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Invalid / Not Available PANs reported consistently while submitting TDS Statements – CPC(TDS)

CPC(TDS) has issued a reminder communication to all deductors regarding invalid/non available PANs. The issued communication has been given below:

Dear Deductor,

CPC(TDS) has observed from its records that you have consistently reported Invalid / Not Available PANs in the Quarterly TDS Statements submitted during the period from Q4, 2012-13 to Q3,2013-14. Please note that you are amongst deductors, who have reported highest number of above mentioned incorrect PAN records in their TDS Statements.

Please refer to the following details with respect to Invalid PANs reported in your TDS Statements:

Deductor’s 
TAN

Count of PAN Errors 
Q4,2012-13

Count of PAN Errors 
Q1,2013-14

Count of PAN Errors 
Q2,2013-14

Count of PAN Errors 
Q3,2013-14

         

Implications of reporting Invalid/ Not Available PANs in TDS Statements :

  • The Deductor will not be able to provide TDS certificate to the deductee, if valid PANs are not reported.
  • The correct deductee will not be able to avail the credit of TDS deducted for taxes deducted.
  • Under section 277 of the Income Tax Act, 1961, if a person makes a statement in any verification under this Act or under any rule made there under, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, is punishable.

Actions to be taken :

  • Please note that Correct reporting at the first instance will help in avoiding submitting Correction Statements.
  • In case of any errors observed in reporting, the Corrections must be reported at the earliest to avoid unwarranted delays.
  • The Deductor must ensure that the PANs for deductees reported in TDS Statements are valid and correct. TAN-PAN Master can be downloaded from TRACES and should be used to file statements to avoid quoting of incorrect PANs.Please Login to TRACES and navigate to “Dashboard”to locate “PAN Verification” in the Quick Links menu. The functionality to download Consolidated TAN – PAN File has also been provided that includes all the PANs attached with the respective TANs.
  • You can use the facility of Online Corrections at TRACES with Digital Signature. Please refer to e-tutorials for assistance.

It is advised to avoid submitting TDS Statements with Invalid PANs and take corrective actions at the earliest.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

 

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CPC(TDS) – Solutions to common enquiries

TRACES has several easy-to-use, online e-Tutorials and FAQs that can be effectively used to get ready answers to your questions.

Following are some of the most common reasons deductors enquire or call TRACES:

What is the status of processing of statements?

  • CPC(TDS) is glad to inform that the peak load of statement processing has already been taken care of.
  • The status of processing of statements can be checked in your Dashboard after you login to TRACES.
  • Please wait for 4 days after the statements have been filed before reaching CPC(TDS) with an enquiry on the above.

Having issues with downloading of TDS Certificates/ Consolidated Files?

  • If you are unable to submit request for downloading of TDS Certificates or Conso Files, please first check the status of processing of relevant statements. You will be able to submit requests only after the statement has been processed.
  • Please check the correctness of KYC information for submitting download requests to ensure successful submission of the request.
  • TRACES is currently experiencing huge volume of requests for download of TDS Certificates. However, they are being made available within a day of submission of request. Please wait for 24 hours before reaching out to CPC(TDS) with an enquiry.
  • Please refer to our e-Tutorials for detailed assistance on downloading TDS Certificates.
  • To convert form 16/Form 16A in pdf format, PDF generation utility is required 
  • For downloading Consolidated files, the e-Tutorial can be referred.

Have a problem in password required for various process at TDSCPC?

  • Click here to Check password for consolidated file, form 26AS, Form 16, Form 16A, Justification report

Have a query related to Intimations sent by CPC(TDS)?

  • Please download the Justification Report to view the details of Defaults in the TDS Statements.
  • Please refer to the e-Tutorial for detailed assistance.

Have a query related to Registration/Login?

