Avail the Benefit of CPC(TDS) Analytics for Correction of PANs in your TDS Statements

Date of Communication: 23/09/2016

Dear Deductor, TAN (XXXXXXXXXX)

Centralized Processing Cell (TDS) has observed from its records that you have reported “Structurally Correct, however Invalid PANs” in your TDS Statement filed for Quarter 3 and 4 of Financial Year 2015-16. To correct such errors, CPC (TDS) Analytics provides facility of correct PAN suggestions for the Deductees, while submitting Online PAN Corrections based on your statement filing history.

Action to be taken:

  • “Online Correction” facility of TRACES can be used with Digital Signatures for correction of PANs. To avail the facility, you are requested to “Login to TRACES” and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu. For assistance, please refer to the e-tutorial available on TRACES.
  • While submitting PAN Corrections, CPC (TDS) Analytics identifies the above referred errors for you and provides suggestions for Valid PANs. This will reflect as follows while submitting corrections:

Implications, if Errors are not corrected:

Deductor would not have been able to generate TDS Certificates for deductees with such incorrect PANs. In case, you have issued TDS Certificates outside TRACES, they will not be valid. In view of CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012, 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.

  • Correct TDS Credits in 26AS statements to such taxpayers will not be available and they will not be able to avail the same, while filing their Income Tax Returns.
  • As per section 206AA of the Income Tax Act, tax is to be deducted at a higher rate, in case of “Not Available/ Invalid PANs”. Therefore, default of Short Deduction, including Interest is charged on the deductor, if the tax has not been deducted at higher rate, as per the provisions of section 206AA.

Therefore, to avoid generation of defaults against you and to avoid any inconvenience to your deductees, please make full use of the above referred facility.

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) TEAM

Extension of due date for submission of Form 15G/15H

Deductee gives Form 15G/15H to deductors for non-deduction of TDS, since deductee’s total income is below taxable limit.

Deductors are required to upload these forms received from deductees on the Income Tax Department website.

The department has extended the due dates for submission of these forms as follows:

IMG-20161003-WA00051.jpg

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)

Useful guidelines to avoid common mistakes while submitting TDS Statements

Following are some useful guidelines to avoid common mistakes, while submitting TDS Statements and you are requested to go through the following in detail.

Incorrect reporting of 197 Certificates:

Please refer to the following guidelines for correct reporting of 197 Certificates:

  • The Certificate Number should be of 10 digits with Alpha-numeric structure. Please refer to the following examples:
      • Correct Format 1111AA111A;
      • Incorrect Format: 1111AA111A/194C
    • Certificate Number should be valid during the period for which it is quoted.
    • The Certificate Number should be for the same PAN, Section Code and Section Rate for which it has been mentioned in the statement
    • Threshold limit Amount of the Certificate should not be exceeded.
    • Please ensure that the Certificate is not expired. Please refer to the following illustration:
      • Lower deduction Certificate under section 197, issued in April 2013 (e.g. Certificate Number – 1) stands cancelled by Assessing Officer on 10/11/2013.
      • A fresh certificate Under Section 197 (e.g. Certificate Number – 2) is issued with effect from 11/11/2013.
      • Deductor quotes Certificate Number – 2 against the transactions recorded during the period from 01/11/2013 to 10/11/2013 in Q3 TDS statement.
      • Deductor should have quoted Certificate Number – 1 for the transactions conducted till 10/11/2013.

Common errors resulting into Short Payment Defaults:

  • Typographical errors committed by deductor, in reporting the date ‘20032014’    in the “Tax Deducted” column.
  • Total of “Amount Paid / Credited” reported in the “Tax Deducted” column of the statement. This results into short payment and Deductors need to ensure that the TDS/TCS Deducted/Collected amount should be equal to TDS/TCS Deposited Amount.

