Different matching statuses in Form 16 / Form 16A

Following are different matching statuses in Form 16 / Form 16A:

U – Unmatched (Deductor has not deposited taxes or has furnished incorrect particulars of tax payment. Final credit will be reflected only when payment detail in bank matches with details of deposit in TDS/TCS statement)

P – Provisional (Provisional tax credit is effected only for TDS / TCS statement filed by Government deductor. ‘P’ status will be changed to Final (F) on verification of payment details submitted by Pay and Account Officer (PAO))

F – Final (In case of non-government deductors, payment details of TDS / TCS deposited in bank by deductor have matched with the payment details mentioned in the TDS / TCS statement filed by deductors. In case of government deductors, detail of TDS / TCS booked in Government accounts have been verified by Pay and Account Officer (PAO))

O – Overbooked (Payment details of TDS / TCS deposited in bank by deductor have matched with details mentioned in the TDS / TCS statement but the amount is over claimed in the statement. Final (F) credit will be reflected only when deductor reduces claimed amount in the statement or makes new payment for excess amount claimed in the statement)

Guidelines for an employer to deduct TDS and issue Form 16

Following are the guidelines for an employer to deduct TDS and issue Form 16:

• Make mandatory for all the employees to declare previous salary, investment proofs and TDS details, if any.
• Employer has to consider the declaration before deducting TDS from salary.
• Fill Annexure II for all employees who work or worked for any period of time during the current financial year.
• Issue Form 16 to all the employees whose TDS was deducted.
• It is the duty of an employee to provide valid PAN. If employee has worked with more than one employer in a financial year, employee should declare previous salary and TDS detail, if any, with the current employer.

Payment of taxes – Do’s & Don’t’s

Taxpayers, deductors or collectors can pay direct taxes through Authorised Bank branches either physically, through ATM or through internet.

Type of Challans to be used for tax payments

Challan : ITNS 280
Description : For depositing Advance tax, Self Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.

Challan : ITNS 281
Description : For depositing TDS/TCS by company or non company deductee.

Challan : ITNS 282
Description : For depositing Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax and Hotel Receipt tax.

Challan : ITNS 283
Description : For depositing banking cash Transaction Tax and FBT.

Challan : Form 26QB
Description : Payment of TDS on Sale of Property.

Challan : Demand Payment
Description : Payment against CPC (TDS) raised demand (only for TDS on Sale of Property.

Do’s
1. Mandatory details required to be filled in challan
a) PAN/ TAN
b) Name and address of the taxpayer (for physical challans)
c) Assessment Year
d) Major Head, Minor Head
e) Type of payment 

2.  Use challan type 281 for deposit of TDS/TCS payments.
a) Quote the correct TAN, name & address of the deductor on each challan
b) Verify your TAN details from Income Tax Department web-site (www.incometaxindia.gov.in) prior to depositing TDS/TCS.
c)  Use separate challans to deposit tax deducted under each section and indicate the correct nature of payment code in the relevant column in the challan.
d) Use separate challans to deposit tax deducted for different types of deductees. 

3. For Non TDS/TCS payments use challan types 280/282/283 as applicable.
a) Quote the correct PAN, name & address on each challan used for depositing the tax.

4. Mention/verify the correct Financial Year and Assessment Year in the challan before tax payment.

5. Payment confirmation: – Ensure that the Challan Identification Number (CIN) has been provided on the counterfoil issued after successful payment of tax. Challan Identification Number (CIN) comprises of the following
a) Seven digit BSR code of the bank branch where tax is deposited
b) Date of Deposit (DD/MM/YY) of tax
c) Serial Number of Challan 

6. Verify the tax payment information submitted to the bank.
a) Details available on the TIN website http://www.tin-nsdl.com under the link “Challan Status Inquiry”
b) In case the details are not available then you may contact the bank branch where the tax has been deposited. 

7. In case the counterfoil issued by the bank has been misplaced, kindly contact the respective bank/branch for details regarding the same.

8. Rectification/Correction in the Challan:- For rectifying errors in a physical challan, taxpayer may approach the Bank. Prescribed timelines for the same are as per table below

Sr. No.	Type of correction on challan	Period for correction request (in days)
1	PAN/TAN	Within 7 days from challan deposit day
2	Assessment Year	Within 7 days from challan deposit day
3	Total Amount	Within 7 days from challan deposit day
4	Major Head	Within 3 months from challan deposit day
5	Minor Head	Within 3 months from challan deposit day
6	Nature of payment	Within 3 months from challan deposit day

 Click here for more details.

