Presentation on theme: "A Glance On TDS Related Issues"— Presentation transcript:
1 A Glance On TDS Related Issues PREPARED BYCA Darshan M. Panchal B-16 Ground Floor,(B.Com,L.L.B, ISA (ICAI), A.C.A) Vasupujya Chambers(M) I.T Circle, Ashram roadAhmedabad
2 1.AIN registrationAO to provide the user ID as well as password at the time of registration.Option available to provide two IDs.On registration with user ID in password protected PDF file is sent.Within 24 hours AO registration account isactivated.Online facility to download BIN details available.Online upload for Form 24G statements isavailable.
3 At Glance :For Government Deductor to File quarterly Statements following are some of the pre-requisites :Obtain Account officer Identification number (AIN).File 24 G in Prescribed Format.Now file TDS quarterly Statement.
4 Form 24GBackgroundGovernment 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.
5 Form 24G... continuedPAO / 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 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.
6 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.
7 Preparation and Filing of Form 24G File formatNSDL RPU, in-house or third party softwareFile Validation Utility (FVU)Acceptance through SAM - Generation of Provisional Receipt NumberUpload by TIN-FC
8 Procedure for Submission of Form 24G statement Statement should be submitted in CD/Pen DriveSingle computer media may contain multiple statementsAfter acceptance of statement, CD / Pen Drive should be returned to Accounts Office (AO)Documents to be submitted to TIN-FC areStatement Statistics reportFVU file
9 Procedure for submission of e-TDS/TCS statement Statement should be submitted in CD/Pen DriveSingle computer media may contain multiple statementsAfter acceptance of statement CD / Pen Drive should be returned to deductor by Tin- FCDocuments to be Submitted to TIN-FC areForm 27AFVU FileCopy of original provisional receipt (in case of correction statement)Statistical Report generated through HTML File(in case of correction statement).
11 Modes Of Filling TDS Return Paper ReturnE-tds Return Through Tin-FcOnline filling along with DSC at Tin-NSDL website
12 Paper Return 1.What is Paper Return ? Manual Submission Of TDS quarterly statement in form 24Q/26Q2. Who Can File Paper Return ?All Assessee, exceptThose who are required to get books of a/c audited u/s 44ABGovernment DeductorRequired to gettheir books of account audit under any other act.Deductor having more than 20 deductee entries
13 What is pre-requirement of paper return ? Complete, legible and signedMandatory fields - TAN, Name, Form No., F. Y. and QuarterNo enclosures - Bank challan / TDS/TCS certificate etc.Correction, if required, in full and in paper form onlyCopy of original Provisional Receipt (if correction statement).
14 Errors in paper returns resulting non-upload to central system Deductor details – TAN, Name of deductorChallan details – CIN, amounts, section codeDeductee details, Salary details – Name ofdeductee/ employee, PAN and amountsImpact of errors in digitizationImpact on booking of challansImpact on tax credit to underlying deductees(view in Form 26AS)Impact on assessmentRevised statement uploaded before cancellationof original paper statement
15 TDS/TCS Forms and Periodicity Quarterly (From F. Y onwards)Form No.PeriodicityDue Date24QQuarterlyFor 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.26Q27Q27EQ27AWith each e-TDS/TCS statement.Due dates are for deductors / collectors.
16 Acceptance / Non-Acceptance of Returns Processing of e-TDS/TCS Statements (Regular)Acceptance / Non-Acceptance of ReturnsPreliminary Checks OKFormat Level Verification passedTAN verification OKName and address verification OKControl Total matched with Form 27APreliminary Checks not OKFormat level errorNeither TAN is in data base nor any proof of TANMismatch in name/address – no proofControl Total do not match with Form 27ADeductor submitsreturn toTIN-FCTIN-FCProvisional ReceiptNon- Acceptance MemoBilling on the basis of number of deductees in the accepted statement
17 Acceptance of Correction Statements Need for correction statementIn case of mistake in original return, ifmistake is in…Challan Detail.Deductee Detail.Deductor Detail.Payment of Interest reply to notice.Left slide
18 Process to make correction Statement. Register TAN at TRACES site.Log in to Traces with USER Id and Pass ward.Request consolidated file by providing detail of challan and Deductee pan and corresponding TDS AMOUNT.Download consolidated .tds file from TRACES.Default file can be download shows default amount.
19 Multi Batch Corrections - Prepare correction file using latest RPU and FVUprovided from NSDL time to time.No. of Batches = No. of provisional receiptsMore than one type of correction in one TDScorrection statement possible .eg. Change ofPAN, Change in deductee details, Change in challandetail, Change in Deductor return etc.Copy of TDS provisional receipt is to be attached with the form 27A with reference of the same in computergenerated .fvu file.More than one time correction possible. There is no such provision to restrict correction in original TDS return.
20 Online Views at NSDL Online views at TRACES Challan Status Enquiry TAN BASED VIEWCIN BASED VIEWStatement Status ViewBIN view (For those who have filed 24G)Online views at TRACESCredit of TDS to deductee.Unclaimed challans.Verification of Lower Deduction Certificate No.Default generated for TDS/TCS statement.Pan VerificationOnline request for RefundOnline correction in Pan or Challan amount with DSC
21 Type of Correction on Challan Period for correction request (in days) Rectification of errorsErrors in physical challan by Bank or TaxpayerFor any other error, deductor needs to contact Assessing OfficerSr. No.Type of Correction on ChallanPeriod for correction request (in days)1PAN/TANWithin 7 days from challan deposit date2Assessment Year3Total Amount4Major HeadWithin 3 months from challan deposit date5Minor Head6Nature of Payment
22 Reasons for Defaults PAN Errors Taxies / Interest payment or Mismatch Non Submission of Statement or challan
23 Outcome of Defaults 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.
24 Cont….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.
25 Process of Rectification of Default Deductor to file Correction statement in Consolidated file available from TRACES and respective correction madeFile correction statement at NSDL TIN-FCReturn is process at TRACESDefault is Remove after validation
26 Important changes from 03.01.2014 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.
27 Cont…..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.
28 Online Correction of Return 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 correctionPAN correction
29 Cont…..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.
30 Filling of E-tds returns, Problems and Issues current issues.docx