  • Please submit correct KYC information for Registration/ Login. Please refer to our e-Tutorial for assistance.
  • You are requested to wait for an hour, if the Account is locked due to incorrect password. Please retrieve a fresh password and the detailed procedure is specified in the e-Tutorial.
  • If you need assistance for User ID, the e-Tutorial can be referred for detailed steps.
  • Please use both the Activation Codes sent on the Registered Mobile Number and e-mail address for the purpose of successful activity.
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Flag raised for 15G/H despite Income exceeding the amount of exemption

CPC(TDS)  has observed from its records that Flag “B” (for 15G/H Forms) has been wrongly raised in the quarterly TDS Statements. CPC(TDS) has issued a letter to all deductors in this regard.

The letter produced is given as under:

Dear Deductor ( TAN XXXXXXXXXX ),

CPC(TDS) feels glad to provide you with the new feature of downloading Form 27D, the Tax Collection Certificate for Deductees forming part of TCS Statements, filed in the form of 27EQ.

Centralized Processing Cell (TDS) has observed from its records that Flag “B” (for 15G/H Forms) has been wrongly raised in the quarterly TDS Statements as per the provisions of section 197A(1B) of the Income Tax Act, 1961. Following are the provisions of section 197A(1B) for your ready reference:

“The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax“.

What is Form 15G/ H and its relevance:

  • Under section 197A of the Income Tax Act 1961, Form 15G / H is a self-declaration, which is provided by a person resident in India (not being a Company or Firm) to their deductor that the tax on his estimated total income of the previous year, in which such income is to be included in computing his total income, will be NIL.
  • The Declaration is made in the following Forms:
    • Form 15H – For Senior Citizens
    • Form 15G – For other than Senior Citizens

Consequences, if deductor wrongly raises Flag “B” for Forms 15G/H:

If the deductor raises Flag “B” for non-deduction of tax, despite the total payments made by him exceeding the taxable amount, this results into incorrect reporting in the TDS Statements.

Your attention is invited to provisions of section 201 of the Act, which reads as follows:

Where any person who is required to deduct any sum, does not deduct or does not Pay or after deduction, fails to pay,

the whole or any part of the tax, then such person shall be deemed to be an assessee in default in respect of such tax.

Under section 277 of the Act, if a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true is punishable.

This may be noted that obligation to report each transaction correctly in the TDS statements, falls on the deductor and non-compliance amounts to incorrect verification of correctness of TDS statement.

You can reach out to us on ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

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Deductees reported in TDS Statements with structurally Valid, but actually Invalid PANs

CPC(TDS) has observed from its records that many deductors have reported deductees with invalid PANs in the quarterly TDS statements. These PANs appear structurally valid but they are invalid.

CPC(TDS) has issued a letter to all deductors in this regard. The letter produced is as follows:

Dear Deductor ( TAN XXXXXXXXXX ),

Centralized Processing Cell (TDS) has observed from its records that you have reported deductees with invalid PANs in your quarterly TDS statements. These PANs appear structurally valid, however, they are actually invalid, as they are not available in the PAN Master records.

For example, ARUPS4625S appears to be a valid PAN according to the alphabets and numerals in its structure, however, this is an invalid PAN, as this is not available in PAN Master.

What is the impact:

  • The impact of such errors is significant in nature, in view of following:
    • As per section 206AA, the tax is to be deducted at a higher rate, in case of reporting of invalid PANs. Therefore, Short Deduction is charged even if the tax has been deducted at the Section Rate, due to the applicability of section 206AA.
    • The deductor will not be able to generate TDS Certificates for their deductees with invalid PANs.
    • The taxpayer will not be able to avail correct TDS Credits

What actions to be taken:

  • The impact of such errors is significant in nature, in view of following:
    • PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to Login to TRACES and navigate to “Dashboard” to locate “PAN Verification” in the Quick Links menu.
    • You can also use “Consolidated TAN – PAN File” that includes all the valid PANs attached with the respective TANs. To avail the facility, Login to TRACES and navigate to “Dashboard” to locate “Consolidated TAN – PAN File”.
    • To correct an invalid PAN reported earlier, a C5 Correction Statement is required to be filed.
    • The PANs can also be corrected using our Online Correction facility with Digital Signatures. To avail the facility, you are requested to Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.

You can reach out to us on ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

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