Banks suggest reintroduction of deduction u/s. 80CCF & increase in 194A TDS limit

Existence of Efficient Financial Markets is Paramount for Achieving Economic Growth: FM

The Union Finance Minister Shri P .Chidambaram said that existence of efficient financial markets i.e. both banks and capital markets, is paramount for achieving economic growth. He said that without vibrant and viable financial market architecture, there cannot be any sustainable economic growth. The Finance Minister said that efficient intermediation by financial markets lead to higher economic growth by increasing savings and their optimal allocation for productive uses. Shri Chidambaram said that banks and other intermediaries including Non-Banking Financial Companies (NFBCs), Insurance and Pension Funds and Mutual Funds etc. are mechanisms to channel savings to investment. They have the capacity to promote economic growth as they allocate savings to those investments which have potential to yield higher returns, the Minister added. The Finance Minister Shri P.Chidambaram was making his opening remarks during his fourth pre-budget consultation meeting with representatives of banking and financial institutions here today. The Finance Minister further said that major steps have been taken to reform India regulatory framework to adopt best international practices. Reforms in equity markets lead the market development process. The Finance Minister said that results of the reforms taken by the Government are encouraging and the country is now one of the most vibrant and transparent markets in the world.

Along with the Finance Minister, both the Minister of State for Finance Shri S.S. Palanimanickam and Shri Namo Narain Meena, Adviser to the Finance Minister, Shri Parthasarthy Shome, Finance Secretary, Shri R.S. Gujral, Secretary, Financial Services & Disinvestment, Shri D.K. Mittal, Revenue Secretary, Shri Sumit Bose, Secretary, Department of Economic Affairs, Shri Arvind Mayaram, Chief Economic Adviser, Dr. Raghuram R. Rajan, and Chairperson, CBEC were present among others.

About 22 participants representing different Banking and Financial Institutions participated in the aforesaid meeting. The major participants included Dr. K.C. Chakraborty, Deputy Governor, Reserve Bank of India, Shri Pratip Chauduri, Chiarman,State Bank of India, Shri M. Narendra, CMD, Indian Overseas Bank, Shri K.R. Kamath, CMD, Punjab National Bank, Shri Arun Kaul, CMD, UCO Bank, Shri M.V. Tanksale, CMD, Central Bank of India, Shri R.M. Malla, CMD, IDBI, Shri Prakash Bakshi, Chairman,NABARD, Shri D.K. Mehrotra, Chairman, LIC, Shri G. Srinivasan, New India Insurance, Shri T.C.A. Ranganathan, E CMD, XIM Bank, Shri S.K. Goel, IIFCL, Ms. Chanda Kochhar,CEO, ICICI Bank, Shri R.V. Verma, CMD, National Housing Bank, Shri Sunil Kaushal, Standard Chartered Bank, Shri Uday Kotak, Kotak Mahindra Bank Ltd, Shri Atul Kumar Rai, IFCI, Ms Shikha Sharma, CEO, Axis Bank, Shri Rana Kapoor, YES Bank, Shri Raman Aggarwal, FIDC, Shri Deepak S. Parekh, IDFC and Shri D. Krishna, Urban Cooperative Banks.

The participants made various suggestions and recommendations for consideration of the Finance Minister for the forthcoming Union Budget 2013-14. These proposals and recommendations include extension of Agriculture Interest Subvention Scheme to Self Help Groups, interest amount for the purpose of TDS be increased from Rs. 10,000/- to Rs. 25,000/- on fixed term deposits with banks, tax exemption of Rs. 20,000/- under section 80CCF for investing in Infrastructure Tax Free Bonds be reintroduced, bringing more transparency in gold and real estate transactions at par with equity transactions, to bring housing sector within the definition of infrastructure and encouraging long term funds for investment in housing sector among others.

Other suggestions and proposals include to allow banks to issue tax free infrastructure bonds, treat Urban Cooperative Banks at par with those in rural areas, to exempt social security insurance schemes from service tax and tax concession on contribution to leave encashment as on group gratuity etc.

