Importance of Month of January – 2015 for Income Tax and TDS

Today is last day of current calender year 2014 and day after today New Year 2015 starts.  The January-2015 is very important for Taxpayee and Deductor also.  The assessee can find their obligation toward income tax department through this income tax calendar which is as below:
Due Dates for January – 2015
7 January 2015
  • ​Due date for deposit of Taxdeducted / collected for the month of December, 2014

7 January 2015

  • ​​Due date for deposit of TDS for the period October 2014 to December 2014 when Assessing Officer has permitted quarterly deposit of TDS under sections 192, 194A, 194D or 194H.

15 January 2015

  • Quarterly statement of TDS / TCS deposited for the quarter ending December 31, 2014 (applicable in all cases of TDS / TCS except when tax is deducted by an office of the Government)

22 January 2015

  • ​Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of December, 2014

30 January 2015

  • Quarterly TDS certificate (in respect of tax deducted for payments other than salary by a person not being an office of the Government) or quarterly TCS certificate (in respect of tax collected by any person) for the quarter ending December 31, 2014.

31 January 2015

  • Quarterly statement of tax deducted by an office of the Government for thequarter ending December 31, 2014

31 January 2015​

  • Quarterly return of non-deduction at source by a banking company from interest on time deposit in respect of the quarter ending December 31, 2014

TDS CPC Communication of significant change in processing of TDS Statements

Dear Customer,

TDS CPC has issued a communication recently to all Deductors as follows, with regard to significant change in processing of Quarterly TDS Statements.

Dear Deductor,

Centralized Processing Cell (TDS), in its constant endeavour to improve services, is glad to update you with a significant change in processing of Quarterly TDS Statements. This change has been initiated in view of feedbacks received from Deductors, to avoid defaults that may arise due to inadvertent data entry errors.

The central point in the new process is identifying errors in challan/ PANs and facilitating their corrections before CPC (TDS) computes defaults in TDS statements. Following are the salient features of the new process:

What is new ?

  • Step 1: CPC (TDS) will first process Original TDS Statements till the stage of 26AS generation for deductees reported.
  • Step 2: Short Payments and PAN Errors will be identified in the preliminary check of the Original statements.
  • Step 3: The statements will be placed “On Hold” for further processing and an opportunity will be provided to correct potential defaults of Short Payment and PAN Error.
  • When the statement is placed on Hold, CPC (TDS) will intimate you through following means:

    • e-mail at the Registered e-mail address at TRACES
    • SMS at Registered Mobile Number with TRACES
    • Message will be delivered to the Deductor’s Inbox in TRACES
  • The above correction needs to be carried out by using Online Correction feature at TRACES within 7 days of above communication.
It is, therefore, advised that the Deductors may ascertain status of the TDS statements within 7 days of filing with TIN Facilitation Centre.

What are the advantages:

  • You would have preliminary information of potential Short Payments and PAN Errors, before the Original Statement is completely processed for Defaults and Intimations are generated.
  • Correction of above defaults using Online Correction can be submitted before final processing of statements.
  • Above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.
What actions to be taken :
  • Please take note of the Intermediate communication from CPC (TDS) and submit Online Correction for potential defaults in TDS statement within the stipulated time frame.
  • Only “Online Correction” facility can be used for correction of above Short Payments and PANs
To avail the facility, you are requested to Login to TRACES and navigate toDefaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.

Please note that Digital Signature will be required to avail the benefit of complete correction features, including PAN Corrections. In view of Q3 filing due date approaching fast, you are requested to procure Digital Signature Certificate at the earliest.
  • PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to navigate to Dashboard to locate PAN Verification in the Quick Links menu.
  • You can make use of the “Consolidated TAN – PAN File” that includes all the valid PANs attached with the respective TANs. To avail the facility, please navigate to Dashboard to locateConsolidated TAN – PAN File.
  • The action requires to be completed within 7 days of Intermediate communication from CPC (TDS).
It is hoped that the Deductors will avail of the time window to correct errors, if any. CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) is committed to provide best possible services to you.


Income Tax Return mandatory for Senior Citizen, if Taxable Income is above Rs. 3.00 Lac.

Specially Senior Citizen Tax payee Income source are as Pension, Interest, Rent, etc. and many more.  In case Tax payee total income exceeds the aforesaid limit, Sr. Citizen Tax payee would be required to file Income Tax Return and in case it does not, assessee would not be required to file the tax return.  It means total income exceeds Rs 3 lakh, being the maximum amount up to which tax is not payable by a senior citizen for assessment year 2015-16 (financial year 2014-15).

