Last date for issuance of the TDS/TCS certificates for Q1 of FY:2013-14 – 30th July, 2013

The above is applicable for deductors other than the Office of the Government
 
Delay in issuing certificates will involve a fine of Rs. 100 per day subject to an upper limit of the tax deducted.
 
As per Circular No. 01/2012 dated 09.04.2012, it mandatory for all deductors to issue TDS certificate in Form No. 16A after generating and downloading the same from TRACESwebsite.

Guidelines for Online Filing of Tax Return

Necessary documents required before e filing tax return:

  • PAN card
  • Previous Tax Return
  • Form 26AS
  • Form 16
  • Form 16A

Step 1: Open the website for online tax filing  https://incometaxindiaefiling.gov.in/ in your browser to begin the e-filing process.

Step 2: There are various kinds of income tax forms located on the right side of the site for various types of returns. You are required to download the appropriate form which is in the zip file and unzip it to file the form.

The form is to be opened in MS-Excel only and you will also have to enable the macro X controls, if not already enabled.

Step 3: All the required details and particulars have to be correctly and attentively filed in the form and then validate it by clicking “validate” icon on the last page.

After validating you have to access the “Generate XML” link and then subsequently save the generated XML file.

Step 4: The saved XML file will now have to be uploaded on the income tax e-filing portal mentioned above. For this an existing user can log in by entering the PAN number as User ID and a secret password.

For new users, an account has to be created by filing in the PAN, name, father’s name, date of birth, e-mail address and contact number. After this an automated activation link will be sent on the mail ID provided by you, which has to be clicked to activate the account.

The PAN number is the user ID in this link. Follow the steps to choose a secret password which has to meet the laid down specifications in the website. In case the secret password is lost or forgotten one can reset the same using the PAN number and the secret question that has been previously answered.

Step 5: Once you log in, jump onto the ‘submit return’ tab. Now, select the relevant year that is 2013-2014 in our case, choose whether you want to file return using digital signature or not and upload the XML file that was generated in Step III above.

Step 6: Acknowledgment form ITR-V of the return having filed will be generated now. The file can be opened with a password which your PAN followed by the date of birth in DDMMYYYY format.

Step 7: In case you have filed return by affixing digital signature on the tax return, the procedure is finished at this stage. Otherwise a printout of the ITR-V will have to be taken and physically signed before sending it to the CPC Bangalore within 120 days of filing return. One has to keep a copy of signed ITR-V with him for future reference.

Step 8: When the ITR-V acknowledgment is received, you will have to log in to your account and acknowledge the completion of the process.

Evaluate your TDS defaults using Justification report downloaded from TRACES

After the submission of your TDS return you have the option to evaluate your return by downloading the Justification report from the TRACES website.

This report lists out the following errors that was present in the returns that was submitted:

PAN Errors – List of all PANs that which is not present in the Income Tax Department data.

Late Payments – List of all those records whose TDS payments were deposited after the due date. An interest of 1.5% per month is charged on the TDS amount for the late payment.

Short Deduction – List of all the records in which the TDS deduction rate is less than the rate as per Income Tax Act.

Generation of excel sheet from the Justification report downloaded from TRACES

To generate the excel sheet from the Justification report downloaded from TRACES, follow the steps given below:

1. To generate the justification report excel sheet, download the “TRACES-Justification-Report-Generation-Utility-V1.0” from the following link:

Download TRACES-Justification-Report-Generation-Utility-V1.0

2. Now, provide the path of unzipped report downloaded from TRACES website and the path of the output folder where you want this report to be generated.

3. Click on “Generate Report” button to generate the report.

Please note, to generate the report you have to enable the macros in the excel sheet.

PDF Convertor Utility NEW Ver.(1.2L) to generate Form-16/16A For A.Y. 2013-14 from TRACES.

It is observed from the new https://www.tdscpc.gov.in (TRACES) that TDS Dedeductor have face the problem when they generate Form 16/16A in bulk form i.e. more than 1000 then the TDSCertificate or Form 16/16A at a time therefore Income Tax Department advised to All Deductors  to download PDFConverter Utility V1.2L again. This new version will works on or after 23rd March, 2013.  The TDS Deductor/Deductee candownload TDS Certificate (Form 16 (Part A) and Form 16A) from TRACES. The file will be provided in text format and will containcertificate details for all requested PANs.Text file is password protected and password will be ”.

A certificate is prescribed u/s 203, which is to be issued by person deducting tax at source. Every person deducting tax is duty bound to furnish this certificate to the person from whose income/payment the tax has been deducted. The certificate should specify the amount of tax deducted and rate at which it is deducted (Form No. 16A, under Rule 31) and other particulars prescribed. A new form 16A has been introduced w.e.f. from 1/4/2010 vide Income-tax (6th Amendment) Rule, 2010(Pl. Ref. Annexure – 4). The new Rule 31 introduced vide I.T. (6th Amendment) Rules provides the following with respect to certificate of deduction of tax.

Deductor will have to convert the text file into PDF using TRACES PDF Generation Utility. This utility will convert the text file into individual PDFs for each PAN. The same utility can be used to convert text file for Form 16 / 16A
.

TDS Returns – Employee details to have breakup of earnings from current employer and previous employers during the Financial Year

From Financial Year 2013-14 (AY: 2014-15), while preparing the employee details to file TDS Returns (Form 24Q) in the 4th quarter (Jan – Mar), a provision has been made to separate out the salary earnings of the current and previous employer. This is applicable in case the employee has earned from more than one employer during the course of the year. 

