Online TDS Filing Solution.

Features

Instant Updates & Patches

We are regularly updating the File validation utility provides by the NSDL whenever there is any change in the file validation utility as per Income Tax Department.

Save Time, Minimum Input

Online TDS Software should not ask you redundant information. Inputs taken once can be easily utilized in various processes thus saves your time.

Multiple Branches

TDS processing easily across the organization. Organizations having branch operations and want to presence and want to manage TDS operations from branches, can easily do it.

Automatic Preparation of e-File

Software generate the e return as per the file format provided by the NSDL. In addition to this file gets automatically validated through the File validation utility provided by the NSDL.

Online PAN verification

If you want to check whether a pan is correct or incorrect or want to check pan name and pan jurisdiction then Instant pan verification in seconds.

Salary Computation & TDS Calculations

Monthly and Yearly based Salary detail can be entered in Online TDS software.

Import/ Export through Excel/strong

Facility of data import / Export through industry standard formats. It helps to organizations which have voluminous data for return preparation and making in correction statements quickly.

Statutory compliance

Generation of Quarterly Regular return form 24Q, 26Q, 27Q and 27EQ, 27A, 27B Form 24G (Monthly)The most essential part of Onine TDS software is equipped with all statutory forms.

www.onlinetds.com

Important information for downloading of TDS Certificates

Given below are some important information regarding downloading of TDS certificates. 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 downloading TDS Certificates from TRACES: 

You can logon to TRACES portal http://www.tdscpc.gov.in and refer to TRACES e-Tutorialhttps://www.tdscpc.gov.in/en/download-form16a-etutorial.html to download TDS Certificates. For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

Analysis of File Validation Utility (FVU) Version 4.7

NSDL department recently released FVU 4.7 and introduced following changes:

I.  New Sections 192A & 194LBB introduced

Section 192A: TDS deducted against payment of accumulated balance due to an employee made by the trustees of the Employees’ Provident Fund Scheme, 1952

As per the notification number WSU/6(1)2011/IT/Vol-IV/5931 released by EPFO on 21st May 2015 a new section 192A has been inserted regarding payment of accumulated provident fund balance due to an employee.

This section is valid for all payments done after 1st June 2015.

According to this notification, TDS will be deducted at following rates at the time of payment of accumulated balance:

  1. TDS will be deducted at 10% in case PAN is provided.
  2. TDS will be deducted at 34.608% in case PAN is not provided.

However, TDS will not be applicable for the either of the following:

  1. In case payment is less than ₹ 30,000
  2. If employee withdraws PF after a period of 5 years continuous service
  3. In case Employee has submitted Form 15H / 15G
  4. In case PF is transferred from one account to another
  5. If service is terminated due to ill health
  6. In case employer has discontinued its business

Further, Form 15G and Form 15H will not be accepted in case payment is more than Rs. 2,50,000 and Rs. 3,00,000 respectively.

Section 194LBB: Income in respect of units of investment fund

According to this section, TDS shall be deducted at 10% for payments made to a unit holder in respect of units of an investment fund specified in Clause(a) of the Explanation 1 to Section 115UB.

This income should be other than that proportion of income which is of same nature as income referred to in clause (23FBB) of section 10.

This section is applicable from 1st June 2015.

II.   Remark ‘T’ now applicable from Q3 of FY 2009-10

Remark ‘T’, which is quoted for payment made to Transporter where TDS deducted is NIL, is now applicable from Q3 of FY 2009-10. Earlier this remark was applicable from FY 2010-11 onwards.

III.   Total tax Deducted & Tax Deposited should now be same

Following 2 columns are present in Deductee record / Annexure (I) entry:

Total Tax deducted = TDS + Surcharge + Cess

Tax Deposited: Total Tax deposited for the deductee

Although the total tax deducted and deposited is same, yet earlier department allowed these values to be different which was leading to unwarranted confusion and ambiguity. This has now been rectified.

Now it has become mandatory to ensure that both these value are identical.

IV.   Correction of records marked with Higher Rate ‘C’ Flag

If proper PAN is not provided by the vendor to the company who is making the payment, then tax is deducted at higher rate (minimum 20%) and while entering this record in TDS Return, ‘C’ flag is marked against it.

Earlier, there were restrictions in corrections of these records and only limited columns were allowed to be changed i.e. PAN quoted, date of payment, amount of payment & Tax deposited.

Now as per the new regulations, all the fields except Total tax deposited and Higher rate flag can be corrected. Following columns can be corrected in this case:

  • Name of deductee (Applicable to all Forms)
  • PAN of the deductee (Applicable to all Forms)
  • Payment Date of the deductee (Applicable to all Forms)
  • Tax Deposited for the deductee (Applicable to all Forms)
  • Date of deduction (Applicable to all Forms)
  • Section code (For statements pertains to FY 2013-14 onwards and to all Forms)
  • Nature of remittance (Applicable only for Form 27Q)
  • Unique acknowledgement of the corresponding form no. 15CA (if available) (Applicable only for Form 27Q)
  • Country of Residence of the deductee (Applicable only for Form 27Q)
  • Grossing up indicator (Applicable only for Form 27Q)

Note: For correcting records marked with higher rate flag, total tax deducted cannot be modified and total deposited can be modified.

So the rule of keeping Total Tax deducted and Tax deposited same does not apply to correction of records marked with ‘Higher rate’ flag.

Basic principles of TDS Compliance

The following are the basic principles of TDS compliance:

  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:

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:

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.