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Important TDS due dates for the month of March 2015

Important TDS due dates in the month of March 2015 has been given below: 

Due dates of TDS (tax deducted at source) for month of March:

Due date for tds deductible in the month of March is 30.04.2015. No separate date provided for deduction made on 31.03.2015. This due date(30.04.2015) is not applicable for tds deducted only on 31.03.2015 but also for tds deducted in full month of March(01.01.2015 to 31.03.2015). However for Govt. deductor, depositing tax through challan, due date for tax deducted in Month of March,15 remains 07.04.2015 

Due date for ETDS return for quarter ending on 31.03.2015:

Due date to deposit form 24Q ETDS return (salary TDS) for quarter ending 31.03.2015 is 15.05.2015.

Due date to deposit form 26Q Etds return (other than salary TDS) for quarter ending 31.03.2015 is 15.05.2015.

Due date to Issue Form 16 / form 16A for quarter/ year ending on 31.03.2015

Due date to issue form 16 (salary TDS certificate) for year ending 31.03.2015 is 31.05.2015.

Due date to issue form 16 (other than salary TDS) for quarter ending 31.03.2015 is 30.05.2015. 

Source: www.tdsman.com

CBDT directs Chief CIT(TDS) to take follow-up actions with banks for deposit of TDS of March, 2015

Recently, CBDT has issued a letter all Chief Commissioner of Income Tax (TDS)-Delhi, Mumbai, Kolkata, C_bennai, Bengaluru & Ahmedabad as well as Pr. Chief Commissioner of Income Tax- Hyderabad, Pune, Nagpur, Bhubaneswar, Guwahati, Patna, Kochi, Chgandigarh, Lucknow, Kanpur, Bhopal & Jaipur to take follow-up actions with banks for deposit of TDS of March, 2015 as Monitoring of Budget Collection- Follow up of TDS to be paid by the banks.




Amendment to Sec.80-IB taking away tax benefit - Gujrat HC

Amendment made in section 80-IB(9) by adding an Explanation was not clarificatory, declaratory, curative or made "small repair" in the Act, but on the contrary takes away the accrued and vested right of the Petitioner which had matured after the judgments of ITAT. Therefore, the Explanation added by Finance (No.2) 2009 was a substantive law. Explanation added to Section 80-IB(9) by Finance Act (No.2) of 2009 is clearly unconstitutional, violative of Article 14 of the Constitution of India and is liable to be struck down

The disputed question was as to whether the benefits of tax holiday of seven years was available on each undertaking which has now been taken away by the amendment made in section 80-IB(9) by adding on Explanation that provides that all blocks licensed under a single contract shall be treated as a single undertaking

ITAT had found in favour of petitioner-assessee that each well/cluster of wells was a separate undertaking entitled to seven years tax holiday.

The Revenue had challenged the decision of the ITAT before the High Court and thereafter, they have a remedy before the Apex Court.

But, arbitrarily, the 100% tax deduction benefit could not be withdrawn by the Finance Minister or the legislature by amending Section 80-IB(9) of the Act retrospectively from an anterior date.

The amendment in such cases where already tax benefit had accrued and vested in the assessee could not be taken away by giving retrospective amendment to Section 80-IB(9) which is nothing but a substantive provision inserted by amendment and it can only operate prospectively and not retrospectively.

Explanation added to Section 80-IB(9) by Finance Act (No.2) of 2009 is clearly unconstitutional, violative of Article 14 of the Constitution of India and is liable to be struck down.

Source: www.taxmann.com

Latest e-TDS/TCS RPU Utility from Fin. Year 2007-2008.

Finally NSDL has provde JAVA base Utility Ver. 1.0 as CBDT Income Tax Return Utility to TDS Deductors for Preparing TDS/TCS Quarterly Statement from Financial Year 2007-2008 and on-wards.  This new latest e-TDS/TCS Return Preparation Utility is fully based on JAVA Plate-form (RPU Ver. 1.0). Apart from this new utility, we already working with RPU utility ver. 4.5 and 4.2 for preparation of e-TDS/TCS Return.  This new RPU JAVA Base Utility is very simple with following Key features :

Key features of RPU 1.0

  • NSDL e-TDS/TCS Return Preparation Utility in JAVA platform.
  • Preparation of Regular TDS/TCS Statement(s) for Form 24Q, 26Q, 27Q & 27EQ pertaining to Financial Year 2007-08 onwards (for all quarters).
  • NSDL RPU is a freely downloadable utility.
  • Incorporation of latest FVU Version 4.5 and 2.141.

Download New JAVA base RPU Utility Ver. 1.0 (Click Here)

Central Action Plan for the First Quarter TDS Statement for the Asstt. Year 2016-17.

