Filing of Offline Challans with IEPF Authority - Clarification

Clarification Regarding Filing of Offline Challans with IEFF Authority under Companies Act. 

To

All Stakeholders,

Nodal Officer's (IEPF) of Concerned Companies.,

All Regional Director's & Registrar of Companies of Min of Corp. Affairs

Subject: Clarification Regarding Filing of Offline Challans with IEFF Authority under Companies Act.

Sir.

In accordance with Investor Education Protection Fund (Accounting, Audit, Transfer, and Refund) Rules, 2016, notified on 05,09.2016, it is mandatory for the companies depositing amounts to IFPF under section 125 of Companies Act 2013 to:-

(i) generate challan online only;

(ii) file form IEPF-1 mentioning the SRN No. of challan (online mode only).

2. All companies transferring the amount to IEPF are, therefore, requested to ensure that the  above procedure iS followed. The challans not generated on MCA 21 portal will not be accepted after 15.12.2016.

3. This issues with the approval of the Competent Authority.

Yours faithrully,

(Monika Gupta)

Deputy Director

Copy to :-
1. CEO, IEPF Authority
2. Sr. AO, IEPF Authority
3. E-Governance Cell/ MCA and to place this circular on Ministry's/ Authority website.
4. Guard File

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Today is Last Date of TDS payment for December 2015 is 7th January, 2016

Due Date for payment of TDS is 7th January, 2016 for tax deducted during December 2015

Please Note:

In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.

Interest on Late Payment of TDS

In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.

Earlier, the Interest liable to be paid was 1% but this has been increased to 1.5% pm with a view to discourage the practice of delaying the deposit of tax after deduction.

Interest @ 1.5% is liable to be paid from the date on which the TDS was deducted and not from the date the TDS was due.

For example: TDS was deducted on 25th June and the due date for TDS Payment was 7th July. The assessee fails to deposit the TDS by 7th July. In such a case, the Interest would be calculated from 25th June and not from 7th June.

The interest is to be calculated as per illustrations below:

Case 1:

Tax Deducted on 26th June, TDS deposited on 9th July (due date was 7th July)

The period of 26th June to 30th June will be calculated as one month (being part of a month) & from 1st July to 9th July will also be treated as one month. As such in this case, the interest payable is for two months. Total interest would be 3%. Sounds odd, but it is true –  for a delay of 2 days, one has to pay interest for two months.

Case 2:

Tax Deducted on 20th March, TDS deposited on 5th May  (due date was 30th April)

The period of 20th March to 31st March will be calculated as one month, 1st April to 30th April will be another month & from 1st May to 5th May will be treated as another one month. As such in this case, the interest payable is for three months. Total interest would be 4.5%. For a 5 day delay, the interest payable is for 3 months.

Logic behind this calculation is that, if dues are not paid on time, the interest for each month (or part thereof) is to be paid right from the date of deduction till date of deposit of the TDS. Each month is treated based on the ‘Calendar Month’ instead of counting the number of days.

Source: www.tdsman.com

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Important Information - Why reject the correction in Challan Details by TDS-CPC ?

Mostly, the correction in challan of TDS payment rejected by TDS-CPC we found, but can we think about that why TDS-CPC reject ? Read the following for better understanding :

Challan detail record on which correction has been filed does not exist in regular / previous statement

In a correction statement, verification keys from challan data should match with the corresponding fields in regular statement

• Verification keys for Non Nil Statement – Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
• Verification keys for Nil challan – Last date of transfer voucher number / bank challan, last total deposit amount as per challan

If an unmatched challan is being corrected, then the sum of deposit amount of all the active deductee rows in the regular and correction statement and corrected values of claimed TDS interest and claimed TDS Others amount should be less than or equal to Total deposit amount of challan given in statement

If a matched challan is being corrected, then available balance amount in the challan should be sufficient for consumption of updated sum of deposit amount of all the active deductee rows in correction and corrected values of claimed TDS interest and claimed TDS Others amount

In case of existing matched / partially matched challan, deductor can only update Cheque / DD Number, claimed TDS Interest amount, claimed TDS Others amount and Section code

If deductor updates only deductee details, then claimed TDS Interest amount and claimed TDS Others amount as given in the challan should match with the corresponding values present in regular / previous return

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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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.

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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

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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

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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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CPC (TDS) advised to TDS Deductors use Single Challan instead of multiple Challans for TDS Payment in a month.

