7th September – last date for TDS & TCS payment

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7th September, 2019 is the last date for TDS and TCS payments for the deductions made in August 2019. Make sure to do the needful on time to avoid interest. To understand the details / calculations for late payment interest click on the links below.

Calculation of Late Payment Interest

Interest on Late Payment of TDS

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Form 26A/27BA – Rationale and Brief Analysis

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What is Form 26A/27BA?

As per Notification No. 11/2016 and 12/2016 a procedure for furnishing and verification of Form 26A/27BA is introduced for removing of default of Non Deduction/Collection Transaction of tax at source. User may request for Non Deduction/Collection transactions from  FY 2016-17 onwards. This request will be raised on or after 1st April, 2017. Deductor/Collector may request for Form 26A for Form 24Q & 26Q for TDS and for Form 27BA for 27EQ for TCS. Digital Signature is needed for requesting of 26A/27BA.

What are the Steps for Requesting Form 26A/27BA?

The steps for requesting Form 26A/27BA are given below:

  1. Log in to TRACES site with User ID, Password, TAN of Deductor/Collector and Verification Code.
  2. Click on Request for 26A/27BA option under Statements/Payments menu. All the guidelines for filing Form 26A/27BA will appear.
  3. Choose Financial Year, Form Type and Transaction type as Non Deduction/Collection and go for the request. DSC (Digital Signature Certificate) of authorize person is compulsory for the request or if user is coming through bank website then I-PIN window will open.
  4. Click on Proceed tab, a Request Number will be generated. Now the deductor may check status of request through Track request for 26A/27BA under Statements/Payments option.
  5. Status of request will be Upload File for uploading Non Deduction/Collection transactions.
  6. Give File Format to upload transactions is available in Requested Downloads option under Downloads Section.
  7. User needs to Add Non Deduction/Collection transactions in file format given by TRACES and import that file in Utility.
  8. Output file will be generated which is to be uploaded by clicking on Upload File option.
  9. After clicking on Upload File option, Digital Signature window will appear for validating it and after validating DSC (Digital Signature Certificate) final submission of request will be done. If user is entering through Bank wdebsite then I-PIN window will open for entering I-PIN.
  10. A message will come Request for Non Deduction/Collection transactions has been submitted after submitting the request. Request Number will be generated and an Email and SMS will be sent to deductor.
  11. Deductor/Collector may check status of request through Track request for 26A/27BA available under Statements/Payments option. Transactions will be sent to e-filing for processing after submitting Request for Non Deduction/Collection.

What are the different Status for Requesting of 26A/27BA?

  • Requested – When user has initiated the request.
  • Upload File – User can upload file with PANs on which 26A/27BA has to file.
  • Submitted – User has submitted request to Income Tax Department.
  • Sent to e-filing – Requested data submitted by user has been sent to e-filing.
  • Pending for processing at TDSCPC – Transactions received by TDSCPC from e-filing for processing.
  • Processed – Transaction have been processed by TDSCPC.
  • Not Available – Reason of not available to be given in Remarks.
  • Rejected – Request has been rejected by TDSCPC after processing. Reason of rejection to be given in Remarks.

What are the reasons of Rejection for Requesting of 26A/27BA?

  • Invalid File Uploaded – If file is rejected due to format level then Invalid file uploaded remarks will be seen in Remarks.
  • Go to requested downloads for checking the reasons of rejection of Non Deduction/Non Collection – If file is rejected due to PAN level validation or any other validation then a request number will be generated. User can download that file having reason of rejection.

Source: TRACES

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Nil TDS Statement / Declaration – Overview

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TRACES introduced NIL TDS Statement/Declaration of TDS from the FY 2014-15. This is applicable for Deductors who did not deduct any tax during the relevant quarter.

What is the benefit of filing a Nil TDS Statement?

The benefit of this facility is that instead of filing nil TDS/TCS Statement for a particular quarter/period, one just needs to update the status to non-filing Statement. After updating of status, TDSCPC will not send any notice for non-filing of TDS Statement.

How does it help the Department?

As per income tax rules, nil eTDS statement is not mandatory due to which, the department is not able to find out the difference between the following two types of Deductors.

  1. Deductors required to file return but not filed.
  2. Deductors not required filing return.

After getting updating of status through this facility, department can get the details of willful defaulters.

What is the Procedure of filing Nil TDS Declaration for non-filing TDS statement?

The process is as follows:

1. Login through your register id at www.tdscpc.gov.in

2. Go to “Statement/Payments TAB after login >then declaration for Non filing of TDS statement (as shown in the picture below).

3. On click of declaration for Non filing of TDS statement link you will get screen as shown below.

  • Select financial year. 
  • Select Quarter.
  • Select statement type.
  • Select reason for non filing of statement from drop down menu. 

Also note following points: 

1. Fields marked by asterisk (*) are mandatory.

2. ‘Specify the exact reason’ field will be mandatory if user selects ‘Any Other Reason’ in ‘Reason’ drop down.

3. If deductor has Permanently closed his business, he should contact the Assessing Officer to close his TAN.

4. User will not be able to declare a statement for a Financial Year, Quarter and Form Type for Non-Filing for the following cases:

  • If user has already declared that statement for Non-Filing.
  • If user has changed the filing status of that statement from Non-Filing to Filing.
  • User has to agree to all the declarations before submitting the statement for Declaration for Non-Filing. 

4. Click proceed button after selecting required data. In next screen, you have to give a declaration/certificate as shown in the picture given below.

5. After certificate, following message will be shown. 

Filing Status for the statements selected by you has successfully changed. You will receive the details of the statements for which filing status has changed on your email.

6. Good thing of this facility is that you can change back this status from non-filing and can file return, if required at later stage or you have wrongly updated status for incorrect period. But change facility is available for only one time for a selected period. To change the status you have to go again through “Statement/Payments TAB after login > then declaration for non filing of TDS statement. 

7. Statement selected earlier as non-filing can be updated by selecting the statement for a given period and click change filing status, and in next screen, you have to reconfirm your request by clicking the proceed button. 

8. After adding first statement to non filing status, next time you will get screen as shown above and you can add other statement to non filing status through add statement link.

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FAQs on Correction Return Preparation more than once on the same Regular Return

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How many times can I furnish a correction TDS/TCS statement?

A correction TDS/TCS return can be furnished many times to make changes in the regular TDS/TCS return where as a regular TDS/TCS return will be accepted at the TIN central system only once.

What are the relevant points to be kept in mind while preparing correction return more than once on the same regular return?

One has to keep in mind, the following points while preparing correction return more than once on the same regular return:

1. The TDS/TCS return on which correction is to be prepared should be updated with all details as per all previous corrections.

2. Modifications/addition/nullify in correction returns accepted at the TIN central system only should be considered.

Which Provisional Receipt Number / Token Number should I quote while preparing correction return more than once on the same regular return?

There are two fields for Provisional Receipt Number (PRN) / Token Number in a correction return mentioned below :

1. Original Provisional Receipt Number / Token Number – PRN of the regular return should be mentioned in this field.

2. Previous Provisional Receipt Number / Token Number – PRN of the last accepted correction return should be mentioned in this field. If the value in this field is incorrectly mentioned, the return will be rejected at TIN central system for the reason: Either Previous Provisional Receipt No. provided is incorrect or combination of Original Provisional Receipt Number / Token Number and Previous Provisional Receipt Number / Token Number is not in sequence

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