File Validation Utility (FVU 3.8) Released – Major changes announced

The Income Tax Department through NSDL has released the latest File Validation Utility (FVU) Ver. 3.8 on 29/06/2013 which would be applicable from 01/07/2013. Both regular returns and correction statements will have to be validated through this new FVU.

There are a quite a few significant changes in the procedure of preparing the eTDS Returns from financial year 2013-14 which are summarized as under:

  • Provision has been for an alternate contact detail (email and phone no.) of the Deductor and its Responsible Person.
  • TAN Registration No. (if any) as provided by TIN may be quoted.
  • Section Code has been removed from Challan and shifted to Deductee / Collectee Details – this implies that one can now deposit TDS against different sections through one Challan instead of separate Challans for each Section.
  • Cheque detail is no more required in the Challan details.
  • Minor Head Code to be provided in Challan details – This code will differentiate between the payment against self-assessed TDS / TCS and demand raised by Income Tax authorities.
  • Introduction of Late Fee in Challans – As per the recently introduced Section 234E there is now a provision for Late Fee for delay in filing of TDS / TCS returns. Now the Challan will include the additional column for this Late Fee.
  • In Form 24Q (Salary Returns), a new Section 92C has been added which is for payment made to Union Government employees.
  • In Form 26Q (Non-Salary Returns), the existing Section 194I (Rent Payment) has been split into two sections 194I(a) and 194I(b).
  • For deductees wherein Lower Deduction / No Deduction are applicable, the Certificate No. now has to be entered in the Deductee details.
  • For certain specified payments to Scheduled Banks where tax is not to be deducted under Section 197A(1F), the same needs to be specified under Remarks in the Deductee Details.
  • In the annual salary details (Applicable in Form 24Q – Q4), now there is a provision for breakup of salary paid and tax deducted by the current employer and previous employers during the current financial year.
  • Further, in the annual salary details (Applicable in Form 24Q – Q4), records are to be highlighted whether tax has been deducted at a higher rate owing to the non-availability of PAN of the employee.
  • In Form 27Q (Non-Salary Foreign Remittances), new columns has been added in the Deductee details as under:
    1. Nature of remittance to be specified which is to be selected from a list as provided.
    2.  To specify if the TDS rate is as per Income Tax (IT) Act or as per Double Taxation Avoidance Agreement (DTAA).
    3. To provide details of the unique acknowledgement of the corresponding Form No. 15CA (if applicable) pertaining to the foreign remittance.
    4.  Country of Remittance to be selected from the list of countries as provided.
  • The system of cancelling a Regular Return (‘Y’ type Correction Statement) is being discontinued.

Issues pertaining FY:12-13 and earlier years

  • Introduction of Late Fee in Challans – As per the recently introduced Section 234E there is now a provision for Late Fee for delay in filing of TDS / TCS returns. Now the Challan will include the additional column for this Late Fee. This is also applicable for FY:12-13.
  • FVU Ver. 3.8 is applicable to FY: 2010-11 onwards only.

FVU (Ver. 2.134) released on 29/06/2013 – applicable for FY: 2007-08 to 2009-10

  • FVU (Ver. 2.134) is to be used for validation of Regular Returns and Correction Statements pertaining to financial years 2007-08, 2008-09 & 2009-10.
  • Now eTDS returns (including Corrections) for financial year 2006-07 and earlier years will not be acceptable.

Link to download – Key Features of FVU 2.134

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