Recently, Centralized Processing Cell (TDS) observed that TDS Deductor used multiple Challan in a Month for Payment of TDS (Tax). Therefore, it has issued an advisory communication to TDS deductors stating about the establishment of  processing logic in the system that can accept a Single Challan per month for reporting of Tax Deposited as per following situation.  The details are as under :

1. Situation 1:Where Payment of Tax Deducted is required under "different sections" of the Income Tax Act, 1961:    

• The CPC (TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
• Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also.

Situation prior to Financial Year 2012-13 :  Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details  
Situation with effect from Financial Year 2012-13 :  Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement.  

2. Situation 2: Where Payment of Tax Deducted is required for "different Assessment Years":

• In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any can be carried forward to the next year for claim in the TDS statement.
• Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2, 3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.

3. Situation 3: Where different challans have been used for the purpose of reporting multiple Deductees associated with  "different branches with same TAN":

• The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.
• A single challan can be used for the purpose of reporting Tax Deducted for such deductees.
• Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.

Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. 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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Latest e-Tutorial - How to add new TDS Challan while Online Correction on TRACES ?

Recently CPC (TDS) has released latest e-Tutorial on add new TDS Challan through online Correction on TRACES.  This e-Tutorial is helps to TDS Deductor, if the TDS Deductor online correct return and found some challan is miss. In this condition this utility is very useful for all TDS Deductors.

The Income Tax Department has been already launched the Online Correction in TDS Returns system to TDS Deductor on TRACES and same has been updated frequently.  Initially online correction in TDS statements  were only possible through DSC.  After that some corrections were added without DSC.  Now some others corrections are also possible through online system like Add New Challan in TDS return during submission online correction in TDS returns / Statements.   e-tutorial  for add new challan through online correction  is given below :

   E-Tutorial -Online Correction- Add Challan to Statement

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Online Correction for "Short Payment Default" on account of unmatched challans

Recently, CPC (TDS) has issued latest instruction for Online Correction for "Short payment Default" on account of unmatched challans paid by TDS Deductor/Collector.  This new instruction has been directed to the the Tax deductors that if there are Short payment in a statement filed by deductor then deductor have to settle the default first otherwise he will not be able to download the Form 16/16A of the relevant quarter/period.

CPC (TDS) says that We are glad to inform that the Online Correction functionality provided by CPC (TDS) has been availed by a large number of deductors for the purpose of carrying out corrections and over 2 Lakh Online Corrections have been submitted. The corrections include resolution of Short Payment Defaults that relate with unmatched challans. You are informed that TRACES enables Online resolution of “Short Payment default” on account of unmatched challans. The deductor has an online view of all available unconsumed challans, which can be tagged with unmatched challans, to close the above defaults.

Further, as you are aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. However, it is observed that:

• At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
• Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to “Short Payment” demand.
• The above results into issuance of notices by the CPC (TDS) and field TDS officers.

To make the resolution process non-intrusive, CPC (TDS) proposes a new change at the time of submitting request for download of TDS Certificates (Forms 16/ 16A) for relevant period.

Actions to be taken: Following are key information to be noted in this regard:

• You are requested to take appropriate action at the earliest for closure of the Short Payment defaults, to avoid any inconvenience in downloading of TDS Certificates.
• The Online Correction facility of TRACES needs to be used for closure of the Short Payment default, available even 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”.
• In case there is no available challan for consumption, the deductor is 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.
• 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
• The user will not be able to download TDS Certificates for the relevant TDS statement until closure of the above default.

You can refer to our e-tutorial and FAQs on “TRACES” website for necessary help.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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New window as "Taxpayer's Corner" by TIN-NSDL, what to Do's or Don'ts Taxpayer's ?

The Taxpayer’s Corner is a one stop information center for the Taxpayer. All important steps/procedures with respect to payment of taxes are available here.




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

Type of Challans to be used for tax payments :

Challan	Description
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
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

NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN.

The fields that can be corrected by the Taxpayer through Bank are tabulated below:

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

Note :

1. Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1,2011.
2. Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank.
3. For challans with challan deposit date from September 1, 2011 to September 30, 2011, the time limit for correction in TAN/PAN, Assessment Year and Amount will be within 45 days from challan deposit date.
4. The fields that can be corrected and the entity authorized to carry out corrections on challan with deposit date less than September 1, 2011 are as below:

   Sl. No.	Type of Correction on Challan	Performed By
   1	PAN/TAN	Assessing Officer
   2	Assessment Year	Assessing Officer
   3	Major Head	Assessing Officer /Bank
   4	Minor Head	Assessing Officer
   5	Nature of Payment	Assessing Officer
   6	Total Amount	Bank
   7	Name	Bank

5. For rectifications in challans paid through online mode (internet challan) , taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).
6. More details on Challan Correction Mechanism available at http://www.incometaxindia.gov.in/archive/LeftMenu_ChallanCorrectionMechanism_26082011.pdf

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

Don'ts
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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Latest e-Tutorial on online Correction of all Challans by TRACES For Asstt. Year 2015-16.

