CPC (TDS) follow up for Registration on TRACES

CPC (TDS) has issued an advisory communications to the deductors in which it has stated that the deductors has filed tds statements for different quarters but they have not yet registered on the web portal TRACES.  Therefore, the deductors must register on TRACES to download TDS Certificates (Form 16/ 16A) and avail several other facilities offered by TRACES.

The issued communication has been given below:

Dear Deductor,

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 of certificate 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 http://www.tdscpc.gov.in(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 ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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

CPC (TDS) : Online resolution of ‘Short Payment default’ on account of unmatched challans

TDSCPC has issued new instruction under which it has been directed to the the Tax deductors that if there are Short payment in a statement filed by deductor then deductor have to settle the default first otherwise he will not be able to download the Form 16/16A of the relevant quarter/period.

The instruction has been reproduced here under:

Dear Deductor,

We are glad to inform that the Online Correction functionality provided by CPC (TDS) has been availed by a large number of deductors for the purpose of carrying out corrections and over 2 Lakh Online Corrections have been submitted. The corrections include resolution of Short Payment Defaults that relate with unmatched challans. You are informed that TRACES enables Online resolution of “Short Payment default” on account of unmatched challans. The deductor has an online view of all available unconsumed challans, which can be tagged with unmatched challans, to close the above defaults.

Further, as you are aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. However, it is observed that:

  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to “Short Payment” demand.
  • The above results into issuance of notices by the CPC (TDS) and field TDS officers.

To make the resolution process non-intrusive, CPC (TDS) proposes a new change at the time of submitting request for download of TDS Certificates (Forms 16/ 16A) for relevant period.

Actions to be taken: Following are key information to be noted in this regard:

  • You are requested to take appropriate action at the earliest for closure of the Short Payment defaults, to avoid any inconvenience in downloading of TDS Certificates.
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default, available even without digital signature.
  • CPC(TDS) recommends to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through Online Correction.
  • Details of defaults will be provided during Online Correction process after logging into the web portal “TRACES”.
  • 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.
  • Once the challan is suitably tagged and Online Correction is submitted to CPC(TDS), it shall process the statement, thereby rectifying the Short Payment default
  • The user will not be able to download TDS Certificates for the relevant TDS statement until closure of the above default.

You can refer to our e-tutorial and FAQs on “TRACES” website for necessary help.For any assistance, you can write to contactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

CPC (TDS) communication regarding Defaults in TDS Statements

Dear Principal Officer,

Name:

PAN:

Address:

The consolidated defaults of various TANs belonging to you as per the records of Centralized Processing Cell (TDS) as on 23/10/2014 starting from F.Y. 2007 are given below. Financial year wise details of defaults are available online to you on TRACES (www.tdscpc.gov.in) under aggregated TAN compliance (www.tdscpc.gov.in/app/tap/supertanreq.xhtml)

Order u/s 201/ Intimation u/s 200A of the Income Tax Act, 1961 intimating the outstanding demand for different years have already been sent by Income Tax Department on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement to the relevant deductors (TANs).

This information is being given to you for necessary action as it would be helpful for you in complying with the provisions of section 40(a)(ia) of Income Tax Act, 1961 and to ensure that correct information is disclosed in paragraph 27A/B of Tax Audit Report(Form 3CD) u/s 44AB of the Income Tax Act.

Actions to be taken by the TAN holders associated with you:

  • Download quarter-wise Justification Report from our portal TRACES for the default details.
  • Submit the Online Correction or Download the Consolidated File from our portal accordingly. Please use the e-tutorials for necessary help.
  • Prepare the correction statement with appropriate changes.

For any assistance, you can write to corporateconnect@tdscpc.gov.in or or call on- 0120-4816103.

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

CPC (TDS) TEAM

Notes:

• You are requested to instruct the deductors to pay the demand and file correction statement or make the necessary correction in the statement within 15 days.

• Short payment default may be on account of mismatch in challan particulars as quoted by you in TDS statement with the challan particulars as per OLTAS. Accordingly, the OLTAS challans may have remained unconsumed on account of mismatch. You can check the OLTAS challan details on Traces. You are requested to close the short payment default through “tagging” of correct challan using “online correction” facility at TRACES portal (www.tdsccpc.gov.in).

• It is to inform that while downloading TDS certificate (Form 16/16A), deductor 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.

• Non deduction of TDS attracts provisions of section 40(a) (ia) of the Income Tax Act, 1961 in your final accounts.

• Late Filing fee and Late Payment Interest are not allowable expenses.

CPC (TDS) communication : Intimation regarding Outstanding TDS demand from FY 2007-08 onwards-Reg

Dear Deductor, (TAN: ___________),

  • Please refer the subject above.
  • As per the records of the Centralized Processing Cell (TDS), there is an outstanding demand in different years from 2007-08 onwards on account of defaults identified in 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 years have already been sent by Income Tax Department on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement.

  • Justification report for default can be downloaded TDS statement wise from TRACES.  www.tdscpc.gov.in
  • Short payment default may be on account of mismatch in challan particulars as quoted by you in TDS statement with the challan particulars as per OLTAS. You are requested to close the short payment default through “tagging” of correct challan using “online correction” facility at TRACES portal http://www.tdscpc.gov.in In case of any clarification, you may contact your assessing officer and can also send e-mail at info@tdscpc.gov.in.
  • It is to inform that while downloading TDS certificate (Form 16/16A), you would be prompted to first close the ‘short payment’ default 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.
  • You are requested to file correction statement after making tax payments, if required, TRACES has provided online correction facility in this regard.

For any assistance, you can write to info@tdscpc.gov.in. or call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

CPC (TDS) communication to Govt. Deductors for “Mismatch in BIN” reported in TDS Statements

TDSCPC has issued new instruction under which it has been directed to the the Tax deductors that if there are Short payment in a statement filed by deductor then deductor have to settle the default first otherwise he will not be able to download the Form 16/16A of the relevant quarter/period.

The instruction has been reproduced here under:

Dear Deductor,

We are glad to inform that the Online Correction functionality provided by CPC (TDS) has been availed by a large number of deductors for the purpose of carrying out corrections and over 2 Lakh Online Corrections have been submitted. The corrections include resolution of Short Payment Defaults that relate with unmatched challans. You are informed that TRACES enables Online resolution of “Short Payment default” on account of unmatched challans. The deductor has an online view of all available unconsumed challans, which can be tagged with unmatched challans, to close the above defaults.

Further, as you are aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. However, it is observed that:

  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to “Short Payment” demand.
  • The above results into issuance of notices by the CPC (TDS) and field TDS officers.

To make the resolution process non-intrusive, CPC (TDS) proposes a new change at the time of submitting request for download of TDS Certificates (Forms 16/ 16A) for relevant period.

Actions to be taken: Following are key information to be noted in this regard:

  • You are requested to take appropriate action at the earliest for closure of the Short Payment defaults, to avoid any inconvenience in downloading of TDS Certificates.
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default, available even without digital signature.
  • CPC(TDS) recommends to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through Online Correction.
  • Details of defaults will be provided during Online Correction process after logging into the web portal “TRACES”.
  • 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.
  • Once the challan is suitably tagged and Online Correction is submitted to CPC(TDS), it shall process the statement, thereby rectifying the Short Payment default
  • The user will not be able to download TDS Certificates for the relevant TDS statement until closure of the above default.

You can refer to our e-tutorial and FAQs on “TRACES” website for necessary help.For any assistance, you can write to contactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM