Detailed Key Features of FVU Ver. 5.6

Key Features - File Validation Utility (FVU) version 5.6

Change in validations for all section codes available for Form 27EQ

• Remark “C” (i.e. for higher rate deduction) is made applicable for all sections available for Form 27EQ.
• “C” remark is only allowed when the values ‘PANAPPLIED’, ‘PANINVALID’ or ‘PANNOTAVBL’ are present in the field ‘PAN of Deductee’.
• In such case, total TCS amount has to be 5% or more of the field “Amount of receipt / debited”.
• The above referred validations are applicable for Regular and Correction statements pertaining to FY 2017-18 onwards.

Addition of new field i.e. “Goods and Service Tax Number (GSTN)” under Batch Header (BH) of TDS/TCS statement

• GSTN no. should be 15 digit alpha - numeric value.
• In case the number is less than 15 digits FVU will populate an error message “Invalid value. Please provide valid 15 digit GSTN”
• Applicable for regular and correction (C1, C2, C3, C4 and C5) statement pertains to all forms and FYs.

State code of employer made mandatory in all correction statements (i.e. all batches of correction statement)

• All the correction statements should have employer/deductors state code under batch header (BH) field no. 26.

Change in validation for section code “194J - Fees for Professional or Technical Services” for
Form 26Q:

• Remark ‘B’ is made applicable under this section which represents either no deduction or lower deduction.
• The same is applicable for regular and C3 type of correction Statement pertaining to FY 2017-18 onwards.

This version of FVU is applicable with effect from October 07, 2017.

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TDS Deductions' SMS Alerts to Salaried Taxpayer

Salaried taxpayers to get SMS alerts on TDS deductions

As many as 2.5 crore salaried tax payers will now receive SMS alerts from the Income Tax department regarding their quarterly TDS deductions. 

Finance Minister Arun Jaitley today launched the SMS alert service for Tax Deducted at Source (TDS) for salaried class and the CBDT will soon offer this facility on a monthly basis. 

Briefing reporters about the facility, Jaitley said salaried class cannot afford to pay tax twice or indulge in litigations and hence they should be kept updated about their TDS deductions. 

"Hence tax payers will benefit if they receive information through use of technology. So they can match the office salary slip and the SMS and at the end of the fiscal he will be clear about any possible tax dues," Jaitley said. 

He asked the CBDT to work towards making the grievance redressal system for TDS mismatch online so that there is no interface between the tax payer and the tax department. 

Jaitley said e-Nivaran is working well for tax payers and the CBDT is taking several tax payer friendly initiatiave. 

Jaitley said e-Nivaran is working well for tax payers and the CBDT is taking several tax payer friendly initiatiave. 

The CBDT will soon extend this SMS facility to another 4.4 crore non-salaried tax payers. 

"The frequency of SMS alerts will be increased, once the process for filing TDS returns is stremlined to receive such information on a real time basis," the CBDT said. 

CBDT Chairperson Rani Singh Nair said the tax department is encouraging people to register their mobile number on the e-filing website. 

She said tax payer will initially receive a welcome message from the CBDT informing him about the facility and after that each assessee would be sent messages informing them about their respective TDS deductions. 

The new step is an effort by the I-T department to directly communicate deposit of tax deducted through SMS alerts to salaried tax payers. In case of a mismatch, they can contact their deductor for necessary correction. 

Besides, SMS alerts will also be sent to deductors who have either failed to deposit taxes deducted ot to e-file their TDS returns by the due date. 

Source: The Economic Times

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Deductor to get Interest on TDS Refund only from date of return filing.

Deductor to get interest on TDS refund from date of filing claim and not from date of deposit of TDS

Where TDS u/s 195 becomes refundable to resident deductor on account on non-resident payee waiving the payment and the resident deductor delays filing the refund application to the Department(files it 18 months after the date of waiver by non-resident), he will be entitled to interest on refund u/s 244-A only from the date of filing the refund claim only and not from date of deposit of TDS as law favours the vigilant only and not those who slumber and Department cannot be made liable for interest for any period prior to the date on which facts giving rise to refund are brought to the Department's notice

source: www.taxmann.com

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How to tackle with Income Tax Notices ?

Many of my family members & friends are receiving notices from Income tax department; usually any communication from the Income Tax department, especially receiving a notice from them, can send shivers down anyone's spine. A majority of the notices is sent in the normal course of processing returns& might be for routine enquiry or a request for simple clarification, so don’t be panic.

What to do when you receive an Income Tax notice?

1. Don’t Ignore: Handle the situation carefully and sincerely, or you may end up paying a penalty of up to Rs 10,000 along with the tax payment.
2. Back to basics: Check the whether the notice is really meant for you by checking basic things like PAN, Name, Assessment year it related to issuing officer, signature, address with details of ward and circle number. Verify these details to avoid being cheated. To see details go to E filling website see know your AO
3. Preserve the envelope: If the notice comes by snail mail, preserve the envelope. It serves as proof of the dates on which it was posted and received.
4. DIN: If the notice is delivered online, then check the Document Identification Number.
5. Identify the reason behind the notice: By normal reading one can easily indentifies the reason behind notice. Reasons could be a simple mismatch in TDS or inconsistency in your returns, or some serious concerns like income concealment. It can also be a survey or scrutiny of accounts.
6. Validity: Check the validity of the notice and the timely issuance. Also check the section under which the notice has been issued. For example: A notice under Section 143(3) for scrutiny assessment has to be served within six months of the end of the financial year in which the return was filed. If served later than this period, it will be considered invalid.
7. Gather the documents: Start collecting the documents that the department has requested via the notice. Documents needed can vary depending on the gravity of the notice, usually scrutiny notice may ask for several documents, including bank statements, pay-slips, rent receipts and brokerage statements. While it may not be possible to put all this together in the short time.
8. Letter: Prepare a covering letter along with the set of documents.
9. Acknowledgement: Prepare two set of all the documents required, along with a copy of the covering letter. Get your copy stamped to maintain personal records, and as a proof of submission of the documents thereby complying with the notice.
10. Reply on time: Always respond to the notice on time even if you are unable to collect the required documents. You can even ask for some time to gather all the documents. Timely response will help establish that you are honest, and cooperating with the law.
11. CA help : If the notice is simply about a factual matter, such as an arithmetical error, TDS mismatch or deduction amount, a taxpayer should respond on his own, Only when it is a serious issue, such as a notice for scrutiny or reassessment under Section 148, should one get a professional to respond. But A chartered accountant will be better equipped to deal with the situation and provide apt responses.

