Key Features – File Validation Utility (FVU) version 5.7 & 2.153

File Validation Utility (FVU) version 5.7

  • In case of non-availability of PAN of deductee for Form 27EQ, two new fields are introduced under deductee details which are as below:
  1. Field no. 31) Deductee is Non-Resident (value ‘Y’ or ‘N’ is allowed under this field).
  2. Field no. 32) Deductee is having Permanent Establishment in India (value ‘Y’ or ‘N’ is allowed under this field).
  3. The above referred validations are applicable for Regular and Correction (C3) statements pertaining to FY 2017-18 onwards.
  • Nature of remittance option present under deductee details for Form 27Q is to be made mandatory from FY 2013-14 onwards.
  1. It will be applicable to correction (C3) and regular statements.

File Validation Utility (FVU) version 2.153

  • There is no changes from the previous version 2.152

These versions of FVU is applicable with effect from January 11, 2018.

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Calculation of Late Payment Interest

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If the tax is deducted on 8th June it becomes due on 7th of next month i.e. 7th July (except for March for which it is 30th April), if this tax is deposited on 10th July to the government’s account i.e. not before 7th of July then it attracts interest at the rate of 1.5% per month or part of the month i.e. 2 months in this case, as it attracts interest from 8th June totalling to 3% of the amount.

Difference between Late Payment & Late Deduction

Interest on Late Payment of TDS

Interest on Late Deduction of TDS

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Calculation of Late Deduction Interest

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If tax was deductible on 2nd June (i.e. at the time of giving credit or actual payment of the dues whichever is earlier) but was deducted on 3rd  June then the interest charged would be 1% of the amount for the late deduction.

Difference between Late Payment & Late Deduction

Interest on Late Deduction of TDS

Interest on Late Payment of TDS

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Difference between Late Payment & Late Deduction

The difference between late payment and late deduction:

Late payment: After the tax is deducted at source it has to be deposited into the government account by 7th of the next month (except March for which it is 30th April). If it is deposited later than the due date, late payment interest is charged. The rate of interest for late payment is 1.5% per month or part of a month of the delay.

Late deduction: If the tax is deducted later than the date on which it was deductible i.e. either at the time of giving credit or at the time of payment of the dues, whichever is earlier, late deduction interest is charged. The interest for late deduction is at the rate of 1% per month or part of a month of the delay.

Calculation of Late Payment Interest

Calculation of Late Deduction Interest

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