Now Easy to see Form 26AS or Tax Statement.

Form 26AS can be downloaded from TRACES using the following steps:

• First go to www.incometaxindiaefiling.gov.in
• Enter your Login Id (PAN), Password, Date of Birth (or year of incorporation) and the captcha code
• Once logged in go to ‘My Account’. Click on ‘View Form 26AS’ in the drop down menu
• Click on ‘Confirm’ button and you will be redirected to the TRACES website
• Select the available checkbox on the screen and proceed
• Click on the link at the bottom of the page that says ‘Click View Tax Credit (Form 26AS) to view your Form 26AS’. Here you have to choose the assessment year and choose either of the formats i.e. html or pdf
• Password is asked for when opening the document which generally is your date of birth in DD/MM/YYYY format

Source: www.tdsman.com

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How helps Form 26AS to File your Income Tax Return ?

The due date for filing your tax return is fast approaching. One of the most important documents that you need to verify prior to filing your tax return is your Form 26AS.

What is Form 26AS
Form 26AS is an annual consolidated tax statement that can be accessed from the income-tax website by all taxpayers using their Permanent Account Number ('PAN'). If you have paid taxes on your income or tax has been deducted from your income, the Income tax department already has these details in their database.

You could refer to your Form 26AS for the details of your income (on which taxes have been deducted) as well as the taxes that have been paid by or on your behalf by the deductor (could be your employer, bank etc) to the Government treasury.

In addition, Form 26AS also contains details of your deductors such as their names and Tax Deduction Account numbers (TAN).

Details of taxes paid by you and tax refunds
Form 26AS not only contains the details of your taxes paid but also contains details of any tax refunds that have been received by you during the relevant financial year.

Details of TDS on sale of immovable property
The buyer of immovable property is required to deduct tax at source from the consideration paid to the seller of the property. If you have sold a property during the financial year, details of taxes deducted by the purchaser while making the payment to you should also show up in your Form 26AS.

Details of your high value transactions
Apart from this, high value transactions made through banking and financial institutions are reported in the Form 26AS based on Annual Information Return ('AIR') filed by these banking and financial institutions. For example, purchase of high value mutual funds, immovable property, high-value corporate bonds etc find their way into the Form 26AS.

Details of Advance tax paid
In case you have paid any advance tax during the year, the same shall also get reflected in your Form 26AS.

Comprehensive document showing tax paid by you
So all in all, Form 26AS is a document which captures all the taxes paid by you by way of deduction or otherwise in one place making it easier for you to claim the credit of taxes paid at the time of filing of your tax return.

The information in the Form 26AS is generally updated on a quarterly basis. The year-end tax credits as reflecting in the Form 26AS are eligible to be claimed while filing the tax return.

How to get Form26AS
Form 26AS can be downloaded from TRACES website. To download Form 26AS, log in to your income tax filing account on the Income Tax department's e-filing website https://incometaxindiaefiling.gov.in, either directly or through the Net banking facility of authorised banks.

Once you log in, click on 'View Form 26AS (Tax Credit)' tab, either under 'My Account' or 'Quick links' tabs. You will be redirected to the TDS-CPC website to view this form. You need to choose the relevant assessment year (i.e. year following the financial year) for which you want to download the statement. Your password to open the document is your date of birth in DDMMYYYY format.

Verify your tax details in Form26AS
A welcome initiative by the Income tax department of introduction of Form 26AS has obviated the need to submit the TDS certificates (Form 16 / 16A) by the tax payer along with the tax return.

However, the taxpayer is required to verify the details in the Form 26AS and highlight any discrepancy in the details (over / underreporting of income or taxes) to the tax deductor immediately to make necessary rectifications. This is to avoid any inquiry by the Income tax department on tax mismatch resulting in a tax demand due to non-availability of appropriate tax credit at a later date.

Therefore, it is important for every tax payer to ensure that the taxes claimed in the tax return are in line with the taxes as appearing in the Form 26AS.

Source: The Economic Times

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Time to View you Tax Credit (TDS) in Form 26AS.

