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smart & easy software for eTDS & eTCS returns

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

CPC (TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 1 Crore in TDS Statements filed since FY 2007-08 onwards

CPC (TDS) has observed from its records that there are outstanding Short Payment Defaults exceeding Rs. 1 Crore, with respect to TDS Statements filed by the deductors since Financial Year 2007-08 onwards.

CPC (TDS) issued a follow-up communication in this regard which has been given below:

Dear Deductor,(TAN: XXXXXXXXXXXX)

As per the records of Centralized Processing Cell (TDS), there are outstanding Short Payment Defaults exceeding Rs. 1 Crore, with respect to TDS Statements filed by you since Financial Year 2007-08 onwards.

Immediate Attention:

  • Online Correction facility at TRACES should be used for closure of Short Payment defaults. CPC (TDS) processes such statements within 24 hours of submission of such corrections.
  • To facilitate non-intrusive TDS Compliance, Short Payment Defaults ought to be closed at the time of submitting requests to download Conso Files and TDS Certificates from the web portal TRACES.
  • Since the due date for Q4 filing of TDS statements and subsequent distribution of TDS Certificates is approaching fast, you are requested to close the above defaults without any further loss of time.

Consequences of failure to pay the demand:

  • As per the provisions of section 220 of the Act, Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
  • If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
  • If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
  • Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
  • Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

Action to be taken:

  • Use Challan ITNS 281 to pay the demand with your relevant Banker, if there are no challans available for consumption. Please wait for 2/3 days for the challan to be updated with TRACES.
  • Please download the Justification Report from our portal TRACES to view your latest outstanding demand.
  • Please use the Online Corrections facility on TRACES to submit corrections, to payoff/ close the demand.
  • To avail the facility, please Login to TRACES and navigate to Defaults tab to locate Request for Correction from the drop-down list. You can refer to our e-tutorials for necessary help.
  • In case of Short Payment Defaults due to Unmatched Challans, please use Tag Unmatched Challan facility using Online Corrections.
  • In case of Short Payment Defaults due to Insufficient Challans, please use Move Deductee facility using Online Corrections. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance.

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

Source: TRACES

Please refer to the other similar communications from TRACES:

CPC (TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 2 Crore in TDS Statements filed since FY 2007-08 onwards

CPC (TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 3 Crore in TDS Statements filed since FY 2007-08 onwards

CPC (TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 4 Crore in TDS Statements filed since FY 2007-08 onwards

CPC (TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 5 Crore in TDS Statements filed since FY 2007-08 onwards

CPC (TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 10 Crore in TDS Statements filed since FY 2007-08 onwards

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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.
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TDS and TCS Rates Chart for F.Y. 2014-15

TDS Rates for F.Y. 2014-15

Nature of Payment

Made To Residents

Threshold(Rs.)

Company / Firm / Co-operative Society / Local Authority

Individual / HUF

If No / Invalid PAN

Section – Description

Rate (%)

Rate (%)

Rate (%)

192 – Salaries

-

NA

Average rates

30

193 – Interest on securities

-

10

10

20

194 – Dividends

-

10

10

20

194A – Interest other than interest on securities – Others

5000

10

10

20

194A – Banks

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  
- Payment to Contractor – Single Transaction

30000

2

1

20

- Payment to Contractor – Aggregate During the F.Y.

75000

2

1

20

- Contract – Transporter who has provided valid PAN

-

-

-

20

194D – Insurance Commission

20000

10

10

20

194DA-Pament of Taxable Life Insurance Policy wef 01.10.2014

100000

2

2

20

194E – Payment to Non-Resident Sportsmen or Sports Association  
- Applicable up to June 30, 2012

-

10

10

20

- Applicable from July 1, 2012

-

20

20

20

194EE – Payments out of deposits under NSS

2500

20

-

20

194F – Repurchase Units by MFs

1000

20

20

20

194G – Commission – Lottery

1000

10

10

20

194H – Commission / Brokerage

5000

10

10

20

194I – Rent – Land and Building

180000

10

10

20

194I – Rent – Plant / Machinery

180000

2

2

20

194J – Professional Fees

30000

10

10

20

194LA – Immovable Property

100000

10

10

20

194LB – Income by way of interest from infrastructure debt fund (non-resident)

-

5

5

20

194LBA Income paid Under section 115UA we f 01.10.2014  
Resident

-

10

10

20

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

195 – Other Sums

-

Average rates

-

30

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

20

 

TCS Rates for F. Y. 2014-15

Section  Nature of Payment F. Y. 2014-15
Individual / HUF Other
206C Alcoholic Liquor for human consumption (A) 1 1
206C Timber obtained under a forest lease  (B) or other mode (C) 2.5 2.5
206C Any other forest produce not being a timber or tendu leave (D) 2.5 2.5
206C Scrap (E) 1 1
206C Parking Lot (F), toll plaza (G), mining and quarrying (H) 2 2
206C Tendu Leaves (I) 5 5
206C Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) (J) 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) (K) 1 1

 

 

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