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smart & easy software for eTDS & eTCS returns

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

Frequently Asked Questions (FAQ) on Filing of TDS /TCS statement

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.

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

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.

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.

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.

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

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 

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 

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

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Key Features of File Validation Utility (FVU) version 2.143

  • Remark “T” (i.e. for transporter transaction and valid PAN is provided) under deductee details (Annexure I) will be applicable from Q3 of FY 2009-10 onwards. (Said validation will be applicable only for Form 26Q).
  • Total Tax deducted amount should be equal to Total Tax Deposited under Deductee details (i.e. Annexure I).
  • This version of FVU will be applicable with effect from June 20, 2015.
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Important steps 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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TDS/TCS Rates Chart for F.Y. 2015-16

The TDS and TCS rates chart for the financial year 2015-16 has been given below:

TDS rates for F.Y. 2015-16 

Nature of Payment Made To Residents

Cutoff (Rs.)

Company / Firm / Co-operative Society / Local Authority

Individual / HUF

If No / Invalid PAN

Section – Description

                       Rate  (%)                                          

192 – Salaries - NA Avg rates 30
192A-Premature withdrawal from EPF ( wef 01.06.2015) 30000 NA 10 20
193 – Interest on securities - 10 10 20
194 – Dividends 2500 10 10 20
194A – Interest other than interest on securities – Others 5000 10 10 20
194A – Banks(Time deposits) 10000 10 10 20
194A – Banks (Recurring deposit)(01.06.15) 10000 10 10 20
194A – Deposit in Co-op Banks (01.06.15) 10000 10 10 20
194B – Winning from Lotteries 10000 30 30 30
194BB – Winnings from Horse Race 5000 30 30 30
194 C – Payment to Contractors - - - -
194C- Payment to Contractor – Single Transaction 30000 2 1 20
194C-Payment to Contractor – Aggregate During the F.Y. 75000 2 1 20
194C- Contract – Transporter who has provided valid PAN (up to 31.05.2015) - - - 20
194C- Contract – Transporter not covered under 44AE (wef 01.06.2015) 30000 / 75000 2 1 20
194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN (wef 01.06.2015) - - - 20
194D – Insurance Commission 20000 10 10 20
194DA Payment in respect of life insurance policy(applicable from 01.1.2014) 100000 2 2 20
194E – Payment to Non-Resident Sportsmen or Sports Association - 20 20 20
194EE – Payments out of deposits under NSS 2500 20 - 20
194F – Repurchase Units by MFs - 20 20 20
194G – Commission – Lottery 1000 10 10 20
194H – Commission / Brokerage 5000 10 10 20
194I – Rent – Land and Building – furniture – fittings 180000 10 10 20
194I – Rent – Plant / Machinery / equipment 180000 2 2 20
194IA -Transfer of certain immovable property other than agriculture land (w.e.f 1-6-2013) 5000000 1 1 20
194J – Professional Fees 30000 10 10 20
194LA – Immovable Property 200000 10 10 20
194LB – Income by way of interest from infrastructure debt fund (non-resident) - 5 5 20
194LB – Income by way of interest from infrastructure debt fund (non-resident) - 5 5 20
Sec 194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012) - 5 5 20
194LD – Interest on certain bonds and govt. Securities(from 01-06-2013) - 5 5 20
196B – Income from units - 10 10 20
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) - 10 10 20
196D – Income of FIIs from securities - 20 20 20

Note:

1. No TDS on service Tax :As per circular 01/2014 dated 13.01.2014 TDS is not applicable on service tax part if service tax is shown separately.

2. TDS at higher rate ie., 20% has to be deducted if the deductee does not provide PAN to the deductor.(read detail u/s 206AA)

3. No TDS on Goods Transport  :No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.(read details here No TDS on Goods Transport )up to 31.05.2015.

4. TDS on Good Transport wef 01.06.2015 : TDS shall be applicable on payment to transporter  wef 01.06.2015 .However tds exemption will be available only to those transporters

  • who own ten or less goods carriages at any time during the previous year.
  • such a transporter would also need to furnish a declaration to that effect to the payer along with the PAN.

5. Surcharge on tax is not deductible/collectible at source in case of  resident individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary.

6. Surcharge on TDS is applicable on payment made to non resident other than company ,if payment is in excess of one crore.(12 %)

7. Surcharge on TDS on salary is applicable if taxable salary is more than one crore @ 12 %

8. In the case of Company other than Domestic Company,

 (i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees;

 (ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees.

9. No Cess on payment made to resident: Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.

TCS rates for F. Y. 2015-16

Section

Nature of Payment

 

F. Y. 2015-16

Individual / HUF

Other

206C Scrap 1 1
206C Tendu Leaves 5 5
206C Timber obtained under a forest lease or other mode 2.5 2.5
206C Any other forest produce not being a timber or tendu leave 2.5 2.5
206C Alcoholic Liquor for human consumption 1 1
206C Parking Lot, toll plaza, mining and quarrying 2 2
206C

Minerals, being coal or lignite or iron ore (applicable from July 1, 2012)

1

1
206C

Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2012)

1 1

 

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