How to view your TDS through form 26AS? 

A taxpayer can view the tax credit or the tax that has been deducted on his behalf in the form of TDS. This information is available in Form 26AS and can be downloaded from the Income Tax website. It provides information about the tax deducted by various entities on behalf of the taxpayer. 

Form 26AS contains details of tax deducted at source on salary, interest income, real estate or other investments, advance tax, refund received during the year and other related information. 

The various ways to view one’s tax credit: 

1. Income tax e-filing website 
2. The TRACES website 
3. The taxpayer’s Internet banking access 

Through income tax e-filing website 

The site can be accessed on incometaxindiaefiling.gov.in. One must have a login id and password, or register on the website. On logging in, one can click on “My Accout/View Form 26AS”. On clicking the same, the user will be redirected to the TRACES website. The user will have to select the assessment year for which he wishes to view Form 26AS. The form will be displayed and can be downloaded. 

Through the TRACES website 

Visit http://contents.tdscpc.gov.in/en/home.html and click on the “Tax Payer” tab. Next, click on “register as new user” page and carry out registration process. On successful registration, an activation link and codes will be sent to the registered email id and mobile number. After clicking on the activation link and entering the code, one can login to the TRACES website and access Form 26AS. 

Tax payer’s Internet banking access 

A taxpayer who has Internet banking access with a bank authorised by the Income Tax Department to show tax credit, can use this facility. Log in to Internet banking and click on View Form 26AS. To know if a bank is authorised, one can visit http://contents.tdscpc.gov.in/en/netbanking.html. 

Points to note 

1. View of Form 26AS through Internet banking is available only if the PAN is mapped to that particular account. 
2. Only a PAN holder whose TDS has been deducted or who has deposited tax (selfassessment tax, advance tax, TDS on property) can register on TRACES 

Source: The Economics Times

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PAN or Form No.60 is mendatory for All Bank Accounts

Press Information Bureau

Government of India

Ministry of Finance

08-January-2017 18:17 IST

Income-tax Rules amended to provide that bank shall obtain and link PAN or Form No. 60 (where PAN is not available) in all existing bank accounts (other than BSBDA) by 28.02.2017.

Income-tax Rules have been amended to provide that bank shall obtain and link PAN or Form No. 60 (where PAN is not available) in all existing bank accounts (other than BSBDA) by 28.02.2017, if not already done. In this connection, it may be mentioned that RBI vide circular dated 15.12.2016 has mandated that no withdrawal shall be allowed from the accounts having substantial credit balance/deposits if PAN or Form No.60 is not provided in respect of such accounts. Therefore, persons who are having bank account but have not submitted PAN or Form No.60 are advised to submit the PAN or Form No. 60 to the bank by 28.2.2017.

The banks and post offices have also been mandated to submit information in respect of cash deposits from 1.4.2016 to 8.11.2016 in accounts where the cash deposits during the period 9.11.2016 to 30.12.2016 exceeds the specified limits.

It has also been provided that person who is required to obtain PAN or Form No.60 shall record the PAN/Form.No.60 in all the documents and quote the same in all the reports submitted to the Income-tax Department.

The notification amending the relevant rules is available on the official website of the Income-tax Department i.e. www.incometaxindia.gov.in

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PANs Correction in TDS Q1 and Q2 Statement for Fin. Year 2016-17

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 2 of Financial Year 2016-17. 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.

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Registration Procedure for Statement of Financial Translations (SFT)

DGIT(S)-ADG(S)-2/e-filing notificatn/106/2016

Government of India

Ministry of Fiance

Central Board of Direct Taxes

Directorate of Income Tax (Systems)

Notification No. 13 of 2016

New Delhi, 30th December, 2016

Procedure for Registration for statement of Financial Transactions (SFT) as per section 285BA of Income Tax Act, 1961 read with Rule 114E of Income Tax Rules, 1962

Section 285BA of the Income Tax requires specified reporting persons to furnish statement of Financial Transaction.  Rule 114E of the Income Tax Rules, 1962 (here under referred as the Rules) specifies that the statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in Form No. 61A.

2.  As per sub rule (6)(a) of Rule 114E, every reporting person shall communicate to the Principal Director General of Income Tax (Systems) the name, designation, address and telephone number of Designated Director and the Principal Officer and obtain a registration number.

3.  As per sub rule (4)(b) of Rule 114E Principal Director General of Income-Tax (System) shall specify the procedures, data structures and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies.

4.  In exercises of the powers delegated by Central Board of Direct Taxes ("Board) under Sub Rule (4)(a) and (4)(b) of Rule 114E of the Income Tax Rules, 1962, the Principal Director General of Income Tax (Systems) hereby lays down the following procedures:

a)  Registration and generation of Income Tax Department Registered Entity Identification Number (ITDREIN) :  The reporting financial institution is required to get registered with the Income Tax Department by logging in to the e-filing website (http://incometaxindiaefiling.gov.in) with the log in ID (PAN).  A link to register reporting financial institution has been provided under "My Account>Manage ITDREIN".  Once ITDREIN is generated, the reporting entity will receive a confirmation e-mail on the registered e-mail ID and SMS at registered mobile number.  There will be no option to de-activate ITDREIN, once ITDREIN is created.

b)  Submission of details of reporting entity:  After generation of ITDREIN, the reporting financial institution will be required to submit details of the reporting entity on the screen.  Once registered, the reporting entity will have an option to edit the details.

c)  Registration of designated director and principal officer:  After submission of reporting entity details, the reporting financial institution will be required to submit the details of designated director and principal officer.  The designated director and principal officer will receive and confirmation e-mail with an activation link.  An SMS along with OPT (One time Password) will also be sent to the registered Mobile Number.  For completion of registration, the designated director and principal officer should click on the Activation Link, enter the Mobile PIN (OPT), Password and Confirm Password and click on Activate Button.  On success, the registration will be complete.

Sd/-

(S.S.Rathore)

Pr.DGIT(Systems),CBDT

To Download Notification (Click Here)

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To avoid inconvenience view your Form 26AS Statement before Filing of Return

View Form 26AS credit Statement on regular basis to avoid inconvenience

Advisory for Taxpayers

26AS statement contains tax credits available to taxpayer for claim in Income Tax Return along with information on refund, high value transactions and TDS defaults.

View 26AS statement to check TDS credits as reported by your deductors.

Insist on furnishing of TDS certificate downloaded by the deductor through TRACES (www.tdscpc.gov.in) portal only.

Valid TDS/TCS certificate bears 7 alpha character (For example – ABCXYET) that can be verified through TRACES website by using “verify TDS certificate” in “view TDS/TCS credit”.

Be vigilant towards completeness and correctness of 26AS statement.

Request the deductor to file correction statement on noticing of any gap in TDS certificate or in 26AS.

Taxpayer may view/download Form 26AS from any of the following:

• Online banking of 37 banks
• Income Tax e-filing website: www.incometaxindiaefiling.gov.in

Source: TDSMAN

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Detailed Procedure for furnishing and verification of Form 26A for removing Short TDS Deductions.

Procedure for the purposes of furnishing and verification of Form 26A for removing of default of Short Deduction and /or Non Deduction of Tax at Source

F.No. DGlT(5)/CPC(TDS)/NOTIFICATION/2016-17

Government of India

Ministry of Finance

Central Board of Direct Taxes

Directorate of Income-tax(Systems)

New Delhi.

Notification No. 11 /2016

New Delhi, 2nd December, 2016

Subject: — Procedure for the purposes of furnishing and verification of Form 26A for removing of default of Short Deduction and/or Non Deduction of Tax at Source – Reg.

1. As per first proviso to sub-section (1) of section 201 of Income-tax Act, 1961, any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident —

(i) has furnished his return of income under section 139;

(ii) has taken into account such sum for computing income in such return of income; and

(iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed.

