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Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

Guidelines for an employer to deduct TDS and issue Form 16

Following are the guidelines for an employer to deduct TDS and issue Form 16:

  • Make mandatory for all the employees to declare previous salary, investment proofs and TDS details, if any.
  • Employer has to consider the declaration before deducting TDS from salary.
  • Fill Annexure II for all employees who work or worked for any period of time during the current financial year.
  • Issue Form 16 to all the employees whose TDS was deducted.
  • It is the duty of an employee to provide valid PAN. If employee has worked with more than one employer in a financial year, employee should declare previous salary and TDS detail, if any, with the current employer.

Source: TRACES

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CPC(TDS) releases Online Correction Facility for 26QB Statements

Dear Buyer of Immovable Property,

The Centralized Processing Cell (TDS) is pleased to inform the release of Online Correction facility for TDS statements filed in form 26QB, with respect to tax deducted at source on transfer of Immovable Property exceeding Rs. 50 Lakhs.

The Online Correction facility at TRACES can be used for closure of the following TDS Defaults, arising due to incorrect data entry in the 26QB statement:

  • Late Filing Fee is levied in accordance with section 234E of the Income Tax Act, 1961 where a person fails to file the TDS statement within the prescribed due date
  • Short Deduction and Interest thereupon is computed when the rate at which TDS deducted is less than 1% of the consideration for transfer
  • Late Deduction Interest is applicable, if the date of deduction is after the date of payment or credit
  • Late Payment Interest is applicable, when deductor deposits the tax deducted after prescribed due date for deposit of challan deposit

Requirements for Online Corrections:

  • Registration at TRACES is mandatory for using the Online Correction facility. Please refer to the e-tutorial for Registration at TRACES

The Correction facility can be availed by using Digital Signature Certificate (DSC). Users without DSC, have an option to facilitate the correction through TDS Assessing Officer.

Following fields of 26QB statements can be corrected using the Online Correction facility:

  • PAN of Buyer Details
  • PAN of Seller Details
  • Amount Paid/Credited
  • Date of Payment/Credit
  • Date of Tax Deduction
  • Financial Year
  • Property Details

Corrections related to email address; Mobile Number and Address of the Property will not require DSC or Assessing Officer’s approval.

Please refer to the FAQ’s and e-tutorials on 26QB corrections for any assistance with the above. If you still face any problems, you are requested to raise your grievance through “Request for Resolution” on TRACES with screen print of the error.

For further assistance, you may contact our Helpdesk at 18001030344, 0120-4814600. CPC (TDS) is committed to provide the best possible services to you.

CPC (TDS) TEAM

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CPC (TDS) Follow up: 26QB Statement not yet filed for Purchase of Property during FY 2014-15

CPC (TDS) has issued an advisory communication to the buyers 0f immovable property regarding filing of TDS statement in Form 26QB.

The issued communication has been given below:

Date of communication : 05/03/2016

Dear Buyer of Immovable Property, PAN (XXXXXXXXX),

As per the information received in Annual Information return (AIR) through Registrar/Sub-registrar, you have executed transaction for Purchase of Immovable Property exceeding Rs. 50 Lakhs (Rupees Fifty Lakhs) during Financial Year 2014-15. However TDS Statement in Form 26QB has not yet been filed by you. In this regard, your urgent attention is invited to the following, with respect to filing of TDS Statement in Form 26QB and Issuance of TDS Certificates in Form 16B downloaded from TRACES.

1.Mandatory Filing of Form 26QB:

As per Finance Act of 2013, TDS is applicable on transfer of immovable property, wherein the consideration of the property exceeds or is equal to Rs 50 Lakhs. Sec 194 IA of the Income Tax Act, 1961 read with Rule 30, 31 & 31A of Income Tax Rules states that:

(a) For all such transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration.

(b) Tax so deducted should be deposited to the Government Account through e-tax Payment option (Netbanking) or any of the authorised bank branches. Any sum so deducted under section 194-IA shall be required to be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made.

(c) PAN of seller as well as Purchaser should be mandatorily furnished in an online Form (Form 26QB) for furnishing information regarding the property transaction. Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on the website www.tin-nsdl.com.

(d) TDS certificate in Form 16B is required to be issued by the Buyer of property to the Seller, in respect of the taxes deducted and deposited into the Government Account. Form 16B will be available for download by Registering on the website of Centralized Processing Cell (TDS) www.tdscpc.gov.in.

2.Issuance of TDS Certificates in Form 16B downloaded from TRACES:

It is mandatory for all buyers to issue TDS certificates after generating and downloading the same from TRACES, “TDS Reconciliation Analysis and Correction Enabling System”(www.tdscpc.gov.in). The TDS Certificates downloaded only from TRACES Portal will hold valid.

3.Implications of Non/Late filing of TDS Statements:

For Buyer of Property: In case of default on account of Non / late filing of Form 26QB, a fee shall be levied u/s 234E of the Act. He shall be liable to pay, by way of fee, a sum of Rs. 200 (two hundred) for every day during which such failure continues. The buyer would also be liable for defaults of Late Deduction, Late Payment and Interest thereon. Penalty under S. 271H may also be levied on him by the Assessing Officer.

For Seller of Property: Non/ Late filing of Form 26QB results into the TDS Credit not being available to the seller for claiming the amount of tax already deducted from the payments made.

In case of any clarification/suggestion, you may write to us on (info@tdscpc.gov.in). Please click the links for any assistance on Filing 26QB, Downloading Form 16B 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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