File Validation Utility (FVU) Version 7.3 – Summary

The Income Tax Department released FVU Version 7.2 on 1st October 2021. Owing to some technical issue, it released the revised FVU Version 7.3 effective from 13th October 2021 without any fundamental change.

Over the last few months, there has been quite a few changes in the TDS / TCS that was announced. These changes have been incorporated in this FVU release for smooth filing of TDS / TCS Returns.

Summary of changes with appropriate explanation is as under:

Additions of new Sections

  • Section 194P – Form 24Q (Salary TDS Returns)

Deduction of Tax in case of specified Senior Citizens. Value ‘C’ in Remarks column will be applicable for this section in case of non-availability of PAN. This comes into force from FY:2021-22 onwards.

  • Section 194Q – Form 26Q

TDS on payment of certain sums for Purchase of Goods. Values ‘S’ & ‘C’ will be applicable for this section. This comes into force from FY:2021-22 onwards.

  • Section 196D(1A) – Form 27Q

Income of Specified Fund from Securities referred to in Clause (a) of sub-section (1) of Section 115AD (other than interest income referred to in Section 194LD). This section will be applicable from FY:2020-21, Quarter 3 onwards where the date of payment is on or after 01/11/2020.

Form 26Q – Additions on New Values in ‘Remarks’ column

 

Remark ‘P’ Applicable only for Section 194 (TDS on Dividend)

 

This is for ‘No Deduction’:

–          on account of payment of Dividend made to business trust referred to Clause (d) of the second provisio to Section 194, or

–          in view of any notification issued under Clause (e) of the second provisio to Section 194

 

Remark ‘Q’ Applicable only for Section 194A (TDS on Interest)

 

This is for ‘No Deduction’ in view of payment made to an entity referred to in Clause (x) of sub-section (3) of Section 194A.

 

Remark ‘U’ Applicable to all Sections except 192A, 194B, 194BB, 194LBC, 194N & 194NF

 

This for Deduction at a higher rate for non-filing of Income Tax Return in view of Section 206AB.

 

 

Form 27Q – Additions on New Values in ‘Remarks’ column

 

Remark ‘I’ Applicable only for Sections 196D & 196D(1A)

 

This is for ‘No Deduction’ in view sub-section of Section 196D in respect of income of the nature of Capital Gains on transfer of securities referred to in Section 115AD paid of payable to a Foreign Institutional Investor.

 

Section 196D – applicable from FY:2021-22 onwards

Section 196D(1A) – applicable from FY:2020-21 (Quarter3) onwards

 

Remark ‘H’ Applicable only for Section 196(1A)

 

This is for ‘No Deduction’ in view of provisio to sub-section (1A) of Section 196D in respect of an income paid to a specified fund which is exempt under Clause (4D) of Section 10.

 

This is applicable from FY:2020-21 (Quarter3) onwards.

 

Remark ‘J’ Applicable to all Sections except 192A, 194LBC, 194N & 194NF

 

This for Deduction at a higher rate for non-filing of Income Tax Return in view of Section 206AB by the non-resident having permanent establishment in India.

 

 

Form 27EQ – Additions on New Values in ‘Remarks’ column

 

Remark ‘I’ Applicable to all wherever TCS Sections

 

This applies for Collection at a high rate in view of Section 206CCA.

 

This would come into force from FY2021-22 (Quarter 2)

 

 

Validation Change – Section 194K of Form 26Q

Existing Remark ‘B’ (in case of ‘No Deduction’ on account of declaration under section 197A) will also be applicable to Section 194K from FY:2021-22 onwards. This is in addition to the other sections where it is already applicable.

Validation Change – Section 196D of Form 27Q

  • In case PAN of Deductee is not available, following values of the ‘Deductee’ can be provided:
  • Email ID
  • Contact No.
  • Address in Country of Residence
  • Tax Identification No. / Unique Identification No.
  • New added Remark ‘I’ will be applicable. This remark will also apply in ‘Nil’ Challan Return.
  • Existing Remarks ‘C’ (for ‘Higher Deduction’) and ‘G’ (for ‘No Deduction’) will also be applicable for Section 196D.
  • Changes are applicable from FY:2021-22 onwards.

New FVUs Version 7.3 & 2.169 released by NSDL on 12th Oct 2021

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