TDS/TCS Compliances for Fourth Quarter of F.Y.: 2012-13

1. Last date for payment of tax deductions/collections for March – 30th April, 2013
2. Last date of filing of TDS/TCS returns for Q4 of F.Y.: 2012-13 – 15th May, 2013
3. Last date for issuance of the TDS/TCS certificates for Q4 – 30th May, 2013

 * The above is applicable for deductors other than the Office of the Government.

 

 

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Penalty on Non deduction, late deduction and late deposit of TDS

Non deduction, late deduction and late deposit of TDS may lead you to face following consequences:

      1. Interest on late deduction /deposit of Tax at source.
      2. Dis-allowance of Expenses, on which tax has not been deducted /deposited u/s 40(a)(ia)            
      3.  Penalty and prosecution.(271C and 276B)

I. Interest on late deduction and delayed deposit of TDS

As per income-tax , interest is payable under the following two circumstances:

  1. Tax is not deducted , when it was deductible
  2. Tax once deducted, is not paid on or before due date

Rate of interest

W.e.f 01-07-2010

  • From the date when TDS was deductible till date of actual deduction,rate of interest is 1% p.m.
  • For delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.5% p.m

 Prior to 01-07-2010

From FY 2006-07 onwards for delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.0% p.m

Due date of payment of interest

Interest must be calculated and paid before etds filing of the quarter:

Quarter 1 – Jul-15

Quarter 2 – Oct-15

Quarter 3 – Jan-15

Quarter 4 – May-15

Calculation of Interest

  1. Interest is to be calculated for every month or part of a month comprised in a period, 
  2. Any fraction of a month shall be deemed to be a full month 
  3. The amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees and 
  4. for this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated.

One Day delay may charge you Interest @ 3 %

II. Dis allowance of Expenses due to non payment of Tax deducted at source or non deduction of Tax

 Section 40(ia):  Following amounts shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”,

  1. any interest,or
  2. commission or
  3. brokerage or
  4. rent or royalty or
  5. fees for professional services or 
  6. fees for technical services payable to a resident, or 
  7. amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), 

on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid.

Expense allowed if tax deposit before the due date of deposit Income Tax return : if Tds is not deposited with due date but deposited on or before the due date specified in sub-section (1) of section 139 then expenses will not be disallowed.

Expenses will be allowed in actual year of tds deposit : Where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.

Rationalisation of the provision relating to dis allowance of expenditure under Section 40(a)(ia):

The amendment for Rationalisation of the provision relating to dis allowance of expenditure under Section 40(a)(ia) is in consequence of the amendment in Section 201. As per the amendment if the payer fails to deduct the whole or any part of the tax as per the provision of Chapter XVII-B on the amount paid 

to any resident payee, the payer shall not be deemed to an assessee in default in respect of such tax, if the following conditions are satisfied:

  • (a) The payee has furnished his return of income under Section 139;
  • (b) He has included such income in the return of  income;
  • (c) He has paid the tax due on the income declared in such return of income 
  • (d) The payer furnishes a certificate of chartered accountant in form 26A(download link given below)

The date of payment of taxes by such payee shall be deemed to be the date of filing of his return of  income.

 Accordingly, as per the  amendment in Section 40(a)(ia) where an assessee fails to deduct whole or part of tax at source on any sum but is not deemed to be an assessee in default under Section 201(1), then for the purpose of Section 40(a)(ia) the assessee shall be deemed to have deducted and paid the tax on such sum on the date of filing of the return of income by the resident payee and therefore, no dis allowance under Section 40(a)(ia) shall be made.

 III. Penalty for failure to deduct tax at source.

 Section 271C. If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B 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 as aforesaid.This penalty is imposable by Joint Commissioner.

Prosecution for failure to deduct /deposit tax at source

Section 276B. If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B then, such person he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.This penalty is imposable by Joint Commissioner.