2.As per sub-rule (1) of Rule 31ACB of Income-tax Rules, 1962, the certificate from an accountant under the first proviso to sub-section (1) of section 201 shall be furnished in Form 26A to the Principal Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems) in accordance with the procedures, formats and standards specified under sub-rule (2), and verified in accordance with the procedures, formats and standards specified under sub-rule (2).

3.  In exercise of the powers delegated by the Central Board of Direct Taxes (Board) under sub-rule (2) of Rule 31ACB of Income Tax Rules, 1962 the Principal Director General of Income Tax (Systems) hereby authorizes the persons mentioned at Col. No. 1 to receive the form type mentioned in Col. No. 2 to be filed in the mode specified at Col. No. 3 for the assessment years mentioned at Col. No. 4 and pertinent to defaults under Section of the Act Mentioned at Column 5:

To Read Full Notification Click Here

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Complete Procedure to Send Request for Re-Issue Income Tax Refund.

Many Taxpayers did not know how to get Income Tax Refund in case of Income Tax Refund Failure by any reason from Income Tax Department side.  The 7 simple steps to request for Income Tax Refund Re-issue, please follow the below steps :

STEP - 1 :

Login to e-Filing website with User ID, Password, Date of Birth/ Date of Incorporation and Captcha.

STEP - 2 :

Go to My Account and click on "Refund Re-issue Request".

STEP - 3 :

Enter PAN, Assessment Year, CPC Communication Reference Number, Refund Sequence Number (available on the 143(1) Intimation order and Click on 'Validate' button. 

STEP - 4 :

After validation, taxpayer can select the mode of Refund Reissue from the options.

The two modes of Refund Reissue are:

• ECS
• By Paper (Cheque)

STEP - 5 :

Taxpayer can select to update the Bank Account Details from the option under the field 'Do you want to update Bank Account details? 

'If the taxpayer selects 'Yes', taxpayer has to enter details in the additional fields i.e. Bank Account number, Type of Account and IFSC code/ MICR code.

STEP - 6 :

Taxpayer can select the address to which the cheque has to be sent under the dropdown 'Category'.

• If the taxpayer selects 'ITR Address', address provided in the ITR uploaded is used.
• If the taxpayer selects 'PAN Address', address provided in the PAN is used.
• If the taxpayer selects 'New Address', taxpayer has to enter details in the additional fields displayed.

STEP - 7 :

Taxpayer clicks on "Submit" to validate the details. 

On successful validation, Taxpayer will get the message success message .

This ends the process of refund re-issue by Taxpayer.

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How to convert Form-26AS "Text" File into "Excel" File ?

All Taxpayers already well known about Form-26AS. While submitting of Annual Income Tax Return, Form-26AS is most important document for tax payers. Form-26AS is a tax payment and deduction details just as ledger of Tax for them.  It shows Tax deducted /collected amount by deductors, Amount paid with TDS against form 15G/15H, tax paid by tax payer like advance tax,self assessment tax etc.  Further it also shows refund amount . Every tax payer should match tax amount shown in form 26AS with tax claimed in Income Tax return before filing of income tax return.  Now income Tax department have given automatic population of TDS entries in Income tax return from pan ledger/Form 26AS.

Form 26AS can be downloaded by three methods: 

1. Through Income Tax India efiling login password.

2. Through online Banking account login password.

3. Through TIN-CPC website.

Form 26AS can be viewed online in HTML format and can also be downloaded in PDF or text format. The password for form 26AS file is Date of Birth provided in PAN database in ddmmyyyy format.

To View the e-Tutorial to Convert Form-26As "Text or .TXT" to "Excel or .XLS" File.

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CBDT releases Income Tax Return Statistics for Asstt. Years 2013-14 & 2014-15

Central Board of Direct Taxes (CBDT) had proactively released in April, 2016 time-series data relating to direct tax collections, number of taxpayers, cost of collection, etc., data of number of PAN allotted and data relating to distribution of income and tax payable in the returns for AY 2012-13.

In continuation of the efforts to place more and more information in public domain, CBDT has further released data relating to distribution of income and tax payable in respect of returns filed for Assessment Years 2013-14 and 2014-15. With this release, detailed income-tax data for three recent assessment years have become available in public domain enabling researchers, scholars, policy makers, students and all other stakeholders to make a better analysis of the trends in incomes and tax payments.

