TDSMAN Blog

smart & easy software for eTDS & eTCS returns

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

Basic principles of TDS Compliance

The following are the basic principles of TDS compliance:

  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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Stringent authentication mechanism for filing of correction statements & download of TDS certificates, consolidated files etc. by Banks / Corporates

The Direct Taxes Directorate of Income-tax (Systems), CBDT vide Notification No. 3 /2015 dt. 1st of December 2015 has notified “Stringent Authentication Mechanism through Corporate Head Quarter Server for filing of Correction statements & download of TDS certificates, Consolidated files etc. by Banks / Corporates.

Section 200 of the Income tax Act provides for filing of TDS statements. The manner of filing such statements and the particulars have been laid down in Rule 31A of the Income tax Rules. Vide Sub Rule 5 of Rule 31A (placed at DFA-Il) of the Income Tax Rules, it has been specified that the Director General of Income Tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the Statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.

In exercise of the powers delegated by the CBDT under Explanation to Sub Rule 5 of Rule 31A of the Income-tax Rules 1962, the Principal Director General of lncome-tax(Systems) lays down the authentication mechanism for filing of correction statements & download of TDS certificates, Consolidated files etc. by Banks and Corporates deductors .

To view the full circular, click here.

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