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smart & easy software for eTDS & eTCS returns

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

Avail the Benefit of Intermediate Default Communications and Avoid Intimations from CPC (TDS)

Dear Deductor,

As you may be aware by now that the Centralized Processing Cell (TDS) is informing you of PAN and Challan Errors, through an Intermediate Communication, during processing of Original Quarterly TDS Statements, before Defaults are finally computed and Intimations are generated.

On receipt of the above communication, you are encouraged to take corrective action within 7 days of receipt of such communication. With this, you will be able to avoid PAN Errors and Intimations from CPC (TDS) on account of Short Payment and Short Deduction Defaults in the relevant TDS Statement.

Central point of the process:

  • Identify errors in PANs or Challans in preliminary check, owing to inadvertent Data Entry errors
  • Facilitate their corrections before CPC (TDS) computes defaults in TDS statements
  • You are notified of the Defaults through the Intermediate Default communication by way of the following:
    • e-mail at the Registered e-mail address at TRACES
    • SMS at Registered Mobile Number with TRACES
    • Message will be delivered to the Deductor’s Inbox in TRACES
  • The above correction needs to be carried out by using Online Correction feature at TRACES after 24 hours of the receipt of the Intermediate Communication and must be availed within 7 days of receipt of such communication.

What are the advantages:

  • You would have information of PAN and Challan Errors, before the Original Statement is completely processed for Defaults and Intimations are generated.
  • Correction to above errors using Online Correction can be submitted before final processing of statements and you will be able to avoid Short Payment and Short Deduction Defaults.
  • Saves your Administrative Costs, as above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.
  • Help your Deductees to get Correct Tax Credit in their 26AS statements, at the earliest opportunity.
  • Save Paper, Save Environment! The life of One crucial tree can be saved by avoiding use of 8,000 sheets of paper. Avoidance of Intimations from CPC (TDS) resulting into savings in respect of paper, printing and postage costs. This also supports the “Green Initiatives” of CPC (TDS).

What actions to be taken:

  • Please use the Intelligence, Simplicity and Convenience of Online Correction facility at TRACES to correct errors notified through the communication.
  • Online Correction facility provides ease of convenience and can be availed on anytime anywhere basis by Logging into TRACES. Online Correction is a quick and easy way for closure of Defaults in TDS Statements and correcting PAN/ Challan Errors.
  • All relevant information at the portal is pre-populated along with flags for incorrect entries, which assists in avoidance of further Data Entry errors by the user

You are also encouraged to avail full benefits of Online Corrections and you can access the e-tutorial at TRACES.

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

CPC (TDS) TEAM

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CPC (TDS) thanks deductors for availing Online Correction facility at TRACES

CPC (TDS) has issued a communication in which it has thanked deductors for promptly availing the Online Correction facility at TRACES on receipt of Intermediate Defaults Communication. 

The issued communication has been given below: 

Dear Deductor,(TAN: XXXXXXXXXXXX)

Centralized Processing Cell (TDS) Congratulates you and Thanks you for promptly availing the Online Correction facility at our web-portal TRACES, after receipt of “potential PAN/ Challan errors in TDS statement” through Intermediate Defaults Communication.

You are amongst those of over 1 lakh Deductors, who have successfully availed the facility to submit corrections to their TDS Statements. Your corrective action during the course of processing of Original TDS Statements helps you immensely in following ways:

  • Avoid TDS Defaults in the TDS Statements filed by you
  • Avoid issuance of Intimations by CPC (TDS)
  • Avoid filing of Correction Statements later after the Defaults have been computed by CPC(TDS)
  • Improved TDS Compliance

The Online Correction feature provisioned at TRACES is a significant offering from CPC (TDS), which has added a new dimension to improve web-based deductor services. As you would have personally experienced, the web-based functionality highly weighs over the traditional Correction filing process due to it’s Intelligence, Simplicity and Convenience:

  • Online Correction facility provides ease of convenience and can be availed on anytime anywhere basis by Logging into TRACES.
  • The user requesting the correction is authenticated by the system through KYC or Digital Signature Certificate providing assurance of Data Integrity to the TAN holder.
  • Web-based service, without any fee, substantially reduces costs associated with traditional Correction filing process.
  • Saves manpower effort by doing away with the hassles of submitting the Correction statements through TIN Facilitation Centre.
  • All relevant information at the portal is pre-populated along with flags for incorrect entries , which assists in avoidance of Data Entre errors by the user.
  • Online Correction is a quick and easy way for closure of Defaults in TDS Statements and correcting PAN/ Challan Errors.
  • Improved trun-around for Corrections submitted online, which are usually processed within 24 hours of submission.

You are also encouraged to avail full benefits of Online Corrections and you can access the e-tutorial at TRACES. We also invite your suggestions to further improve the feature and you are requested to feel free to revert.

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

CPC (TDS) TEAM

Source: TRACES

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Tax implications of fixed deposits

If you are in the higher tax bracket, that is 20% or 30%, make sure that you pay the additional interest before filing your tax returns.

The biggest disadvantage of FDs is that the interest earned is subject to taxation. This eats into the returns.

Taxed as per income bracket

The interest earned on the FDs is added to the depositor’s income and taxed as per income bracket. This reduces its attractiveness, especially for those in the highest tax bracket.

Pay tax even if bank cuts TDS

The bank will cut the tax at source (Tax Deducted at Source) before paying the interest, if the interest exceeds Rs 10,000 in a financial year.  But this is at the marginal rate of 10%. If you are in the higher tax bracket, that is 20% or 30%, make sure that you pay the additional interest before filing your tax returns. This is a common mistake most depositors do. It is a hassle if you receive a notice from the Income-Tax department for non payment of taxes. You will have to prove that not paying the tax was not deliberate and you may have to pay tax plus the penalty for the delay.

For ensuring that the bank has deducted TDS on your FD by checking Form 26AS. But sometimes if the bank deducts TDS but fails to submit the same to the I-T department, you may still get a notice.

If your PAN card details are not updated with the bank, the TDS will be deducted at 20%. And if you are in the 10% tax bracket, this will mean having to file for refund while filing tax returns, which can be a hassle. These are some of the things to keep in mind.

Form 15G and 15H

If your income is below the taxable limit and you have no then submit Form 15G to avoid TDS. For senior citizens whose income is below the taxable limit the form is 15H.

Reduce your TDS

You can also reduce your TDS by spreading your deposits across several banks so that the interest earned in a financial year remains less than Rs 10,000. But this will only reduce the TDS. You will still have to pay income tax as per your tax bracket.

Source: Business Standard

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