 

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New release of TDSMAN -smart and easy software for eTDS and eTCS returns (F.Y.: 2013-14)

TDSMAN (F.Y.: 2013-14) has been released with more features for the convenience of its users for both Regular Returns & Correction Returns. The software will support F.Y. 2013-14 and previous years starting from 2005-06. You will be able to transfer all your data from the 2012- 13 version to 2013-14 version .The eTDS return for Q4 of 2012-13 may be filed from this new version.

TDSMAN is fully compliant with the recent changes pertaining to shifting from NSDL to TRACES by the Income Tax Department.

TDSMAN is the complete eTDS & eTCS return filing software exclusively designed as per the system specified by NSDL in line with the requirements of the Income Tax Department, Govt. of India. The software enables eTDS & eTCS return generation for all types of Forms – 24Q, 26Q, 27Q, 27EQ. It also prints all the TDS, TCS certificates – Form 16, 16A, 27D. TDSMAN is capable of handling large volumes of data spread over multiple assessees. Its usability is ideally fabricated to suit all types of assessees including corporates, banking and insurance companies, government bodies and above all the SMEs & individuals. The software with its robustness, convenience and speed is being extensively used by CAs, Tax Consultants, TIN-FCs and other professionals for processing of eTDS & eTCS data for their clients.

 General Features

  • Supports unlimited deductors / companies, deductees, employees
  • Preparation of eTDS & eTCS returns for Forms 24Q, 26Q, 27Q, 27EQ
  • Auto-generation of Form 16, 16A, 27A, 27B, 27D
  • Printing of TDS, TCS certificates – 16, 16A, 27D
  • Auto calculation of TDS, TCS
  • One key stroke preparation of NIL returns
  • Option to automatically download CSI file
  • Preparation of correction returns
  • Interface for online requests to TIN
  • Single interface for most correction types
  • Colour highlighting in correction return for easy identification
  • To simplify your corrections, software retains the original values for later reference
  • In-built utility for Import / Export of data from MS-Excel
  • Option of importing / retrieving data from Consolidated files
  • Data import facility from previous TDSMAN versions
  • Data backup and restore facility
  • Automatic data validation & FVU generation in just one click with the integrated File Validation Utility (FVU)
  • Convenient & systematic data entry with user-friendly interfaces
  • Facility to auto update the software
  • Generation & printing of various types of customized utility reports
  • Report generation in PDF, Word and Excel formats
  • The software covers F.Y. 2013-14 and previous financial years since commencement of quarterly eTDS & eTCS returns
  • Auto selection of the FVU with respect to the financial year selected
  • Instant display of the file validation errors at the same location
  • Software is provided with User Manual, Video Demo for easy understanding
  • Information update on emails

 As usual with the patronage of its user base, TDSMAN would endeavour to lead from the front in responding to statutory changes and obligations as and when announced.

To download free trial of TDSMAN software, click here

To watch video demo of TDSMAN software, click here

To place an order for TDSMAN software, click here

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FAQ on Registration on ITD e-filing website & How to upload ITR

What information do I need, to register myself in the ITD e-filing website?

Answer: The basic information required is: PAN, Full Name, Date of Birth/Incorporation, Communication Address, valid e-mail id, Mobile number and Digital Signature Certificate (if applicable). For persons other than Individuals, in additional to the above mentioned information, PAN details and contact details of the Principal contact are required.

What happens if I dont register?

Answer: Without Registration, the user cannot e-File the Income Tax Return. Also, additional services like Viewing 26AS Statement, status of Income Tax Return, File Rectification, Refund re-issue request, etc cannot be availed. The registration needs to be done only once.

Should Registration be made in the name of the Company or can a director register in his/her name and file the Income Tax Return of the company from his/her User ID?

Answer: No. A companys PAN is required to be registered on ITD e-filing website for uploading the Income Tax Return of the company. The same applies for Firms, LLP, AOP, BOI, Local Authority, Trust, Artificial Juridical Person and Co-operative society.

What do I do next after registration?