Interpreting notices under different sections of income tax for individuals
Sec 131(1A): Assessing officer has reason to suspect that income has been concealed.

• Enforcing the attendance of any person, including any officers of a banking company and examining him on oath and completing the production of books of accounts and documents.
• Failure to comply with the summons issued under Section 131(1) has been made punishable with a penalty of Rs 10,000 for each default under Section 272A.

Sec 133(A) : For survey or scrutiny of accounts
Sec 139(9) : For filing defective return
Sec 142    : For not filing the income tax return or for the scrutiny of a documents & accounts in support of the return filed by the tax payer
Sec 143(1) : For adjustment or additional tax demand if an error or incorrect information is detected in the return filed by the tax payer.
Sec 143(2) : For scrutiny assesement after detailed inquiry by assessing officer
Sec 148    : For reassessment if the officer believes some income has escaped assessment.
Sec 156    : For dues(tax, interest,penalty,fine or any other sum) payable by the assessee)
Sec 245    : For adjustment of refund with any demand due

Reasons behind getting Notice :
Return not filed or delayed: Employer deducted tax from you salary. However, Employee did not file the return. In such a case, the tax department will send a notice asking employee to file the return. The notice has to be responded to within the given time. Otherwise, employee may be penalized. Such a notice can be sent for any of the previous six assessment years. In case of delayed filing, the department can levy a penalty of Rs 5,000 a year. However, the penalty is not mandatory, and depends upon the discretion of the assessing officer. However, if any tax is due, the department charges 1% interest per month from the due date.

Mismatch in tax credit: Tax deducted at source, or TDS, figure in your Form 16 may be different from the actual tax credit mentioned in Form 26 AS, a document issued by the income tax department that has all your tax-related information such as tax deducted, refund, etc, against your permanent account number (PAN). In case there is mismatch between the two, the department goes by the figure in Form 26 AS.

The mismatch could be because either the employer has not deposited the tax deducted from your salary with the department or has credited it in someone else's account. In such a case, you have to file a rectified return.

If the employer has not paid the TDS to the tax department, point this out to him. In case the tax has being credited to someone else's account, furnish the TDS certificate to the assessing officer for making the necessary changes.

Investments in the name of spouse
Many individuals resort to purchasing assets in the name of their spouse, children or other close family members in the hope of evading taxes. Assets in this case refer to any kind of investment like land, buildings, fixed deposits, mutual funds, shares, debentures etc.

Let's say x bought mutual funds in your wife¡¦s name. As per section 64 of the Income Tax Act, any income x generate out of these mutual funds is still considered x income and x will be taxed for it.

You need to ensure that you declare such income at the time of filing your return, else you will attract attention from the taxman and receive a notice for the same.

High Value Transactions
High value transactions need to be updated to the Income Tax department by the entity with which you carry out such a transaction. This is in order to ensure taxes are levied as required on each of these transactions in a timely manner. Failure to do so is an invitation for a tax notice.

What qualifies as a high value transaction?

• Cash deposits in a bank worth Rs 10 lakh or more in a year
• Credit card purchases of Rs 2 lakh or more
• Mutual fund investments for Rs 2 lakh or more
• Purchase of bonds and debentures worth Rs 5 lakh or more in a year
• Sale or purchase of property worth Rs 30 lakh or more

Non-disclosure of assets for wealth tax
If you own assets whose net value is over Rs.30 Lakhs, you are liable to pay wealth tax at the rate of 1% of the amount that is above the Rs.30 Lakhs limit. If you do disclose such assets that you own or do not pay taxes on them, there is a good chance that you might receive an IT notice.

Assets can include anything from land, second homes, cars, yachts, gold jewellery, antiques, art etc. If you are unsure about the exact value of the assets you own, you can approach government approved valuers for this purpose.

Random Scrutiny
To enforce tax compliance, the IT department has started randomly scrutinizing returns under section 143 (3). If you receive such a scrutiny notice, don¡¦t panic. Just follow these simple steps:

1. Check the validity of the notice as well as the duration within which you have to respond to the Assessing Officer. Usually, a scrutiny notice is served to the assessee within a period of 6 months from the end of the financial year. Very rarely, notices related to older cases are also sent under section 148, if the Assessing Officer finds genuine reason to do so.
2. Make multiple copies of the notice received
3. Submit documents requested along with a cover letter listing all the documents to the Assessing Officer
4. Request for an acknowledged copy of the cover letter from the Assessing Officer for your own records
5. If the notice is regarding your old dues, they can be adjusted against any pending refund claims made by you for a current year.

What Should One do in a Scrutiny Proceeding ?
 

