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Presentation on theme: "  Nil Returns can be prepared provided some records are there to fill in with certain flags as we don't have Tax Challans/Vouchers. "— Presentation transcript:


2  Nil Returns can be prepared provided some records are there to fill in with certain flags as we don't have Tax Challans/Vouchers.  Nil challans/transfer vouchers with deductee record: Validation as below will be applicable:  Nil challans/transfer vouchers need to mandatorily have deductee records.  In deductee records, flag in the remarks for lower or non-deduction should be “A”, “B”, “Y”, “S”, “T” or “Z” (as applicable) This validation will apply for regular and correction statements.

3  The validations with respect to Nil challan statements have been relaxed for Form 24Q Q4 for all financial years. Deductors will be permitted to submit Form 24Q Q4 for all Financial Years with NIL challans and no corresponding deductee records with the release of New RPU nad FVU from 26th April, 2014

4 A new facility(option) has been opened at TDS CPC on traces in respect of Nil Returns. The deductor after logging into his account simply has to declare/update the record regarding Nil return in a particular quarter, in turn the deductor will be free from the notices which otherwise are being sent for non filing of TDS return for that quarter. It is going to be big sigh of relief for the deductors, saving of paper, cost and valuable man power. Further more TDS CPC will also be acquainted with the information about the deuctor otherwise earlier TDS CPC has no option but to send the notices for non filing of Returns. Option once availed can be changed depending upon the requirements if later need tobe.

5 The default amount will have to be deposited through challan no 281 by ticking minor head '400'. Download conso file from TRACES for filing correction and update the challan detail. While filing correction, fill up interest amount in column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form 27Q and column no. 655 in Form 27EQ. Mention default interest amount in second last interest column in challan detail of conso file.

6 THE Honbl'e HIGH COURT OF KARNATAKA in the case of ADITHYA BIZORP SOLUTIONS INDIA PVT has stayed the enforcement of notices issued u/s 234E till further order. Order passed by the honbl'e court is as under: Petitioners have questioned the constitutional validity of the provision of Section 234E of the income Tax Act and a notice to the petitioner levying fee vide annexure A1 to A21 and Annexure - B. Pending consideration of the grounds in the writ petition, it is desirable that enforcement of notices referred to above issued by the 4th respondent are stayed until further orders. Similar type of stay has already been granted by the THE Honbl'e HIGH COURT OF KERALA in the case of NARATH MAPILA LP SCHOOL Vs. UNION OF INDIA Further more Ex-post facto extension of due date for filing TDS/TCS statements for FYs 2012-13 and 2013-14 has been granted by CBDT vide Circular No. 7/2014 dated 5th March 2014 For Govt deductors for filing the TDS Return From Q2 of FY 2012- 13 to Q3 of FY 2013-14 till 31st March 2014. Big sigh of relief for the Govt defaulters but no relief to the other Tax deductors. Double Standards on the part of the Board. However, any fee under section 234E of the Act already paid by a Government deductor shall not be refunded.

7  Discontinuation of “Y” type of correction statement w.e.f. 01/07/2013  Now only NSDL has the power to delete the return in extreme circumstances if the authorities deem it to be fit case

8 With effect from February 1, 2014, 27A files which are generated by latest.fvu version with duly signed will be only accepted at TIN- FC Any other 27A format would be treated as invalid and the same return could not be process With this amendment now the person responsible can check from the 27A about the accuracy of the data punched.

9 Form 16 /16 A : TDS certificate in Part A of Form 16 shall be generated only for those PANs that have been reported in Annexure II of 24Q statement for 4th Quarter. The deductors are, therefore, advised to ensure that they provide salary details of their employees employed for whole or part of the year in Annexure II of Quarterly TDS Statement for 4th Quarter

10  Online Verification of TDS Certificate has been enabled on TRACES  Users can verify the TDS Certificate on click of 'Verify TDS Certificate' link on  'View TDS / TCS Credit' page  'View Form 26 AS' page  Expired/ Exhausted/Out of Range/Rate Variation of Deduction/Wrong Certificate No.

11 While filing TDS returns filers/Deductors has to be extra careful as the wrong Pan once stated in the return even though amended/corrected by revising the return later on may not discharge the deductor from the liability of penal provisions of deducting TDS @ 20%, as the returns recently being processed by CPC is not adjusting the demand after processing of revising returns in such cases. Rectification of demand is not done if the mismatch is of more than two alpha characters and two numerics in Pan. Therefore, out of 10 characters in case of structurally invalid PAN, 4 characters are being considered for rectification of demand. This is being done on the pretext of provisions of section 206 AA which apply at the time of tax deduction and this all happens prior to the filing of statement. Thus, the deductor is expected to have a Valid PAN at the time of deduction. Only a typographical error is expected at the time of filing the TDS statement. This sort of processing by TDSCPC is totally uncalled for and against the natural justice and needs to reviewed immediately. Section 206 AA does not state that only 4 characters of a PAN can be amended. If the intention of legislature should have been so then no provision could have been provided in the Act for rectification of the return. What is meaning of allowing correction up to 4 characters. This harsh processing is only for the deductors not for the deductees as the deductee is being allowed full credit on revision of returns. There may be case that the deductee might have provided the Structurally wrong Pan at the time of deduction, then why the penal provisions for Deductor only.

