When and why to use it
RPU Version 1.7 (Java based) This is used for preparing and validating e-TDS/TCS Statement(s) as it contains inbuilt FVUs
FVU Version 5.2 Used for validating TDS/TCS Statement(s). Applicable for quarterly e-TDS/TCS Statement(s) pertaining to FY 2010-11 onwards.
FVU Version 2.148 Used for validating TDS/TCS Statement(s). Applicable for quarterly e-TDS/TCS Statement(s) from FY 2007-08 upto FY 2009-10.

Please refer attached pdf, to know about the Key features of new version of RPU and FVUs. 

In case of any query with regards to the feature or to submit the statement please call us at 020-27218080.

For and on behalf of Tax Information Network

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Updation of address regarding Non-Delivery of Intimation hard copy

CPC (TDS) has issued a communication to the deductors regarding updation of the address mentioned in the statement filed by them.

The issued communication has been given below:

Date of communication : 23/08/2016

Dear Deductor (TAN: XXXXXXXXXXXX),

Centralized Processing Cell (TDS) has observed that intimations sent to you have not been delivered / served as per the address mentioned in the statement filed by you. Please ensure that you provide correct and complete postal address while filing your statements.

Implications of reporting Incomplete/Incorrect address in TDS Statements:

  • You will not be able to clear defaults on time in case of non-receipt of intimations which may lead to increase in defaults amount in form of Interest and Penalty
  • It will impact Form 26AS of deductee as the deductee will not be able to get the credit of Tax in his/her ITR

Hence it is advised:

  • To mention current, correct and complete postal address at the time of filing Quarterly Statement
  • Update the Traces Profile as and when there is change in the address

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

CPC (TDS) TEAM

Source: TRACES

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