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Guidelines to avoid different types of TDS defaults

Following are some important facts to be adhered to, while submitting TDS statements, to avoid each type of Default: 

• Late Payment Defaults:

• Short Payment Defaults:

  • All the taxes deducted must be deposited with challan 281 quoting correct TAN, Assessment Year, Minor Head etc.
  • Challan details/BIN details quoted in the statement should be correct. Challans can be validated by using Challan Status Inquiry(CSI) file. Correct details can also be verified at TRACES in “Challan Status” menu under “Statement Status” after login.
  • There should not be any difference in the amounts quoted in “Deducted” and “Deposited” columns of the deductee rows.
  • Challans quoted in the statement must have balance available for consumption against specified deductee rows. Available balance can be verified at TRACES in “View Consumption Details” under “Statements/ Payments” menu after login.
  • Government Deductors need to report Book entry flag as “Y” in challan details.  

• Short Deduction Defaults:

  • Taxes must be deducted at correct rates specified in the Act. The Rate table can be accessed at TRACES for correct tax rates.
  • Correct flags (A, B, C, T and Y) must be raised for no deduction/ lower deduction/ higher deduction, as appropriate.
  • The PAN for deductees must be valid and correct. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs. 
  • Correct and valid 197 Certificates must be specified. E-tutorial can be referred to for the purpose of validation. 
  • For 24Q statements, correct flags should be raised for Woman/ Man/ Senior Citizen/ Super Senior Citizen deductees, as may be appropriate. 
  • DTAA flag “B” must be raised under section 195 of the Act, at the time of filing 27Q  statements. 

Late Deduction Defaults:

  • Taxes must be deducted at the time of Payment or Credit, whichever is earlier.  

Late Filing Defaults:   


CBDT simplifies procedure for filling 15G, 15H forms

The CBDT has simplified the procedure for filing of self declaration by individuals in 15G and 15H forms, allowing them to do it electronically.

Forms 15G and 15H are filed by persons whose incomes are below the taxable threshold, to seek exemption from TDS on interest income.

The procedure for submission of the forms by the deductor has also been simplified and now they would allot a Unique Identification Number (UIN) to all self-declarations, according to a Central Board of Direct Taxes (CBDT) notification.

The revised procedure shall be effective from October 1, 2015.

In order to reduce the cost of compliance and ease the compliance burden for both, the tax payer and the tax deductor, the CBDT has simplified the format and procedure for self declaration of Form No 15G or 15H.

The particulars of self declarations would have to be furnished by the deductor along with UIN in the quarterly TDS statements.

The requirement of submitting physical copy of Form 15G and 15H by the deductor to the Income Tax authorities has been dispensed with. The deductor will, however, be required to retain Form No 15G and 15H for seven years.

While Form 15H is submitted by senior citizens, 15G can be filed by an individual whose taxable income is less than the exemption threshold.

To view the notification issued by income tax department, click here


PAN allotment by Income Tax Department will remain suspended between 05.10.2015 to 09.10.2015

The income tax department is in the process of upgrading software applications. It is for information of PAN applicants that PAN allotment by Income Tax Department will remain suspended between 05.10.2015 to 09.10.2015 due to PAN data migration activity. However, PAN applications, through on- line and off-line modes, will continue to be received by PAN service centers of M/S NSDL and M/s UTIITSL. The back log of PAN application will be cleared within three days.

Source: TIN-NSDL


Due Dates for the month of October 2015

7 October 2015 – ​​Due date for deposit of tax deducted/collected for the month of September, 2015​

7 October 2015 – ​​​​Due date for deposit of TDS for the period July 2015 to September 2015 when Assessing Officer has permitted quarterly deposit of TDS under section 192,  194A,  194D or  194H​

15 October 2015 – ​​​​​Quarterly statement of TDS/TCS deposited for the quarter ending September 30, 2015 when tax is deducted/collected by a person other than an office of Government​​

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

30 October 2015 – ​​Quarterly TDS certificate (in respect of tax deducted for payments other than salary by a person not being an office of the Government) or quarterly TCS certificate (in respect of tax collected by any person) for the quarter ending September 30, 2015

31 October 2015 – ​​​Due date for furnishing of Annual audited accounts for each approved programmes under  section 35(2AA)​

31 October 2015 – ​​​​​​Copies of declaration received in Form No. 60/61 (not being received at the time of opening a bank account) during April 1, 2015 to September 30, 2015 to the concerned Director (Investigation)​​

31 October 2015 – ​​Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending September 30, 2015​​

31 October 2015 –  ​Quarterly statement of tax deducted if the deductor is an office of the Government for the quarter ending September 30, 2015​​

Source: TRACES

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