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CPC (TDS) drive for closure of Short Payment Defaults to facilitate downloading of Conso Files/ TDS Certificates

CPC (TDS) has observed from its records that there are Short Payment Defaults in Quarterly TDS Statements submitted by the deductors due to which downloading of Consolidated Files and TDS Certificates are currently restricted.

CPC (TDS) has issued a communication in this regard which is given below:

Dear Deductor,(TAN XXXXXXXXXX)

The Centralized Processing Centre (TDS) has observed from its records that there are Short Payment Defaults in Quarterly TDS Statements submitted by you and therefore, downloading of Consolidated Files and TDS Certificates are currently restricted for your TAN

Please note that

  • CPC (TDS) has initiated a special drive for closure of Short Payment Defaults due to Unmatched or Insufficient Challans in the TDS Statements.
  • Since the due date for filing of TDS Statements for Quarter 4, 2014-15 and distribution of TDS Certificates subsequently is approaching fast, you are suggested to close the above defaults without any further loss of time.

The Short payment defaults in the TDS Statements may appear due to the following reasons:

A. Unmatched Challans:

  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Incorrect quoting of TAN in ITNS 281 at the time of Deposit of TDS.
  • While depositing TDS, incorrect Assessment Year may have been reported in challan ITNS281, while statement pertains to a different Assessment Year.
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.

B. Insufficient Challans:

  • Adequate balance may be available in OLTAS challans, however, already consumed challans may have been incorrectly used in the TDS Statement
  • You have tried to consume more than the available challan balance for reporting TDS deducted in the statements

Though CPC (TDS) makes best efforts to match challans, however, they may remain unmatched leading to “Short Payment” Defaults.

Action to be taken:

  • Download the Justification Report from our portal TRACES to view your latest outstanding demand.
  • In case there is no available challan for consumption, you are required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC (TDS) system after around 3-4 days of deposit
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default, which can be availed without digital signature.
  • CPC (TDS) recommends to close the above default by tagging unconsumed challans, if available in CPC (TDS) system, through Online Correction.
  • Details of defaults will be provided during Online Correction process after logging into the web portal TRACES.
  • Once the challan is suitably tagged and Online Correction is submitted to CPC (TDS), it shall process the statement, thereby rectifying the Short Payment default.
  • CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. You can refer for the details to our communication CPC (TDS) drive for closure of Short Payment Defaults: Enhancement in Online Corrections feature for “Moving Deductee rows” from Unmatched Challans dated March 10, 2015 on TRACES.

For any assistance, you can 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

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Closure of Short Payment defaults in Quarterly TDS Statements

CPC (TDS) has issued a reminder communication to Banks regarding closure of short payment defaults in Quarterly TDS Statements.

The issued communication has been given below:

Please refer to the earlier CPC(TDS) Communication Reference No.070/2014; dated 29th November 2014 regarding Defaults in TDS Statements for different TAN’s associated with your PAN.

The Centralized Processing Centre (TDS) has observed from its records that there are Short Payment Defaults in Quarterly TDS Statements submitted by different TANs associated with your PAN and therefore, downloading of TDS Certificates are currently restricted for your TANs .

The details of the TANs and outstanding Short Payment Defaults against them have been provided as annexed with this letter. Financial year wise details of the above are also available to you to be viewed online on the web-portal TRACES (www.tdscpc.gov.in) under “Aggregated TAN compliance Report”

Please note that

  • CPC (TDS) has initiated a special drive for closure of Short Payment Defaults due to Unmatched or Insufficient Challans in the TDS Statements.
  • Since the due date for filing of TDS Statements for Quarter 4, 2014-15 and distribution of TDS Certificates subsequently is approaching fast, you are suggested to close the above defaults without any further loss of time.

Order u/s 201 Intimation u/s 200A of the Income Tax Act, 1961 intimating the outstanding demand for different years has already been sent by Income Tax Department on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement to the relevant deductors (TANs).

This information is being provided to you for further necessary action for closure of Short Payment Defaults at the earliest by moving deductee rows/ matching/tagging of Unmatched challans or by payment/ tagging in case of Insufficient challans.

