TDSMAN Blog

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Important steps/procedures with respect to payment of taxes

Taxpayers, deductors or collectors can pay direct taxes through Authorised Bank branches either physically, through ATM or through internet.

Type of Challans to be used for tax payments

Challan Description
ITNS 280 For depositing Advance tax, Self Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.
ITNS 281 For depositing TDS/TCS by company or non company deductee
ITNS 282 For depositing Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax and Hotel Receipt tax
ITNS 283 For depositing banking cash Transaction Tax and FBT

 Do’s

1. Mandatory details required to be filled in challan

a) PAN/ TAN

b) Name and address of the taxpayer (for physical challans)

c) Assessment Year

d) Major Head, Minor Head

e) Type of payment

2.  Use challan type 281 for deposit of TDS/TCS payments.

a) Quote the correct TAN, name & address of the deductor on each challan

b) Verify your TAN details from Income Tax Department web-site (www.incometaxindia.gov.in) prior to depositing TDS/TCS.

c)  Use separate challans to deposit tax deducted under each section and indicate the correct nature of payment code in the relevant column in the challan.

d) Use separate challans to deposit tax deducted for different types of deductees.

3. For Non TDS/TCS payments use challan types 281/282/283 as applicable.

a) Quote the correct PAN, name & address on each challan used for depositing the tax.

4. Mention/verify the correct Financial Year and Assessment Year in the challan before tax payment.

5. Payment confirmation: – Ensure that the Challan Identification Number (CIN) has been provided on the counterfoil issued after successful payment of tax. Challan Identification Number (CIN) comprises of the following:

a) Seven digit BSR code of the bank branch where tax is deposited

b) Date of Deposit (DD/MM/YY) of tax

c) Serial Number of Challan

6. Verify the tax payment information submitted to the bank.

a) Details available on the TIN website www.tin-nsdl.com under the link “Challan Status Inquiry”

b) In case the details are not available then you may contact the bank branch where the tax has been deposited.

7. In case the counterfoil issued by the bank has been misplaced, kindly contact the respective bank/branch for details regarding the same

8. Rectification/Correction in the Challan:- For rectifying errors in a physical challan, taxpayer may approach the Bank. Prescribed timelines for the same are as per table below:

Sr. No. Type of correction on challan Period for correction request (in days)
1 PAN/TAN Within 7 days from challan deposit day
2 Assessment Year Within 7 days from challan deposit day
3 Total Amount Within 7 days from challan deposit day
4 Major Head Within 3 months from challan deposit day
5 Minor Head Within 3 months from challan deposit day
6 Nature of payment Within 3 months from challan deposit day

 Click here for more details.

9. Please visit TIN website www.tin-nsdl.com for details on preparation and furnishing TDS/TCS statements.

Don’t

1. Do not use incorrect type of challan for payment of taxes.

2. Do not make mistake in quoting PAN / TAN.

3. Do not give PAN in place of TAN or vice versa.

4. Do not use a single challan to deposit tax deducted for corporate and non corporate deductees.

5. Do not use same challan for depositing various types of tax like advance tax, self-assessment tax etc.

6. Do not make mistake in the F.Y. and A.Y. to be indicated in the challan.

7. If you have multiple TANs for the same division filing TDS statements, do not use different TANs in different challans. Use one TAN consistently and surrender the others.

Source: Tin-nsdl

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FAQ about Conso File

1. What is a conso file?

It is the consolidated data of the statements processed (regular & correction) for the relevant Financial Year, Quarter and Form Type.

2. Why is a conso file required?

While filing correction for a particular Financial Year, Quarter and Form Type, conso file provides details about all the previous corrections made in the relevant statement. This file gets updated each time a correction is filed for the particular Financial Year, Quarter and Form Type. Hence, each time a correction statement is to be filed for the given combination, a fresh conso file is required.

3. From which year is conso file available on TRACES?

Conso file is available on TRACES from FY 2007-08.