The Online Correction functionality is now enabled for TDS Statements prior to FY 2012-13 also (Financial Year 2007-08 onwards), provided at least one correction for the relevant statement has been processed by CPC (TDS) if there is an error while making payment of Tax either electronically or manually. To rectify these errors, Income-Tax Department has issued new guidelines effective 01-09-2011 which allows Banks to correct physical challans only. For correction in electronic challans, request will have to be made to the concerned Assessing Officer. For general benefit, I am elaborating the the procedure for correction in the tax challan.

Correction in physical challans:
Fields that can be corrected by bank:

• Assessment Year
• Major Head Code
• Minor Head Code
• TAN/PAN
• Total Amount
• Nature of payment (TDS Codes)

Time frame for correction request:

• Request for correction has to be made within 7 days of deposit of challan for correction in PAN, TAN and Assessment Year
• For Major head, minor head and nature of payment, request can be made within 3 months of deposit of challan.

Remedy available after time frame is over:

• After lapse of time frame, request can be made to the Assessing Officer.

Time frame given to bank to carry out correction:

• After receipt of request, bank must carry out the correction within 7 days.

Other conditions for correction:

• Correction in name is not allowed
• Any combination of correction of Minor Head and Assessment Year together is not allowed
• PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
• The change of amount will be permitted only on the condition that the amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account.
• For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
• There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.

Procedure for requesting correction: 

• The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
• The tax-payer has to attach copy of original challan counterfoil.
• In case of correction desired for challan in Form 280, 282, 283, the copy of PAN card is required to be attached.
• In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual taxpayer is required to be attached with the request form.
• A separate request form is to be submitted for each challan.

Correction in Electronic Challans:
For correction in electronic challans and for correction after the time period for application to bank lapses in physical challans, a written request in prescribed format has to be made to the Assessing Officer. Assessing Officer has power to rectify the error , in bona fide cases, to enable credit of tax to assessee

Form of application to bank:
Income-tax department has given a format in which application can be made to the bank.

Download New e-Tutorial for Online Correction in Challan (Click Here)

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Due date to deposit of TDS/TCS for month of September, 2014 extended to October 10, 2014

CBDT has issued circular u/s. 119 of The Income-Tax Act, 1961 by Income Tax competent Authorities to extend TDS/TCS Deposit for the month of September, 2014 from 07th October, 2014 to 10th October, 2014.

The extension has been given Considering the consecutive holidays owing to the festive season and weekend during the first week in the month of October, 2014, the Central Board of Direct Taxes (CBDT) has issued an order to extend the last date of deposit of tax deducted at source/tax collected at source during the month of September, 2014 from 7th October, 2014 to 10th October, 2014 without entailing any consequential interest.

However, the due date for filing of TDS/TCS statements for the second quarter of the 2014-15 fiscal shall remain the same.

The Circular is as under:

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TRACES advice to Deductors to make TDS Payment in One Challan.

As per the records of the Centralized Processing Cell (TDS), it has been observed that you have used multiple challans in a month, for payment of Tax Deducted.

For Deductor's convenience, CPC(TDS) has established processing logic in the system that can accept a Single Challan for reporting of Tax Deposited in following circumstances :

• Payment of Tax Deducted under different sections of the Income Tax Act, 1961:
  
   • The CPC(TDS) system gives credit of TDS against different sections of the Act, even though a specific section has been quoted in the challan.
   • Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also.
  

Situation prior to Financial Year 2012-13	Consumption of Challan in TDS  Statement on the basis of Section  quoted in the Challan details
Situation after Financial Year 2012-13	Section quoted in Challan, at the  time of depositing Tax deducted/  collected is irrelevant for the  purpose of consumption  in TDS Statement.

• Payment of Tax Deducted for different Assessment Years:
   • In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement.
   • Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2,3&4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.
  

• Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:
   • The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.
   • A single challan can be used for the purpose of reporting Tax Deducted for such deductees.
   • Example: If a Bank has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.

Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. For any assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

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Short Payment of Default TDS close by using Online Correction Facility

CPC (TDS) advisory for closure of Short Payment Defaults using Online Correction facility before allowing Conso Files

As you may be aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. The TDS forms prescribe quoting of such challans and the underlying deductee transactions corresponding to such challans.