This is not applicable for FY: 2012-13. Filing of Form 24Q pertaining the quarter ended March 2013, would be in the same way as before.

TDS Returns – Employee details to have breakup of earnings from current employer and previous employers during the Financial Year

From Financial Year 2013-14 (AY: 2014-15), while preparing the employee details to file TDS Returns (Form 24Q) in the 4th quarter (Jan – Mar), a provision has been made to separate out the salary earnings of the current and previous employer. This is applicable in case the employee has earned from more than one employer during the course of the year. 

This is not applicable for FY: 2012-13. Filing of Form 24Q pertaining the quarter ended March 2013, would be in the same way as before.

FVU 3.8 : Key changes effective July 2013

NSDL has released FVU version 3.8 effective July 1,2013. There are some important changes in the data structure of eTDS statement. Several new fields have been added,  few fields removed effective FY 2013-14 .

Major changes and data structure amendments are explained in this blog.

Challan Amount Allocation

  • Till now Section code was mentioned in the Challan sheet and deductee sheet only had reference of the challan. Hence all dedcutee records pertaining to a particular challan number were considered belonging to section code of the challan.
  • This posed problem for deductors who had combined two or more sections while depositing challans. While a workaround to take care of this situation was available, it was difficult for deductors to comprehend and put into practice.
  • Now there is no need to mention Section Code in the challan sheet and the same has been shifted to deductee sheet.
  • This means that a challan amount deposited can be allocated to deductees belonging to different section codes. The only restriction being those sections must be valid for that particular form. Hence a section code pertaining to Form 27Q cannot be mentioned in Form 26Q

Income and Tax deducted by Previous Employers in Salary Details

One of the main deficiency in data structure so far no place to mention tax deducted by previous employer. This was a cause of confusion for employers as they were supposed to consider tax deducted by previous employer while computing tax deductible , but no place to mention the same in eTDS Statement. This has been addressed now by incorporating the following fields in Q4 Form 24Q

  • Reported Taxable Amount on which tax is deducted by previous employer(S)
  • Reported amount of Tax deducted at source by previous employer(s)/deductor(s)

Discontinuation of “Y” type correction.

  • So far a regular statement filed can be cancelled by filing a Y type of correction statement.
  • This is being discontinued now. Hence a regular statement once filed cannot be cancelled

Discontinuation of quarterly TDS/TCS statements (regular and correction) pertaining to FY 2005-06 and 2006-07.

  • Currently there was no time limit for filing regular or correction statements.
  • Now no regular statement  or correction statement for FY 2005-06 and 2006-07 can be filed.
  • This means a deductor can still file regular and correction statements for past 6 years i.e  2008-09 to 2012-13

Other Changes : Common across all forms

 Deductors Details

Additional details to be provided

  • TAN Registration Number
  • Alternate Phone number and email ID of deductor
  • Alternate Phone number and email ID of Responsible Person
  • Accounts Office Identification Number in case of Governement Deductors

Challan Details

  • The following fields are not to be mentioned starting Financial Year 2013-14
    • Section Code
    • Cheque / DD Number
  • Total amount deposited as per challan has to be in rupee, no paise allowed
  • A new field for entering  fee paid in terms of Section 234E is introduced. Applicable for FY 2012-13 onwards
  • A new field for entering Minor head of challan . Valid for FY 2013-14 onwards and mandatory

Deductee Details

  • A new field to enter “Deductee Reference Number “ where PAN is not available
  • Book Entry / Cash indicator is to be given only upto FY 2012-13
  • Section Code is to be mentioned for each deductee starting FY 2013-14
  • Certificate Number issued by the AO under section 197 for non-deduction / lower deduction is to be mentioned

Other Changes : Form Specific

Form 24Q : Salary Details

New fields added

  • Taxable Amount on which tax is deducted by the current employer
  • Reported Taxable Amount on which tax is deducted by previous employer(S)
  • Total Amount of tax deducted at source by the current employer for the whole year [aggregate of the amount in column 323 of Annexure I for all the four quarters in respect of each employee]
  • Reported amount of Tax deducted at source by previous employer(s)/deductor(s) (income in respect of which included in computing total taxable income in column 344)
  • Whether tax deducted at Higher rate due to non furnishing of PAN by deductee

Section code changes

Nature of Payment Section Section code to be used in the return
Payments made to Govt. employees other than Union Govt. employees 192 92A
Payments made to employees other than Govt. employees 192 92B
Payments made to Union Govt. employees.Applicable from for statement pertaining to FY 2013-14 onwards. 192 92C

Form 26Q

Bifurcation to be given in respect of deduction under section 194I

Nature of Payment Section Section code to be used in the return
Payments in respect of use of any machinery or plant or equipment; 194I ( a) 41A
Payments in respect of use of any land or building 194I ( b) 41B
  • Reason for lower/Nil Deduction : In case of no deduction on account of payment under section 197A (1F), applicable from FY 2013-14 onwards, ‘Z’ is to be mentioned.

Form 27Q : Deductee Details

New fields introduced

  • if TDS Rate is as per income-tax Act or DTAA :  Enter A : If TDS rate is as per Income Tax Act   or B : If TDS rate is as per DTAA
  •  Nature of remittance as per given 66 codes
  •  Country to which remittance made as per given 286 codes
  •  Unique Acknowledgement Number of Form 15CA , if available

Form 27EQ : Deductee Details

If there is non collection in terms  section 206c(1A) , update  flag ‘B’ in the field “Reason for lower/non-deduction”