4. What would be the file extension for the consolidated file?

The file extension would be in “.tds” format.

5. How can I download conso file?

Login to TRACES as deductor and submit download request for the conso file under ‘Request for Conso File’ in ‘Statements / Payments’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.

6. Is it mandatory to download a conso file while filing correction statement?

Yes. It is mandatory, as it enables accuracy during correction filing.

7. What is the password for opening Conso file?

The password for opening Conso file will be your TAN_Request Number in capital letters.

8. I want to submit request to download the conso file, will system allow me to pass through validation screen without any challan and deductee detail?

Yes, you can download the conso file even if you have zero challan detail and no deductee record for the statement.

9. I have filed a paper return, and want to download the consolidated file for the same on TRACES. How should I proceed?

Conso file will not be available in case of paper return. Refer e–Tutorials for more details.

10. While entering validation details for submitting request to download conso file, I have entered details correctly in Part 1 and Part 2 of the validation screen, yet it shows error as ‘Invalid Details’ in Part 1 or Part 2. What should I do?

Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement.

11. While entering validation details for submitting request to download conso file, I am getting an error, ‘More than one PAN in the challan’. What should I do?

In such case, CIN of that challan should be entered which has been claimed for at least two, three or more PANs.

12. While entering validation details for submitting request to download conso file, I am getting an error, ‘Invalid Token Number’. How do I rectify the error?

Enter Token Number for latest accepted statement (regular or correction) for the statement for which conso file is being requested.

13. While submitting request to download conso file, I am getting an error message that request has failed. What should I do?

In such cases, request for downloading conso file needs to be resubmitted.

Source: TRACES

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CPC (TDS) reminder to report tax deducted against collection of 197 certificates for FY 2013-14

CPC (TDS) has observed that some deductors have not filed TDS Statements for FY 2013-14, despite collecting lower deduction 197 Certificates from their deductees. The CPC (TDS) has issued a communication in this regard and has suggested deductors to file TDS Statements and take appropriate action for reporting deduction of tax against certificate 197 while filing.

The issued communication has been given below:

Dear Deductor,

Centralized Processing Cell (TDS) has observed from its records that you have not filed TDS Statements for Financial Year 2013-14, despite collecting lower deduction 197 Certificates from your deductees.

Please note that the obligation to report each transaction in the relevant quarter, including, where tax has been deducted at lower rates, falls on the deductor. Also, Rule 31A(4)(v) of Income Tax Rules specify to furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee.

About Certificate u/s 197:

Assessing Officer issues a certificate for lower deduction of tax:

  • To the deductee, if is a resident or
  • To the deductor, where the deductee is a non-resident
  • If the Assessing Officer is satisfied that the total income of the deductee justifies deduction of tax at a lower rate.

Accordingly, the clause provides that the deduction shall be made in accordance with the certificate, until such certificate is cancelled by the Assessing Officer or the expiry of the validity of the certificate, whichever is earlier.

Actions to be taken for reporting deduction of tax against certificate 197:

  • Please validate the PAN of the deductee submitting the certificate.
  • The Certificate should be valid for the PAN, Section and Rate which has been mentioned in the statement being filed.
  • Check that the certificate is valid for the relevant Financial Year.
  • Verify that the threshold limit for the certificate has not been exceeded in previous quarters.
  • Correct certificate number should be quoted in the statement. Example of Correct Certificate Number – 2XXXAH7XXE.
  • Raise the Flag “A” in the statement for a certificate u/s 197.
  • Please ensure that the Certificate Number is mentioned in the Deductee detail of the statement. (For F.Y.2013-14 Onwards)

It is therefore, suggested to file your TDS Statements and take appropriate action with respect to the above while filing. 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

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FAQ on TDS /TCS statement

1. Who is required to file e-TDS / e-TCS statement?

As per Income Tax Act, 1961, all corporate and government deductors / collectors are mandatorily required to file their TDS / TCS statements on electronic media (i.e. e-TDS / TCS statements). However, deductors / collectors other than corporate / government can file either in physical or in electronic form.

