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Mandatory filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES

If tax at source has been deducted by you on various payments / credits but no TDS Statements have not been filed by you as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandatory filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

1. Mandatory filing of TDS Statements:

You are advised to refer to Section 200(3) of the Act, read with Rule 31A, which reads as follows:

  • Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:
    • Statement of deduction of tax under section 192 in Form No. 24Q;
    • Statement of deduction of tax under sections 193 to 196D in-
      • Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
      • Form No. 26Q in respect of all other deductees.

It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

2. Implications of Non/Late filing of TDS Statements:

  • For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees (employees / vendors) for claiming the amount of tax already deducted from the payments made to them besides generating correct TDS Certificates for them.
  • For Deductors: In case of default on account of Non / late filing of TDS Statements, a fee shall also be levied on the deductor u/s 234E of the IT Act which reads as under:

Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

3. Issuance of TDS Certificates downloaded from TRACES:

CBDT circulars 04/2013 dated 17.04.2013, CBDT Circular No. 03/2011 dated 13-5-2011 and CBDT Circular No. 01/2012 dated 9-4-2012 refer to Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (http://www.tdscpc.gov.in)(hereinafter called TRACES Portal).

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time. The TDS Certificates can be downloaded by registering yourself with TRACES Portal.

You are accordingly advised to file TDS Statements and also get Registered on TRACES Portal, if not done already.

For any assistance, you can write to ContactUs@tdscpc.gov.in or call  toll-free number 1800 103 0344.

 

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How will transactions of more than one buyer/seller be filed in Form 26QB – TDS on immovable property?

1)How many Form no: 26 QB should be filled online if Immovable Property is purchased by two buyers from two sellers i.e. one sale deed / agreement is in the name of two buyers from two sellers,

2) Should TDS be paid 25 % wise e.g., if property of Rs 60 lakhs is purchased then should TDS be 25%wise i.e. four Form no 26 QB should be filled & TDS be paid 25%wise?

Ans: Earlier there was confusion on this issue. However, this issue has now been clarified by Income Tax Department. In case of multiple sellers, Form 26QB needs to be filed for each seller separately. Similarly, in case of multiple buyers, each needs to issue Form 26QB separately.

Relevant FAQ on NSDL site is reproduced as under:

How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?

Online statement cum Challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares.

 

 

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Registration on TRACES and downloading of TDS Certificates mandatory

As per the records of Centralized Processing Cell (TDS), the TDS Statements have been filed by many deductors for different quarters. However, many of them have not yet registered on TRACES (https://www.tdscpc.gov.in). In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16 / 16A as per IT Rules, 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from ‘TDS Reconciliation Analysis and Correction Enabling System’ or (https://www.tdscpc.gov.in) (hereinafter called TRACES).

    In view of above circulars, it may kindly be noted that only the TDS Certificates downloaded from TRACES will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income Tax Act, 1961 read with relevant Rules and Circulars issued in this behalf from time to time

    In addition to the facility to download TDS Certificates bearing unique TDS certificate number, the portal provides other facilities, some of which are as under:

  •         View of Deductor Dashboard to know about your TDS performance
  •         PAN Verification
  •         View of Challan status
  •         View of Statement Status
  •         Download of Consolidated TAN-PAN File for submitting ‘Correction  Statements’ in case of incomplete and incorrect reporting
  •         Download of Justification Report to know the details of ‘TDS defaults’, if any, on processing of TDS statements 

The above facilities including downloading of the TDS Certificates can be availed only by registering yourself with TRACES. You are accordingly requested to register immediately on TRACES

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