Recently CBDT has issued a letter to all CCITs about Action Plan for 1st Quarter i.e. April, 2015 to June, 2015 of the Financial Year 2015-16.  The CBDT exhibit the Interim Action Plan for the First Quarter of Financial Year 2015-16.  In this action Plan key result for Assessment Units (including Central Charges, Int'I Taxation, TDS and Exemptions is takes place.  The CBDT further states about International Taxation and Transfer Pricing with all dates, which are as under :


Download Action Plan Letter (Click Here)

Tax Calculator for Salaried Employee with TDS Certificates & Tax Calculation For Asstt. Year 2015-16

TAX CALCULATION SOFTWARE FOR SALARIED EMPLOYEE
FOR ASSTT. YEAR 2015-16

We would like to inform you that with reference to circular No. 17/2014 dated 10.12.2014 issued by Income Tax Department to calculate Income Tax with all qualifying Deduction from Annual Salaries for Financial Year 2014-15 under section 192 of the Income Tax Act, 1961. Salaried employee can easily calculate their Tax liability and generate Form 16.  This is the final updated Tax Calculation utility for every salaried employee for the Asstt. Year 2015-16 with Form 16, monthwise salary statement, tax calculation sheet.

Facility of this software:
It is easy wat to Calculate Income Tax including Month-wise Salary Statement and Form 16 (Annexure "A" and "B") in TRACE format. This utility helps to employee to calculate tax liability with all applicable deductions, exemptions etc.

This utility covered by Deduction of Chapter-VIA and other Deductions as per circular of Income Tax Department for Salaried Employee.

This Software is based on Income Tax circular issued by Income Tax Department for Salaried Employee for Assessment Year 2015-16.

Physical Requirements:
  • OS required Windows-2000, XP, Vista, Windows-7, Windows-8 etc.
  • MS Office-7 or Above Version is required.
  • Printing Facility Provides on Inkjet, Ledger Printer and other printers.
  • Required Standard A4 Size Paper Sheets.
Data Entry:
  • Only  "White" Cells are provide for input data.
  • Press Mouse Buttons for applications which you want to operate.
Key Features:
  • It maintain Each Employee Data.
  • It Calculate Gross Income as per current D.A. Rates automatically as per Government D.A. Rates.
  • It Provides Facility to Enter Data Manually along with all Arrears etc.
  • It Calculate Tax Liability.
  • It Display Month-wise Salary Statement for Asstt. Year 2013-14.
  • It Generate TDS Certificate (Form 16) Automatically with Annexure "B".

Download Consolidated files and TDS Certificates whose TAN are currently restricted by TRACES

This is to inform you that Centralized Processing Centre (TDS) has observed from its records that there are Short Payment Defaults in Quarterly TDS Statements submitted by you and therefore, downloading of Consolidated Files and TDS Certificates are currently restricted for your TAN 

Please note that

  • CPC (TDS) has initiated a special drive for closure of Short Payment Defaults due to Unmatched or Insufficient Challans in the TDS Statements.
  • Since the due date for filing of TDS Statements for Quarter 4, 2014-15 and distribution of TDS Certificates subsequently is approaching fast, you are suggested to close the above defaults without any further loss of time.

The Short payment defaults in the TDS Statements may appear due to the following reasons:

A. Unmatched Challans:

  • At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
  • Incorrect quoting of TAN in ITNS 281 at the time of Deposit of TDS.
  • While depositing TDS, incorrect Assessment Year may have been reported in challan ITNS281, while statement pertains to a different Assessment Year.
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.

B. Insufficient Challans:

  • Adequate balance may be available in OLTAS challans, however, already consumed challans may have been incorrectly used in the TDS Statement
  • You have tried to consume more than the available challan balance for reporting TDS deducted in the statements

Though CPC (TDS) makes best efforts to match challans, however, they may remain unmatched leading to "Short Payment" Defaults.

Action to be taken:

  • Download the Justification Report from our portal TRACES to view your latest outstanding demand.
  • In case there is no available challan for consumption, you are required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC (TDS) system after around 3-4 days of deposit
  • The Online Correction facility of TRACES needs to be used for closure of the Short Payment default, which can be availed without digital signature.
  • CPC (TDS) recommends to close the above default by tagging unconsumed challans, if available in CPC (TDS) system, through Online Correction.
  • Details of defaults will be provided during Online Correction process after logging into the web portal TRACES.
  • Once the challan is suitably tagged and Online Correction is submitted to CPC (TDS), it shall process the statement, thereby rectifying the Short Payment default.
  • CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. You can refer for the details to our communication CPC (TDS) drive for closure of Short Payment Defaults: Enhancement in Online Corrections feature for "Moving Deductee rows" from Unmatched Challans dated March 10, 2015 on TRACES.

For any assistance, 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

Latest e-Tutorial for Online Correction of unmatched Challans & Quarterly TDS Statement.

CPC (TDS) has been issued a new notification recently with new features to correct e-TDS/TCS Return along with unmatched Challans.  CPC (TDS) has found Short Payment Defaults in quarterly TDS Statements due to Unmatched Challans and thus they further enhanced the Online Correction facility at TRACES, providing you with the feature of "Move Deductees" from Unmatched Challans to any other Unconsumed OLTAS Challan.  To facilitate closure of Short Payments due to Unmatched Challans, CPC(TDS) has further improved the intelligence, simplicity and convenience of Online Correction feature.

New Feature to Move Deductees added to Online Correction facility:

CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. The facility can be used in the following situation:

Issue:

  • The challan(s) remain unmatched due to data entry errors in the TDS Statement(s).
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.
  • The incorrect Challan information furnished above is causing Short Payment Defaults in the TDS Statement due to Unmatched Challans.