2. What are the due dates for filing of statement?

Form 24Q, Form 26Q, Form 27Q, Form 27EQ

Quarter

Period

Government Deductor

Non-Government Deductor

Q1

1 Apr – 30 June 31st July 15th July

Q2

1 July – 30 Sept 31st Oct

15th Oct

Q3

1 Oct – 31 Dec 31st Jan

15th Jan

Q4 1 Jan – 31 Mar 15th May

15th May

3. What will be the consequences if I do not file TDS / TCS statement within due date?

There will be a levy of Rs. 200.00 per day under section 234E of the IT Act, 1961 from the due date till the date when statement is filed.

4. Is there any penalty for non-filing of TDS / TCS statements?

Yes. If TDS / TCS statement is not filed for one year from the due date of filing, there would be a penalty of minimum Rs. 10,000.00 to Rs. 1,00,000.00 for not filing TDS / TCS statement under section 271H of the IT Act, 1961.

5. How can a Deductor / Collector check the status of TDS / TCS statement filed?

Status of TDS / TCS statements filed by a deductor can be checked by logging in to TRACES as deductor. This facility would be available only to a registered user of the portal.

6. What are the different statuses available on TRACES regarding TDS / TCS statement?

Following processing status shall be displayed for regular statement:

  • Pending for Processing
  • Processed for Form 26AS
  • Processed without Defaults
  • Processed with Defaults

Following processing status shall be displayed for correction statement:

  • Pending for Processing
  • Processed for Form 26AS
  • Processed without Defaults
  • Processed with Defaults
  • Rejected

7. What are the common reasons for rejection of correction statement by TDS-CPC?

Following are the common reasons for rejecting a correction statement:

  • TAN is not valid as per data at TDS CPC
  • Statement corresponding to regular token number / previous token number field, as given in correction return, does not exist
  • Previous token number does not correspond to the last accepted correction statement at TDS CPC
  • Correction is filed for a regular return which is in cancelled state
  • In a correction statement, below are the verification keys which should match with the corresponding fields of regular statement :
    • RRR assessment year
    • Return Financial Year
    • Periodicity
    • Previous Token number
    • Last TAN of Deductor
    • Receipt number of Original / Regular Return
    • Form number
  • Sum given in 27A form should match with the sum of deducted amount of deductee records given in the correction statement

8. What are the reasons to reject the correction in deductee records by TDS-CPC?

Rejection reasons pertaining to deductee details are as follows:

  • In a correction statement that updates / deletes deductee rows, verification keys from deductee data that should match with corresponding fields in regular / previous return are – Last PAN, Last total amount deducted at source, Last total amount deposited
  • Updation / deletion on deductee record is submitted in a correction statement but this deductee record does not exist in previous/ regular return
  • Valid PAN to invalid PAN update is not allowed for a deductee row
  • Deductee detail record number should be unique in case of addition of deductees
  • If value of Reason for non-deduction / lower deduction / higher deduction / threshold field as per regular or last correction statement is ‘C’ , then update can be performed only on ‘PAN’, ‘Amount of Payment’ and ‘Date of Payment’
  • Deletion of deductee record having value C in Reason for non-deduction / lower deduction/ higher deduction / threshold field, is not allowed
  • Valid PAN to another valid PAN update can be done only once for a given deductee row

9. What are the reasons to reject the correction in salary detail records by TDS-CPC?

Rejection reasons pertaining to salary details are as follows:

  • In case of salary detail PAN update or delete of salary detail record, last total gross income should match with corresponding value in regular / previous statement
  • Salary detail record on which correction is filed does not exist in the regular / previous return
  • In case of addition of salary detail record, the record number should be unique and in sequence with the existing records in regular / previous return

Source: TRACES

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