- Last date for payment of tax deductions for March 2015 – 30th April, 2015
- Last date for filing of TDS returns for Q4 of FY: 2014-15 – 15th May, 2015
- Last date for issuance of TDS certificates for Q4 of FY: 2014-15 – 30th May, 2015
Monthly Archives: April 2015
Healthy Practices for Error-Free TDS Returns
- Deduction/ Collection of Tax at Correct Rates.
- Timely Deposit of Tax Deducted at Source.
- Accurate Reporting of data related to tax deductions/ collections made.
- Submission of TDS Statements within the due dates.
- Verification and Issuance of TDS Certificates within time.
- CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
- User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please navigate to Defaults tab to locate Request for Correction from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES).
- Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
- The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
- Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
- PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
- The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.
Interest calculation for delayed payment of TDS
The interest is to be calculated as per illustrations below:
Case 1:
Q1, Tax Deducted on 26th June, TDS deposited on 9th July (due date was 7th July)
The period of 26th June to 30th June will be calculated as one month (being part of a month) & from 1st July to 9th July will also be treated as one month. As such in this case, the interest payable is for two months. Total interest would be 3%. Sounds odd, but it is true – for a delay of 2 days, one has to pay interest for two months.
Case 2:
Q4, Tax Deducted on 20th March, TDS deposited on 5th May (due date was 30th April)
The period of 20th March to 31st March will be calculated as one month, 1st April to 30th April will be another month & from 1st May to 5th May will be treated as another one month. As such in this case, the interest payable is for three months. Total interest would be 4.5%. For a 5 day delay, the interest payable is for 3 months.
Logic behind this calculation is that, if dues are not paid on time, the interest for each month (or part thereof) is to be paid right from the date of deduction till date of deposit of the TDS. Each month is treated based on the ‘Calendar Month’ instead of counting the number of days.
Key Features of FVU 4.6 and 2.142 Ver. for Asstt. Year 2015-16 w.e.f. 21.04.15
- Quoting of PAN of responsible person for deducting/ collecting tax.
- Quoting of AIN mandatory only if the TDS/TCS has been deposited by book entry i.e., through transfer voucher.
- Quoting of BIN details mandatory only for the statements pertaining to FY 2013-14 onwards.
- Update of tax deposit amount in deductee details enabled for the deductee records where tax has been deducted at higher rate.
- Reduction in the applicable list of “Nature of Remittances” (Applicable in case of Form no. 27Q).
- Enhancement of deduction allowed under section 80CCE from Rs. 1,00,000/- to Rs. 1,50,000/-.
- This version of FVU will be applicable with effect from April 21, 2015.
Key Features – File Validation Utility (FVU) version 2.142
- Quoting of PAN of responsible person for deducting/ collecting tax.
- This version of FVU will be applicable with effect from April 21, 2015
Download Key Features – File Validation Utility (FVU) version 4.6