TDS Statement with digital signature allowed amendment in TDS rules

 

INCOME-TAX (SECOND AMENDMENT) RULES, 2013 – AMENDMENT IN RULES 31A & 31AA; SUBSTITUTION OF RULES 31ACB, 37J AND FORM NOS.15G, 15H, 16, 16A, 24Q, 26Q, 27C, 27D, 27Q & 27EQ AND INSERTION OF FORM NO. 26B

NOTIFICATION NO. 11/2013[F.NO.142/31/2012-SO(TPL)]/SO 410(E), DATED 19-2-2013

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

 1. (1) These rules may be called the Income-tax (2nd Amendment) Rules, 2013.

 (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, (hereinafter referred to as the said rules) in rule 31A,-

 (a) in sub-rule (3),-

 (A) in clause (i), for item (b), the following items shall be substituted, namely:-

“(b) furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5);

 (c) furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5)”;

(B) in clause (ii), for the words, brackets and letters “item (b) of clause (i)”, the words, brackets and letters “item (b) or item (c) of clause (i)” shall be substituted;

 (C) in clause (iii), for the words, brackets and letters “item (b) of clause (i)”, the words, brackets and letters “item (b) or item (c) of clause (i)” shall be substituted;

(b) after sub-rule (3), the following sub-rule shall be inserted, namely:-

“(3A) A claim for refund, for sum paid to the credit of the Central Government under Chapter XVII-B, shall be furnished by the deductor in Form 26B electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5).”;

(c) in sub-rule (4), after clause (vii), the following clause shall be inserted, namely:-

“(viii) furnish particulars of amount paid or credited on which tax was not deducted in view of the notification issued under sub-section (1F) of section 197A.”;

(d) for sub-rule (5), the following sub-rule shall be substituted, namely:-

 “(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.”.

3. in rule 31AA of the said rules,-

  (a) in sub-rule (3),-

  (A) in clause (i), for item (b), the following items shall be substituted, namely:-

“(b) furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5);

 (c) furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5);”;

 (B) in clause (ii), for the words, brackets and letters “item (b) of clause (i)” the words, brackets and letters “item (b) or item (c) of clause (i)” shall be substituted;

(C) in clause (iii), for the words, brackets and letters “item (b) of clause (i)”, the words, brackets and letters “item (b) or item (c) of clause (i)” shall be substituted;

(b) in sub-rule (4), after clause (iv), the following clause shall be inserted, namely:-

“(v) furnish particulars of amount received or debited on which tax was not collected in view of the furnishing of declaration under sub-section (1A) of section 206C by the buyer. “;

 (c) for sub-rule (5), the following sub-rule shall be substituted, namely:-

 “(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements in the manner so specified.”.

4. For rule 31ACB of the said rules, the following rule shall be substituted, namely:-

“31ACB. Form for furnishing certificate of accountant under the first proviso to sub-section (1) of section 201.

(1) The certificate from an accountant under the first proviso to sub-section (1) of section 201 shall be furnished in Form 26A to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems) in accordance with the procedures, formats and standards specified under sub-rule (2), and verified in accordance with the procedures, formats and standards specified under sub-rule (2).

 (2) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the Form 26A and be responsible for the day-to-day administration in relation to furnishing and verification of the Form 26A in the manner so specified.”.

5. For rule 37J of the said rules, the following rule shall be substituted, namely:-

“37J. Form for furnishing certificate of accountant under the first proviso to sub-section (6A) of section 206C.

(1) The certificate from an accountant under the first proviso to sub-section (6A) of section 206C shall be furnished in Form 27BA to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems) in accordance with the procedures, formats and standards specified under sub-rule (2) and verified in accordance with the procedures, formats and standards specified under sub-rule (2).

(2) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the Form 27BA and be responsible for the day-to-day administration in relation to furnishing and verification of the Form 27BA in the manner so specified.”

 

 

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Compulsory to Download TDS file from TRACES

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TDS softwareIt is compulsory for all deductors to download TDS Consolidated Statement file and TDS Certificate from TRACES website only.
Facility to download the Consolidated file statement (file required for making corrections ) and TDS Certificate (Form 16 and Form 16A) is now discontinued from TIN – NSDL Website.

All the requests will now be processed from TRACES Website only.

Click here to view the tutorial on how to download TDS Consolidated Statement file from TRACES Website.

Click here to view manual on how to download and generate TDS Certificate from TRACES Website.

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Reason for Mismatch of TDS & Correction Statement

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MISMATCH OF TDS

1. A major problem noted across the country is that of mis-match of TDS payments claimed by the deductees in their returns of income vis- a -vis the TDS payments reflected by the deductors in their e-TDS returns and also the non reflection of the TDS payments in the system, in case the e-TDS returns have not been filed by the deductors.

2. As per the present procedure, all payment of Direct Taxes, either by way of TDS / TCS, Advance-tax, Self-Assessment Tax and Regular Tax are uploaded to the credit of the concerned assessee in the computer systems. The Assessing Officers give credit to the taxes, when they are uploaded to the account of the concerned assessee through the national network of the Income-tax Department. In case of TDS / TCS, unless the deductors correctly upload the details of the deductions including the PAN and the amount, the taxes cannot be given credit in the account of the concerned deductee.

