Special Discount on TDSMAN (FY: 2020-21)

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Now you can prepare TDS Returns for all quarters of the next FY: 20-21

It covers:

✔  All TDS Returns for FY: 2020-21
✔  All TDS Returns for FY: 2019-20
✔  Pending TDS Returns of earlier years, if any
✔  Online Filing
✔  Rectification of TDS Defaults

TDSMAN is packaged with advanced corrective and validation features that help you prepare zero error TDS Returns. Visit www.tdsman.com for more information.

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Online TDS/TCS/Demand Payment using Challan ITNS 281

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Challan no. ITNS 281 is used by deductors to deposit TDS, TCS and demand payment.

Following details are necessary to fill while payment of Challan ITNS 281:

1. Tax Applicable : This column has 2 options –

0020: This is applicable in case of income tax of companies if deductee is a company
0021: This is applicable to income tax for other than companies  if deductee is not a company

2. Assessment Year
3. TAN No, Name and Address
4. Type of Payment:

200 – TDS/TCS payable by taxpayer
400 –  TDS/TCS payable regular assessment

5. Nature of Payment: Deductor has to select Section code as per section under which TDS/TCS is deduted.

Steps for Online TDS/TCS/Demand Payment using Challan ITNS 281:

1. Click on “e-payment Pay Taxes Online” at home page of Services option

2. Select Challan ITNS 281 for demand payment, Challan ITNS 281 form will appear.

3. Select Major Head (0020/0021), enter valid 10 digit TAN, assessment year, address. Minor Head (200/400), Nature of Payment, Mode of Payment & Bank Name.

4. Click on Submit to bank option.

5. Deductor will be re-directed to internet banking site of the bank.

6. Enter user id and password.

7. Enter payment details and make TDS payment.

Source: TRACES

Online payment (ITNS 281) directly through TDSMAN


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

Preparing Nil TDS Statement / Declaration


Useful guidelines to avoid common mistakes while submitting TDS Statements

Following are some useful guidelines to avoid common mistakes, while submitting TDS Statements and you are requested to go through the following in detail.

Incorrect reporting of 197 Certificates:

Please refer to the following guidelines for correct reporting of 197 Certificates:

  • The Certificate Number should be of 10 digits with Alpha-numeric structure. Please refer to the following examples:
      • Correct Format 1111AA111A;
      • Incorrect Format: 1111AA111A/194C
    • Certificate Number should be valid during the period for which it is quoted.
    • The Certificate Number should be for the same PAN, Section Code and Section Rate for which it has been mentioned in the statement
    • Threshold limit Amount of the Certificate should not be exceeded.
    • Please ensure that the Certificate is not expired. Please refer to the following illustration:
      • Lower deduction Certificate under section 197, issued in April 2013 (e.g. Certificate Number-1) stands cancelled by Assessing Officer on 10/11/2013.
      • A fresh certificate Under Section 197 (e.g. Certificate Number-2) is issued with effect from 11/11/2013.
      • Deductor quotes Certificate Number-2 against the transactions recorded during the period from 01/11/2013 to 10/11/2013 in Q3 TDS statement.
      • Deductor should have quoted Certificate Number-1 for the transactions conducted till 10/11/2013.

Common errors resulting in Short Payment Defaults:

  • Typographical errors committed by deductor, in reporting the date 20032014    in the Tax Deducted column.
  • Total of Amount Paid / Credited reported in the Tax Deducted column of the statement. This results in short payment and Deductors need to ensure that the TDS/TCS Deducted/Collected amount should be equal to TDS/TCS Deposited Amount.

The above mistakes are illustrated below:

Amount Paid/ Credited

TDS Deducted

TDS Deposited


1,55,000.00 1,55,000.00 15,500.00 Wrong TDS Deducted Amount
2,20,420.00 20032014.00 22042.00 Date mentioned in the TDS Deducted Column

 Actions to be taken:

  • CIN Particulars (BSR Code, Date of Deposit and Challan Serial Number) mentioned in the TDS statement should exactly match with the CIN Particulars as available on Challan Status at www.tdscpc.gov. in or Challan Status Enquiry at www.tin-nsdl.com
  • For BIN (Book Identification Number), the particulars (24G receipt number, Date of transfer voucher and DDO Serial Number) mentioned in the TDS statement by the Govt. Deductors should exactly match with the BIN Particulars as available on Challan Status at www.tdscpc.gov. in or BIN View at www.tin-nsdl.com
  • Amount of Tax deposited pertaining to different BINs/ CINs should not be clubbed together while reporting in the TDS statements.
  • Few other common mistakes in reporting dates are as follows:

Actual Date of Deposit 
(As per Challan)

Date of Deposit mentioned in TDS Statement


07/01/2014 (07th Jan 2014) 07/01/2013 (07th Jan 2013) Wrong Year (2013 instead of 2014)
07/01/2014 (07th Jan 2014) 01/07/2014 (01st July 2014) Wrong Date Format (MM/DD/YYYY)

Click Here to download the trial version of TDSMAN (FY: 2020-21) for your evaluation. Prepare one return and experience it … our helplines (033) 22875500, 09836490007 will assist you in case of any difficulty.