12 To avail the facility, you are supposed to Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. Click to "Proceed" in absence of Digital Signature. Pre-requisites for filing online Corrections:  Digital Signature is not mandatory to be registered on TRACES for raising online corrections.  Only Challan Correction is permissible in absence of Digital Signature. Digital Signature enables you to carry out PAN Corrections as well.  Correct KYC information needs to be submitted for the purpose of validation.  Online request can be submitted, only if there is a regular statement already filed and processed.  All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard. Functionalities available without Digital Signature:  Challan/BIN Correction  A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.  Matched challans can be corrected for "Amount Claimed as Interest and Others". Please note that Matched challans cannot be tagged.  Unmatched challans can be corrected and tagged to Deductee rows in the statement.  In addition, NO CHALLAN, which has been used for other purposes outside the system, should be tagged.  The corrections to above challans can be reset by clicking the Reset tab, if this requires to be further corrected.  A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab. Additional Functionalities available with Digital Signature:  PAN Correction Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in "Name as per changed PAN". Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the "Action Status". Please note that there is only one opportunity for a Valid to Valid PAN correction. All the corrected rows can be viewed by clicking on "Show Edited Rows" on the screen.

13  Department of Income Tax through TRACES has launched this new facility to claim Refund of Excess TDS. This is again a welcome step on the part of the Department and major sigh relief to the deductors. Now they will not have to visit the Department for claiming the refund of Excess TDS. News is flashing at the TRACES in this regards as Refunds of challans has been enabled on TRACES. Deductors can navigate to 'Statement / Payments' - 'Request for Refund‘  This facility can be availed by the deductor after logging into its account created at Traces and then by registering his digital signatures. Registration of Digital Signature has been enabled on TRACES for deductors. Deductors can register their Digital Signature in PROFILE after registration

14 Deposit late payment interest @ 1.5% per month or part of the month from the date of deduction till date of deposit. Procedure for calculating Late Payment: Amount Paid / TDS Deducted(Rs.) TDS Deposited(Rs.) TDS Credit Allowed to the Credited(Rs.) Extent of Available Balance (Rs.) 100000.00 10000.00 5000.00 4000.00 Interest Calculation Date of Due Date for Date of Deposit Period of Delay Deduction TDS Deposit as Per OLTAS in Months (dd-mmm-yyyy) (dd-mmm-yyyy) (dd-mmm-yyyy) 4-Mar-2012 30-Apr-2012 7-May-2012 3 3 months Interest on Late Payment U/S 201 Calculation No. of months in Defaults = 3 i.e., Mar-12 to May-12 4000*1.5%*3(Months) =180.00

15 You have to deposit late deduction interest @ 1% per month or part of the month from the date of payment / credit to deductee till date of deduction. Procedure for calculating Late Deduction: Amount Paid / TDS Deducted(Rs.) Interest Calculation Credited(Rs.) Date of Payment Due Date of Deduction Date of Deduction (dd-mmm-yyyy) (dd-mmm-yyyy) (dd-mmm-yyyy) 100000.00 10000.00 3-Mar-2012 3-Mar-2012 4-Mar-2012 Period of Delay in Months Interest on Late Deduction U/S 201 (1A)(Rs.) 1 100.00 Correct Calculation No. of months in Defaults=1 i.e., 3-Mar-2012 to 4-Mar-2012 10000*1%*1(Months) =100.00

16 In order to request for Duplicate Provisional Receipt, the Deductor may send the letter at mentioning all the below 1. TAN & name of the Deductor/collector 2. Letter should be provided on the original letterhead of company 3. Letter should be signed by authorized signatory along with name and designation of authorized person. 4. Token number (of Regular statements only) 5. Financial Year 6. Form No. 7. Period (Quarter) 8. Purpose for requesting copy of provisional receipt 9. Email ID

17 To facilitate improved TDS administration, CPC(TDS) has launched "Aggregated TDS Compliance" at PAN level for all TANs associated with the referenced PAN. Following are additional details related to the new feature. What is meant by Organization's PAN: The above indicates the PAN of an entity, having more than one TANs of its branches, associated with the referenced PAN. This will be the PAN of the Central Office, Headquarter etc., as may be appropriate. The said PAN must review the "Aggregated TDS Compliance" report on a regular basis to improve TDS compliance at Organization level. What does the new feature offer: The above stated PAN can view TDS performance for all of its respective TANs by logging into TRACES as a Taxpayer. The Defaults generated for all the TANs can be viewed by using the feature. The following type of Defaults for the branches can be viewed: Total Default Short Payment Default Interest on Payment Default u/s 201 Interest on Deduction Default u/s 201 Late Filing Fee u/s 234E Interest u/s 220(2) PAN Errors

18 The respective TANs with Defaults in their TDS Statements can be pursued to get the above resolved by taking following actions:  Carrying out necessary corrections in the records reported in the TDS statements,  Paying the outstanding demand and  Submitting the Correction Statements at the earliest.  The feature thus provides for a summary of Defaults, which assists in effective TDS administration, monitoring, control and compliance at Organization level. The feature will be extremely useful for the purpose of complying with the provisions of Section 40(a)(ia) of the Income Tax Act, 1961 by the concerned entity, to ensure that correct information is disclosed in paragraph 27A/B of the Tax Audit Report (Form 3CD) u/s 44AB of the Act.

19  Payment of Taxes deducted/ collected  Timely Filing  Correct Reporting  Complete Reporting  Downloading TDS Certificates from TRACES


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