When you receive notice from Income tax department , Do this things

1. Ensure that all related documents to the assessment proceeding with you.Ex Form 16, 26AS, Previous year ITRs, Proofs for deductions, Wealth tax file, bank accounts, etc… details regarding all monetary transaction
2. For salaried person, keep your Form 16 issued by your employer.
3. All your bank statements .
4. Reasons for high amount transactions.
5. Documents, details asked in notice.
6. If you have received any loan or gift, get a certificate from such person with his complete address on the loan certificate.
7. On hearing date ,you must appear either yourself or through any Chartered Accountant or tax practitioner before the Assessing Officer on the date of hearing.
8. Keep calm & argue politely with A.O. by quoting relevant sections
9. Take acknowledgment for copies submitted
10. Write down relevant points.

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Important Information about TDS Statement by TRACES and Basic principles of TDS Compliance.

An important information regarding TDS statement has been displayed at TRACES website which states as follows:

Considering peak statement filing time, processing of statements might take 7 to 10 working days from date of filing. 97.5% of the statements filed till 29th Apr 2015 have been processed for 26AS. Please wait for 24 hours after receiving a communication to submit Online Corrections at TRACES. 

Basic principles of TDS compliance:

• Deduction/ Collection of Tax at Correct Rates
• Timely Deposit of Tax Deducted at Source
• Accurate Reporting of data related to tax deductions/ collections made
• Submission of TDS Statements within the due dates
• Verification and Issuance of TDS Certificates within time
• CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
• User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please 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).
• Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action
• The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
• Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
• PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
• The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

Source: www.tdsman.com

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Healthy Practices for Error-Free TDS Returns

Healthy practices for error – free TDS returns has been given below:

1. Deduction/ Collection of Tax at Correct Rates.
2. Timely Deposit of Tax Deducted at Source.
3. Accurate Reporting of data related to tax deductions/ collections made.
4. Submission of TDS Statements within the due dates.
5. Verification and Issuance of TDS Certificates within time.
6. CPC (TDS) is now sending “Intermediate Default Communication” for PAN Errors and Short Payments, which can be corrected during the interim period of a week of filing TDS Statements, before CPC (TDS) proceeds with computing Defaults for the relevant statement.
7. User-friendly Online Correction facility can be used for Correction of Deductees, Tagging Unmatched Challans and Payment of Fees/ Interest. (Please 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).
8. Aggregated TDS Compliance Report assists the PAN of the Deductor to administer TDS Defaults for associated TANs and to take appropriate action.
9. The Deductor’s Dashboard provides you all necessary information to assist you in “Compliance Self-Assessment” and to take appropriate action.
10. Non-filing Self-declaration can be made by navigating to Statements / Payments menu and submit details under Declaration for Non-Filing of Statements.
11. PAN Verification and Consolidated TAN – PAN File facility on TRACES can be used for verifying the deductees.
12. The Conso Files and Justification Reports downloaded from TRACES help you to identify errors in submission of revised Quarterly TDS Statements.

Source: www.tdsman.com

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Deductor may confirm that TDS Deductions reaches to Income Tax Department.

Recently, a senior citizen received a notice from the Income Tax Department, asking her to pay Rs 30,000, the tax on her bank fixed deposits for assessment year 2013-14, along with interest, for late payment of tax. She was surprised, as her bank had deducted the tax at source (TDS).

What had happened was the bank had deducted TDS after the end of the financial year, owing to which she didn’t get the tax credit for the previous year.

There are several instances of taxpayers getting notices from the I-T department for no fault of theirs. Notices might be sent if TDS hasn’t been deducted, or if the TDS has been deducted but not paid to the I-T department on time.

If a bank doesn’t deduct TDS on fixed deposits, or does this after the end of the financial year, the onus is on the taxpayer to show he/she doesn’t intend to avoid tax, that it was merely an error. One of the ways to go about this is showing the interest income while filing tax returns and paying taxes. In case this isn’t done, you could file a revised return. But ensure you revise the tax return before the end of the next assessment year, says Rakesh Nangia, of Nangia and Company, chartered accountants.

However, if the interest income is being declared on a cash basis, the assessee can carry forward the TDS by the bank and clam credit in the year in which the income is taxed. In case the fixed deposit is for five years, you could carry forward the TDS and pay it in the last year, when it matures.

If your bank deducts and pays the tax later and you, too, do this (while following an accrual basis), you could claim the tax paid twice by filing a revised return. This process, however, might take time, says Nangia. You will have to take up the matter with the assessing officer of your ward and explain to him the details of your case.

Also, if you change jobs in the middle of a year and the previous employer deducts tax but doesn’t pay this to the I-T department, you might get a tax notice. In this case, too, one must show the income while filing ITR-V and take up the matter with the tax officer.

The sale of a property worth at least Rs 50 lakh involves TDS of one per cent. For such sales, it is the buyer’s responsibility to pay the TDS; also, it is mandatory to do this online. Only then will the seller be able to claim credit for such TDS. Otherwise, the seller could end up paying a huge interest and penalty, Nangia says.

Source: www.business-standard.com

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Substantial Reduction in TDS Deposited during Financial Year 2014 - CPC (TDS)

CPC (TDS) has issued a follow up communication to all deductors regarding substantial reduction in the amount of Tax Deposited during the period April 1 to August 31, 2014  as compared with the corresponding period in Financial Year 2013.

The issued communication has been given below:

Dear Deductor (TAN: ),

As per the records of the Centralized Processing Cell (TDS), it has been observed that there is substantial reduction in the amount of Tax Deposited during the period April 1 to August 31, 2014 as compared with the corresponding period in Financial Year 2013.

It may be possible that either the Tax may not have been deducted at source at appropriate rates or the Tax deducted may not have been deposited, within stipulated time. In such case, this may lead to Short / Late Deduction and /or Short / Late Payment Defaults.

Please make note of the following important information:

• Please note the provisions of section 200(1) of the Income Tax Act, 1961; in this regard:

Duty of Person deducting Tax:

• Any person deducting any sum in accordance with [the foregoing provisions of this Chapter] shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs.
• Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the    credit of the Central Government or as the Board directs.
• Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time,[prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority or the person authorized by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.