For instance, if there are two OLTAS challans reported in the TDS Statement an if:

  • Total TDS in Deductee Rows, mapped to Unmatched Challan(s): Rs. 1,10,000
  • OLTAS Challan CIN1: Rs. 1,00,000
  • OLTAS Challan CIN2: Rs. 10,000
  • Challan reporting in TDS Statement: Instead of reporting the above challans separately, incorrectly only CIN1 tagged in TDS Statement with TDS amount of Rs. 1,10,000

The above error causes Short Payment Default in the TDS Statement

Solution:

  • In above situation, CIN 2 should first be added to the relevant TDS Statement using Online Correction facility
  • Deductee Rows with a total TDS of Rs. 10,000 can now be moved to CIN 2, which has incorrectly not been reported in the TDS Statement
  • Now CIN 1 (Rs. 1,10,000), as mentioned in the TDS Statement, can be tagged to the Unconsumed OLTAS Challan CIN1 (Rs. 1,00,000).

Therefore, Download Latest e-Tutorial for Online Correction of unmatched Challans and TDS Statments Quarterly. (Click Here)

Clarification on PAN Mandatory for Service Tax Registration.

Before a days ago, Central Board of Excise and Customs, Department of Revenue had issued a circular regarding simplification of Registration Procedures in Central Excise and Service Tax.  This circular is as under:

Circular No. 997/4/2015-CX
dated the 28th Feb., 2015
F. No. 201/24/2013-CX.6

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

To
 Principal Chief Commissioners / Chief Commissioners of Central Excise (All),
 Principal Chief Commissioners/Chief Commissioners of Central Excise & Service Tax (All).

Sub: Simplification of Registration Procedures in Central Excise and Service Tax –reg.

Madam/Sir,

Registration process in Central Excise has been prescribed vide Notification no 35/2001 - C.E(N.T) dt 26-6-2001 as amended from time to time. The prescribed procedure has been amended by notification no. 07/2015-CE (N.T.) dated 01.03.2015 to simplify the procedure and improve the ease in doing business in manufacturing. The salient features of the revised registration procedure are as follows -

2) Registration in Central Excise presently envisages filing of application online on ACES, submission of documents, examination of documents, verification of premises by the departmental officer, submission of verification report, generation of Registration Certificate by the Deputy / Assistant Commissioner, dispatch of signed copy of Registration Certificate to the assessee and enabling the assessee to electronically pay the duty.

3) Under the new simplified procedure, once duly completed application form is received online on ACES, registration would be granted within two working days and issued online 
without any examination of the documents and verification of documents or premises before the grant of registration, thus initiating trust based registration. Simultaneously, assessee would be enabled to electronically pay duty. Further, the assessee would not need a signed copy of Registration Certificate as proof of registration. Registration Certificate downloaded online from ACES system would be accepted as proof of registration. Verification of the documents and premises shall be carried out post facto.

4) Verification of the premises shall be carried out after the registration has been granted. The applicant shall tender self-attested copy of the prescribed documents at the time of the verification of the premises.

5) Henceforth, registration shall mandatorily require that the PAN number of the proprietor or the legal entity being registered be quoted with the exception of the Government Departments for whom this requirement shall be non-mandatory. Applicants, who are not Government Department, shall not be granted registration in the absence of PAN number.

6) Communication with assessee is proposed to be made electronic to reduce transaction time and to achieve this e-mail address and mobile number of the applicant is being made mandatory. Existing registrants, who have not submitted this information, are requested to file this information within three months of the new registration process coming into effect.

7) Document to establish possession of the premises can be any document which establishes that the applicant is in possession of the premises required to be registered such as proof of ownership, lease or rent agreement, allotment letter from the Government, no objection certificate (NOC) from the landlord. Any of the following documents shall be 
submitted to establish identity, viz. PAN card, Ration Card, Passport, Voter I-card, Aadhar Card, Driving licence, or any other Photo-identity card issued by the Central Government, State Government or PSU.

8) The process of De-registration and cancellation of the registration has also been streamlined by prescribing clear procedure for the same so that winding up of business and starting new business of manufacture is made easy .

9) Similarly in service tax, the registration process for single registration has been simplified by providing for grant of registration online within two working days of filing the complete Form ST-1 in ACES, thus initiating trust-based registration. The specified documents should reach the office of the jurisdictional Deputy/Assistant Commissioner within 15 days of the date of filing the registration application. Where the need for the verification of premises arises, the same will have to be authorized by an officer not below the rank of Additional /Joint Commissioner. The conditions relating to the grant of registration in two working days have been specified in the Order No. 1/2015-Service Tax dated 28th Feb., 2015.

10) For further details, notification no. 07/2015-CE (N.T.) dated 01.03.2015 may be referred. The new procedure for registration shall come into effect from 01.03.2015. Difficulty, if any, in implementation of the procedure may please be brought to the notice of the Board. Hindi version would follow.

(ROHAN)
Under Secretary to the Government of India 

Don't miss to file Professional Tax e-Return for Fin. Year 2014-15 on or before 31.03.2015.