3. In all cases where there is a mis-match, the tax credits cannot be given, resulting in withholding of refunds and also creation of infructuous demand.

Main reasons for TDS mismatch

Deductor related reasons :

  •  Non filing of quarterly TDS statements – Omission to include details of challan in TDS statement
  • Quoting wrong CIN in challan details in the TDS statement
  •  Entering wrong amount in challan details
  • Quoting of wrong TAN in the challan while remitting the TDS in the bank
  •  Quoting of wrong minor head in the challan while remitting the TDS
  • Omission to include details of a deductee in the challan wise annexure in the TDS statement
  •  Non quoting of PAN of the deductee
  •  Quoting of structurally invalid PAN of the deductee
  •  Quoting of valid but non existent PAN of deductee
  • Quoting of valid but incorrect PAN of deductee
  • Entering incorrect amount in deductee details

Deductee related reasons :

  •  Error in the TDS amount claimed in the return
  •  Claim of inflated TDS credit in the return
  •  Bogus claim of TDS credit in the return
  •  Amount paid / credited shown in the TDS certificate erroneously claimed as TDS credit in the return
  •  Erroneous claim of TDS credit pertaining to two years in the return of income for one year
  •  Quoting of incorrect TAN of the deductor in the return
  •  Quoting of the TAN of the last DDO only in case of salary drawn from different DDOs during the year
  •  Credit for TDS claimed in a different PAN and status
  •  Credit for TDS claimed for an assessment Year other than the assessment year relevant to the year of deduction

Bank related reasons :

  • Entering wrong TAN while uploading challan data
  •  Entering wrong minor head code while uploading challan data

 

Correction statements for correcting the mistakes in TDS statements:

Type of correction statement

Nature of corrections that can be made

C-1

Updation of deductor details – Name, address etc.

C-2

Updation of challan details

C-3

Updation of deductee details including addition of new records and deletion of existing records

C-4

Updation of salary detail records, deletion of existing records and addition of new records

C-5

Updation of PAN of deductees

C-9

Addition of challan records and underlying deductee records

Y

Cancellation of TDS statement filed with incorrect TAN

 

Action to be taken by deductors for various types of errors:

Nature of error

Type of correction statement to be filed or other action to be taken
Omission to include details of a challan

C-9

Entering of wrong CIN in challan details

C-2

Entering of incorrect amount in challan details

C-2

Quoting of wrong TAN in challan Approach TDS A.O for correction in the system
Quoting of wrong minor head code in challan Approach TDS A.O for correction in the system
Omission to include details of a deductee in the challan wise break-up

C-3

Non quoting of PAN of a deductee

C-5

Quoting of invalid PAN or non existent PAN or incorrect PAN of a deductee

C-5

Entering incorrect TDS amount in deductee details

C-3

Entry of wrong TAN by the bank while uploading challan data Approach TDS A.O for correction
Entry of wrong minor head code by the bank while uploading challan data Approach TDS A.O for correction


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IT department enables Pre-Fill option for ITR

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The pre-fill option of personal and tax information for ITR 1, ITR 2, ITR 3, ITR 4 and ITR 4S for assessment year 2012-13 is available. Please download the applicable ITR Form from the portal. To know more on how to download, pre-fill and upload.

Download Income Tax Return and Upload XML

To file an Income Tax Return electronically, you should download the Income Tax Return (ITR) Utility applicable, fill and generate an XML. This XML should be uploaded in the application post LOGIN.

You can also pre-fill personal and tax information, a new feature in this application.

Steps to Download ITR:

1. On home page, GO TO Downloads section and select applicable Income Tax Return Form of the desired Assessment Year OR Login to e-Filing application and GO TO Downloads >Income Tax Return Forms and select applicable Income Tax Return Form of the desired Assessment Year.

2. Download the excel utility of the Income Tax Return (ITR).

3. Fill the excel utility and Validate. (Please refer the “Steps to pre-fill in Income Tax Return” as mentioned below)

4. Generate an XML file and save in desired path/destination in your desktop/system.

5. LOGIN to e-Filing application and GO TO > e-File > Upload Return.

6. Select the Income Tax Return Form and the Assessment Year.

7. Browse and Select the XML file

8. Upload Digital Signature Certificate, if available and applicable.

9. Click SUBMIT.

10. On successful upload, Acknowledgement details would be displayed. Click the link to view or generate a printout of Acknowledgement/ITR-V Form.

Steps to pre-fill in Income Tax Return:

1. LOGIN to e-Filing application and GO TO Downloads> Income Tax Return Forms

2. Download the excel utility of the selected Income Tax Return.

3. GO TO Downloads> Download Pre-fill XML and download.

4. Open the excel utility.

5. Click the button PRE-FILL. An option to BROWSE a file is displayed.

6. Click on BROWSE and select the path where the downloaded Pre-Fill XML file is stored.

7. Click the SUBMIT button

8. The Personal and Tax information is pre-filled in the respective fields of the excel utility (ITR). You can edit the Tax information, if needed.

NOTE: The pre-fill option is available only for Assessment Year 2012-13


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