• If the tax is not paid in accordance with the provisions of the Act, it may attract penal Interest u/s 201(1A) and 220(2) of the Act.
• Any such interest paid above will not be considered as deductible expense under the provision of section 43(ia) of the Act.

Actions to be taken:

• If any amount needs to be deducted and/ or deposited, immediate action may be taken at the earliest.
• Please inform us with the reason for “No Tax Deposited” at info@tdscpc.gov.in.

For any assistance, 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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Interactive Voice Response (IVR) application for status of PAN & TAN is now available.

NSDL-TIN has started a new application for status of PAN and TAN which is known as Interactive Voice Response (IVR).  IVR is new application for knowing the status of your PAN/ TAN application which is now available at TIN call centre (TCC) in Hindi/English language. You may call on 020- 27218080 to check the status of your application.

Facility for payment of PAN application fee in Indian Rupees & foreign currency by foreign citizens/NRIs using 'Credit Card/Debit Card' is now available for those applicants who apply PAN online.

Applicant should search for the status of PAN application using Name and Date Of Birth 24 hours after the application has been submitted online or through TIN-FC with  required documents.

Track your PAN/TAN Application Status

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Upload Online e-TDS/e-TCS Return with service centre Links.

NSDL e-Governance Infrastructure Limited (NSDL) launched an online upload of e-TDS return facility enabling entities to directly furnish (upload) their e-TDS returns (Form 24, 26 and 27 only) to the TIN central system through the Internet on July 10, 2004.

Online upload of electronic statement facility can be used for upload of quarterly e-TDS/TCS statements (F.Y. 2007-08 Onwards) and Annual Information Return (AIR) (F.Y. 2004-05 Onwards). This facility is available only for entities who possess a valid reformatted 10-digit TAN. Entities having old TAN or who have not yet been allotted a reformatted 10-digit TAN cannot upload their e-TDS/TCS statements directly to the TIN central system through the internet.

An entity desirous of using this facility has to register itself online as an organisation and can associate its multiple TAN(s) to this organisation. These TANs should belong to the same legal entity for example ABC Bank and its branches (with different TANs) can register as one entity. Registration shall be in the name of ABC Bank and TAN of its different branches can be associated with it.

Entities intending to avail of this facility should have a Digital Signature Certificate (DSC) (Class II or Class III) from any of the CCA approved Certifying Authority specified by NSDL for the purpose of digitally signing the registration and subsequent logins to the TIN central system and upload of statements. 

The DSC can be procured from the following Certifying Authorities (CA) / Sub Certifying Authorities.

Certifying Authorities

• Tata Consultancy Services (TCS)
• Institute of Development & Research in Banking Technology (IDRBT)
• SafeScrypt
• Mahanagar Telephone Nigam Limited (MTNL)
• e-Mudhra
• (n)Code Solutions

Sub Certifying Authorities

• Emasters Net Pvt. Ltd.
• Logitech Solutions Pvt. Ltd.

Note :-

As per the guidelines issued by the Office of CCA, it is required to comply to the use of SHA-2 Hash Algorithm and 2048 bit RSA keys for digital signing. In view of the same, the following pre-requisites need to be followed:

1. JRE version : SUN-java 1.6_update29 or higher version (32 bit)
2. Client Operating system : Windows XP SP3, Vista Windows 7, Windows 2003 with patch for SHA-2.
3. I.E browser version supported : 7,8 and 9.
4. Safenet or E-token drivers used should be the latest (if applicable)

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Issue of Default Demand for e-TDS/TCS return 24Q4 by TRACES.

Quarterly statement of deduction of tax under sub section (3) of section 200 of the Income tax Act, 1961 in respect of Salary for the quarter ended June/September/December/March i.e. 24Q1, 24Q2, 24Q3 and 24Q4.  Every person, being a person responsible for deducting tax under Chapter XVII-B shall, in accordance with the provisions of sub-section (3) of section 200, deliver or cause to be delivered to the prescribed income-tax authority or to the person authorized by such authority, quarterly statement which is in Form No. 24Q in respect of deduction of tax at source under sub-sections (1) and (1A) of section 192.

A new Demand Notice for the Assessment Year 2012-13 issued by Income Tax Department to Taxpayees' on the basis of incorrect TDS Return.  On inquiry, it is found that this demand has been raised mainly due to Technical errors of TRACES.   I mean to say, PAN numbers already corrected in 24Q4 return through submission of correction return.  But tdscpc.gov.in still showing wrong pan numbers (which have already been corrected through correction return and accepted by TRACES)  marking in Red Color and have charged maximum of tax between 20% or Tax Slab charged on employee.   This percentage has been calculated on taxable amount of the each employee.

Secondly, major error was that TRACES has shown wrong Category of employee.  Deductor had entered  category of employee as Women and demand notice has been issued  assuming the same employee as Male. 

Finally It has been decided that deductor should check their record deeply and should not pay any demand notice without his satisfaction.  However justification report is also not satisfactory report till date.

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How to check e-TDS Challan Status Query ?

TDSCPC.GOV.IN has also provided a facility to check the Challan Status Query  vide which it can be checked that has there any challan not claimed by deductor in the particular Financial Year or not.  This function is helpful to resolve the default notice issued by Income Tax Department.  

In case any deductor receive demand notice from income tax department, first of all he may check this function for unclaimed challan.  If unclaimed challan is available it means that either complete challans have  not been  entered in etds return or wrong data of challans have been  entered  in TDS return.

There are three types of inquiries available which can be seen in below picture :

1. All.
2. Claimed.
3. Unclaimed.

Period can be entered in specified format i.e. 01-Apr-2013 etc. or dates can be entered only with in financial year. 