An employer registered under this Act shall furnish monthly return as per the provisions of clause (c) of sub-rule (3) of rule 11 till the end of the year in which he is granted the certificate of registration Date 14/7/2011.

Professional Tax Department (State Government) had issued a notification VAT/AMD.1010/IB/PT/Adm-6 Date 14/7/2011 regarding  Filling of e-return for all PTRC holders is made mandatory and As per Government Notification No PFT.1012/ C.R.29/ Taxation-3 Date 14-June-2012. every employer holding Profession Tax Registration Certificate (PTRC) shall pay Tax, Interest, Penalty or any amount due and payable by or under the said act electronically With effect from 01-July-2012 is mandatory.

Mode of Return:
  • Amount of Profession Tax is exceed Rs. 50000/- annualy they submit PT Return Monthly.
  • Profession Tax collection not exceed Rs. 50000/- per annum they submit PT Return Halfyearly or Yearly.
Procedure for PT e-Return:
Tax is to be paid in chalan No MTR-6, and online return should be submitted in Form IIIB. Before submission of online return Employer has to enroll himself for e-services (one time activity).

(For detail process of enrollment of PTRC e-services and filling of e-return, please see the demo at www.mahavat.gov.in >> e-services >> Instruction Sheets for e-services >> PTRC e-services Enrollment and e-return)

Due Date:
  • For Financial year 2014-15 due date of PT e-Return is 31st March, 2015.
Penalty:
  • If PT Return not lupload in due time Rs. 1000/- charged as Late Fee.
Download PT e-Return Software (Click Here)

Key Changes in Service Tax in the Finance Budget 2015

Key changes being made in the Service Tax in the Union Budget 2015-16, by amending the clauses 105 to 116 of the Bill under Chapter V of the Finance Act, 1994 and Chapter VI of the Bill (clause 117) to levy Swachh Bharat Cess @ 2% of the value of taxable services. These changes are categorized below based on the dates on which they would come into effect.

Date to be notified after the enactment of the Finance Bill 2015.

Changes in Service Tax rates
The rate of Service Tax is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the revised rate of Service Tax. Thus, the effective increase in Service Tax rate will be from the existing rate of 12.36% (inclusive of cesses) to 14%, subsuming the cesses.

Swachh Bharat Cess
An enabling provision is being incorporated in the Finance Bill, 2014 (Chapter VI/clause 117) to empower the Central Government to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of 2% on the value of such taxable services.

Review of Negative List

  • Service Tax is to be levied on the service provided by way of access to amusement facility such as rides, bowling alleys, amusement arcades, water parks, theme parks, etc.
  • Service tax to be levied on services by way of admission to entertainment event of concerts, non-recognised sporting events, pagents, music concerts and award functions, if the amount charged for admission is more than Rs. 500. Service by way of admission to exhibition of the cinematographic film, circus, dance, or theatrical performances including drama, ballets or recognized sporting events shall continue to be exempt.
  • Service tax to be levied on service by way of carrying out any processes as job work for production or manufacture of alcoholic liquor for human consumption. 
  • An enabling provision is being made to exclude all services provided by the government or local authority to a business entity from the Negative List. Once this amendment is given effect to, all service provided by the government to business entities, unless specifically exempt, shall become taxable.

Amendments in Notification No .25/2012-ST.

  • To exclude job work in relation to alcoholic liquor for human consumption from the scope of this exemption.
  • To exempt services by way of (i) right to admission to exhibition of film, circus, dance or theatrical performances including drama, or ballet; (ii) recognized sporting event; and (iii) admission to other events where the consideration for admission is upto Rs. 500;

Amendments in Service Tax Rules
Amendments in alternative rates of service tax provided for air travel agent, insurance service, money changing service and service provided by a lottery distributor and selling agent in rule 6(7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules.

Latest Income Tax (3rd Amendment) Rules, 2015.

Recently, CBDT has issued a notification dated 14th March, 2015 i.e. Income Tax 3rd Amendment Rules, 2015.  This notification takes place for change in Rule 10F, 10H, 10I, 10K, 10M and 10Ma of section 92CC of  "Roll Back of the Agreement" and “Procedure for giving effect to rollback provision of an Agreement" with Application for rollback of an Advance Pricing Agreement in Form No. 3 CEDA.  The details of this notification is as under:

In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), -
(a) in rule 10 F,-
    (i)  after clause (b), the following clause shall be inserted, namely :-
         “(ba) “applicant” means a person who has made an application;”;
    (ii) after clause (h), the following clause shall be inserted, namely :-
         “(ha) “rollback year” means any previous year, falling within the period not exceeding four previous years, preceding the first of the previous years referred to in sub-section (4) of section 92CC;”;

(b) in rule10 H, in sub-rule (1),-
    (i)  for the word “Every” the word “Any” shall be substituted;
    (ii) for the word “shall” the word “may” shall be substituted;

(c) in rule 10 I, for the words, figures and letter “who has entered into a prefiling consultation as referred to in rule 10H”, the words, figures and letter “referred to in rule 10 G” shall be substituted;

(d) in rule 10 K, in sub-rule (2) after the words “with understanding reached in”, the word “any” shall be inserted;

(e) in rule 10 M, in sub-rule (1), after clause (v), the following clause shall be inserted, namely:-
    “(va) rollback provision referred to in rule 10 MA;”;

(f) after rule 10 M, the following rule shall be inserted, namely:-
   
    Roll Back of the Agreement.
    