Beside above, some other suggestions were to include NBFCs and AFC (Asset Financing Companies) for promoting financial inclusion and grant them tax parity with banks by extending service tax benefits which are available to banks & public financing intuitions etc but not extended to NBFCs, giving exemption to NBFCs-AFCs from TDS under section 194A from the Income Tax Act and tax benefit for income deferral under section 43D and allowing depreciation @ 30-50 per cent for construction equipments among others.

Some other proposals include monetizing of the real estate assets of the railways and central government Ministries/Departments, inclusion of different subsidies in direct benefit transfer scheme, exemption from PAN for TDS in case of small investors in rural areas and boost to asset reconstruction companies among others.

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How to register your TAN at TRACES: FAQ

      27 Comments on How to register your TAN at TRACES: FAQ

TRACES stands for TDS Reconciliation Analysis and Correction Enabling System and has been set up by TDS Centralised Processing Cell of the income-tax department.

TRACES will integrate the following components:

  • Tax information Network
  • Automated TDS Challan Matching
  • TDS Defaults Processing
  • IVR/ Call Centre
  • Web Portal

New Web Portal : https://www.tdscpc.gov.in

How to register at TRACES, FAQ is given below:

I am a registered user in TIN. How do I login to TRACES?

If you already have a TAN Account in TIN, you can use the existing User Id and Password as in TIN to login to TRACES. However, if you are not able to register on TRACES using existing User Id and Password, you can register as new user on TRACES.

 I am a registered user at TIN but I have forgotten my User Id and / or Password. How do I register on TRACES?

If you are not able to register on TRACES using your TIN User Id and Password (for your TAN Account), please register as a new user. Click on ‘Register as New User’, select type of user as ‘Deductor’ and proceed. This will create your new profile as deductor in TRACES and you will be able to login to TRACES after you activate the account.

 How do I activate my account?

After completing registration, you will receive an activation link and activation code on your email id registered with TRACES. You will also receive an activation code through SMS on your mobile number registered with TRACES. Click on the activation link and enter User Id and the activation codes received through email and SMS and proceed. After successful activation, you can log in to TRACES. Click here  for more details.

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
    • Token Number 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
  • 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

The Token Number that I have provided on Step-1 is different from the Token Number which appears on Step 2 of registration process. Why is it so?

 Token Number (Provisional Receipt Number) that is displayed on Step 2 is for the last accepted regular statement.

 In Step 1, you can enter Token Number of any accepted Regular statement filed by you on or after April 1, 2010 or of anyaccepted Correction statement filed by you from April 1, 2010 to October 15, 2012.

Hence, Token Numbers in Step 1 and Step 2 are not required to be same.

I have entered incorrect communication details (Email Id or Mobile Number) during registration. What should I do now as I am not able to activate / login to my TRACES account?

Please wait for 24 hours for your account to be deactivated and try again.

Your registration process is valid only for 24 hours and you must activate your account within this time using the activation codes sent through Email and SMS.

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.

 How can I ensure that I have entered correct 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.

What is Authentication Code?

Authentication code is generated when you clear validation details for a statement for certain functionalities such as Download Form 16 / 16A, Download NSDL Conso File, Download Justification Report, etc. Authentication code generated for a particular statement will be valid for the calendar day (i.e., an authentication code generated on 10-Dec-2012 can be used only on 10-Dec-2012 to clear validation details for the same statement. It will not be valid the next day).

 Why does TRACES have different types of Authentication Codes?

There are two types of validations after which Authentication Code will be generated.

Statement Specific Validation On this screen, details about a particular statement will be asked.

 For e.g., If you want to download NSDL Conso File for Financial Year 2010-11, Quarter 2 and Form Type 24Q, you have to provide challan details and PAN-Amount details for this statement. The Authentication Code generated will be for that particular statement

Generic Validation  On this screen, details about a generic statement will be asked.