9. Please visit TIN website www.tin-nsdl.com for details on preparation and furnishing TDS/TCS statements.

Don’t
1. Do not use incorrect type of challan for payment of taxes.
2. Do not make mistake in quoting PAN / TAN.
3. Do not give PAN in place of TAN or vice versa.
4. Do not use a single challan to deposit tax deducted for corporate and non corporate deductees.
5. Do not use same challan for depositing various types of tax like advance tax, self-assessment tax etc.
6. Do not make mistake in the F.Y. and A.Y. to be indicated in the challan.
7. If you have multiple TANs for the same division filing TDS statements, do not use different TANs in different challans. Use one TAN consistently and surrender the others.

Duties of TDS Deductors

Deduct Tax at Correct Rate and deposit in Government Account – Sec 200

Every person responsible for deducting tax at source shall at the time of payment or credit of income, whichever is earlier, verify whether the payment being made is to be subject to deduction of tax at source. If it is so, he must deduct such tax as per the prescribed rates. Further he is required to deposit such tax deducted in the Central Government Account within the prescribed time as specified in Rule 30.

Issue a TDS certificate

Further, such person is required to issue a certificate of tax deduction at source u/s 203 to the person from whose income the TDS has been done, in the prescribed proforma i.e. Form No.16A within prescribed time(as discussed earlier).

File Prescribed Return/Quarterly Statement

A return of TDS is a comprehensive statement containing details of payments made and taxes deducted thereon along with other prescribed details. For deductions made prior to 01.04.2005 earlier every deductor was required as per the provisions of Section 206 (read with Rule 36A and 37) to prepare and deliver an annual return, of tax deducted at source. However w.e.f. 01.04.2005 there is no requirement to file annual returns and instead Quarterly statements of TDS are to be submitted in form 26Q by the deductors.

CPC (TDS) reminder to Deductors for Closure of Taxpayer Grievance Tickets in their In-boxes

Date of communication: 26/05/2016

Dear Deductor,(TAN: XXXXXXXXXXXX)

The Centralized Processing Cell (TDS) has provided an integrated platform for taxpayers, deductors & assessing officer. The objective of the functionality is to provide the taxpaying citizen to report missing TDS credits in their 26AS account directly to the deductors and assessing officers for its quick resolution.

As a key stakeholder to TDS administration, the onus to provide resolution to the aggrieved taxpayer, lies with the Tax Deductor in case of anyissue regarding Tax Credits in 26AS or timely issuance of correct & valid TDS Certificates. Deductors are advised to constantly monitor the tickets raised by their deductees (taxpayers) to address their grievances at the earliest.

It has been observed that tickets raised by the Taxpayers are pending with you for closure and the details are as follows:

Attention: For closure of the above ticket(s) , you are requested to Login to TRACES, Navigate to “Communications” menu and view the tickets as follows:

You may file correction statement/original statement, as the case may be, to ensure complete and correct reporting in respect of aggrieved taxpayers. In case, you have not entered into any transaction with the concerned taxpayer, you may report the same in the “provide clarification” column. Your co-operation with respect to the above will be highly appreciated. CPC (TDS) will be glad to provide you any assistance in closure of tickets and 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

Revised PAN application fees w. e. f. June 1, 2016

W. e. f. June 1, 2016, the PAN application fees have been revised as under:

1. For dispatch of PAN card in India:- Rs. 107 (inclusive of service tax)
2. For dispatch of PAN card outside India: – Rs. 994 (inclusive of service tax)

Procedure for submission of declaration by person claiming receipt of certain incomes without deduction of tax in Form 15G/15H

Government of India

Ministry of Finance

Central Board of Direct Taxes

Directorate of Income Tax (Systems)

Notification No 7/2016

New Delhi, 4th May, 2016

Procedure for submission of declaration by person claiming receipt of certain incomes without deduction of tax in Form 15G/15H under sub-section (1) or under sub-section (1A) of section 197A of the Income-tax Act, 1961 read with Rule 29C of Income-tax Rules, 1962.

As per sub-rule (1) of rule 29C (Declaration by person claiming receipt of certain incomes without deduction of tax) of the Income-tax Rules, 1962 (hereunder referred as the Rules) a declaration under sub-section (1) or under sub-section (1A) of section 197A shall be in Form No. 15G and declaration under sub-section (1C) of section 197A shall be in Form No. 15H.

2. As per sub-rule (3) of rule 29C, the person responsible for paying any income of the nature referred to in sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A, shall allot a unique identification number to each declaration received by him in Form No.15G and Form No.15H respectively during every quarter of the financial year in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (7) of rule 29C.