    Procedure for giving effect to rollback provision of an Agreement.
    
    Application for rollback of an Advance Pricing Agreement

Online Correction facility not availed after sending "Intermediate Communication for Short Payments" - CPC (TDS)

CPC (TDS) has been instructed to TDS Deductors after sending "Intermediate Communication for Short Payments" notice, the facility of Online Correction not availed.  The CPC (TDS) in this regard further state that as follows :

An Intermediate communication was sent to you intimating Short Payment errors in the Original TDS Statements filed by you during January 1 - February 10, 2015 and you were requested to use Online Correction facility at TRACES for closure of the above within a week of receipt of above communication.

However, after the above was communicated to you, no actions were taken using Online Correction functionality (without Digital Signatures) to correct above errors. 

There may be a possibility that the above communication could not reach you due to incorrect email/ Mobile number provided and you are requested to correctly report the above in your TDS Statements.
Also, CPC (TDS) intends to collect your feedback to understand any challenges in using the Online Correction facility to correct potential errors.You are, therefore, requested to provide us the reason by sending your response to info@tdscpc.gov.in

You are also requested to submit a Correction Statement, without any further loss of time, to close the Short Payment Defaults in your Original TDS Statement(s).

Please note that

  • This further significance towards ensuring non-intrusive TDS Compliance, since, Short Payment Defaults ought to be closed at the time of submitting requests to download Consolidated Files or TDS Certificates from the web portal TRACES.
  • The onus for closure of Short Payment Defaults lies on the deductor submitting the TDS Statements.

Your attention is also drawn to the essence of above communication and the advantages of taking actions with Online Correction feature:

  • You would have preliminary information of potential Short Payments, before the Original Statement is completely processed for Defaults and Intimations are generated
  • The central point in the process is identification of errors in challans and facilitating their corrections before CPC (TDS) computes defaults in TDS statements
  • Correction of above defaults using Online Correction can be submitted within 7 days of receipt of the Intermediate Communication, before computation of Defaults for the referenced TDS statements
  • The above actions Above action will facilitate avoidance of multiple Correction Statement filing later, after the defaults are identified CPC (TDS) and Intimations have been sent.

What Action to be taken on receipt of Intermediate communication:

  • Please take note of the Intermediate communication from CPC (TDS) and submit Online Correction for potential defaults in TDS statement within the stipulated time frame.
  • Only "Online Correction" facility can be used for correction of above Short Payments and 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 any assistance, please refer to the e-tutorial available on TRACES.
  • The action requires to be completed within 7 days of receipt of the Intermediate Communication.  It is hoped that you will avail of the time window to correct errors, if any, going forward.


New features for unmatched challans online corrections as "Moving Deductee rows" by CPC (TDS)

Recently, CPC (TDS) has been issued a new notification with a new features regarding online correction for unmatched Challans as "Moving Deductees".  Which is as under : 

Dear Deductor,

This is to inform you that Centralized Processing Cell (TDS) has initiated a special drive for closure of Short Payment Defaults in quarterly TDS Statements due to Unmatched Challans and your active participation is crucial in ensuring successful outcomes. 

For closure of Short Payment Defaults arising due to Unmatched Challans quoted in TDS Statements, CPC(TDS) has further enhanced the Online Correction facility at TRACES, providing you with the feature of "Move Deductees" from Unmatched Challans to any other Unconsumed OLTAS Challan.

Please note that the above assumes further significance towards ensuring non-intrusive TDS Compliance, since, Short Payment Defaults ought to be closed at the time of submitting requests to download Consolidated Files or TDS Certificates from the web portal TRACES.  To facilitate closure of Short Payments due to Unmatched Challans, CPC(TDS) has further improved the intelligence, simplicity and convenience of Online Correction feature, as follows:

New Feature to Move Deductees added to Online Correction facility:

CPC (TDS) has introduced Move Deductees facility in Online Corrections for closure of Short Payment defaults in your quarterly TDS Statements. With use of this feature, a portion of the Deductee Rows can now be moved to any other Unconsumed OLTAS challan with adequate balance. The facility can be used in the following situation:

Issue:
  • The challan(s) remain unmatched due to data entry errors in the TDS Statement(s).
  • Multiple OLTAS challans may have been reported in the TDS statement incorrectly, with information pertaining to only one challan, and mapped with the referenced Deductee rows.
  • The incorrect Challan information furnished above is causing Short Payment Defaults in the TDS Statement due to Unmatched Challans.
For instance, if there are two OLTAS challans reported in the TDS Statement an if:
  • Total TDS in Deductee Rows, mapped to Unmatched Challan(s): Rs. 1,10,000
  • OLTAS Challan CIN1: Rs. 1,00,000
  • OLTAS Challan CIN2: Rs. 10,000
  • Challan reporting in TDS Statement: Instead of reporting the above challans separately, incorrectly only CIN1 tagged in TDS Statement with TDS amount of Rs. 1,10,000
  • The above error causes Short Payment Default in the TDS Statement
Solution:
  • In above situation, CIN 2 should first be added to the relevant TDS Statement using Online Correction facility
  • Deductee Rows with a total TDS of Rs. 10,000 can now be moved to CIN 2, which has incorrectly not been reported in the TDS Statement
  • Now CIN 1 (Rs. 1,10,000), as mentioned in the TDS Statement, can be tagged to the Unconsumed OLTAS Challan CIN1 (Rs. 1,00,000).
Action to be taken for Moving Deductee Rows:
  • Please logon to the website TRACES and Online Correction facility of TRACES needs to be used for closure of the Short Payment default, which is available even without digital signature.
  • Please select 'Challan Correction' in 'Type of Correction' drop-down menu
  • Navigate to Unmatched Challan and tag unconsumed challans, if available on TRACES. system.
  • Select a row and click on Move deductee row - List of deductees attached to the challan are displayed
  • Select deductee rows to move to a different challan - List of challans with balance greater than total tax deposited of the selected deductee rows are displayed
  • Select a challan and click on move deductee row - All selected deductee rows are moved to a new challan.
You are encouraged to refer to the e-tutorial for detailed guidance in this regard. You are requested to take corrective actions at the earliest for closure of Short Payment Defaults due to Unmatched Challans

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Source: Traces

Intimation regarding Outstanding TDS demand on account of Short Payments from FY 2007-08 onwards - CPC (TDS)

CPC (TDS) has recently issued a demand on account of short payments from Financial Year 2007-08 onwards.  This is a intimation to all Tax Deductors and TDS Deductee.  The details of this intimation is as under :

As per the records of the Centralized Processing Cell (TDS), there is an outstanding demand from FY 2007-08 onwards, exceeding Rupees XX Crore in aggregate, on account of Short Payment defaults identified in the TDS statements filed by you.

Intimation u/s 154 read with section 200A of the Income Tax Act, 1961 intimating the outstanding demand for different years has already been sent by Income Tax Department on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement.

Justification report for TDS defaults can be downloaded TDS statement wise from the web portal TRACES. (www.tdscpc.gov.in).

Short payment default may be on account of mismatch in challan particulars, as quoted by you in TDS statement and challan particulars as per OLTAS. You are requested to close the Short Payment Defaults through "Tagging" of correct challan or "Move Deductee rows" facility using "Online Corrections" at TRACES (www.tdscpc.gov.in). In case of any clarification, you may contact your assessing officer and can also send e-mail at info@tdscpc.gov.in.

It is to inform that while downloading TDS certificate (Form 16/16A), you would be prompted to first close the 'Short Payment' default, if any. As the next due date for download of form 16/ 16A is 30th May 2015, you are requested to close your defaults well in advance to avoid any issue in downloading of TDS certificates for last quarter of FY 2014-15.

Source: Traces

Last month for Tax Return, updated Tax Return Utility Free Download for A.Y. 2014-15

Recently CBDT Schema of Income Tax Return Forms has updated ITR Utility for Asstt. Year 2014-15 which developed in Excel and JAVA to submit Income Tax Return at the year end month i.e. March-2015.  The both utilities are available from ITR-1 to ITR-7 for all Taxpayee.  The Department of Income has provides this free downloadable Income Tax e-Filing utility.  The both utilities can be run on Windows 7.0 or above and latest Linux operating systems, where Java Runtime Environment Version 7 Update 13 (jre 1.7 is also known as jre version 7) or above is installed.

How to run the application?
  •  Ensure that java version 1.7 or more is installed.(version can be identified by executing "java -version" command)
  • Unzip and extract the files in the desired path/location.
To run in WINDOWS
  • Double click ITR.bat
          Or
  • Run from command prompt by executing "ITR.bat" (ensure that current working directory has the extracted files)
To run in LINUX
  • Change the ITR.sh file's permission, provide execution permission by executing the following command
  • > chmod 755 ITR.sh                
  • run using the command "sh ITR.sh" or ./ITR.sh
Make sure that your java version is 1.7 (version can be identified by executing "java -version" command)
  1. Extract the files to a directory. (Example:  D:\Utility)
  2. Open command prompt
  3. Change to the extraction directory (cd D:\Utility)
  4. Type the following command :
  • -jar
For example If your Java 7 Installation path is "C:\Program Files (x86)\Java\jre7" and you are opening ITR1 then execute the following command
 
D:\Utility>"C:\Program Files (x86)\Java\jre7\bin\java" -jar ITR-1_AY201415_PR2.jar

You must have Java Runtime Environment Version 7 Update 13 (jre 1.7 is also known as jre version 7) or above installed in your system to use this utility. To download Java Runtime Environment click the link given in the page.

Unzip and extract the files in the desired path/location. Refer to Readme text for more details on how to use the Form.

