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CPC (TDS) communication for payment of outstanding Short Payment Defaults

According to CPC (TDS), there are outstanding short payment defaults for TDS statements filed by deductors. The letter issued by CPC (TDS) to deductors in this regard is given as followed:

Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), there are outstanding Short Payment Defaults for TDS Statements filed by you, however, the demands have not been paid as yet. 

The details of the outstanding demand are as follows :

TAN

Financial Year

Demand Amount

XXXXXXXXXX    

In this respect, you are requested to take not of the following provisions of the Income Tax Act, 1961:

Consequences of failure to pay the demand:

  • 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.
  • As per the provisions of section 220 of the Act,
    • Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
      • 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.
      • 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.
      • Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
      • 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.

Actions to be taken at the earliest:

  • Download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance on downloading the Justification Report.
  • Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available.
  • Download the Conso File from our portal. Please use the e-tutorials for necessary help
  • Prepare a Correction Statement using version 3.9 of the Return Preparation Utility (RPU) and version 4.2 & 2.138 of the File Validation Utility (FVU).
  • Submit the Correction Statement at TIN Facilitation Centre.
  • You can also use our Online Corrections facility on TRACES to submit corrections for FY 2013-14 onwards, after payment of the demand.

To avail the facility, please Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down list.You can refer to our e-tutorials for necessary help

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

 

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Top queries related to registration in TRACES

When I provide my TAN and Token Number, I get the message ‘Invalid details’. Why?

Token Number (Provisional Receipt Number) provided must be of any accepted Regular statement filed by you on or after April 1, 2010 or of any accepted Correction statement filed by you from April 1, 2010 to October 15, 2012.

What are the details that I need to enter in the registration form?

For Deductors

  • Step–1
    • TAN of Deductor
  • Step–2
    • Token Number of the regular statement corresponding to the Financial Year, Quarter and Form Type displayed on screen
    • Challan details of one particular CIN which has been mapped to at least three deductee rows. If there is no such challan, please enter details of challan having maximum number of deductee rows
  • Step–3
    • PAN of Deductor
    • PAN of Authorised Person (person responsible for deduction of tax at source)
    • Date of Birth of Responsible Person as in PAN database
    • Designation of Responsible Person
    • Communication Address
    • Mobile Number
    • Email Id

For Tax Payers

  • Step–1
    • PAN of Tax Payer
    • Date of Birth as on PAN Card
    • Name as in PAN database
    • Option 1 – Details from Form 26AS or salary slip (in case of salaried persons). Provide TAN of deductor who has deducted TDS / TCS, month & year of deduction and amount of tax deducted
    • Option 2 – Details of any tax paid by you. Provide Assessment Year for which payment was made by you, Challan Serial Number of the challan using which payment was made and amount as per the challan
  • Step–2
    • Communication Address
    • Mobile Number
    • Email Id

How can I ensure that I have entered incorrect communication details (Email Id or Mobile Number) during registration? Can I edit this information before submitting my registration form?

During registration, please ensure to verify your details in the Confirmation Screen (Step–5). In case of any incorrect details, click on ‘Edit’ to change your details.

Source: TRACES

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TDS/TCS Rates Chart for F.Y. 2014-15

TDS Rates for F.Y. 2014-15

Nature of Payment

Made To Residents

Threshold(Rs.)

Company / Firm / Co-operative Society / Local Authority

Individual / HUF

If No / Invalid PAN

Section – Description

Rate (%)

Rate (%)

Rate (%)

192 – Salaries

-

NA

Average rates

30

193 – Interest on securities

-

10

10

20

194 – Dividends

-

10

10

20

194A – Interest other than interest on securities – Others

5000

10

10

20

194A – Banks

10000

10

10

20

194B – Winning from Lotteries

10000

30

30

30

194BB – Winnings from Horse Race

5000

30

30

30

194 C – Payment to Contractors  
- Payment to Contractor – Single Transaction

30000

2

1

20

- Payment to Contractor – Aggregate During the F.Y.

