Revised CBDT Instruction on Grant of TDS Credit For AY 2011-12

Section 143 of the Income-tax Act, 1961  Assessment  General  Processing of returns of A.Y. 2011-12  Steps to clear backlog withdrawal of Instruction No. 1/2012, dated 2-2-2012

Instruction No. 4/2012 [F. No. 225/34/2011-ITA.II], dated 25-5-2012

The Board has decided to withdraw Instruction no. 01/2012 issued on 2nd February, 2012 on the subject above with immediate effect. The following decisions have been taken in this regard:

(i)  In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification.

(ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification.

(iii)  Where there are TDS claims with invalid TAN, the TDS credit for such claims is not to be allowed.

(iv  In all other cases TDS credit shall be allowed after due verification.



Deductors Must Comply with their Obligations to Ensure Correct Credit to Persons from Whose Income Tax is Deducted at Source. All deductors other than Government deductors must file their quarterly TDS statement for the quarter ending 30th June 2012, on or before 15th July 2012 and Government deductors must file their statement on or before 30th July 2012. While submitting their statements, the deductors have to choose correct and relevant form, quote correct PAN against all entries and ensure that correct CIN/BIN is quoted in the TDS statement. Non-quoting of PAN or TAN in TDS statements or delay in filing of TDS statements may lead to levy of penalty.

Filing of TDS statement with correct PAN and CIN/BIN is important because under Rule 37BA of Income Tax Rules, 1962 credit for tax deducted at source is given to the deductees on the basis of TDS statement furnished to the Income-tax Department by the deductor. Filing of TDS statements with incorrect PAN or other details of the deductee would, therefore, cause inconvenience to the deductees (taxpayer).

Income Assessable in others Hands: In case the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, the deductee must file a declaration with the deductor that credit for the TDS shall be given to the other person and not to the deductee. The declaration filed by the deductee must contain the name, address, Permanent Account Number of the person to whom credit is to be given and reasons for giving credit to such person. The deductor must, in the TDSstatement, report the tax deduction in the name of such other person and also issue the TDS certificate in the name of the person in whose name credit is shown in the TDS statement.

TDS certificates for deductions on income other than salary income (Form 16A) for the quarter ending 30th June 2012 should be issued on or before 30th July 2012.




New File Validation Utilities – FVU 3.5 have been released pertaining to validation of eTDS & eTCS returns.

FVU 3.5 will be applicable for quarterly TDS / TCS statements pertaining to FY 2010-11 onwards & FVU 2.132 will be applicable for quarterly TDS / TCS statements pertaining up to FY 2009-10.

Key features of File Validation Utility (FVU) version 3.5:

Changes in the structural validations of Book Identification Number (BIN) quoted in quarterly TDS/TCS statements for TDS/TCS deposits made by Book entry (applicable only in case of Govt. deductors). Deductor can now quote the Date of deduction beyond the quarter.


TDS Credit without matching up to 5000/- A.Y. 2011-12

Few Months back Income tax department has issued instruction 01/2012 in which TDS matching with form 26AS was relaxed for assessment year 2011-12.In these instructions TDS claim can be accepted for ITR 1-6 where difference between the TDS claim and matching TDS amount reported in Form 26AS data is up to Rs 1,00,000 /- But now these instructions has been amended and amount has been reduced to Rs 5000/-. After reducing this amount to Rs 5000/-, it is likely that no body can avail the benefit of these instruction . It seems that Income tax departments wants to withheld refunds of  tax payers.

These instruction is applicable for Ay 2011-12 But from these stand it seems that in future also strict guidelines regarding matching of tds will be issued . So we recommend all to please go through your form 16, Form 16A , Challan and Form 26AS before filing yourIncome Tax return for AY 2012-13 also.