However, it is observed that:

• At times, data entry mistakes are committed, while reporting tax payments in the respective TDS statements.
• Though CPC (TDS) makes best efforts to match such challans, however, they may remain unmatched leading to "Short Payment" demand.
• The above results into issuance of notices by the field officers.

           To make the resolution process non-intrusive, CPC (TDS) proposes a new change while submitting request for download of the Consolidated (Conso) file for a particular quarter. If there is a "Short Payment defaults" on account of unmatched challans for the relevant quarter, the deductor would be provided with online view of all available unconsumed challans, which can be tagged with deductees, to close the above default.

Following are key information to be noted in this regard:

• CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system, through online correction (without digital signature).
• In case there is no available challan for consumption, the deductor is 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.
• The user will not be able to download Conso file for the relevant TDS statement on closure of the above default.
• Once the challan is suitably tagged, CPC(TDS) shall suo moto reprocess the cases thereby reducing the Short Payment default by equivalent amount.

What Actions to be taken:

• During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
• Details of defaults will be provided during Online Correction process.
• In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
• Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. You can refer to our e-tutorial for necessary help.

Online Challan Corrections:

• A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
• Unmatched challans can be corrected and tagged to Deductee rows in the statement.
• The corrections in TDS statements can be raised even without Digital Signature.
• Correct KYC information needs to be submitted for the purpose of validation.
• All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.

For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

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

CPC (TDS) TEAM

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Unmatched / Miss-matched challans' correction mandatory to download Consolidated file from TDSCPC.

Income Tax Department has communicated through email to their deductos regarding TDS on 09/08/2014 that deductors have to deposit Short Payment before allowing to download Conso File.  

The information is very difficult and shocked for all.   Now in case TDS Return is submitted with error and Income Tax Department has raised demand on account of Short Payment, the Default amount will have to deposit  with in 30 days from the demand and then deductor will be above to download Conso file after needful tagging of unconsumed challans on TRACES.

In our opinion , before implementation of below circular,  It is strictly  required that all errors in TDS return should be displayed before uploading any FVU file. 

The Centralized Processing Cell (TDS), in its endeavour to enforce TDS Compliance, is shortly mandating closure of “Short Payment defaults” in the quarterly TDS statements due to Unmatched Challans, before the Conso files can be downloaded from TRACES for the relevant statements. Following are key information to be noted in this regard:

• CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system,through online correction (without digital signature).
• In case there is no available challan for consumption, the deductor is 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. 
• CPC(TDS) mandates to close the above default by Matching or Payment of challans. 
• The user will not be able to download Conso file for the relevant TDS statement until the above default is closed. 
• The Online Correction facility of TRACES needs to be used for closure of the Short Payment default. 
• User will subsequently be able to download the Conso file for relevant period only after the default is closed.

Why the Short Payment needs to be paid:
CPC (TDS) intends to enforce compliance towards payment of taxes to the Government.

In accordance with provisions of section 201(1) of the Act, where any person, including the principal officer of a company, who is required to deduct any sum in accordance with the provisions of the Act; does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall be deemed to be an assessee in default in respect of such tax.

As per the provisions of section 220 of the Act,

• Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
• If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
• If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
• Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
• Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

What Actions to be taken:

• During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
• Details of defaults will be provided during Online Correction process.
• In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
• Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. You can refer to our e-tutorial for necessary help.

Online Challan Corrections:

• A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
• Unmatched challans can be corrected and tagged to Deductee rows in the statement.
• The corrections in TDS statements can be raised even without Digital Signature.
• Correct KYC information needs to be submitted for the purpose of validation.
• All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.

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Reasons to reject the correction in challan detail by TDS-CPC

Rejection reasons pertaining to challan details are as follows:

Challan detail record on which correction has been filed does not exist in regular / previous statement

• In a correction statement, verification keys from challan data should match with the corresponding fields in regular statement
• Verification keys for Non Nil Statement – Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
• Verification keys for Nil challan – Last date of transfer voucher number / bank challan, last total deposit amount as per challan

If an unmatched challan is being corrected, then the sum of deposit amount of all the active deductee rows in the regular and correction statement and corrected values of claimed TDS interest and claimed TDS Others amount should be less than or equal to Total deposit amount of challan given in statement

If a matched challan is being corrected, then available balance amount in the challan should be sufficient for consumption of updated sum of deposit amount of all the active deductee rows in correction and corrected values of claimed TDS interest and claimed TDS Others amount

In case of existing matched / partially matched challan, deductor can only update Cheque / DD Number, claimed TDS Interest amount, claimed TDS Others amount and Section code

If deductor updates only deductee details, then claimed TDS Interest amount and claimed TDS Others amount as given in the challan should match with the corresponding values present in regular / previous return.

