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smart & easy software for eTDS & eTCS returns

TDSMAN Blog - smart & easy software for eTDS & eTCS returns

Closure of defaults in Quarterly TDS Statements from Financial Year 2007-08 onwards

CPC(TDS) reminder communication to banks regarding closure of defaults in Quarterly TDS Statements from Financial Year 2007-08 onwards.

The issued communication has been given below:

The Principal Officer
Name: XXXXXXX
TAN: XXXXXXXXXXXX

Please refer to the earlier CPC(TDS) Communication regarding defaults in TDS Statements for different TAN’s associated with your PAN. The Centralized Processing Centre (TDS) has observed from its records that there are Defaults in Quarterly TDS Statements submitted by different TANs associated with your PAN.

The details of the TANs and outstanding Defaults against them as per Financial Year have been provided as annexed with this letter. Form Type and Quarter wise details of the above are also available to you to be viewed online on the web-portal TRACES (www.tdscpc.gov.in) under “Aggregated TAN compliance Report”.

Please note that:

  • Order u/s 201 Intimation u/s 200A of the Income Tax Act, 1961 intimating the outstanding demand for different years has already been sent by Income Tax Department on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement to the relevant deductors (TANs).
  • This information is being provided to you for further necessary action for closure of Short Payment Defaults at the earliest by moving deductee rows/ matching/tagging of Unmatched challans or by payment/ tagging in case of Insufficient challans.
  • This would be helpful for you in complying with the provisions of section 40(a)(ia) of Income Tax Act, 1961 and to ensure that correct information is disclosed in paragraph 21b(ii) of Tax Audit Report(Form 3CD) u/s 44AB of the Income Tax Act.

Actions to be taken by the TAN holders associated with you:

  • Download “Aggregate TDS Compliance Report” from our portal TRACES for the details of Short Payment defaults against each TAN associated with your PAN.
  • Quarter-wise Justification Reports can be downloaded by the referenced TANs from our portal TRACES for the details of Short Payment defaults.
  • Please use Challan ITNS 281 for payment of TDS in case of Insufficient Challans.
  • Online Correction facility provided by TRACES should be used for closing the above defaults by suitably moving deductee rows/ matching/ tagging of challans.

For any assistance, you can write to Corporate_connect@tdscpc.gov.in or call on +91 120 4816103.

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

Kailash V Gautam
Assistant Commissioner of Incomer Tax
Centralized Processing Cell- TDS

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Closure of Short Payment Defaults in excess of Rupees 50 Lakh in TDS Statements filed since FY 2007-08 onwards

CPC(TDS) has issued a follow up communication to all deductors regarding closure of Short Payment Defaults in excess of Rupees 50 Lakh in TDS Statements filed since FY 2007-08 onwards.

The issued communication has been given below:

Dear Deductor,(TAN: XXXXXXXXXXXX)

As per the records of Centralized Processing Cell (TDS), there are outstanding Short Payment Defaults exceeding Rs. 50 Lakh, with respect to TDS Statements filed by you since Financial Year 2007-08 onwards.

Immediate Attention:

  • Online Correction facility at TRACES should be used for closure of Short Payment defaults. CPC (TDS) processes such statements within 24 hours of submission of such corrections.
  • To facilitate non-intrusive TDS Compliance, Short Payment Defaults ought to be closed at the time of submitting requests to download Conso Files and TDS Certificates from the web portal TRACES.
  • Since the due date for Q4 filing of TDS statements and subsequent distribution of TDS Certificates is approaching fast, you are requested to close the above defaults without any further loss of time.

Consequences of failure to pay the demand:

  • As per the provisions of section 220 of the Act, Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
    • If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
  • If any person fails to deduct or pay the whole or any part of the tax, 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 under Section 271C of the Act.
  • Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
  • Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

Action to be taken:

  • Use Challan ITNS 281 to pay the demand with your relevant Banker, if there are no challans available for consumption. Please wait for 2/3 days for the challan to be updated with TRACES. 
  • Please download the Justification Report from our portal TRACES to view your latest outstanding demand.
  • Please use the Online Corrections facility on TRACES to submit corrections, to payoff/ close the demand. 
  • To avail the facility, please Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down list. You can refer to our e-tutorials for necessary help. 
  • In case of Short Payment Defaults due to Unmatched Challans, please use Tag Unmatched Challan facility using Online Corrections. 
  • In case of Short Payment Defaults due to Insufficient Challans, please use Move Deductee facility using Online Corrections. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. 

For any further assistance, you can also write to 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

Source: TRACES

Please refer to the other similar communications from TRACES:

CPC(TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 25 Lakh in TDS Statements filed since FY 2007-08 onwards

CPC(TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 10 Lakh in TDS Statements filed since FY 2007-08 onwards

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CPC (TDS) Advisory to deductors making TDS payment through multiple challans in a month

CPC (TDS) has issued an advisory communication to deductors stating about the establishment of  processing logic in the system that can accept a Single Challan per month for reporting of Tax Deposited. 

The issued communication has been given below:

Dear Deductor,(TAN: XXXXXXXXXXXX)

As per the records of the Centralized Processing Cell (TDS), it has been observed that you have used multiple challans in a month for payment of Tax Deducted.

For Deductors’ convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan per month for reporting of Tax Deposited in following circumstances :

1. Situation 1: Where Payment of Tax Deducted is required under “different sections” of the Income Tax Act, 1961:

  • The CPC (TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
  • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also.
Situation prior to Financial Year 2012-13

Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details

Situation with effect from Financial Year 2012-13

Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement

2. Situation 2: Where Payment of Tax Deducted is required for “different Assessment Years”:

  • In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any can be carried forward to the next year for claim in the TDS statement.
  • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2, 3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.

3. Situation 3: Where different challans have been used for the purpose of reporting multiple Deductees associated with “different branches with same TAN”:

  • The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.
  • A single challan can be used for the purpose of reporting Tax Deducted for such deductees.
  • Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.

Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. For any assistance, you can write to 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

Source: TRACES

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Deductor’s Survey Questionnaire: Your Feedback Matters!!

CPC(TDS) has released a survey “Deductor’s Survey Questionnaire: Your Feedback Matters” with an objective to understand the satisfaction of the deductors since the time CPC(TDS) and TRACES website came into existence.

In this regard CPC(TDS) has issued a communication to deductors which is given below:

Dear Deductor (TAN XXXXXXXXXX)

Greetings from CPC(TDS) team!

CPC(TDS) feels glad to release a survey “Deductor’s Survey Questionnaire: Your Feedback Matters” with an objective to understand your satisfaction since the time CPC(TDS) and TRACES website came into existence. CPC(TDS) has undertaken transformational initiatives to improve overall service levels for deductors and tax payers by following:-

  • Faster Processing of Quarterly TDS Statements, including Corrections
  • Enablement of Online Correction facility.
  • e-tutorials and FAQs for educating user community.
  • Timely communication for correct reporting of TDS / TCS.
  • Assisting deductors/collectors for rectification of Defaults.

Through this survey, CPC(TDS) would like to collect your valuable opinion in enhancing the services offered. The Link for the survey is provided below and you are requested to fill this survey with your honest and unbiased feedback after logging on TRACES portal.

Link: https://www.tdscpc.gov.in/app/login.xhtml

For any assistance, you can call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

Source: TRACES

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