Section 194A of the Income-tax Act 1961 (The Act) provides that tax deduction provisions shall not be applicable to such income credited or paid in respect of:-

  • Deposits with a primary agricultural credit society or a primary credit society or a cooperative land mortgage bank or cooperative land development bank.
  • Deposits (other than time deposits made on or after July 1, 1995) with a cooperative society, other than cooperative society or bank referred to in (a) above, engaged in carrying on the business of banking.

Tax payee may, therefore, find out whether the cooperative societies in which fixed deposit etc; have been made are covered within the aforesaid exemption. In case such societies are not covered within the aforesaid exemption, deduction of tax will have to be made in respect of the interest income provided the same exceeds the limit prescribed under Section 194A of the Act.

According to the provisions of Section 80TTA of the Act, a deduction to the extent of Rs 10,000 is allowable in respect of the interest earned in a savings account with (a) bank, (b) cooperative society carrying on the business of banking and (c) post office. In that case Tax payee can claimed a deduction of Rs 10,000 in respect of interest earned in savings account instead of more than exemption limit  up to March 31, 2016 and claim such deduction.

FAQs on Online Correction

Can BIN details be corrected through online correction?

Yes, BIN details in the statement can be corrected through “Challan Correction” option under ‘Unmatched Challan’ header. Refer e-tutorial Online Correction – Challan Correctionfor more details.

What is the procedure to make online correction in case of short payment default?

Deposit the Short Payment default through challan no 281 by ticking minor head 400.

Deductor can receive short payment in following cases and follow the given procedure for online correction:

  • Short payment due to insufficient balance- Deductor needs to check that how much amount has consumed against the deductee row, then move the deductee rows to the challan with sufficient available balance through “Resolution of Overbooked Challan (Movement of Deductee Row)” option (refer E-tutorial for detail).
  • Short payment due to mismatch in challan- Deductor can correct the mismatch challan through “Challan Correction” option under “Unmatched challan” header (refer E-tutorial for detail).

While filling online correction I quoted interest amount in both columns, when trying to click on proceed to interest I am getting an error ‘Total Tax Deposited’ is less than ‘Available Balance of the Challan’. What should I do?

Please check the available balance of the same challan under challan status.

Can I make correction on the basis of Default Summary available on TRACES?

Yes, you can make online correction on the basis of default summary however, it is advised to download updated Justification Report from TRACES. Justification Report provides detailed information about the defaults / errors that needs to be rectified by filing correction statement and payment of the necessary default / interest / fees / other.

After making online correction, after how much time system will take to process the changes?

Changes will be processed within 24 hours.

How to track Correction Request?

After login to TRACES as a deductor, select ‘Track Correction Request’ from Default under main menu. Refer E-tutorials for more information.

What if deductor does not have data to be entered in KYC for making Online Correction?

Please contact Jurisdictional Assessing Officer and raise your concern.

Is there any limit to add / modify deductee row for making online correction?

No, there is no limit to add / modify deductee row provided that sufficient balance is available in tagged challan.

Can deductor apply for Online Correction prior to Financial Year 2012-13?

Yes, deductor can file online correction from Financial Year 2007-08 onwards, however deductor has to ensure that the latest correction for the relevant statement should be processed through TDSCPC.

Is it possible to move deductee row from one challan to another challan for the same quarter?

Yes, deductor can move deductee row from one matched challan to another for the same quarter, however it will be possible only if there is available balance in the challan. For more information refer E-tutorial Resolution of Overbooked Challan (Movement of Deductee Row).

If online correction is rejected by TRACES. What should deductor do?

Check the rejection reason and submit the fresh correction request.

If I dont Capture Token number, from where will it be available?

After making online correction, it is advisable to note down the token number. However, if by any chance you forgot to note down, download the conso file and get the token number.

I have nil challan in my statement, which is in an unmatched status, therefore I am not able to download conso file. What should I do?

Tag the challan with available balance to the nil challan. Once it is processed, then you will be able to download conso file.

Source: TRACES

TRACES intimation about outstanding TDS Demand for Asstt. Year 2015-16

As per the records of the Centralized Processing Cell (TDS), there are number of unconsumed challans in your accountin different years from 2007 onwards.These challan may have remained unconsumed mainly on account of :-
  • Mismatch in challan particulars as quoted in TDS statement with the challan particulars as per OLTAS, AND
  • Incomplete reporting of TDStransactions in TDS statements filed by you, OR
  • Non filing of TDS statements.
Table below shows year wise outstanding demand on account TDS defaults as on October 23rd 2014. Intimation u/s 154 read with section 200A of the Income Tax Act, 1961 intimating the outstanding demand for different address, as mentioned in the relevant TDS Statement to the relevant deductors (TANs).

