Analysis of FVU Version 4.6 and Due Date of 4th Quarter for Asstt. Year 2015-16.

The long awaited FVU has been released late evening on 20th April 2015. Briefanalysis of the same is as under:

Mandatory to quote PAN of Responsible Person:

It is now mandatory to quote the PAN of the Responsible Person in all Regular TDS Returns and Correction Statements. It is applicable for all returns / corrections filed on or after 21st April 2015 irrespective of the financial year. This would help the Department identify the person better.

Enhancement of Deduction under section 80CCE:

As per The Finance Bill 2014, the limit of Deduction under section 80CCE has been enhanced to Rs. 1,50,000 effective from financial year 2014-15 (earlier it was Rs. 1,00,000). Now Employee Deductors will be able to file the TDS Returns for Form 24Q (Salary) for Quarter 4 of FY:2014-15. Till now they were unable to validate their Returns with the earlier FVU.

Reduction of Applicable List on ‘Nature of Remittance’ in Form 27Q (Foreign Remittances):

Earlier there were 66 categories to choose from defining the nature of remittance in foreign currency. This has now been reclassified by reducing the list to only 12 categories to select from. By consolidation, this would substantially reduce ambiguity.

Correction Statements – Enablement of Updating ‘Tax Deposit Amount’ in Deductee Details:

Till now if tax was deducted at a higher rate owing to non-availability of PAN or for any other reason, the process of Corrections did not allow (as it was disabled) to update the ‘Tax Deposit Amount’ in the applicable Deductee Record. This has now been enabled – which implies that it would be possible to correct the ‘Tax Deposit Amount’. This had been causing a lot of inconvenience and was a long standing demand by tax deductors.

TDS Compliance for 4th Quarter of FY: 2014-15

• 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

Healthy Practices for Error-Free TDS Returns

Healthy practices for error – free TDS returns has been given below:

1. Deduction/ Collection of Tax at Correct Rates.
2. Timely Deposit of Tax Deducted at Source.
3. Accurate Reporting of data related to tax deductions/ collections made.
4. Submission of TDS Statements within the due dates.
5. Verification and Issuance of TDS Certificates within time.
6. 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.
7. 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).
8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
12. 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 26^th June, TDS deposited on 9^th July (due date was 7^th July)

The period of 26^th June to 30^th June will be calculated as one month (being part of a month) & from 1^st 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 20^th March, TDS deposited on 5^th May  (due date was 30^th April)

The period of 20^th March to 31^st March will be calculated as one month, 1^st April to 30^th April will be another month & from 1^st May to 5^th 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

Recently released latest TDS File Validation Utility (FVU) Ver. 4.6 and 2.142 for Asstt. Year 2011-12 onwards and from Asst. Year 2008-09 to 2010-11 respectively with effect from 21st April, 2015. The Key Features of both the version are as under :

Key Features – File Validation Utility (FVU) version 4.6

• 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

Download Key Features – File Validation Utility (FVU) version 2.142

Latest TDS FVU Ver. 4.6 and Ver. 2.142 with all updates for Asstt. Year 2015-16 w.e.f. 21.04.2015

By a long waiting NSDL-TIN has been released on 20th April, 2015 a New TDS File Validation Utility (FVU) Ver. 4.6 and Ver. 2.142 for Asstt. Year 2011-12 onwards and from Asst. Year 2008-09 to 2010-11 respectively with all updates for Asstt. Year 2015-16 as per amendment maximum Tax Exemption limit u/s. 80CCE.  An analysis of File validation Utility (FVU) Version 4.6 and 2.142 are as under:

Responsible Person (TDS Deductor/Deductee) mandatory to Quote PAN :

TDS Deductor/Deductee who is responsible person mandatory to quote the PAN in all Regular TDS Returns and Correction Statements. It is applicable for all returns / corrections filed on or after 21st April 2015 irrespective of the financial year. This would help the Department identify the person better.

 

Updated Maximum Limit of Deduction under section 80CCE:

As per The Finance Bill 2014, the limit of Deduction under section 80CCE has been enhanced to Rs. 1,50,000 effective from financial year 2014-15 (earlier it was Rs. 1,00,000). Now Employee Deductors will be able to file the TDS Returns for Form 24Q (Salary) for Quarter 4 of FY:2014-15. Till now they were unable to validate their Returns with the earlier FVU.

Reduction of Applicable List on ‘Nature of Remittance’ in Form 27Q (Foreign Remittances):

Earlier there were 66 categories to choose from defining the nature of remittance in foreign currency. This has now been reclassified by reducing the list to only 12 categories to select from. By consolidation, this would substantially reduce ambiguity.

Correction Statements – Enablement of Updating ‘Tax Deposit Amount’ in Deductee Details:

Till now if tax was deducted at a higher rate owing to non-availability of PAN or for any other reason, the process of Corrections did not allow (as it was disabled) to update the ‘Tax Deposit Amount’ in the applicable Deductee Record. This has now been enabled – which implies that it would be possible to correct the ‘Tax Deposit Amount’. This had been causing a lot of inconvenience and was a long standing demand by tax deductors.

For Government Deductors:

Quoting AIN mandatory if TDS deposited through Book Entry:

If Government Deductors are making TDS / TCS payments through Book Entry, it is now mandatory to provide the AIN (Account Office Identification Number).

Quoting of BIN Details mandatory for TDS / TCS Returns from FY:2013-14 onwards:

It is now mandatory to quote the BIN (Book Identification Number) for all payments made through Book Entry. This is applicable for all TDS / TCS Returns from financial year 2013-14 filed on and from 21st April 2015 onwards.

These two FVU versions are mandatory with effect from April 21, 2015.

Download TDS FVU version 4.6.

Download TDS FVU version 2.142.