A Glance On TDS Related Issues In Government Sector

Report
PREPARED BY
CA Darshan M. Panchal
(B.Com,L.L.B, ISA (ICAI), A.C.A)
(M) 9974012893
Email : [email protected]
B-16 Ground Floor,
Vasupujya Chambers
I.T Circle, Ashram road
Ahmedabad - 380014.
• AO to provide the user ID as well as password at
the time of registration.
• Option available to provide two email IDs.
• On registration e-mail with user ID in password
protected PDF file is sent.
• Within 24 hours AO registration account is
activated.
• Online facility to download BIN details available.
• Online upload for Form 24G statements is
available.
For Government Deductor to File quarterly
Statements following are some of the
pre-requisites :
1. Obtain Account officer Identification
number (AIN).
2.
File 24 G in Prescribed Format.
3.
Now file TDS quarterly Statement.
Background
 Government
deductors – mandatory to file
electronic returns (TDS/TCS).
 Government
deductors normally deposit tax
through book entry (not through banks).
 No independent source to confirm tax payment
except BIN view.
Form 24G
... continued
 PAO
/ DTO / CDDO to file statement in Form 24G.
(ITD Notification no. 41/2010 dated May 31, 2010).
 Form 24G can be filed from F. Y. 2005-06 and
onwards.
 Accounts officer identified by AIN (Account Officer
Identification No.).
 Frequency - Monthly and in electronic form only.
 Due date of filing of Form 24G is 10th of subsequent
month.
Details to be filled in Form 24G
• Details of the AO filing Form 24G : AIN, Name of AO,
demographic information, category of AO (Central/State,
Ministry name etc).
• Statement details :- Month and Year for which Form 24G is
being filed.
• Nature of deduction: - TDS (Salary, Non Salary) / TCS.
• DDO wise payment details:- TAN, DDO number, Name of
DDO, tax deducted and remitted.
 Preparation
◦ File format
◦ NSDL RPU, in-house or third party software
 File Validation Utility (FVU)
 Acceptance through SAM - Generation of
Provisional Receipt Number
 Upload by TIN-FC
Procedure for Submission of Form 24G statement
Submission of Form 24G statement
• Statement should be submitted in CD/Pen Drive
• Single computer media may contain multiple statements
• After acceptance of statement, CD / Pen Drive should be
returned to Accounts Office (AO)
• Documents to be submitted to TIN-FC are
• Statement Statistics report
• FVU file
Procedure for submission of e-TDS/TCS statement
Submission of e-TDS/TCS statement
• Statement should be submitted in CD/Pen Drive
• Single computer media may contain multiple statements
• After acceptance of statement CD / Pen Drive should be
returned to deductor by Tin- FC
• Documents to be Submitted to TIN-FC are
• Form 27A
• FVU File
• Copy of original provisional receipt (in case of correction
statement)
• Statistical Report generated through HTML File(in case of
correction statement).
FILER
ERACS
TIN - FC
DEDUCTOR
TAX PAYER
OLTAS
DIRECT
UPLOAD
(BANKS)
TIN Central
System
TIN VIEWS
DEDUCTORS + CHALLAN STATUS
VIEW (STATEMENT STATUS)
ITD VIEW

Paper Return

E-tds Return Through Tin-Fc

Online filling along with DSC at Tin-NSDL
website
Paper Return
1.What is Paper Return ?
Manual Submission Of TDS quarterly statement in form
24Q/26Q
2. Who Can File Paper Return ?
All Assessee, except

Those who are required to get books of a/c audited u/s
44AB
 Government Deductor
 Required to gettheir books of account audit under any
other act.
 Deductor having more than 20 deductee entries
 What is pre-requirement of paper return ?
• Complete, legible and signed
• Mandatory fields - TAN, Name, Form No., F. Y. and
Quarter
• No enclosures - Bank challan / TDS/TCS certificate etc.
• Correction, if required, in full and in paper form only
• Copy of original Provisional Receipt (if correction
statement).
 Deductor details – TAN, Name of deductor
 Challan details – CIN, amounts, section code
 Deductee details, Salary details – Name of
deductee/ employee, PAN and amounts
Impact of errors in digitization
 Impact on booking of challans
 Impact on tax credit to underlying deductees
(view in Form 26AS)
 Impact on assessment
 Revised statement uploaded before cancellation
of original paper statement
Quarterly (From F. Y. 2007-08 onwards)
Form
No.
24Q
26Q
27Q
27EQ
27A
Periodicity
Quarterly
Due Date
For first three quarters:
• within 15 days from end of quarter for
Non-Government deductors.
• within 30 days for Government
deductors.
For last quarter: up to 15th May in the
succeeding F. Y.
With each e-TDS/TCS statement.
Due dates are for deductors / collectors.
Processing of e-TDS/TCS Statements (Regular)
Acceptance / Non-Acceptance of Returns
•
Preliminary Checks OK
Format Level
Verification passed
TAN verification OK
•
Name and address
•
•
•
Deductor submits
return to
TIN-FC
verification OK
•
•
•
•
Control Total matched
with Form 27A
•
TIN-FC
Provisional Receipt
Preliminary Checks not
OK
Format level error
Neither TAN is in data
base nor any proof of
TAN
Mismatch in
name/address – no
proof
Control Total do not
match with Form 27A
Non- Acceptance Memo
•Billing on the basis of number of deductees in the accepted statement