Source: www.tdstaxindia.com

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Simple 5 Steps to file e-TDS/TCS Return.

NSDL-TIN has introduced a easy way to submit e-TDS/TCS return in simple 5 steps.  As per NSDL TDS Deductors can submit e-TDS returns through TIN-Facilitation Centres (TIN-FC) established by NSDL or directly upload through NSDL web-site.  It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS returns in electronic form (e-TDS return).  Therefore TIN-NSDL introduced 5 simple steps for e-TDS/TCS return which are as follows:

STEP - 1 :

The data structure (file format) in which the e-TDS / e-TCS return is to be prepared has been notified below:

(a) Annual e-TDS Return :

• File Format for Form 24
• File Format for Form 26
• File Format for Form 27

(b) Annual e-TCS Return :

• File Format for Form 27E

(c) Quarterly Return :

For Regular Statements pertaining to FY 2010-11 onwards:

• File Format for Form 24Q (1st, 2nd & 3rd Quarters) Version 4.5
• File Format for Form 24Q (4th Quarter) Version 4.7
• File Format for Form 26Q Q1 to Q4 Version 4.6
• File Format for Form 27Q Q1 to Q4 Version 4.6
• File Format for Form 27EQ Q1 to Q4 Version 4.6

For Regular Statements up to FY 2009-10

• File Format for Form 24Q (1st, 2nd & 3rd Quarters) version 4.3
• File Format for Form 24Q (4th Quarter) version 4.3
• File Format for Form 26Q version 4.3
• File Format for Form 27Q version 4.3
• File Format for Form 27EQ version 4.3

For Correction statements pertaining to FY 2010-11 onwards:

• File Format 24Q Correction Q1 to Q3 Version 4.6
• File Format 24Q Correction Q4 Version 4.8
• File Format 26Q Correction Q1 to Q4 Version 4.6
• File Format for Form 27Q correction Q1 to Q4 Version 4.6
• File Format for Form 27EQ Q1 to Q4 Version 4.6

For correction statements up to FY 2009-10:

• File Format 24Q Correction Q1 Q3 Version 4.3
• File Format 24Q Correction Q4 Version 4.3
• File Format 26Q Correction Q1 Q4 Version 4.3
• File Format 27Q Correction Q1 to Q4 Version 4.3
• File Format 27EQ Correction Q1 to Q4 Version 4.3

STEP - 2 :

e-TDS/e-TCS return in accordance with the file formats is to be prepared in clean text ASCII format with 'txt' as filename extension. e-TDS/e-TCS return can be prepared using in-house software, any other third party software or the NSDL e-TDS Return Preparation Utility (e-TDS RPU-Light).

Feedback Form

Sample files prepared as per the file formats given below for reference.

Annual Return :

• Sample file of e-TDS return - Form 24
• Sample file of e-TDS return - Form 26
• Sample file of e-TDS return - Form 27

Quarterly Return :

For statement pertaining to FY 2010-11 onwards:

• Sample file for Form 24Q (1st, 2nd & 3rd Quarter)
• Sample file for Form 24Q (4th Quarter)
• Sample file for Form 26Q
• Sample file for Form 27Q
• Sample file for Form 27EQ

For statement upto FY 2009-10

• Sample file for Form 24Q (1st, 2nd & 3rd Quarter)
• Sample file for Form 24Q (4th Quarter)
• Sample file for Form 26Q
• Sample file for Form 27Q
• Sample file for Form 27EQ

STEP - 3 :

Once the file has been prepared as per the file format, it should be verified using the File Validation Utility (FVU) provided by NSDL.

* FVU for Annual Returns: e-TDS / e-TCS returns prepared for FY 2004-05 (Forms 24, 26, 27 and 27E) can be validated using this utility.

* FVU for Quarterly Returns: e-TDS / e-TCS returns prepared upto FY 2009-10 (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility.

* FVU for Quarterly Returns: e-TDS / e-TCS returns prepared for FY 2010-11 and onwards (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility.

STEP - 4 :
In case file has any errors the FVU will give a report of the errors. Rectify the errors and verify the file again through the FVU. 

STEP - 5 :

The upload file generated by the FVU on successful validation is to be furnished to a TIN-FC or directly uploaded through the NSDL web-site.

Annual Returns:

Each e-TDS return saved in a CD/Pen Drive to be submitted along with a signed copy of the control chart (Form 27A).

Each e-TCS return saved in a CD/Pen Drive to be submitted along with a signed copy of the control chart (Form 27B).

Quarterly Returns:

Each e-TDS/TCS return saved in a CD/Pen Drive to be submitted along with a signed copy of the control chart (Form 27A).

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e-TDS Return Filing & Penalties w.e.f. 01.07.2013

The Income Tax (TDS Department) has been made many changes in e-TDS Return Filing which is applicable from 01.07.2013.  New FVU 3.8 (Ver) for submission of TDS Quarterly Statement has been launched by TIN-NSDL for Asstt. Year 2014-15. This RPU and FVU is applicable w.e.f. 01.07.2013 with lot of amendments.

The changes regarding e-TDS Return w.e.f. 01.07.2013 are as follows:

• Late fee is to be provided in challan details applicable from FY 2012-13 onwards.
• No return filing or revision of return allowed for the the Fy 2006-07 or prior years.
• Minor head code is to be provided in challan details.
• No details to be provided for cheque no. and section code in the challan details. Section code to be provided in deductee/collectee details
• Now Section code is required to be filled in each deductee detail instead of in challan details.It means multiple section can be selected in one single challan.
• No cheque details is required to be filled in challan details. In most of the cases, payment is made through online payment mode.

Penalty Required w.e.f. 01.07.2013

• Late Fee or Penalty is Rs. 200/- per day compulsory.