Sournce: www.blog.tdsman.com

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Know more, how to correct submitted e-TDS/TCS statement - FAQs.

How many times can I furnish a correction TDS/TCS statement?
A correction TDS/TCS statement can be furnished multiple times to incorporate changes in the regular TDS/TCS statement whereas a regular TDS/TCS statement will be accepted at the TIN central system only once.

What are the important points to be kept in mind while preparing correction statement more than once on the same regular statement?
You have to kept in mind, the following points while preparing correction statement more than once on the same regular statement:

1. The TDS/TCS statement on which correction is to be prepared should be updated with details as per all previous corrections.
2. Modifications/addition/deletion in correction statements accepted at the TIN central system only should be considered.

The first correction filed by me contains three types of correction (three PRNs / Token Number) and one of the types of correction has got rejected at the TIN central system. What should I do?
The steps as under should be followed:

1. You have to update modifications as per the accepted corrections in the TDS statement.
2. Identify the record for which correction was rejected earlier by its sequence no. and fields for identification
3. Correct the said record.
4. Correction statement should contain updated values as well as value of identification field as per regular statement.

Which Provisional Receipt Number / Token Number should I quote while preparing correction statement more than once on the same regular statement?There are two fields for Provisional Receipt Number (PRN) / Token Number in a correction statement as under:

• Original Provisional Receipt Number / Token Number - PRN of the regular statement should be mentioned in this field.
• Previous Provisional Receipt Number / Token Number - PRN of the last accepted correction statement should be mentioned in this field. In case the value in this field is incorrectly mentioned, the statement will get rejected at TIN central system for the reason: "Either Previous Provisional Receipt No. provided is incorrect or combination of Original Provisional Receipt Number / Token Number and Previous Provisional Receipt Number / Token Number is not in sequence"

Example:

Single batch correction statement - Only one type of correction in the file

• You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a single batch correction statement having PRN / Token Number 010010300074112. While preparing correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and the PRN / Token Number 010010300074112 in the field Previous PRN.

Multiple batch correction statement - different types of correction in a single file

• You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a multi batch correction statement having three batches and corresponding PRNs / Token Numbers as 010010300074112, 010010300074123 and 010010300074134. While preparing the correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and check the status of all the three PRNs of correction statement.

>>If all the three PRNs / Token Numbers are accepted at the TIN central system, you may mention any of the three PRNs / Token Numbers in the field previous PRN.

>>If any of the three PRNs / Token Numbers is rejected, then you should mention the PRN / Token Number which has been accepted at the TIN central system in the field Previous PRN.

>>If all the three PRNs / Token Numbers are rejected, then you must mention the PRN / Token Number of the regular statement, i.e. 010010200083255 in the field Previous PRN.

How many times can I update PAN of a deductee/transacting party?
Structurally valid PAN of a deductee in the regular statement can be updated to another structurally valid PAN only once.
 

When does a statement get ‘Partially Accepted’?
A correction statement containing updates in PAN of deductee/employee may get Partially Accepted. This is possible when the PAN in the any of the records being updated by you in the correction statement is invalid, i.e. PAN not present in PAN Master Database. In such a scenario, the said record gets rejected resulting in partial acceptance of the statement.

What should I do if the status of correction statement filed by me is ‘Partially accepted’?
In case correction statement is in status ‘Partially accepted’, you have follow steps as under:

1. You have to update modifications as per the accepted records in the TDS statement.
2. Identify the deductee/salary record which has got rejected due to invalid PAN.
3. Rectify the incorrect PAN
4. Correction statement should contain value of identification keys as per regular statement along with the updated values.

What could be the cause of rejection of TDS/TCS statement for the reason “Total Deposit amount of deductees is more than Challan amount actually deposited in bank”?
The total tax deposited amount as per challan should be greater than or equal to the total tax deposited amount as per deductee details, else a regular TDS/TCS statement will not get validated through FVU.

If you file a correction statement for adding deductee records under a particular challan, the total tax deposited as per challan in regular statement should be greater than or equal to the total tax deposited in deductee details as per regular as well as correction statement.

Note: Amount in the fields Interest and others in the challan is not considered in the total tax deposited as per challan.

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