New versions of File Validation Utilities (FVUs) for e-TDS/TCS statements are released today (2nd April 2021). Apart from others, this FVU takes care of the new section 115BAC incorporated in the Budget of FY:20-21. With the introduction of this new section, each employee has the option to choose between the existing & the new computation of income tax.
The key features of this FVU is summarized below:
File Validation Utility (FVU):
• FVU Version 7.1 – Applicable for quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards.
• FVU Version 2.167 – Applicable for quarterly e-TDS/TCS statements from FY 2007-08 up to FY
Features of the FVUs are as below:
1. Addition of new column “Whether opting for taxation u/s 115BAC – [Yes/No]” (i.e. Column no. 332B) under Annexure II of Form 24Q-Q4
If users selects option “Yes”;
following deductions / exemptions will not be allowed as under:
- Deductions under Section 16 (Professional Tax, Standard Deduction & Entertainment Allowance)
- All deductions under Chapter VI-A, except u/s 80CCD(2)
- Travel Concession u/s 10(5)
- House Rent Allowance u/s 10(13A)
- Loss from House property (only Income to be reported)
following deductions / exemptions will continue to be allowed:
- Section 10(10) – Death cum Retirement Gratuity
- Section 10(10A) – Commuted value of Pension
- Section 10(10AA) – Cash equivalent of leave
- Total amount of any other exemption u/s10
- Sec 80CCD(2)-Deduction in respect of contribution by Employer to pension scheme
If users selects option “No”, in such case all existing deductions / exemptions will be allowed as earlier.
This would be applicable for statements pertains to FY 2020-21 onwards.
2. Addition of nature of remittance ‘Dividend’ for below mentioned existing validation of Form 27Q.
• Fields i.e. ‘Email ID of deductee’, ‘Contact Number of the deductee’, ‘Address of deductee in country of residence’ & ‘Tax identification number / Unique identification number’ in Form 27Q are mandatory only in case of below conditions are satisfied
- If rate of deduction is less than 20%
- Remark value as ‘C’
- PAN of the deductee is not available (i.e. ‘PANNOTAVBL’, ‘PANAPPLIED’ or ‘PANINVALID’)
- Nature of Remittances – Royalty, Fees for technical services/ fees for included services, short term capital gains or Long term capital gains and Dividend
This version of FVU is applicable with effect from April 2, 2021