Aadhaar links to PAN fo E-filing of Income Tax Returns

In simple way Income Tax Department shall take you to a webpage outside www.incometaxindia.gov.in. to link Aadhaar to PAN for e-Filing of Income Tax Returns and regarding this the contents of the linked on www.incometaxindia.gov.in page.

The following Details for this process:
Assessee's Name, Date of Birth and Gender as per PAN will be validated against your Aadhaar Details.

Assessee ensure that "Aadhar Number" and "Name as perAADHAAR" is exactly the same as printed on your Aadhaar card.

The Circular of UIDIA No. F.No.K-11022/631/2017-UIDIA with regard to discontinuation of partial match in Demographic Authentication w.e.f. 01.12.2017 by UIDIA.

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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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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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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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New PAN Application (Form-49A) for all Indian citizens.

The new PAN application Form-49A which is applicable for Indian citizens including those who are located outside India in New Format. This application form should be used when the applicant has never applied for a PAN or does not have PAN allotted to him. Applicant may visit ITD's website www.incometaxindia.gov.in to find whether a PAN has been allotted to him or not.

How to Apply

Applicant may either make an online application through this website or submit physical PAN Application to any TIN-FC or PAN centre of NSDL.

Applicants should go through the instructions and guidelines provided in the application form before filling the form.

Documents Required

Applicant should ensure that the necessary supporting documents (as specified under Rule 114 of Income Tax Department) are submitted along with the application. The details of the documents required are also provided in the application form. Name mentioned in Application form and Name in the Proof of Identity /Proof of Address should match exactly.

Where to get the Physical Application Forms

Applicants may obtain the application forms from TIN-FCs, PAN centres, any other vendors providing such forms or can freely download the same from this website.

To View & Download New PAN Form-49A Click Here.

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PAN Required to Cash Depsoit Above Rs. 50000 in Bank - RBI

RBI/2016-17/135
DCM (Plg) No.1287/10.27.00/2016-17

November 16, 2016

The Chairman / Managing Director/Chief Executive Officer
Public Sector Banks / Private Sector Banks/ Foreign Banks
Regional Rural Banks / Urban Co-operative Banks / State Co-operative Banks

Dear Sir,

Withdrawal of Legal Tender Character of Specified Bank Notes – Compliance with provisions of 114B of the Income Tax Rules, 1962

Please refer to our Circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject. With a view to ensure compliance with provisions of 114B of the Income Tax Rules, 1962, the banks are advised as under:
i. Anybody depositing more than ` 50,000/- in cash in their bank account has to submit a copy of the PAN card in case the bank account is not seeded with PAN
ii. In addition to the above provision, in the same IT Rules, PAN reporting requirements are there for other transactions, which banks need to insist upon.

2. The banks are, therefore, advised to take note of the above and ensure strict compliance with the provisions of 114B of the Income Tax Rules, 1962. Relevant provision 114B of the Income Tax Rules, 1962, is enclosed.

Yours faithfully,

(P Vijaya Kumar)

Chief General Manager

Encl: As above

To Read more Click Here

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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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Quoting of PAN for specified Transactions - Amendment Rule - Income Tax

At the end of calender year 2015 the Income Tax Department has been amendment rule regarding PAN quoting for specified transactions.  The amendment rule come into force from 1st Jan., 2016.  The details of this amendment are as under:

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, 31st December, 2015

Subject: Amendment of Rules regarding quoting of PAN for specified transactions to come into force from 1st January, 2016 – regarding.

The Government is committed to curbing the circulation of black money and widening of tax base. To collect information of certain types of transactions from third parties in a non-intrusive manner, it is mandatory under Rule 114B of the Income-tax Rules to quote PAN where the transactions exceed a specified limit. In case of transactions of sale or purchase of goods and service PAN will be required to be quoted, irrespective of the mode of payment if the transaction exceeds Rs. two lakhs.

To bring a balance between burden of compliance on legitimate transactions and the need to capture information relating to transactions of higher value, the Government has amended Rule 114B to enhance the monetary limits of certain transactions which require quoting of PAN.

The changes made to the Rules have been notified through S.O. No. 3545(E) dated 30th December, 2015. These changes will take effect from 1st January, 2016.

The Notification is available on the website of the Department www.incometaxindia.gov.in.

(Shefali Shah)

Pr. CIT(OSD),

Official Spokesperson, CBDT

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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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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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CBDT directs its officials to complete PAN migration activity as per new jurisdiction orders by April 25, 2015

Completion of PAN Migration Activity

After the new jurisdiction orders have been passed by you/ your officers' subsequent to restructuring, the PAN requires to be migrated to the new Ward/ circle as per the new jurisdiction. It appears that this activity has not been completed by some of the field officers. This is causing inconvenience to a large number of taxpayers. The Chairperson CBDT has desired that this activity of migrating PANs must be completed by 25 th April, 2015 so that the taxpayers are aware of their jurisdiction and grievances do not arise This is also a priority area as the tax payer need latest jurisdiction for filing of Return of Income. 