FVU Ver. 3.8 – Applicable from Fin. Year 2010-11 onwards
FVU Ver 2.134 – Applicable from Fin. Year 2007-08 to Fin. Year 2009-10

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TDS Deductor is not treated as Assessee in default if Deductee has paid the Tax.

It may be noted that Section 156 has been amended so as to incorporate the following proviso only:
 

“Provided that where any sum is determined to be payable by the assessee or by the Deductor under sub- section (1) of section 143 or sub-section (1) of section 200A, the intimation under those section shall be deemed to be a notice of demand for the purpose of this section.”
 

The insertion of the proviso has served only one purpose – that is, of treating the intimation itself as a notice of demand. Forgetting the amendment/proviso, the first part of the section itself empowers the Assessing Officer to issue a notice of demand where any interest, tax, penalty etc is due from the assessee and it has nothing to do with the amendment. In short, even though the Intimation may not be treated as Notice of demand for the purpose of section 156, there is nothing to bar the Assessing Officer from issuing the Demand Notice u/s 156.

As far as the alternate argument that the demand u/s 156 should be for the net amount only is concerned, it may be noted that, after the TDS certificate is issued to the concerned deductees,

• If excess TDS is done, the deductee claims the refund
• If short TDS is done, the Deductee should pay the Self Assessment Tax.

As far as the first part (a) is concerned, it is normally presumed that after the Certificate is issued for the excess amount, it’s the deductee only who is eligible to claim the amount and not the Deductor. As a result of this, the alternate plea that the demand should be for the net amount only looks improper and illogical. I am of the opinion that the demand should be of the total amount of short deductions as is done by the Assessing Officer and could not be of the net amount.

Provision related to Assessee in Default:
Section 201(1) has also been amended by inserting a proviso w.e.f 01.07.2012 so as to provide that any person who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid/credited to a resident shall not be deemed to be an assessee in default in respect of such tax if such resident-

1. has furnished his return of income under section 139;
2. has taken into account such sum for computing income in such return of income; and
3. has paid the tax due on the income declared by him in such return of income,

and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed. Consequent amendment has also been done in section 201(1A) for charging of the interest when the assessee is not deemed to be in default.
 

The amendment has been made applicable w.e.f 01.07.2012. As far as the retrospective application is concerned, it may be noted that there is another provision (section 191) which provides that person shall be deemed to be assessee in default in respect of non/short deduction of tax only in cases where the payee has also failed to pay the tax directly. Effectively, the latest amendment as mentioned above is in line with the existing provision as contained in section 191 and the Deductor cannot be treated to be an assessee in default in respect of non/short deduction of tax if the payee has discharged his tax liability.

It is very relevant here to note that even if the assessee is not treated to be an assessee in default as a result of above amendment, there is no consequential amendment in the penalty provision as contained in section 271C. Effectively, even after the above amendment, penal provision u/s 271C would be applicable. Further, penalty u/s 217C can be waived by virtue of Section 273B if the assessee proves that there was a reasonable cause for the said failure.

Source: The Hitwada

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New NSDL RPU version 3.2 for Quarterly e-TDS/TCS Returns and Correction Statements.

ITD has notified revised file formats for preparation of TDS and TCS returns in electronic form. Deductors/collectors can prepare the e-TDS/TCS returns as per these file formats using in-house software or any other third party software and submit the same to any of the TIN-FCs established by NSDL. Deductors/collectors can also directly upload the e-TDS/TCS returns through NSDL-TIN website.

NSDL has developed software called e-TDS/TCS Return Preparation Utility (RPU) to facilitate preparation of e-TDS/ TCS returns. This is a freely downloadable MS excel based utility. Separate utilities are available for preparation of each type of return.

RPU for Quarterly Returns
From FY 2005-06 onwards, TDS/TCS returns have to be filed every quarter (i.e. quarterly statements). The following utilities can be used to prepare regular quarterly statements:

NSDL RPU version 3.2 for quarterly e-TDS/TCS statements from FY 2005-06

“Download RPU version 3.2”

Key features of NSDL Return Preparation Utility (RPU) version 3.2
Feature to highlight overbooked challans*: In case the challan is overbooked challan, then the update is allowed only for fields as below:

• Section code(column no.3)
• Interest amount (column no. 19 – As per NSDL RPU)
• Others amount (column no. 20 – As per NSDL RPU)

*Overbooked challan: Challan, where the summation of the underlying deductee deposit amount is more than the challan deposit amount.

Correction Statements
Corrections required in the regular quarterly statements can be furnished by submitting a correction statement in the prescribed format. The following utilities can be used to prepare correction quarterly statements:
 

NSDL RPU version 3.2 for quarterly e-TDS/TCS statements from FY 2005-06 

“Download RPU version 3.2”

Key features of NSDL Return Preparation Utility (RPU) version 3.2
Feature to highlight overbooked challans*: In case the challan is overbooked challan, then the update is allowed only for fields as below:

• Section code(column no.3)
• Interest amount (column no. 19 – As per NSDL RPU)
• Others amount (column no. 20 – As per NSDL RPU)

*Overbooked challan: Challan, where the summation of the underlying deductee deposit amount is more than the challan deposit amount.

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How to Verify e-TDS return?, FAQs.

After I prepare my e-TDS/TCS return, is there any way I can check/verify whether it conforms to the prescribed data structure (file format)?
Yes, after you have prepared your e-TDS/TCS return you can check/verify the same by using the File Validation Utility (FVU). This utility is freely downloadable from the NSDL-TIN website.