75000

2

1

20

- Contract – Transporter who has provided valid PAN

-

-

-

20

194D – Insurance Commission

20000

10

10

20

194DA-Pament of Taxable Life Insurance Policy wef 01.10.2014

100000

2

2

20

194E – Payment to Non-Resident Sportsmen or Sports Association  
- Applicable up to June 30, 2012

-

10

10

20

- Applicable from July 1, 2012

-

20

20

20

194EE – Payments out of deposits under NSS

2500

20

-

20

194F – Repurchase Units by MFs

1000

20

20

20

194G – Commission – Lottery

1000

10

10

20

194H – Commission / Brokerage

5000

10

10

20

194I – Rent – Land and Building

180000

10

10

20

194I – Rent – Plant / Machinery

180000

2

2

20

194J – Professional Fees

30000

10

10

20

194LA – Immovable Property

100000

10

10

20

194LB – Income by way of interest from infrastructure debt fund (non-resident)

-

5

5

20

194LBA Income paid Under section 115UA we f 01.10.2014  
Resident

-

10

10

20

Non resident

-

5

5

20

Sec 194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)

-

5

5

20

195 – Other Sums

-

Average rates

-

30

196B – Income from units  

10

10

20

196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)

-

10

10

20

196D – Income of FIIs from securities

20

20

20

20

 

 Note: 

   1. No TDS on service Tax :As per circular 01/2014 dated 13.01.2014 TDS is not applicable on service tax part if service tax is shown separately.

   2. TDS at higher rate ie., 20% has to be deducted if the deductee does not provide PAN to the deductor.(read detail u/s 206AA) 

  3. No TDS on Goods Transport : No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.(read details here No TDS on Goods Transport ) 

  4. Surcharge on tax is not deductible/collectible at source in case of  resident individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary. 

  5. Surcharge on TDS is applicable on payment made to non resident other than company ,if payment is in excess of one crore.(10 %) 

 6. Surcharge on TDS on salary is applicable if taxable salary is more than one crore @ 10 % 

 7. In the case of Company other than Domestic Company, 

        (i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees;

       (ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees. 

 8. No Cess on payment made to resident: Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.

TCS Rates for F. Y. 2014-15

Section  Nature of Payment F. Y. 2014-15
Individual / HUF Other
206C Alcoholic Liquor for human consumption (A) 1 1
206C Timber obtained under a forest lease  (B) or other mode (C) 2.5 2.5
206C Any other forest produce not being a timber or tendu leave (D) 2.5 2.5
206C Scrap (E) 1 1
206C Parking Lot (F), toll plaza (G), mining and quarrying (H) 2 2
206C Tendu Leaves (I) 5 5
206C Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) (J) 1 1
206C Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2012) (K) 1 1


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Steps to be taken in case of TDS mismatch

Even if the credit for TDS as claimed in the return matches with the balance as appearing in the Form 26AS, Assessing Officer may still raise a demand for payment of differential amount due to TDS mismatch. The reason for such differences could be as under:

(1) TAN of deductor was wrongly mentioned

(2) Name of deductor was not spelt correctly

(3) Tax deducted by one deductor wrongly included in the amount of tax deducted by another deductor

In case of such TDS mismatch, an assessee can file a rectification request.

Steps to file the rectification request:

(a) Login to your account in https://incometaxindiaefiling.gov.in

(b) Go to My Account > Rectification request

(c) You need the following to fill in the required details:

(i) PAN

(ii) Assessment Year

(iii) Latest Communication Reference Number (it starts with CPC/Assessment Year/)

(iv) Latest CPC Order date

(d) Click on Validate to go to next step

(e) On the next screen, choose ‘Taxpayer is correcting data for Tax Credit Mismatch Only’ from the drop-down box of ‘Rectification Request Type’

(f) Check from the following relevant boxes for which taxpayer is seeking rectification:

(i) TDS on salary details

(ii) TDS on other than salary details

(g) Fill in all the relevant details including details of tax deducted and reported in the return of income filed earlier

(h) Click on the button of ‘Submit’ to submit the rectification request.

The TDS mismatch may also be due to error in TDS return filed by deductor. In such a situation, you should intimate the deductor about such error and require him to rectify the TDS return. 

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