Answer: After registration, ITD will send an activation link on the registered email ID of the taxpayer. Once the taxpayer clicks on the link, the User ID of the taxpayer becomes functional. Now, the taxpayer can login into ITD e-filing website. Therefore, taxpayer is advised to provide a valid e-mail ID during registration process.

In case, taxpayer has entered the wrong email-id during registration and taxpayer is not able to activate the User ID, what is to be done by taxpayer to activate the account?

Answer:

  • Click on the Resend Activation Link found on the Login page of e-filing website (click Login Here button under Registered User section on the right hand side of the home page).
  • On the page, select the User type and enter details like PAN, Date of Birth/ Incorporation, Password and new e-mail ID. Note: In addition, a Chartered Accountant needs to enter the Membership Number and Enrollment Date.
  • The Activation link is sent to the new e-mail ID. Click on the Activation link. If you do not click the activation link, the registration process is incomplete.

What should I do when the authorized signatory (Principal Contact) assigned in e-Filing application has changed?

Answer: You can assign the new authorized signatory (Principal contact) in e-Filing application. LOGIN and GO TO Profile Settings  â„ Update Principal Contact details, and update the PAN and Contact details of the new principal contact. On submission, the details are updated. To update the DSC of the new principal contact, GO TO Profile Settings  â„ Register Digital Signature Certificate.

What is e-Filing of Income Tax Returns?

Answer: Filing of Income Tax returns is a legal obligation for every person whose total income for the previous year has exceeded the maximum amount that is not chargeable to Income Tax under the provisions of the I.T Act, 1961. Income Tax Department has introduced a convenient way to file these returns online using the Internet. The process of electronically filing your Income tax returns through the Internet is known as e-filing of returns.

How is e-Filing different from the regular filing of returns?

Answer: E-filing offers convenience of time and place to tax payers. This facility is available round the clock and returns can be filed from any place in the world. It also eliminates/ reduces interface between assessee and tax officials. The procedure of e- filing is explained under Help section  â„ e-Filing.

What are the steps in brief to upload the Income Tax Return on this website?

Answer:

  • Visit ITD e-filing website https:\\incometaxindiaefiling.gov.in
  • On homepage, GO TO Downloads section and select applicable Income Tax Return Form of the relevant Assessment Year OR Login to e-Filing application and GO TO Downloads â„Income Tax Return Forms and select applicable Income Tax Return Form of the relevant Assessment Year.
  • Download the excel utility of the Income Tax Return (ITR).
  • Fill the excel utility and Validate.
  • Generate an XML file and save in desired path/destination in your desktop/system.
  • LOGIN to e-Filing application and GO TO  â„e-File  â„Upload Return.
  • Select the Income Tax Return Form and the Assessment Year.
  • Browse and Select the XML file
  • Upload Digital Signature Certificate, if available and applicable.
  • Click SUBMIT.
  • On successful upload, Acknowledgement details would be displayed. Click the link to view or generate a printout of Acknowledgement/ITR-V Form.

What do I need to do post uploading the Income Tax Return?

Answer:

  • If the Income Tax Return is uploaded with DSC (digitally signed), on generation of Acknowledgement the Return Filing process is complete. The return will be further processed and the Assessee will be notified accordingly. Please check your emails on these notifications.
  • If the return is not uploaded with a DSC (digitally signed), on successful upload of e-Return, an ITR-V Form will be generated. This is an Acknowledgement cum Verification form. A duly verified ITR-V form should be signed and submitted to CPC, Post Bag No.1, Electronic City Post office, Bangalore-560100 by Ordinary Post or Speed Post (without Acknowledgment) ONLY, within 120 days from the date of e-Filing. On receipt of the ITR-V at CPC, the return will be further processed and the Assessee will be notified accordingly. Please check your emails on these notifications.

What is the Pre-Fill button in the Excel Utility and how can I use it?

Answer: The Pre-Fill button in the Excel utility helps the taxpayer in pre-filling Personal and Tax information as available with Income Tax Department. To pre-fill, Login to e-Filing application and GO TO  â„Downloads  â„Download Pre-filled XML to the desired path/destination in your desktop/system. Open the Excel utility (ITR) and click the Pre-fill button. This will require you to select the path/destination where you have saved the XML and click OK. The details will be uploaded into your utility. You may edit the tax details, if needed).

