Guidelines for reporting TDS transactions where amount paid to deductee has not exceeded the threshold limit in the first quarter but in subsequent quarters has exceeded threshold limit (as issued by the Directorate of Income Tax Systems)
- Flag should be selected in the field of Reason for non deduction / lower deduction / higher deduction / threshold to highlight transactions where TDS is not deducted as the threshold for deducting tax has not exceeded.
- If threshold flag is provided then rate of deduction should be 0.0000 and tax deducted / deposited (deductee) amount should be 0.00.
- Threshold flag can be quoted only against the following section codes in corresponding challan details: 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I, 194J, 194LA.
Earlier there was requirement to submit details of all payments / credits where no deduction was made in view of certificate of no deduction issued by the income-tax officer. Now details of payments / credit where no deduction was made in view of submission of self declaration under section 197A for no deduction of tax are under the following sections :
- Section 193 interest on securities ;
- Section 194A interest other than interest on securities;
- Section 194EE Payment of NSS deposit;
- Section 194 Dividend;
Self declaration is given by senior citizens in Form 15H and in Form 15G by others.
The existing data structure for submission of eTDS statement already lists above requirement in Annexure 6 Code B : In case of no deduction on account of declaration under section 197A. Allowed only for section 194, 194A, 194EE and 193.
Hence, the provision to submit such details was existing even at present. The amended rule has now made it mandatory to provide such details. It is due to NOTIFICATION NO. 57/2011 [F.NO. 142/23/2011-SO(TPL)]/S.O. 2429 (E), DATED 24-10-2011. Relevant abstract of the notification is given below.
(b) in sub-rule (4), after clause (vi), the following clause shall be inserted, namely;
“(vii) furnish particulars of amount paid or credited on which tax was not deducted in view of the furnishing of declaration under sub-section (1) or sub-section (1A) or sub-section (IC) of section 197A by the payee.”