The above mistakes are illustrated below:

Amount Paid/ Credited

TDS Deducted

TDS Deposited

Remarks

1,55,000.00 1,55,000.00 15,500.00 Wrong TDS Deducted Amount
2,20,420.00 20032014.00 22042.00 Date mentioned in the TDS Deducted Column

Actions to be taken:

  • CIN Particulars (BSR Code, Date of Deposit and Challan Serial Number) mentioned in the TDS statement should exactly match with the CIN Particulars as available on ‘Challan Status’ at http://www.tdscpc.gov. in or ‘Challan Status Enquiry’ at http://www.tin-nsdl.com
  • For BIN (Book Identification Number), the particulars (24G receipt number, Date of transfer voucher and DDO Serial Number) mentioned in the TDS statement by the Govt. Deductors should exactly match with the BIN Particulars as available on ‘Challan Status’ at http://www.tdscpc.gov. in or ‘BIN View’ at http://www.tin-nsdl.com
  • Amount of Tax deposited pertaining to different BIN’s/ CIN’s should not be clubbed together while reporting in the TDS statements.
  • Few other common mistakes in reporting dates are as follows:

Actual Date of Deposit 
(As per Challan)

Date of Deposit mentioned in TDS Statement

Observations

07/01/2014 (07th Jan, 2014) 07/01/2013 (07th Jan, 2013) Wrong Year (2013 instead of 2014)
07/01/2014 (07th Jan, 2014) 01/07/2014 (01st July,2014) Wrong Date Format (MM/DD/YYYY)

Points to remember before filing the quarterly TDS statement

Given below are the points one should remember before quarterly etds filing:

  • Correct Reporting: Cancellation of TDS return and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS return
  • Quote correct and valid lower rate TDS certificate in TDS return wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer
  • Last provisional receipt number to be quoted in regular TDS / TCS returns: While filing new regular (original) TDS return, it is mandatory to quote the last accepted provisional receipt number of the regular quarterly TDS / TCS return of any form type
  • TDS return cannot be filed without quoting any valid challan and deductee row
  • Late etds filing fee, being statutory in nature, cannot be waived
  • Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN
  • Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement
  • Download TDS certificate (Form 16A) from TRACES (http://www.tdscpc.gov.in) bearing unique TDS certificate number and issue to the taxpayers within due date
  • File correction statements promptly in case of incomplete and incorrect reporting
  • Download the justification report to know the details of TDS defaults, if any, on processing of TDS return
  • Do view your Dashboard regularly to know about your TDS performance
  • Government deductors should obtain BIN (Book Identification Number) from their Accounts Officer (AIN holder) in time and quote the same correctly in TDS statement

FAQ on TDS/TCS Credit

What is view TDS / TCS credit?

This is a facility which can be availed by deductor in order to verify whether the PANs for which user is deducting TDS are getting the credit for the same or not. This feature is available for only those PANs for which TDS return / TCS return has been previously filed by the deductor.

For which period can I view the TDS / TCS credit?

In order to view TDS / TCS credit, deductor has to specify the Financial Year, Quarter and Form Type for the PAN. The period is restricted to the relevant quarter for which statement has been filed. This facility is available for statements filed since FY 2007-08.

What is the process of viewing TDS / TCS Credit?

Deductor must enter PAN, FY, Quarter and Form Type to see information for a particular PAN. ‘Statement Details’ table will be populated irrespective of whether PAN is present in the statement or not. This table provides information related to the statement pertaining to the input criteria selected by user. ‘Deductee Details’ table will be populated only if the PAN entered by user is present in the latest accepted statement for the input criteria selected. This table shows the status of booking for a PAN.

How to unmask data in ‘Deduction Details’ table?

Deductor can view masked data by clicking on ‘View Details’ and providing ‘TDS Certificate Number’ for that PAN. Token Number will not be unmasked.

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.

Password to open consolidated FVU file downloaded from tdscpc.gov.in

As you know that to revised eTDS return consolidated FVU file is required and for that also now you have to go to the new website tdscpc.gov.in to download consolidated file.

After download the consolidated file from new website, we have to unzip it and to unzip this file, password is required.Correct password to open the Consolidated FVU file is now as under:

TAN NO_request number of  consolidated fvu file

means if you TAN is AMRA11492E and request number generated on tdscpc to download the file is84365 then password to open the file is:
  AMRA11492E_84365
Request number can be checked here. First login to tdscpc.gov.in and click on the requested download link as shown the picture.
Free download of tds software

Do as shown in the pictures. Select option 1  in picture given below or select date of request.
tds software
Request number will be shown as under:
To download consolidated file you have to register at new website. If you have not registered your TAN on TRACES then first register your TAN at Traces and then start the procedure of downloading Form 16A.