Income Tax Return Utility Downloads 

ITR FORMS
Descriptions
Excel Utility
Java Utility
ITR 1 (SAHAJ)
For Individuals having Income from Salary & Interest.
ITR 2
For Individuals & HUFs not having Income from Business or Profession
ITR 3
For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR 4
For Individuals & HUFs having income from a proprietory business or profession
ITR 4S
For Individuals/HUF having income from presumptive business
ITR 5
For firms, AOPs,BOIs and LLP
ITR 6
For Companies other than companies claiming exemption under section 11
ITR 7
For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

Who can and cann't use ITR-1 to ITR-7 Form ? (Click Here)
   
Do's & Don't while e-Filing of ITR-1 to ITR-7 (Click Here)

CBDT issued Instructions related to Non- migration of PANs due to pending Refund Caging

Recently, CBDT has issued an instruction for CsIT related to non-migration of PANs due to Pending Refund caging on 13th March, 2015 under section 139A of the Income Tax Act, 1961.

In view of the issues discussed above, the following instructions are issued:

In case of presently active AOs having pending caging of the cases whose jurisdiction has been changed:
The AOs are advised to complete the caging after due verification of the records irrespective of the new jurisdiction after cadre restructuring. After completion ofthe caging, the PANcan be migrated to its new jurisdiction. However, in cases where a manual refund was already issued or present active AOdo not want to complete the pending caging process. In such scenarios, the AO can block the refund for concerned AYby following the navigation path "ITD7AST70THERS7B1ock Refund". In this regard, the following instructions are to be followed:

  • Cases where caging is pending and refund has been issued manually, in such cases, a pop-up message will be displayed onto AO's "Block Refund" screen and his confirmation will be sought. On getting confirmation, system will mark such refund cases as blocked for concerned A.Y.
  • Cases where caging is pending and AO verifies non-existance of any manual refunds which is also verified by the system automatically, the active AOs can block these refund cases with their remarks. With pending caging, in 'both the above scenarios, once the refund gets into blocked status for that AY., the system allows its PAN migration. The destination AO will not be able to unblock the refund cases which were blocked by adopting the procedure mentioned in 4(i)(a) above. In scenario of 4(i)(b) above, the destination AO can unblock the refund only after due verification and then can complete the caging process.

In case of presently 'OLD'marked AOs with pending caging at the AO level:
The jurisdictional CIT(if active) or CIT(CO) can migrate the PAN and in this case, the caging will also migrate to the destination AO as pending and to be completed by the destination AO after due verification of the record.

In case of presently 'OLD'marked AOs with pending caging at the Range level:
This scenario is under analysis and will be taken up separately on the basis of complaints lodged at Help desk.

In case of presently inactive AOshaving pending caging of the cases:
The respective RCCs are to identify such inactive AOs and should be marked "Y" in "OLD Flag" against them. Thereafter, the PANs can be migrated with pending refund caging as discussed in 4(ii) & 4(iii) above.

Download Instruction for detailed information (Click Here)

Pay Due TDS on or before 31th March-2015, IT Department requests Companies.

The tax office is exploring all avenues to mop up revenue collection before March 31. In an unusual development, hundreds of companies have received letters from the income-tax department, "requesting" them to deposit the amount from tax deductions before the financial year closes — as against the normal practice of companies depositing the tax deducted at source (TDS) by the seventh of next month. 

"I have never seen the department writing letters to collect TDS before March 31. Given the tight liquidity position, companies would prefer paying TDS by April 7 which is the deadline," said a senior Mumbai-based chartered accountant. 

"In the past, our clients may have received phone calls. But this year, the department has not only written letters but in many cases has even asked companies to depute senior officials to appear before the department on a specified date and time," said the chartered accountant. 

One such letter to a mid-sized company reads like this: "The Department of income tax, as you are aware, plays an important role in collection of revenue for the purpose of targeted rate of National Growth. As a part of this Target, the charge of CCIT TDS Mumbai has been allotted a target of Rs 66,945 crores. With the prevailing rate of growth of the "Economy", the achievement of this target becomes very challenging.....This letter is issued with a request that necessary arrangements may please be made at your end so that tax deductions arising or accruing in the month of March 2015 are duly deposited before 31.03.2015." 

"This may not be technically illegal as it is not a notice, but a request," said another tax professional, "but it's strange and somewhat high-handed." 

TDS is applicable on salary, interest, professional fees, rent, contract value, brokerage and all payments to NRIs. A company deducting tax from salaries on 30th of a month is allowed to enjoy liquidity for a week before it deposits the amount by the 7th of the following month. According to tax circles, one of the reasons for the shortfall is a circular issued by Central Board of Direct Taxes, allowing the deduction of TDS only on the principal value of a service (excluding the service tax). (For instance, if the service fee is Rs 1 lakh, assesses were allowed to pay TDS on Rs 1 lakh instead of paying it onRs 1,12,360 which includes the service tax amount.) 

"Since close to Rs 70,000 crore is collected from Mumbai, there is a shortfall due to the change in TDS computation. This is one of the reasons besides slow business and poor earnings of companies," said a tax official. 

Still, some of the industry officials believe that the shortfall in direct tax target may not be too large. As against Rs 2 lakh crore collected in the last two months of FY14, the department has to raise aroundRs 2.35 lakh crore this fiscal. The revised estimate for direct tax collection in the Budget is Rs 7.05 lakh crore (as against a budget estimate of Rs 7.35 lakh crore). Total collection between April '14 and January '15 has been Rs 4.7 lakh crore. 