3. As per sub-rule (4) of rule 29C, the person referred to in sub-rule (3) herein shall furnish the particulars of declaration received by him during any quarter of the financial year along with the unique identification number allotted by him under sub-rule (3) in the statement of deduction of tax of the said quarter in accordance with the provisions of clause (vii) of sub-rule (4) of rule 31A. As per sub-rule (7) of rule 29C, the Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the declaration, allotment of unique identification number and furnishing or making available the declaration to the income tax authority and shall be responsible for the day-to-day administration in relation to the furnishing of the particulars of declaration in accordance with the provisions of sub-rule (4) of rule 29C.

4. In exercise of the powers delegated by Central Board of Direct Taxes (‘Board’) under sub-rule (7) of rule 29C of the Income-tax Rules, 1962, the Principal Director General of Income-tax (Systems) hereby lays down the following procedures:

a. Registration: The deductor/collector is required to register by logging in to the e-filing website (https://incometaxindiaefiling.gov.in/) of the Income Tax Department. To file the “Statement of Form 15G/15H”, deductor should hold a valid TAN. Following path is to be used for the registration process:

Register yourself → Tax Deductor & Collector

b. Preparation: The prescribed schema for Form 15G/15H and utility to prepare XML file can be downloaded from the e-filing website home page under forms (other than ITR) tab. The Form 15G/15H utility can be used to prepare the xml zip file. The declaration is required to be submitted using a Digital Signature Certificate. The signature file for the zipped file can be generated using the DSC Management Utility (available under Downloads in the e-Filing website https://incometaxindiaefiling.gov.in/)

c. Submission: The designated person is required to login to the e-filing website using TAN and go to e-File → Upload Form 15G/15H. The designated person is required to upload the “Zip” file along with the signature file (generated as explained in para (b) above). Once uploaded, the status of the statement shall be shown as “Uploaded”. The uploaded file shall be processed and validated at the e-filing portal (list of validations are given in the user manual). Upon validation, the status shall be either “Accepted” or “Rejected which will reflect within 24 hours from the time of upload. The status of uploaded file will be visible at My account → View Form 15G/15H. In case the submitted file is “Rejected”, the reason for rejection shall be displayed and the corrected statement can be uploaded again.

(Gopal Mukherjee)

Pr. DGIT (System), CBDT

Analysis of File Validation Utility (FVU) Version 5.0

The Income Tax Department has released the new File Validation Utility (FVU) Ver. 5.0 on 13th April 2016 and is applicable for all TDS Returns & Correction Statements filed from the same date onwards.

Highlights and its analysis are summarized below:

Changes is Form 26Q (TDS Returns for Non-Salary)

• The applicability of value ‘B’ in the ‘Remarks’ (No Deduction / Lower Deduction) has been extended to include Section Code 192A (Payment of accumulated balance due to an employee). This had been a past anomaly which has now been taken care of.
• Section Code ‘194IA’ for ‘Payment on certain immovable property other than agricultural land’, which was earlier reported in Form 26QB through NSDL website, has now been included in Form 26Q as well.

Validation of Tax Account Number (TAN) and TAN Name

• The FVU will now validate the TAN as per the Department’s records through the CSI file (Challan Status Inquiry) and that appearing on the TDS / TCS Return Statement. Mismatch in TAN is not acceptable and the FVU will reject it with appropriate message. Similarly, TAN Name will also be validated as in the CSI file with that provided on the TDS / TCS Return Statement. In case of mismatch, the message will be displayed accordingly. It is important to have the same name in TDS Statements as that on records with the Income Tax Department.

Other Changes

• It is now mandatory to provide an Email ID for Deductor / Collector or the Responsible Person. The FVU will reject, if at least one Email ID is missing.
• It is now mandatory to provide the Mobile No. of the Responsible Person.

Web Base TDS Filing Software

TDS on transfer of immovable properties w.e.f 01.06.2013

From June 1st 2013, transfer by a resident of immovable property (other than agricultural land) where consideration exceeds Rs 50 lakhs would attract TDS @ 1% u/s 194 IA. The person is required to deduct tax and would not be required to obtain a Tax Deduction Account Number.

The Central Board of Direct Taxes (CBDT) has come out with an online form for making TDS payment on property transactions.

This form requires mandatory quoting of PAN which is verified with the IT Department’s website. It also asks for address of the transferor and transferee along with the address of the property transaction.

Following details has been asked in the form :
1. PAN details of the Transferee
2. PAN details of transferor
3. Complete address details of Transferee
4. Complete address details of transferor
5. Address of property involved in transaction
6. Amount payable
7. Tax 1 % amount deductible /deducted
The new form is available on TIN-NSDL and field with * sign is only mandatory.

To fill the form online, Click on the link below:
e-payment of TDS on Sale of  Property