Need for correction statement
In case of mistake in original return, if
mistake is in…
 Challan Detail.
 Deductee Detail.
 Deductor Detail.
 Payment of Interest reply to notice.

Process to make correction Statement.
Register TAN at TRACES site.
o Log in to Traces with USER Id and Pass ward.
o Request consolidated file by providing detail
of challan and Deductee pan and
corresponding TDS AMOUNT.
o Download consolidated .tds file from TRACES.
o Default file can be download shows default
amount.
o
o Prepare correction file using latest RPU and FVU
provided from NSDL time to time.
◦ No. of Batches = No. of provisional receipts
◦ More than one type of correction in one TDS
correction statement possible .eg. Change of
PAN, Change in deductee details, Change in challan
detail, Change in Deductor return etc.
◦ Copy
of TDS provisional receipt is to be attached with
the form 27A with reference of the same in
computer
generated .fvu file.
◦ More
than one time correction possible. There is no
such provision to restrict correction in original TDS
return.
 Challan Status Enquiry
TAN BASED VIEW
CIN BASED VIEW
 Statement Status View
 BIN view (For those who have filed 24G)
Online views at TRACES
 Credit of TDS to deductee.
 Unclaimed challans.
 Verification of Lower Deduction Certificate No.
 Default generated for TDS/TCS statement.
 Pan Verification
 Online request for Refund
 Online correction in Pan or Challan amount with DSC
Rectification of errors
Errors in physical challan by Bank or Taxpayer
Sr. No.
1
Type of Correction on
Challan
PAN/TAN
2
Assessment Year
3
Total Amount
4
Major Head
5
Minor Head
6
Nature of Payment
Period for correction request (in
days)
Within 7 days from challan deposit
date
Within 7 days from challan deposit
date
Within 7 days from challan deposit
date
Within 3 months from challan
deposit date
Within 3 months from challan
deposit date
Within 3 months from challan
deposit date
For any other error, deductor needs to contact Assessing Officer

PAN Errors

Taxies / Interest payment or Mismatch

Non Submission of Statement or
challan
Show Cause Notice u/s 201(1) of I.T.
Act,1961.
 Normally Show Cause Notice is not
Responded by Assessee and no
Attention is paid to the direction in
show cause notice.
 Photo copy of Return and Challans are
submitted to A.O. and system is
blamed for default which is not
correct.



Default Details can be download from
TRACES through Deductor Log-in in
excel format.
This default shows list of short
payment records, short deductions
records and list of Late payment
records.
Deductor to file Correction statement in Consolidated file
available from TRACES and respective correction made
File correction statement at NSDL TIN-FC
Return is process at TRACES
Default is Remove after validation
1.Deletion of deductee record:
 Feature of deletion of the deductee record is removed.
To nullify a deductee record update the amount and
related fields to “0”(zero) and add new row and update
record in that row with updated value.
2.Date of deduction:
Date of deduction of previous quarter or next quarter
is not allowed.
3.
Correction or Regular returns to be prepared only
using latest available FVU versions from TRACES or
NSDL site.
4. 27A is generated on Validation of Statement by
TDS/TCS FVU. And this are Barcoded statement
so need to generate fresh 27A every time there
is fresh Validation.
5. There is no need to provide copy of Original
Token Receipt or copy of statistical reports
print.



In Default menu request for correction to be
selected through Digital Sign.
Respective Financial year, Quarter and form
type is required to be selected.
Only two types of correction allowed.
◦ Challan correction
◦ PAN correction



After editing PAN and challan details
correction confirm button to be click to
submit correction return for submission
page.
Again in default menu “correction ready for
submission” filed selected and row of return
corrected is selected and then submit for
processing button is to be click.
After successful submission message will be
displayed of successful submission.

current issues.docx
CONTACT
B-16, Ground Floor,
Vasupujya Chambers,
Nr. Income Tax Circle,
Ashram Road,
Ahmedabad – 380014
E-Mail :
[email protected]
Ph no. 079-27543422
079-27543522
M. no. 9974012893

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