This would be helpful for you in complying with the provisions of section 40(a)(ia) of Income Tax Act, 1961 and to ensure that correct information is disclosed in paragraph 21b(ii) of Tax Audit Report(Form 3CD) u/s 44AB of the Income Tax Act. Besides, after the closure of short payment defaults, the TANs under reference would be able to download Form 16/16A thus avoiding unnecessary inconvenience to your customers.

Actions to be taken by the TAN holders associated with you:

  • Download “Aggregate TDS Compliance Report” from our portal TRACES for the details of Short Payment defaults against each TAN associated with your PAN.
  • Quarter-wise Justification Reports can be downloaded by the referenced TANs from our portal TRACES for the details of Short Payment defaults.
  • Please use Challan ITNS 281 for payment of TDS in case of Insufficient Challans.
  • Online Correction facility provided by TRACES should be used for closing the above defaults by suitably moving deductee rows/ matching/ tagging of challans.

For any assistance, you can 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.

For any, you can write to corporate_connect@tdscpc.gov.in or call our toll-free number 0120-4816103.

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

                                                                                                     

                                                                                             

                                                                 

Kumar Padmapani Bora

                                                                   Deputy Commissioner of Income Tax

                                                                   Central Processing Cell – TDS

 

Notes: 

  • You are requested to instruct the deductors to pay the demand and file correction statement or make the necessary correction in the statement within 15 days.
  • Short payment default may be on account of mismatch in challan particulars as quoted by you in TDS statement with the challan particulars as per OLTAS. Accordingly, the OLTAS challans may have remained unconsumed on account of mismatch. You can check the OLTAS challan details on Traces. You are requested to close the short payment default through “moving deductee rows” and “tagging” of correct challan using “online correction” facility at TRACES portal (www.tdsccpc.gov.in).
  • It is to inform that while downloading TDS certificate (Form 16/16A), deductor would be prompted to first close the ‘Short payment’ default on account of ‘Challan mismatch’, if any. As the next due date for download of Form 16/16A is 30thMay 2015, you are requested to close your defaults well in advance to avoid any issue in downloading of TDS certificates for 4thquarter of 2014-15.
  • Non-deduction of TDS attracts provisions of section 40(a) (ia) of the Income Tax Act, 1961 in your final accounts.
  • Late Filing fee and Late Payment Interest are not allowable expenses.
  • Please maintain updated email address and Contact Number on TRACES to receive regular periodic updates and guidelines from TRACES.
  • Please refer to our FAQs and e-tutorials for detailed screen-driven assistance, before seeking further help.

CPC (TDS) TEAM

 Source: TRACES

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CPC (TDS) drive for closure of Short Payment Defaults: Enhancement in Online Corrections feature for “Moving Deductee rows” from Unmatched Challans

CPC (TDS) has released a follow up communication regarding closure of Short Payment Defaults in quarterly TDS Statements due to Unmatched Challans.

The released communication has been given below:

Dear Deductor,

This is to inform you that Centralized Processing Cell (TDS) has initiated a special drive for closure of Short Payment Defaults in quarterly TDS Statements due to Unmatched Challans and your active participation is crucial in ensuring successful outcomes.

For closure of Short Payment Defaults arising due to Unmatched Challans quoted in TDS Statements, CPC(TDS) has further enhanced the Online Correction facility at TRACES, providing you with the feature of “Move Deductees” from Unmatched Challans to any other Unconsumed OLTAS Challan.

Please note that the above assumes further significance towards ensuring non-intrusive TDS Compliance, since, Short Payment Defaults ought to be closed at the time of submitting requests to download Consolidated Files or TDS Certificates from the web portal TRACES.     To facilitate closure of Short Payments due to Unmatched Challans, CPC(TDS) has further improved the intelligence, simplicity and convenience of Online Correction feature, as follows:

  • New Feature to Move Deductees added to Online Correction facility:

CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. The facility can be used in the following situation:

Issue:

  • The challan(s) remain unmatched due to data entry errors in the TDS Statement(s).
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.
  • The incorrect Challan information furnished above is causing Short Payment Defaults in the TDS Statement due to Unmatched Challans.