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Things to note to avoid notice from Department

With the Income Tax Department becoming net savvy and going online, it has become very easy for them to identify discrepancies in your papers and to keep a close eye on almost every financial transaction. Therefore, while filing return, one needs to be extra careful. Any wrong details furnished might put you in trouble.   images

From past few years, almost every taxpayer is receiving notices from Department. Now, it has become important that every provision and clause of tax laws shall be strictly abided. There are few reasons due to which notices are being issued and these reasons are very common among taxpayers. Find below, things to note to avoid notice from Department:

1.  Always file your return timely and correctly – Every assessee liable to file return shall do the same within due date. While filing return due care must be taken to avoid any mistake. Details required in return shall be truly and fully disclosed. Notice shall be issued, if any default found.

2.  Balance between Income and Expenses/investments – Ignorance regarding balance between income and expense/ investments may become an issue. Many times it is found that assessee invests more than what they earn and then they have to justify the source of funds which has been used for investment. If balance is not properly maintained then be ready to receive notice.

3.  Gifts credited to your account – Assessee are generally found taking gifts from friends and relatives. Gifts taken may be in cash or kind. If such gifts appear in your account then do not forget to document the evidence for the same. Department may ask for details and source of gifts received. If proper and satisfactory evidence not provided then department shall issue notice regarding the same.

4.  Check your Form 26AS (Tax Credit Statement) – Form 26AS is an easy way to find out the details of TDS deposited on your behalf. You should always go through your 26AS to match the TDS with the books of accounts. Any mismatch found may appear in the notice from department.

5.  Pay Advance Tax – Advance tax shall be paid if the tax liability for a financial year is more than Rs. 10,000. Such tax shall be paid within the same year on the basis of self assessment. Any assessee liable to pay advance tax shall pay it within due date as specified. Failure to which you can get notice from department.

6.  Non-Declaration of Exempt Income – All income earned are generally taxed but there are few income which are exempt from payment of tax. Assessee generally does not disclose such income while filing their return thinking that as no tax is paid on such income it is not necessary to disclose it. But this is a myth which needs to be cleared. Incomes like long term capital gains tax from equity, dividends received on equity shares of Indian companies, saving bank account interest up to Rs. 10000 etc. though exempt shall be disclosed while filing your return.

7.  High value transactions – If there is high value transactions either for investments or spending then chances of you getting the notice from IT Department are very high. There are few transactions which are reported to the IT department under Annual information Returns filed by respective companies and may attract an enquiry ranging from simple to exhaustive by IT department. Any high value transaction should be incurred in planned way. Examples of such transactions are:

• Credit card usage of more than Rs. 2 lakhs p.a.
• Investing in FDs for more than Rs. 5 lakhs
• Depositing more than Rs. 10 lakhs in your bank account
• Investing more than Rs. 2 lakhs in MFs or Rs. 1 lakh in shares
• Buying or selling property over Rs. 30 lakhs

 8.  Interest from FDs or Savings A/C – Utmost care shall be given in interest received from banks. Assessee believe that as banks deduct 10% TDS on the deposits interest, there is no need to pay tax on the same by them. In such case, facts are other way round which shall necessarily be understood to avoid notices. Though bank deducts TDS but you are suppose to pay any additional tax depending on your income tax bracket.

For instance, If you are 30% tax bracket and you have FD in bank of Rs. 10 lakhs. Interest rate on the same is 10%. This means interest received is Rs. 1,00,000. Now, the bank pays Rs. 90,000 after deducting TDS @ 10% i.e. Rs. 10,000 and pay to the government. As you are in 30% tax bracket, you actually need to pay 30% to government, which means that at the end of the year you need to pay additional Rs 20,000. If you are not doing the same, then you might be inviting trouble for future in form of notice.

Mistakes are common, if due care taken then it can be avoided to a great extent. Therefore, small points as stated above shall be kept in mind to escape from notices.

