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CPC (TDS) follow up for Registration on TRACES

CPC (TDS) has issued an advisory communications to the deductors in which it has stated that the deductors has filed tds statements for different quarters but they have not yet registered on the web portal TRACES.  Therefore, the deductors must register on TRACES to download TDS Certificates (Form 16/ 16A) and avail several other facilities offered by TRACES.

The issued communication has been given below:

Dear Deductor,

As per the records of Centralized Processing Cell (TDS), the TDS Statements have been filed by you for different quarters, however, you have not yet registered on the web portal TRACES.

You will not be able to download TDS Certificates (Form 16/ 16A) and avail several other facilities offered by TRACES unless you are registered on the web portal.

Please refer to the following provisions of the Income Tax Act, 1961:

Downloading of TDS Certificates from TRACES made mandatory:

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 http://www.tdscpc.gov.in (hereinafter called TRACES Portal).

TDS Certificates downloaded only from TRACES hold valid:

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.

Due Date for downloading and Penalty for non-compliance:

Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.

Assistance for Registration on TRACES:

You can access our web portal TRACES and refer to our e-Tutorial for assistance on Registration and Login. 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

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CPC (TDS) : Online resolution of ‘Short Payment default’ on account of unmatched challans

TDSCPC has issued new instruction under which it has been directed to the the Tax deductors that if there are Short payment in a statement filed by deductor then deductor have to settle the default first otherwise he will not be able to download the Form 16/16A of the relevant quarter/period.

The instruction has been reproduced here under:

Dear Deductor,

We are glad to inform that the Online Correction functionality provided by CPC (TDS) has been availed by a large number of deductors for the purpose of carrying out corrections and over 2 Lakh Online Corrections have been submitted. The corrections include resolution of Short Payment Defaults that relate with unmatched challans. You are informed that TRACES enables Online resolution of “Short Payment default” on account of unmatched challans. The deductor has an online view of all available unconsumed challans, which can be tagged with unmatched challans, to close the above defaults.

Further, as you are aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. However, it is observed that:

  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to “Short Payment” demand.
  • The above results into issuance of notices by the CPC (TDS) and field TDS officers.

To make the resolution process non-intrusive, CPC (TDS) proposes a new change at the time of submitting request for download of TDS Certificates (Forms 16/ 16A) for relevant period. 

Actions to be taken: Following are key information to be noted in this regard:

  • You are requested to take appropriate action at the earliest for closure of the Short Payment defaults, to avoid any inconvenience in downloading of TDS Certificates.
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default, available even 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”.
  • In case there is no available challan for consumption, the deductor is 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.
  • 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
  • The user will not be able to download TDS Certificates for the relevant TDS statement until closure of the above default.

You can refer to our e-tutorial and FAQs on “TRACES” website for necessary help.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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TDS Statements filed for Q 1, FY 2014-15, not filed yet for Q 2, FY 2014-15

CPC (TDS) has issued a communication to all deductors who have filed TDS Statements  for Q1, FY 2014-15 but not filed yet for Q2 as of November 1, 2014.

The issued communication has been given below:

Dear Deductor,

As per the records of the Centralized Processing Cell (TDS), you have filed TDS Statements for Q1, FY 2014-15, however, no TDS Statements have been filed for Quarter 2 as of November 1, 2014.

If you are not required to submit the relevant statement, you are requested to submit a declaration by taking appropriate action as suggested under “Action to be taken” in this communication. Otherwise, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

1. Mandatory filing of TDS Statements:

Please refer to the provisions of section 200(3) of the Income Tax Act, 1961 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 Deductors:

In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the 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. 

  • For Tax payers:

Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed. 

3. Actions to be taken:

Please file the relevant TDS Statement without any further delay.

  • If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to “Statements/ Payments” menu and submit details under “Declaration for Non-Filing of Statements”
  • Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.

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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Dos & Dont’s for filing TDS Returns

Given below are some dos and don’t for filing of TDS returns:

Dos

  • Ensure that TDS return is filed with same TAN against which TDS payment has been made.
  • Ensure that correct challan particulars including CIN and amount is mentioned.
  • Correct PAN of the deductee is mentioned.
  • Correct section is quoted against each deductee record.
  • Tax is deducted at correct rate for each deductee record.
  • File correction statement as soon as discrepancy is noticed.
  • Issue TDS certificate downloaded from TRACES website.

Dont’s

  • Don’t file late returns as it affects deductee tax credit.
  • Don’t quote incorrect TAN vis-à-vis TDS payments.
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