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Inappropriate usage of Digital Signature Certificates (DSC) for availing services of TRACES

CPC (TDS) has observed from its records that Online Corrections have been submitted by deductors on TRACES by using Digital Signature Certificate but there are no Registered Digital Signature Certificates (DSC) available currently in their profile.

CPC (TDS) has issued an advisory communication in this regard which has been given below:

Dear Deductor (TAN)

As per the records of Centralized Processing Cell (TDS), it has been observed that Online Corrections have been submitted by you on TRACES by using Digital Signature Certificate. However, there are no Registered Digital Signature Certificates (DSC) available currently in your profile.

Immediate Attention:

  • The Centralized Processing Cell (TDS) has provisioned for use of Digital Signature Certificate (DSC) on its web-portal TRACES for availing various services offered by the portal. As per Section 204 read with Section 200 of the Income Tax Act, 1961 and other relevant provisions for deduction of tax “Authorized Person” is referred to as “Person Responsible”.
  • TRACES has provided facility for Admin to facilitate authorized Sub-users to carry out activities on TRACES and submit to the Admin user. The Admin user has the rights to approve the activities using the DSC.
  • For availing above services, only the DSC of the “Person Responsible”, as appearing in the “Profile” of the Deductor on TRACES, should be used. However, the system log evidences that:
  • The PAN of the Authorized Person was changed to a PAN belonging to a person other than the Authorized Person
  • The DSC of such person has been used to submit Online Corrections and
  • After completing the transaction, the PAN has later been reverted back to that of the Person Responsible, which does not have a DSC.
  • Digital Signature means authentication of any TDS electronic record. It keeps record of the person who is availing the facility. Use of Digital Signature should be made with due caution. Sharing of DSC by any person would also be liable for consequences. In accordance with the Information Technology Act, 2000, every subscriber is require to retain control of the private key corresponding to the public key listed in his Digital Signature Certificate to prevent its disclosure.

It is therefore, advised to refrain from using the Digital Signature of any person other than the Authorized Person appointed by the deductor, for carrying out any activity on TRACES.

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


Source: TRACES


Healthy Practices for Error-Free TDS Returns

Healthy practices for error – free TDS returns has been given below:
  1. Deduction/ Collection of Tax at Correct Rates.
  2. Timely Deposit of Tax Deducted at Source.
  3. Accurate Reporting of data related to tax deductions/ collections made.
  4. Submission of TDS Statements within the due dates.
  5. Verification and Issuance of TDS Certificates within time.
  6. CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
  7. User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please 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).
  8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
  9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
  10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
  11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
  12. The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

Key Features of File Validation Utility (FVU) version 4.6

  • Quoting of PAN of responsible person for deducting/ collecting tax.
  • Quoting of AIN mandatory only if the TDS/TCS has been deposited by book entry i.e.,through transfer voucher.
  • Quoting of BIN details mandatory only for the statements pertaining to FY 2013-14 onwards.
  • Update of tax deposit amount in deductee details enabled for the deductee records where tax has been deducted at higher rate.
  • Reduction in the applicable list of “Nature of Remittances” (Applicable in case of Form no. 27Q).
  • Enhancement of deduction allowed under section 80CCE from Rs. 1,00,000/- to Rs. 1,50,000/-.
  • This version of FVU will be applicable with effect from April 21, 2015.
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