Source: Mr. Alok Patnia, founder of Taxmantra.com

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Circular about claiming of Non-deposit of Tax Credit (TDS).

Recently, CBDT has been issued a circular regarding Non-deposit of Tax Deducted at Source on 01st June, 2015 vide circular No. 275/29/2014-IT-(B). In this circular  CBDT has mentioned that as per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. The issued CBDT Circular is as under:

No. 275/29/2014-IT-(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes 

Dated New Delhi, the 1st June, 2015 

To,

The CCsIT (CCA)

Subject: Non-deposit of Tax Deducted at Source – regarding.

Sir/Madam,

1. Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them in accordance with the provisions of Chapter-XVII of the Income-tax Act, 1961 (hereafter ‘the Act’) but has failed to deposit the same into the Government account leading to denial of credit of such deduction of tax to these taxpayers and consequent raising of demand.

2. As per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of the Act the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. Thus the Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced coercively.

3. This may be brought to the notice of all the assessing officers in your region so that if the facts of the case so justify, the assessees are not put at any inconvenience on account of default of deposit of tax into the Government account by the deductor.

4. This issues with the approval of Chairperson, CBDT.

Yours faithfully

(Sandeep Singh)

Under Secretary to the Govt. of India

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Duties of Deductor and rights of Tax Payers.

Most Taxpayers or Deductor does not know about their duties, therefore, the duties of person deducting tax at source and the rights of the tax payers has been given below:

Duties of person deducting tax at source

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.

Rights of Tax Payers

Credit of TDS

If tax has been deducted at source u/s 192 to 194 A/B/BB/C/ D/E/EE/F/G/H/I/J/K, 195, 196A/B/C and D, the person from whose income (payment) the tax has been deducted i.e. Payee or assessee shall not be asked upon to pay the tax himself to the extent tax has been deducted (Sec.205). Moreover u/s 199 such tax deducted at source shall be treated as payment of tax on behalf of the payee (assessee).

TDS Certificate

U/s 203 payee (tax payer) is entitled to obtain a certificate from the payer (tax deductor) in Form 16-A specifying the amount of tax deducted and other prescribed particulars.

Form 26AS

As per section 203AA the prescribed income tax authority or the person authorized by such authority (as referred in section 200(3))will be required to deliver to the person from whose income the tax has been deducted/paid, a statement of deduction of tax in the prescribed form. Such statement as per rule 31AB will be required to be furnished in Form no.26AS by the 31st July following the financial year during which the taxes were deducted/paid (also refer Notification no. 928 E dt. 30.6.2005 of CBDT).

Source: www.tdsman.com

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Rights of Employees & Others TDS Deductees and Duties of TDS Deductors.

There are some rights of Employee and Other TDS Deductees whose Tax Deduct on their Income of Salary or Other Source of Income as Interest as well as Duties of TDS Deductors which are as under :

Credit of TDS - If tax has been deducted at source u/s 192 to 194 A/B/BB/C/ D/E/EE/F/G/H/I/J/K, 195, 196A/B/C and D, the person from whose income (payment) the tax has been deducted i.e. Payee or assessee shall not be asked upon to pay the tax himself to the extent tax has been deducted (Sec.205). Moreover u/s 199 such tax deducted at source shall be treated as payment of tax on behalf of the payee (assessee).

TDS Certificate - U/s 203 payee (tax payer) is entitled to obtain a certificate from the payer (tax deductor) in Form 16-A specifying the amount of tax deducted and other prescribed particulars.

Form 26AS - As per section 203AA the prescribed income tax authority or the person authorized by such authority (as referred in section 200(3))will be required to deliver to the person from whose income the tax has been deducted/paid, a statement of deduction of tax in the prescribed form. Such statement as per rule 31AB will be required to be furnished in Form no.26AS by the 31st July following the financial year during which the taxes were deducted/paid (also refer Notification no. 928 E dt. 30.6.2005 of CBDT).

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. 

Source: www.tdsman.com

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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)

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TIN-NSDL updates Taxpayer's Corner for Payment/e-Payment.

