How to avoid common mistakes while submitting TDS Statement ? – Important Guidelines.

In our endeavor tofacilitate improved TDS administrationand lower TDS default rates, we are glad to provide information on common mistakescommitted by the deductors while submitting TDS statements. These mistakes result into TDS Defaults in the respective statements.

Following are some useful guidelines to avoid common mistakes, while submitting TDS Statements and you arerequested to go through the following in detail.

Incorrect reporting of 197 Certificates:

Please refer to the following guidelines for correct reporting of 197 Certificates:

The Certificate Number should be of 10 digits with Alpha-numeric structure. Please refer to the following examples:

  • Correct Format 1111AA111A;
  • Incorrect Format: 1111AA111A/194C

Certificate Number should be valid during the period for which it is quoted. 

The Certificate Number should be for the same PAN, Section Code and Section Rate for which it has been mentioned in the statement 

Threshold limit Amount of the Certificate should not be exceeded. 

Please ensure that the Certificate is not expired. Please refer to the following illustration:

  • Lower deduction Certificate under section 197, issued in April 2013 (e.g.Certificate Number – 1) stands cancelled by Assessing Officer on 10/11/2013.
  • A fresh certificate Under Section 197 (e.g. Certificate Number – 2) isissued with effect from 11/11/2013.
  • Deductor quotes Certificate Number – 2 against the transactions recorded during the period from 01/11/2013 to 10/11/2013 in Q3 TDS statement.
  • Deductor should have quoted Certificate Number – 1 for the transactions conducted till 10/11/2013.

Common errors resulting into Short Payment Defaults:

  • Typographical errors committed by deductor, in reporting the date‘20032014’ in the “Tax Deducted” column.
  • Total of “Amount Paid / Credited” reported in the “Tax Deducted”column of the statement. This results into short payment and
  • Deductors need to ensure that the TDS/TCS Deducted/Collected amount should be equal to TDS/TCS Deposited Amount.

The above mistakes are illustrated below:    

Amount Paid/ Credited

TDS Deducted

TDS Deposited

Remarks

    1,55,000.00

1,55,000.00

15,500.00

Wrong TDS Deducted Amount

2,20,420.00

20032014.00

22042.00

    Date mentioned in the TDS Deducted Column

Actions to be taken : 

  • CIN Particulars (BSR Code, Date of Deposit and Challan Serial Number) mentioned in the TDS statement should exactly match with the CIN Particulars as available on ‘Challan Status’ at http://www.tdscpc.gov. in or ‘ChallanStatus Enquiry’ at http://www.tin-nsdl.com
  • For BIN (Book Identification Number), the particulars (24G receipt number, Date of transfer voucher and DDO Serial Number) mentioned in the TDS statement by the Govt. Deductors should exactly match with the BIN Particulars as available on
  • ‘Challan Status’ at http://www.tdscpc.gov. in or ‘BIN View’ at http://www.tin-nsdl.com
  • Amount of Tax deposited pertaining to different BIN’s/ CIN’s should not be clubbed together while reporting in the TDS statements.

Few other common mistakes in reporting dates are as follows:                   

Actual Date of Deposit  (As per Challan)

Date of Deposit mentioned  in TDS Statement

Observations

07/01/2014

(07th Jan, 2014)

07/01/2013 

(07th Jan, 2013)

Wrong Year (2013 instead of 2014)

07/01/2014

 (07th Jan, 2014)

01/07/2014

 (01st July,2014)

    Wrong Date Format (MM/DD/YYYY)

You can reach out to us on ContactUs@tdscpc.gov.in or call our toll-free number1800 103 0344.

CPC (TDS) mandates closure of Short Payment Defaults in the quarterly TDS statements

The Centralized Processing Cell (TDS), in its endeavour to enforce TDS Compliance, is shortly mandating closure of “Short Payment defaults” in the quarterly TDS statements due to Unmatched Challans, before the Conso files can be downloaded from TRACES for the relevant statements.

Following are key information to be noted in this regard:

  • CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (without digital signature).
  • In case there is no available challan for consumption, the deductor is required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit.
  • CPC(TDS) mandates to close the above default by Matching or Payment of challans.
  • The user will not be able to download Conso file for the relevant TDS statement until the above default is closed.
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.
  • User will subsequently be able to download the Conso file for relevant period only after the default is closed.

Why the Short Payment needs to be paid:

  1. CPC (TDS) intends to enforce compliance towards payment of taxes to the Government.
  2. In accordance with provisions of section 201(1) of the Act, where any person, including the principal officer of a company, who is required to deduct any sum in accordance with the provisions of the Act; does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall be deemed to be an assessee in default in respect of such tax.
  3. As per the provisions of section 220 of the Act,
    1. Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
    2. If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
  4. If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
  5. Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
  6. Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

What Actions to be taken:

  1. During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
  2. Details of defaults will be provided during Online Correction process.
  3. In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
  4. Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down list. 

Online Challan Corrections:

  1. A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
  2. Unmatched challans can be corrected and tagged to Deductee rows in the statement.
  3. The corrections in TDS statements can be raised even without Digital Signature.
  4. Correct KYC information needs to be submitted for the purpose of validation.
  5. All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.

You are requested to take appropriate actions to avoid any inconvenience in absence of Conso files for carrying out any other corrections to your TDS statements.

Top queries related to registration in TRACES

When I provide my TAN and Token Number, I get the message ‘Invalid details’. Why?

Token Number (Provisional Receipt Number) provided must be of any accepted Regular statement filed by you on or after April 1, 2010 or of any accepted Correction statement filed by you from April 1, 2010 to October 15, 2012.

What are the details that I need to enter in the registration form?

For Deductors

  • Step–1
    • TAN of Deductor
  • Step–2
    • Token Number of the regular statement corresponding to the Financial Year, Quarter and Form Type displayed on screen
    • Challan details of one particular CIN which has been mapped to at least three deductee rows. If there is no such challan, please enter details of challan having maximum number of deductee rows
  • Step–3
    • PAN of Deductor
    • PAN of Authorised Person (person responsible for deduction of tax at source)
    • Date of Birth of Responsible Person as in PAN database
    • Designation of Responsible Person
    • Communication Address
    • Mobile Number
    • Email Id

For Tax Payers

  • Step–1
    • PAN of Tax Payer
    • Date of Birth as on PAN Card
    • Name as in PAN database
    • Option 1 – Details from Form 26AS or salary slip (in case of salaried persons). Provide TAN of deductor who has deducted TDS / TCS, month & year of deduction and amount of tax deducted
    • Option 2 – Details of any tax paid by you. Provide Assessment Year for which payment was made by you, Challan Serial Number of the challan using which payment was made and amount as per the challan
  • Step–2
    • Communication Address
    • Mobile Number
    • Email Id

How can I ensure that I have entered incorrect communication details (Email Id or Mobile Number) during registration? Can I edit this information before submitting my registration form?

During registration, please ensure to verify your details in the Confirmation Screen (Step–5). In case of any incorrect details, click on ‘Edit’ to change your details.