If I have paid excess tax, how and when will it be refunded to me?

Answer: To claim the excess paid tax, the assessee has to be file Income Tax Return, irrespective of the fact whether the income is taxable or not. The amount of refund will be remitted to the assessee either through cheque or directly to the bank account as mentioned in the ITR form after the processing of the return.

I have forgotten my password. What is to be done to retrieve it?

Answer: Click on the Forgot password link on the homepage of ITD e-filing website. In the Forgot Password page, enter your User ID and Captcha Code, and click Continue. Select one of the below options on the next page:

1) Answer Secret Question- Enter your Date of Birth/Incorporation and answer the secret question, OR

2) Upload the Digital Signature Certificate (DSC) which is registered on e-Filing application.

Click Submit. On successful submission of request, a new system generated Password is sent to your registered e-mail ID. LOGIN to e-Filing web-site using the system generated Password. On first LOGIN using this password, you are prompted to change the Password. Enter a New Password according to the format prescribed and SUBMIT. Please note that your password cannot be the same as your three previous passwords.

Can a LEGAL HEIR e-File the Income Tax Return of the deceased assessee?

Answer: Yes. A Legal Heir can file Income Tax Return, View Status of Income Tax Return, ITR-V Acknowledgment and other filing status in respect of the Income Tax Return of the deceased person for the e-Filed Assessment Year.

The Assessing Officer (AO) designation and code as per Know your PAN is different from my Jurisdictional AO.

Answer: Please apply before the jurisdictional Assessing officer to initiate the process of acquiring PAN by Jurisdictional Assessing Officer.

How can taxpayer find his Assessing Officer (AO) Code?

Answer: GO TO Know your Jurisdictional A.O. under Services menu on the home page of ITD e-filing website. Enter your PAN and know your Jurisdictional AO.

How can I come to know about TAN of my deductor?

Answer: Kindly refer to Form 16 or Form 16A issued by the employer for the TAN. You can also see the details of deductor in the 26AS Tax credit statement made available by the NSDL in its website, which can be easily accessed through ITD e-filing website.

How do I know whether my e-Return is being processed at CPC Bangalore or the Assessing Officer?

Answer: The taxpayer is advised to LOGIN to the website and GO TO My Account  â„ My Returns/Forms and check the status of Income Tax Return for a given Assessment Year.

Is it mandatory to file return of income after getting PAN?

Answer: No. The liability to file return of income is governed by different set of parameters laid down in the Income Tax Act 1961.

Who can file the return for a deceased assessee?

Answer: A legal heir can file the return in such case.

How can I assign myself as a LEGAL HEIR for a deceased person?

Answer: To register as a Legal Heir, the deceased and the requester should be registered in the e-Filing application.
Below are the steps for registration of Legal Heir:

Step 1-LOGIN to e-Filing application and GO TO  â„My Account  â„Register as Legal Heir.

Step 2 – Provide details and attach a zip file containing the documents (a copy of the Death Certificate, a copy of PAN card of the deceased, self attested PAN card copy of Legal Heir and Legal Heir certificate).

Step 3-Click on the SUBMIT button.

Step 4-The request will be sent to the e-Filing Administrator.

Step 5-Requester should send a hard copy of the Death Certificate, a copy of PAN card of the deceased, self attested PAN card copy and Legal Heir certificate to the CPC- eFiling Administrator, Post Bag No. 12, Electronic City Post office, Bangalore- 560100 within 30 days.

Step 6– On receiving the documents, the e-Filing Administrator will review and approve and a confirmation e-mail is sent to the registered e-mail ID.

Once assigned as a Legal Heir, can I e-File for the deceased person for compulsory DSC cases?

Answer: Yes. You should register your Digital Signature Certificate (DSC) in e-Filing application, if not already registered. Once registered, use your DSC to file for the deceased person.

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