Recently TIN-NSDL has been updated Taxpayer's Corner for Payment/e-Payment of Tax as TDS, TCS, Self Assessment etc.  The Taxpayers, deductors or collectors can pay direct taxes through Authorised Bank branches either physically, through ATM or through internet.  The details of Type of Challans to be used for tax payments as under :

ITNS 280 :  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.

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

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

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

Do's by Taxpayer ?

1. Mandatory details required to be filled in challan

• PAN/ TAN
• Name and address of the taxpayer (for physical challans)
• Assessment Year
• Major Head, Minor Head
• Type of payment

2. Use challan type 281 for deposit of TDS/TCS payments.

• Quote the correct TAN, name & address of the deductor on each challan
• Verify your TAN details from Income Tax Department web-site (www.incometaxindia.gov.in) prior to depositing TDS/TCS.
• 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.
• Use separate challans to deposit tax deducted for different types of deductees.

3. For Non TDS/TCS payments use challan types 281/282/283 as applicable.

• 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

• Seven digit BSR code of the bank branch where tax is deposited
• Date of Deposit (DD/MM/YY) of tax
• Serial Number of Challan

6. Verify the tax payment information submitted to the bank.

• Details available on the TIN website www.tin-nsdl.com under the link “Challan Status Inquiry”
• 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'ts by Taxpayer ?

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.

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Form 16 shows Deduction of TDS but, 26AS not, what to do ?

This is the Financial Year End month and thus every Taxpayee wants to match Tax Credit Statement (Form 26AS) before submission of Annual Income Tax Return to Assessing Officer, Income Tax

If tax credit statement not match by the Taxpayee, it is more difficult comply paid Tax/TDS which are deducted by Deductor or Employee as well as in case if the Tax payee get refund that time Taxpayee face the problem to get proper Refund.  Due to this problem every taxpayee want to register PAN with TRACES, although more taxpayee did not registered with them.  Therefore, for those the Taxpayee who did not registered with TRACES they can adopt the following procedure to check their Tax Credit (Form 26AS Statement without PAN Registration.

Login to TRACES web site www.tdscpc.gov.in.

Mandatory Fields to check Tax Credit Statement :

• PAN of Deductee*
• TAN of Deductor*
• Financial Year*
• Quarter*
• Type of Return*

or
Click Here and Enter correct information in Mandatory Fields.

The duty of TDS or TAX Deductor is bounded to :

• Deposit the tax deducted at source within prescribed time to the Government Treasury.
• File the Quarterly TDS return in respect of the Tax Deducted
• Issue the TDS Certificate to the Deductee within a prescribed time.

For non compliance of each and every part mentioned above, there is a separate penalty and consequences under the Income Tax Act-1961 as under:

1. For non issuance of TDS Certificate within a prescribed time, penalty is imposable u/s 272A (2) @ Rs. 100/- per day during which the failure continues. However, the amount of penalty cannot exceed the amount of tax deductible/deducted.
2. For non filing of TDS Return also, there is a penalty provision of Rs 100 per day. The recent Finance Act-2012 has imposed a fee of Rs. 200/- per day for late filing of TDS Return. Besides, a penalty of Rs. 10,000/- to Rs. 1,00,000/- is there for non filing or inaccurate filing of TDS return. The amendment is w.e.f  01.07.2012.

Without Quarterly TDS Return being filed by the Deductor, you will not be entitled for the Tax Credit in respect of TDS done from payment made to you. Also, unless and until the TDS return is filed by the Deductor, deductee will not be able to view the TDS Credit in Form No. 26AS.

There is a general grievance that in many cases the Bank and other Tax Deductor are either not filing the quarterly TDS return (or are not issuing the TDS certificate) despite many requests & reminders by the Deductees.

In such cases, Deductee can follow the following approach:
Write a letter to the Deductor incorporating:

• The details of payments done and the tax deducted therefrom.
• Provision of Section 203 which requires the Deductor for issue of tax certificate within one month from the date of tax deduction
• Keep the proof of letter issued to the Deductor
• If despite this, the certificate is not issued, write a letter to Joint Commissioner or Addl. CIT of TDS wing who has jurisdiction over the Deductor mentioning the detailed facts elaborated above.