What is File Validation Utility (FVU)?
FVU is a program developed by NSDL, which is used to ascertain whether the e-TDS/TCS return file contains any format level error(s). When you pass e-TDS/TCS return through FVU, it generates an 'error/response file'. If there are no errors in the e-TDS/TCS return file, error/response file will display the control totals. If there are errors, the error/response file will display the error location and error code along with the error code description. In case you find any error, you can rectify the error and pass the e-TDS/TCS return file again through the FVU till you get an error-free file.

What is the 'Upload File' in the new File Validation Utility?
Earlier the e-TDS/TCS return file after validating using File Validation Utility (FVU) had to be filed with TIN-FC. Now 'Upload File' that is generated by the FVU when the return is validated using the FVU has to be filed with TIN-FC. This 'upload file' is a file with the same filename as the 'input file' but with extension .fvu. Example 'input file' name is 27EQGov.txt, the upload file generated will be 27EQGov.fvu.

What are the platforms for execution of FVU?
For Annual Returns, FVU can be executed on any of the Windows platforms mentioned below: Win 95/Win 98/Win 2K Professional/Win 2K Server/Win NT 4.0 Server/Win XP Professional.

For Quarterly Returns, Java has to be installed to run FVU. Details are given in FVU section of NSDL-TIN website.

What are the Control Totals appearing in the Error/Response File generated by validating the text file through File Validation Utility (FVU) of NSDL?
The Control Totals in Error/Response File are generated only when a valid file is generated. Otherwise, the Error/Response File shows the nature of error. The control totals are as under:
 

Number of deductee/party records : In case of Form 24/24Q, it is equal to the number of employees for which TDS return is being prepared. In case of Form 26/27/26Q/27Q, it is equal to the total number of records of tax deduction. 10 payments to 1 party would mean 10 deductee records.

Amount Paid : This is the Total Amount of all payments made on which tax was deducted. In case of Form 24/24Q, it is equal to the Total Taxable Income of all the employees. In case of Form 26/27/26Q/27Q, this is equal to the total of all the amounts on which tax has been deducted at source.

Tax Deducted : This is the Total Amount of tax actually deducted at source for all payments.

Tax Deposited : This is the total of all the deposit challans. This is normally the same as Tax Deducted but at times may be different due to interest or other amount.

Are the control totals appearing in Form 27A same as that of Error/Response File?
Yes, the control totals in Form 27A and in Error/Response File are same.

What if any of the control totals mentioned in Form No. 27A do not match with that in e-TDS/TCS return?
In such a case the e-TDS/TCS return will not be accepted by the TIN-FC. You should ensure that the control totals generated by FVU and that mentioned on Form No. 27A match. In case of any difficulties/queries, you should contact the TIN-FC or TIN Call Centre at NSDL.

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Whether PAN is compulsory for Contractor or any provision to deduct TDS without PAN and how much TDS Rate is applicable in both condition?

Income Tax Section 206AA is require TDS Deductee receiving as Contract Income or other Income which is liable to Deduct TDS on it, PAN is mandatory/compulsory for the Deductor. In case, the Deductee fails to furnish PAN, the Deductor is liable to deduct tax at a rate which is higher of the following:

• the rate specified in the Act;
• the rate or rates in force or
• at the rate of 20%.

In the case of TDS Deductor deducted tax below Tax rate then TDS Deductee or TDS Deductor or both is liable to pay penalty or interest. Thus the Tax Deductor must deduct TDS at Higher Rates (@ 20%) as the PAN is not furnished by the deductee. TDS Deductor have to either get the PAN from the concerned deductees or have to collect/pay the balance amount of tax to the Government Treasury to avoid all the penal consequences.

Before 01.10.2010, it was mandatory to submit e-TDS/e-TCS return with certain percentage of PAN of Deductees failing which return filing was not possible. After releasing new codes as C & T for higher rate and for non deduction of TDS for transporter, e-TDS/e-TCS return can be validated without 100% PAN numbers of Deductees. To submit return without having 100% PAN, TDS Deductor have to select higher rate as coded "C" in column named "Reason for non-deduction / lower deduction" as appearing in the quarterly return.

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Complete Procedure to upload e-TDS/e-TCS Return.

Now a days all Quarter TDS/TCS Return submission is mandatory as Electronic Statements upload. In this matter most of TDS/TCS Deductor or collector did not know about how to submit quarterly returns and what is its procedure. Therefore the TIN-NSDL provides below most important point regarding this matter, read carefully and adopt while submitting or uploading e-TDS/e-TCS Returns:

• Electronic statements (e-TDS/TCS/AIR) can be uploaded online to the TIN central system only for those TANs who have been associated with the organisation and duly authorised by NSDL.
• A user can upload electronic statements online only for TANs associated with it.
• Electronic statements should be prepared as per the data structure prescribed by the Income Tax Department (ITD). The data structure is the same as prescribed by ITD for furnishing of electronic statements through TIN-FCs.
• After preparation of the electronic statement, entities have to verify the electronic statement through the latest version of File Validation Utility (FVU) provided by NSDL which can be freely downloaded from the TIN web-site. The upload file generated by the FVU is to be uploaded online.
• The length of the filename should not be more than eight characters. The filename can be alphanumeric. No special characters are allowed in the filename (e.g. name of the file can be: Form27E.txt).
• The user will login to the TIN central system by signing with the DSC associated with it. On authentication of the DSC, the user will get access to the online upload system.
• After successful login, the user will select Upload option from the main menu. The user will have to choose sub-option 'TDS/TCS' and upload the electronic statement online to the TIN central system by digitally signing the upload.
• If DSC authentication fails the electronic statement will not be uploaded.
• The status of the electronic statement uploaded can be viewed by selecting File Status from the main menu.
• After upload of the electronic statement the TIN central system will perform format level validations, check the TAN - User ID association. In case electronic statement is invalid or the TAN (for which the electronic statement was uploaded) is not associated to the user i.e. user uploads an electronic statement online for a TAN which is not associated with it, the electronic statement uploaded will be rejected. In case of an accepted electronic statement a Provisional Receipt will be generated which will contain a provisional receipt number / Token Number and will also indicate count of missing/invalid PANs. The deductor can view/print the Provisional Receipt.
• Entities using the online upload of electronic statements facility will not submit Form 27A, CD / Pen drive for accepted electronic statements to TIN-FC or NSDL.
• This facility is not available for online upload of electronic statements for Form 24 for those entities who have to submit physical certificates for No / lower deduction of tax and Form 12 B with respect to any of their deductees.
• In case the entity is not able to upload its electronic statement using the online upload of electronic statement facility to the TIN central system, it may submit the same at any of the TIN-FCs by following the prescribed procedure for furnishing of e-TDS Statements with TIN-FCs.