For instance, if there are two OLTAS challans reported in the TDS Statement an if:

  • Total TDS in Deductee Rows, mapped to Unmatched Challan(s): Rs. 1,10,000
  • OLTAS Challan CIN1: Rs. 1,00,000
  • OLTAS Challan CIN2: Rs. 10,000
  • Challan reporting in TDS Statement: Instead of reporting the above challans separately, incorrectly only CIN1 tagged in TDS Statement with TDS amount of Rs. 1,10,000
  • The above error causes Short Payment Default in the TDS Statement

Solution:

  • In above situation, CIN 2 should first be added to the relevant TDS Statement using Online Correction facility
  • Deductee Rows with a total TDS of Rs. 10,000 can now be moved to CIN 2, which has incorrectly not been reported in the TDS Statement
  • Now CIN 1 (Rs. 1,10,000), as mentioned in the TDS Statement, can be tagged to the Unconsumed OLTAS Challan CIN1 (Rs. 1,00,000).

Action to be taken for Moving Deductee Rows:

  • Please logon to the website TRACES and Online Correction facility of TRACES needs to be used for closure of the Short Payment default, which is available even without digital signature.
  • Please select ‘Challan Correction’ in ‘Type of Correction’ drop-down menu
  • Navigate to Unmatched Challan and tag unconsumed challans, if available on TRACES. system.
  • Select a row and click on Move deductee row – List of deductees attached to the challan are displayed
  • Select deductee rows to move to a different challan – List of challans with balance greater than total tax deposited of the selected deductee rows are displayed
  • Select a challan and click on move deductee row – All selected deductee rows are moved to a new challan.

You are encouraged to refer to the e-tutorial for detailed guidance in this regard. You are requested to take corrective actions at the earliest for closure of Short Payment Defaults due to Unmatched Challans.

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

CPC (TDS) TEAM

Source: TRACES

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CPC (TDS) communication: TDS Defaults exist in all Six preceding Quarters, “No Correction TDS Statement filed as yet”

As per the records of the Centralized Processing Cell (TDS), there exist outstanding Defaults in “all six preceeding Quarters” with respect to the TDS Statements filed by deductors, relevant to the Financial Years 2013-14 and 2014-15.

CPC (TDS) has issued a communication to deductors in this regards which has been given below:

Dear Deductor,(TAN: XXXXXXXXXXXX)

As per the records of the Centralized Processing Cell (TDS), there exist outstanding Defaults in “all six preceeding Quarters” with respect to the TDS Statements filed by you, relevant to the Financial Years 2013-14 and 2014-15.

Please note that you have “not filed” any Correction Statements as of December 31, 2014 for closure of the TDS Defaults.

Immediate Attention:

  • CPC (TDS) facilitates downloading of TDS Certificates (Forms 16/16A) in accordance with section 203 of the Income Tax Act, 1961 read with Rule 31(1) of the Income Tax Rules, 1962 for issuance of the same to the deductees. The deductor duly verifies to the effect that the amount due has been deducted and deposited to the credit of the Government and the information provided in the said certificate is true, correct and complete
  • However, as per the records of CPC (TDS), it is observed that the amount of tax deposited / remitted mentioned by you in the TDS Statements is not correct due to insufficient or unmatched challans (owing to possible data entry errors).
  • To take care of the above and to facilitate non-intrusive TDS Compliance, Online Correction facility has been made available at TRACES for closure of Short Payment defaults due to challan errors. CPC (TDS) processes such statements within 24 hours of submission of such corrections.
  • In view of the above, Short Payment Defaults ought to be closed at the earliest , failing which you may not be able to submit requests to download TDS Certificates from the web portal TRACES

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.

Actions to be taken:

  • Use Challan ITNS 281 to pay the above demand with your relevant Banker, if there are no challans available for consumption
  • Please download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance on downloading the Justification Report.
  • 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
  • Alternatively, you may also download the Conso File from our portal provided there are no Short Payment Defaults.
    • Prepare a Correction Statement using the latest Return Preparation Utility (RPU) and File Validation Utility (FVU).
    • Submit the Correction Statement at TIN Facilitation Centre.

For any assistance, you can 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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