We advise all our readers to regularly track all the tax deducted & deposited in your account [i.e. Tax Credit in Form No. 26AS] by registering your PAN at www.incometaxindia.gov.in. In the absence of availability of TDS in form No. 26AS it would be difficult for the Assessing Officer to grant the TDS Credit.

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PAN Verification in TDS Statements filed for Fin.Year 2011, 2012 and 2013 by Deductor.

Recently, Centralized Processing Cell (TDS) has issued an advisory communication after observed with respect to your TAN in the "TDS claimed by the taxpayers in their Income Tax Returns" vis-á-vis "Tax Credits available as per 26AS Statements", for the Financial Years 2011, 2012 and 2013 to all the deductors stating about the verification of PAN in TDS Statements filed. The details are as under :

The above discrepancies have arisen due to the difference in the TDS claimed by the taxpayers in their Income Tax Returns vis-á-vis TDS reported by you in the quarterly TDS Statements. You may be aware that the transactions, available in 26AS statements, are based on the information reported by you in the TDS statements.

The discrepancies observed against your TAN are attached in the following format, to enable you to check your records for respective PANs and take appropriate action.

PAN	PAN Name	Financial Year	Tax Credit Claimed	Credit available in 26AS Statement

• Your attention is hereby drawn to the Order of the Hon'ble Delhi High Court, dated 14th March 2013, wherein serious note had been taken of the failure of deductors to report correct transactions. The Hon'ble court had observed that the default on part of the deductor causes unwarranted harassment and inconvenience to the taxpayer
• You are, therefore, required to verify the transactions reported by you for these PANs in the TDS statement for the respective Financial Years. You may appreciate that taxpayers are not able to get the credit for erroneous data uploaded by you in TDS statements.
• In order to enable the taxpayers to claim correct TDS, you are advised to take below mentioned action.

Actions to be taken:

• Verify the TDS transactions for these PANs in the TDS statements filed by you for the respective Financial Years.
• If you have actually entered into the transaction and have not reported the same; you are advised to take appropriate corrective action by filing a Correction Statement.
• Please note that TRACES provides a user friendly Online Correction facility 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 any assistance, please refer to the e-tutorial available on TRACES.
• If you have not entered into the transactions, as above, then the same should be reported to the respective Field TDS Officers immediately.

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

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CBDT issues draft standard operating procedures for matching the unconsumed TDS Challan.

DRAFT OF STANDARD OPERATING PROCEDURE FOR MATCHING THE UNCONSUMED CHALLAN

Recently CBDT has issued a Draft of Standard Operating Procedure for Matching the Unconsumed Challan for administering TDS incorporating the re-engineered processes developed by the CPC-TDS which is as under :

A challan may remain unconsumed on the computer system under following circumstances:

• In case of a deductor where demand has been raised due to short payment or; due to quoting of wrong challan particulars in TDS statement; there might be an OLTAS challan available in the account of such a deductor, which has not been utilized/claimed. Such a challan is known as unconsumed challan and, such challans can be matched against a demand thus raised. Such unconsumed challan can be force - matched and can be tagged to the TDS statement of the deductor, to which the challan pertains. Forced matching is a functionality available in TRACES-AO Portal.
• There may be a case where the deductor has paid the demand on account of late filing fee or; interest including late payment interest or; late deduction interest. Whereas, the same challan has not been reported through TDS statement for claim against such demand outstanding. As the particulars in TDS statement are the basis of TDS defaults, the closure of demand is possible only after the challans paid against the defaults get reflected in such TDS statement.
• Where the deductor has paid the taxes deducted at source but has either not reported TDS transactions through TDS statement at all or; reported incomplete transactions in TDS statement. Challan against such transactions also remain as unconsumed challans on the computer system.

To continue reading or Download "Draft Standard Operating Procedure for Matching the Unconsumed TDS Challan" (Click Here)

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