Source: www.economictimes.indiatimes.com

Calculate Advance Tax, Download Challan and Pay Tax of Last Quarter on or before 15th March-15

Just starts the month of March. All taxpayee known this month is financial year end month.  Therefore Taxpayee wants to pay all due taxes in this month.  An Advance Tax due date for last quarter is 15th March of  non-corporate cases (Non-Company) and Corporate Case (Company) paid Advance Tax today.

Do you Know what is Advance Tax?
Tax payers whose total income is likely to be chargeable to tax for the assessment year are required to pay tax in advance during the financial year (April 1 to March 31) on their estimated current income, which will be assessable to tax during the next following financial year called assessment year. The current income for this purpose means the total income which will be chargeable to tax in the relevant assessment year.

The advance tax payable is the tax on the current income minus the tax deductible at source or collectible out of any income included in the current income.

What are the Due Dates and How to Calculate Advance Tax ?
The following chart helps you to knowing the due dates to pay Advance Tax and its Calculation.

Example:
If the Tax payee pays Gross Total Tax in whole year for A.Y. 2015-16 i.e. Rs. 100000.00 then;
ADVANCE TAX CHART
Gross Income Tax
Rs. 100000.00
For Non Corporate Cases (Non-Company)
Rates
Amount of Tax (Rs.)
15th Sep
30%
30000
15th Dec
30%
30000
15th Mar
40%
40000



For Corporate Cases (Company)
Rates
Amount of Tax (Rs.)
15th June
15%
15000
15th Sep
30%
30000
15th Dec
30%
30000
15th Mar
25%
25000


Free Download Advance Tax Challan.

The Income Tax Challan payment through e-Payment facilitates and payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks.

Easy Procedure to pay Income Tax Payment by " e-payment " :

1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281, ITNS 282 or ITNS 283, as applicable.

2. Enter its PAN / TAN as applicable. There will be an online check on the validity of the PAN / TAN entered.

3. If PAN/ TAN is valid the taxpayer will be allowed to fill up other challan details like accounting head under which payment is made, name and address of TAN and also select the bank through which payment is to be made, etc.

4. On submission of data entered a confirmation screen will be displayed. If the taxpayer confirms the data entered in the challan, it will be directed to the net-banking site of the bank.

5. The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.

6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

Calculate Advance Income Tax Liability (Click Here)

SELECT APPLICABLE CHALLAN

CHALLAN NO./ITNS 281 (Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or non-corporates)
CHALLAN NO./ITNS 280 (payment of Income tax & Corporation Tax)
CHALLAN NO./ITNS 282 (payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax)
CHALLAN NO./ITNS 283 (payment of Banking Cash Transaction Tax and Fringe Benefits Tax)


For Bank Contact Details Click Here

Select your e-Tax Payment Authorised Banks Click Here

What is e-Tax Payment System ? Click Here

Interest on Excess Refund granted to the Taxpayer.

At times it may so happen that the taxpayer is granted excess refund. Section 234D provides for levy of interest on excess refund granted to the taxpayer. In this part you can gain knowledge about various provisions relating to interest on excess refund granted to the taxpayer.

Manner of computation of interest under the Income-tax Act Before understanding the provisions of section 234D, it is important to understand the provisions of Rule 119A which gives the manner of computation of interest under the Income-tax Act.

As per Rule 119A, while calculating the interest payable by the taxpayer or the interest payable by the Central Government to the taxpayer under any provision of the Act:

  1. where interest is to be calculated on annual basis, the period for which such interest is to be calculated shall be rounded off to a whole month or months. For this purpose, any fraction of a month shall be ignored and the period so rounded off shall be deemed to be the period in respect of which the interest is to be calculated;
  2. where the interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month and the interest shall be so calculated;
  3. the amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees. For this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated.

Basic provisions
If the taxpayer has paid excess tax, then he will claim the refund of the same in his return of income and it will be refunded to him. Many times it may happen that the taxpayer is granted a refund at initial stage, i.e., at the time of intimation under section 143(1) and at a later stage (i.e., on regular assessment) the refund gets reduced. In such a case the excess refund is recovered from the taxpayer along with interest under section 234D.

Under section 234D interest is levied if any refund is granted to the taxpayer under section 143(1) and:

  1. no refund is due on regular assessment; or
  2. the amount refunded under section 143(1) exceeds the amount refundable on regular assessment.

Regular assessment generally means an assessment under section 143(3), i.e., scrutiny assessment or an assessment under section 144, i.e., best judgment assessment. 

Assessment made for first time under section 147 or section 153A shall also be treated as regular assessment. 

Rate of interest
Interest under section 234D is levied @ ½ % per month or part of the month.

Period of levy of interest
Interest is levied from the date of grant of refund under section 143(1) till the date of regular assessment.

Regular assessment means an assessment under section 143(3) or section 144. Assessment made for first time under section 147 or section 153A shall also be treated as a regular assessment. 

Amount liable for interest
Interest under section 234D is levied on the whole or the excess amount of refund (as the case may be).

Adjustment under Section 234(2)
Where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount of refund granted under sub-section (1) of section 143 is held to be correctly allowed, either in whole or in part, as the case may be, then, the interest chargeable, if any, under subsection (1) of Section 234 shall be reduced accordingly.