You are requested to close the short payment default through “tagging” of correct challan using “online  correction” facility at TRACES portal ( In case of any clarification; you may contact your accessing officer and also send e-mail

It is to inform that while downloading TDS certificate (Form 16/16A), you would be prompted to first close the  ‘short payment’ default on account of ‘challan mismatch’, if any. As the next due date for download of form 16A is 31st January, you are requested to close your defaults well in advance to avoid any issue in downloading of TDS certificates for third quarter of 2014-15.

In case, the unconsumed challans in your account are on account of incomplete reporting of TDS transactions in  the quarterly TDS statements, you are advised to file correction statements on immediate basis to close the issue.

For any assistance, you can write to or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.


Source: TRACES

CPC (TDS) advisory for use of Digital Signatures on TRACES

The Centralized Processing Cell (TDS) has released a new feature on its web-portal TRACES, where a Digital Signature Certificate (DSC) can be used for availing various services offered by the portal.

You are advised to take note of the following key information in this regard:

  • Under Information Technology Act, 2000, a “Digital Signature” means authentication of any electronicrecord by a subscriber by means of an electronic methodor procedure in accordance with the provisions of section 3.
  • The Digital Signature keeps record of the person who is availing the facility.
  • Please exercise caution in use of Digital Signature and should not be shared in any circumstances. If shared, the person using DSC shall also be liable to consequences.
  • In accordance with the Information Technology Act, 2000, every subscriber shall exercise reasonable care to retain control of the private key corresponding to the public key listed in his Digital Signature Certificate and take all steps to prevent its disclosure to a person not authorised to affix the digital signature of the subscriber.
  • TRACES has provided facility for Admin and Sub-users to facilitate authorised Sub-users to carry out activities on TRACES and submit to the Admin user. The Admin user has the rights to approve the activities using the DSC.
  • It is therefore, advised to refrain from using the Digital Signature of any person other than the Authorised Person appointed by the deductor, for carrying out any activity on TRACES.
Please note that the “Authorised Person” is referred to as “Person Responsible” in accordance with Section 204 read with Section 200 of the Income Tax Act, 1961 and other relevant provisions for deduction of tax.

CPC (TDS) is committed to provide best possible services to you.


Source: TRACES

Key features of FVU version 4.5

  • Incorporation of section 194LBA (Certain income from units of a business trust):
    • Section 194LBA is applicable for Form no. 26Q and 27Q
    • Section 194LBA is applicable for statements pertaining to Q3 of FY 2014-15 onwards
    • For resident deductees the TDS rate is 10% & for non resident deductees the rate is 5%
  • Incorporation of section 194DA (Payment in respect of life insurance policy):
    • Section 194DA is applicable for Form no. 26Q only
    • Section 194DA is applicable for statements pertaining to Q3 of FY 2014-15 onwards
    • TDS rate for this section is 2%

Download Form No. 16 and 16A (TDS Certificate) from TRACES is mandatory TRACES Advice to Deductor.

On 11th December, 2014 TRACES has is issued advisory notice to TDS Deductor, download TDSCertificate (Form 16.16A) is mandatory from TRACES.  Therefore, TDS Deductor register with TRACES.

Deductors registered on TIN and having a TAN Account need not register again on TRACES. For first time login to TRACES, login with existing User Idand Password as in TIN (for your TAN Account) and update your details in ‘Profile’ section. You will be able to view allfunctionalities after activating your account.Click here to view e-Tutorial.

The advisory note of TRACES to downloading of TDS Certificates fromTRACES made mandatory is as under :

As per the records of Centralized Processing Cell (TDS), the TDS Statements have been filed by you for different quarters, however, you have not yet registered on the web portalTRACES.

You will not be able to download TDS Certificates (Form 16/ 16A) and avail several other facilities offered by TRACES unless you are registered on the web portal.

Please refer to the following provisions of the Income Tax Act, 1961 :

Downloading of TDS Certificates from TRACES made mandatory:
In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance ofcertificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (hereinafter called TRACES Portal).

TDS Certificates downloaded only from TRACES hold valid :

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

Due Date for downloading and Penalty for non-compliance:

Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.

Assistance for Registration on TRACES :

You can access our web portal TRACES and refer to our e-Tutorial for assistance on Registration and Login. For any further assistance, you can also write to or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.


Latest e-Tutorial – How to add new TDS Challan while Online Correction on TRACES ?

Recently CPC (TDS) has released latest e-Tutorial on add new TDS Challan through online Correction on TRACES.  This e-Tutorial is helps to TDS Deductor, if the TDS Deductor online correct return and found somechallan is miss. In this condition this utility is veryuseful for all TDS Deductors.
The Income TaxDepartment has been already launched the Online Correction in TDS Returns system to TDS Deductor on TRACES and same has been updated frequently.  Initially onlinecorrection in TDS statements  were only possible through DSC.  After that some corrections were added without DSC.  Now some others corrections are also possible through online system like Add New Challan in TDS return during submission online correction in TDS returns / Statements.