 For e.g., If you want to update your profile, you have to provide challan details and PAN-Amount details about a generic statement will be asked. The Authentication Code generated will be for the FY, Quarter and Form Type displayed on the validation screen

It is advised to copy and save the Authentication Code so that you can reuse it for that day for the same statement.

Should I enter Authentication Code if I am trying to clear validation details for the first time during a day?

No. While trying to clear validation details for first time, you will not have the Authentication Code, hence you are not required to enter this value. You can proceed by entering other details for validation on this screen (i.e., Token Number, CIN / BIN Details and PAN-Amount). On completion of validation, Authentication Code will be generated and displayed when you proceed to next page.

Is it mandatory to enter Authentication Code?

 No. If Authentication Code has been generated for the statement for which you are filling up validation details, you can enter it in the field provided for the same. It will facilitate users to avoid filling up validation details repeatedly in case user logs in again at different time of the day. If it has not been generated or if you have not saved it, you can proceed by entering other details on this screen (i.e., Token Number, CIN / BIN Details and PAN-Amount).

 What is the advantage of Authentication Code?

Authentication Code is generated to facilitate users to avoid filling up of validation details repeatedly in case user logs in again at different time of the day.

Can I download NSDL Conso File for a quarter for which correction statement has been filed after 18-Oct-2012?

No. Such Conso file will not be available presently. Communication regarding the same will be published on TRACES once the Conso file will be available.

I am not able to download Justification Report. Why?

 Justification Reports can be downloaded till Financial Year 2011-12. Justification report will not be available if your statement has no defaults.


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TRACES: new website to replace TIN-NSDL for TDS return Filing, Matching, correction, Form 16/16A, FVU files

TRACES stands for TDS Reconciliation Analysis and Correction Enabling System and has been set up by TDS Centralised Processing Cell of the income-tax department.

TRACES will integrate the following components:

  1. Tax information Network
  2. Automated TDS Challan Matching
  3. TDS Defaults Processing
  4. IVR/ Call Centre
  5. Web Portal

New Web Portal: https://www.tdscpc.gov.in

The new portal has been created using latest technology to enhance swift interaction between the deductor, deductee, income-tax department and CPC.

The following features are/will be available to deductors and deductees:

  • Dashboard giving summary of Deductors account
  • Online registration of TAN
  • Online filing of TDS Statements
  • Online corrections of TDS statements
  • Default Resolution
  • View Form 26AS
  • Download Form 16/16A/Consolidated TDS File
  • Grievance registration and resolution

Not all of the above features have been activated so far.

NSDL web site V/s TRACES website: Current Status

Currently several online services are provided to deductors and deductees on TIN site by NSDL.

The following table presents various services at both the sites:

 

 

Registration at TRACES:

Users who have already registered at NSDL TIN site, need not register again on TRACES. Their registration details are migrated and they can login at TRACES with their NSDL-TIN login details. However Tin Login details will work at TRACES only single time and you will be asked to create new id immediaely. Fresh registrations on NSDL site have been stopped

New registrations can be done at TRACES site and online help is available under the FAQ link. Click here

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No deduction in certain cases – specified payment under section 197A(1F)

SECTION 197A OF THE INCOME-TAX ACT, 1961 – DEDUCTION OF TAX AT SOURCE – NO DEDUCTION IN CERTAIN CASES – SPECIFIED PAYMENT UNDER SECTION 197A(1F)

NOTIFICATION NO. 56/2012 [F. NO. 275/53/2012-IT(B)], DATED 31-12-2012

In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified below, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), excluding a foreign bank, namely:-

 (i) bank guarantee commission;

(ii) cash management service charges;

(iii) depository charges on maintenance of DEMAT accounts;

 (iv) charges for warehousing services for commodities;

(v) underwriting service charges;

(vi) clearing charges (MICR charges);

(vii) credit card or debit card commission for transaction between the merchant establishment and acquirer bank.

  • This notification shall come into force from the Ist day of January, 2013.

 

 

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