Furthermore, I request you to provide the new jurisdiction of all ranges, circles and wards of your Region, on the National Website (www.incometaxindia.gov.in ) pages pertaining to your Region, to enable the taxpayers to have easy access to this information. A new button on " Jurisdiction" shall be created on your Regional page on the National Website by 30 th April. You are requested to have the jurisdiction document uploaded on the website by 05th May 2015. As you may know, the training to all Regions' nominated officers to upload and update the regional pages of the website has been imparted by the Directorate of Systems in December, 2014. The user name and

password for uploading documents on your Regional pages has already been provided to your officers by the DIT(S)-4 team in January 2015. However, for facilitating this activity, DIT(S)-4 shall be circulating a common format and a step-by-step guide for your convenience. For any assistance with reference to uploading the jurisdiction document Sh. Rajendra Singh, JDIT (Mob.-9013852497) & Sh. Sanjaya Kumar Chaursia, DDIT(Mob.- 9013852864) may be contacted. 

Download Completion of PAN Migration Activity Notification (Click Here)

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TDS on payments to non-residents who do not furnish PAN shall deducted at DTAA rate if such rate less than 20%

What is the legal position on S.206AA! In this article, the provision of section 206AA, Tax Payers difficulties and CIT's probable response are discribed as under:

Where TDS has been deducted on the strength of the provisions of DTAAs and such rate is lower than 20%, the provisions of section 206AA of the Act cannot be invoked by the Assessing Officer to insist on the tax deduction @ 20% where non-resident deductee has not furnished his PAN.

Provision: The section 206AA provides (in simple words) that when an Indian resident makes any payment to any Non-Resident of India (NR) the NR should provide his Permanent Account Number (PAN). If the NR does not have a PAN, the Indian payer should deduct tax at the rate of 20% or the appropriate rate – whichever is higher.

Tax Payer difficulties: Generally, the NR service provider insists that the Indian tax has to be borne by the Indian payer. The NR is not concerned about Indian law. We have no jurisdiction over an NR. In any case, NR wants to avoid doing anything with Indian Income-tax department. How can we ask him to obtain PAN! If he does not obtain PAN, we have to suffer this tax @ 20%. This may be well beyond our profits in the business. We cannot afford to pay this tax.

CIT’s probable response: Well, if an Indian resident were to do business with a U.S., U.K. or German Company, can the he say that he does not want to do anything with the other country’s income-tax department! If some one wants to do business with India, he has to abide by the Indian law. 

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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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Clarification on PAN Mandatory for Service Tax Registration.

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

Circular No. 997/4/2015-CX

dated the 28th Feb., 2015

F. No. 201/24/2013-CX.6

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

To

 Principal Chief Commissioners / Chief Commissioners of Central Excise (All),

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

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

Madam/Sir,

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

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

3) Under the new simplified procedure, once duly completed application form is received online on ACES, registration would be granted within two working days and issued online 

without any examination of the documents and verification of documents or premises before the grant of registration, thus initiating trust based registration. Simultaneously, assessee would be enabled to electronically pay duty. Further, the assessee would not need a signed copy of Registration Certificate as proof of registration. Registration Certificate downloaded online from ACES system would be accepted as proof of registration. Verification of the documents and premises shall be carried out post facto.

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

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

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

7) Document to establish possession of the premises can be any document which establishes that the applicant is in possession of the premises required to be registered such as proof of ownership, lease or rent agreement, allotment letter from the Government, no objection certificate (NOC) from the landlord. Any of the following documents shall be 

submitted to establish identity, viz. PAN card, Ration Card, Passport, Voter I-card, Aadhar Card, Driving licence, or any other Photo-identity card issued by the Central Government, State Government or PSU.

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

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

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

(ROHAN)

Under Secretary to the Government of India 

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

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

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

In case of presently active AOs having pending caging of the cases whose jurisdiction has been changed:

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

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

In case of presently 'OLD'marked AOs with pending caging at the AO level:

The jurisdictional CIT(if active) or CIT(CO) can migrate the PAN and in this case, the caging will also migrate to the destination AO as pending and to be completed by the destination AO after due verification of the record.

In case of presently 'OLD'marked AOs with pending caging at the Range level:

This scenario is under analysis and will be taken up separately on the basis of complaints lodged at Help desk.

In case of presently inactive AOshaving pending caging of the cases:

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

Download Instruction for detailed information (Click Here)

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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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