Provisional Receipt Number is now referred as Token Number with effect from FY. 2010-11 onwards.

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e-TDS and TDS/TCS Returns FAQs.

1. What is e-TDS Return?
e-TDS return is a TDS return prepared in form No.24,26 or 27 in electronic media as per prescribed data structure in either a floppy or a CD ROM. The floppy or CD ROM prepared should be accompanied by a signed verification in Form No.27A.
2. Who is required to file e-TDS return?
As per Section 206 of Income Tax Act all corporate and government deductors are compulsorily required to file their TDS return on electronic media (i.e. e-TDS returns). However, for other Deductors, filing of e-TDS return is optional.
3. Under what provision the e-TDS return should be filed?
An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated 26.8.03 for electronic filing of TDS return notified by the CBDT for this purpose. CBDT Circular No.8 dated 19.9.03 may also be referred.
4. What are the forms to be used for filing annual/quarterly TDS/TCS returns?
Following are the returns for TDS and TCS and their periodicity:

Form No	Particulars	Periodicity
Form 24	Annual return of "Salaries" under Section 206 of Income Tax Act, 1961	Annual
Form 26	Annual return of deduction of tax under section 206 of Income Tax Act, 1961 in respect of all payments other than "Salaries"	Annual
Form 27	Statement of deduction of tax from interest, dividend or any other sum payable to certain persons	Quarterly
Form 27E	Annual return of collection of tax under section 206C of Income Tax Act, 1961	Annual
Form 24Q	Quarterly statement for tax deducted at source from "Salaries"	Quarterly
Form 26Q	Quarterly statement of tax deducted at source in respect of all payments other than "Salaries"	Quarterly
Form 27Q	Quarterly statement of deduction of tax from interest, dividend or any other sum payable to non-residents	Quarterly
Form 27EQ	Quarterly statement of collection of tax at source

5. Payments are made to employees and contractors. In such a case, TDS return is required to be submitted in a single Form or separate form is required for employees & contractors.
For tax deducted at source from salary paid to employees, the annual return for tax deducted at source up to financial year 2004-2005 is to be filed in Form 24 and from financial year 2005-2006 onwards, the quarterly returns are to be filed in Form 24Q. Similarly, in case of payments mad to contractors, Form 26 will have to be filed for deduction made up to financial year 2004-2005 and Form 26Q on a quarterly basis for deductions made from financial year 2005-2006 onwards.
6. Who is the e-Filing Administrator?
The CBDT has appointed the Director General of Income-tax(Systems) as e- Filing Administrator for the purpose of the Electronic Filing of Returns of Tax Deducted at Source Scheme,2003.
7. Who is an e-TDS Intermediary?
CBDT has appointed National Securities Depository Ltd., Mumbai as e-TDS Intermediary.

8. How will the e-TDS returns be prepared?
e-TDS return has to be prepared in the data format issued by e-Filing Administrator. This is available on the websites of Income-tax Department at i.e. www.incometaxindia.gov.in and of NSDL at www.tin-nsdl.com. There is a validation software available along with the data structure which should be used to validate the data structure of the e-TDS return prepared. The e TDS return should have following features:

• Each e-TDS return file (Form 24, 26 or 27) should be in a separate CD/floppy. 
• Each e-TDS return file should be accompanied by a duly filled and signed (by an authorised signatory) Form 27A in physical form.
• Each e-TDS return file should be in one CD/floppy. It should not span across multiple floppies.
• In case the size of an e-TDS return file exceeds the capacity of one floppy, it should be furnished on a CD.
• In case the e-TDS return file is in a compressed form at, it should be compressed using Winzip 8.1 or ZipItFast 3.0 compression utility only to ensure quick and smooth acceptance of the file.
• Label should be affixed on each CD/floppy mentioning name of the deductor, his TAN, Form no. (24, 26 or 27) and period to which the return pertains.
• There should be not any overwriting / striking on Form 27A. If there is any, then the same should be ratified by an authorised signatory.
• No bank challan, copy of TDS certificate should be furnished alongwith e-TDS return file.
• In case of Form 26 and 27, deductor need not furnish physical copies of certificates of no deduction or lower deduction of TDS received from deductees.
• In case of Form 24 deductor should furnish physical copies of certificates of 'no deduction or deduction of TDS at lower rate', if any, received from deductees.
• e-TDS return file should contain TAN of the deductor without which the return will not be accepted.
• CD/floppy should be virus free.
• In case any of these requirements are not met the e-TDS return will not be accepted at TIN- FCs.

9. Can more than one e TDS return of the same Deductor be prepared in one CD/floppy?
No separate CD/floppy should be used for each return.
10. Where can the e-TDS return be filed?
e-TDS returns can be filed at any of the TIN-FC opened by the e-TDS Intermediary for this purpose. Addresses of these TIN-FCs are available at the website on www.incometaxindia.gov.in or at www.tin-nsdl.com.
Click Here for Official Details

eTDS Return (Click Here)

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