In case PANs of some of the deductees are not mentioned in the e-TDS return, the Provisional Receipt will mention the count of missing PANs in the e-TDS return. The details of missing PANs (extent it can be collected from the deductees) may be furnished within seven days of the date of Provisional Receipt to TIN- FC. e-TDS return will be accepted even with missing PANs.
However, if PAN of deductees is not given in the TDS return, tax deducted from payment made to him cannot be posted to the statement of TDS to be issued to him u/s 203AA.
Posts Tagged ‘eTDS filing’
If a return doesnt contain deductee PAN
December 4th, 2009UTN not mandatory for filing IT returns
September 12th, 2009The Central Board of Direct Taxes have further decided that the Notification No. 31 of 2009 dated 25.3.2009 amending or substituting Rules 30, 31, 31A and 31AA of the Income Tax Rules, 1962 shall be kept in abeyance for the time being.
Taxpayers filing their income tax returns for assessment year (AY) 2009-10, or any other earlier AY, may continue to file their returns without mentioning the Unique Transaction Number (UTN) as required under the said Notification. The filing of such returns shall be treated as valid and in compliance to the requirements under section 139 of the Income Tax Act, 1961.
Further, the date from which the Notification No. 31 / 2009 shall become applicable on tax deducted at source (TDS) or tax collected at source (TCS) and deposited during the current financial year shall be notified by the Central Board of Direct Taxes subsequently.
All deductors / collectors of TDS / TCS may continue to deposit their TDS / TCS and file their quarterly TDS / TCS returns as per procedure existing prior to issuance of Notification No.31 / 2009 dated 25.3.2009.
Modifications in the e-TDS/TCS data structure and new File Validation Utility applicable from October 1, 2009
September 4th, 2009The data structure of quarterly e-TDS / TCS statements has been modified by the Income Tax Department to incorporate certain additional fields and validations to further improve the data quality.
Key changes in the data structure of both regular and correction e-TDS/TCS files are indicated below:
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The types of deductor in the data structure have been further bifurcated. For e.g. State Govt., Central Govt., Company, Firm etc.
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The following fields have been added: -
- Ministry name,
- PAO / DDO code,
- PAO / DDO registration no.,
- State name,
- Name of the utility used for return preparation.
In addition to the new fields, certain functionalities as under have been built in the FVU:
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Functionality to verify the challan details quoted in the e-TDS / TCS returns with the challan details uploaded by banks is provided.
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In case of failure of verification of challans, a warning file containing details of challan mismatch will be generated.
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Statistic report generated by FVU will contain details of verification of challans and bifurcation of payment by Government deductors (transfer voucher / challan)
All deductors are required to ensure that quarterly e-TDS/TCS returns filed from October 1, 2009 is as per the new data structure. Any statement filed as per the old data structure will be rejected at TIN w.e.f October 1, 2009.
However, e-TDS / TCS correction on regular returns filed as per the old data structure (validated with FVU version upto 2.126) should be validated with FVU version 2.126 only.
TIN & NSDL
August 26th, 2009Tax Information Network (TIN), a repository of nationwide Tax related information, has been established by National Securities Depository Limited (NSDL) on behalf of Income Tax Department of India (ITD). TIN is an initiative by ITD for the modernisation of the current system for collection, processing, monitoring and accounting of direct taxes using information technology.
TIN system:
TIN has three key sub-systems:
- Electronic Return Acceptance and Consolidation System (ERACS) which consists of an infrastructure for interface with the taxpayers (a nation wide network of TIN-Facilitation Centres i.e. TIN-FC) and a web-based utility for upload of electronic returns of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) and Annual Information Return (AIR) to the central system of TIN.
- Online Tax Accounting System (OLTAS) for daily upload to the central system, the details of tax deposited in various tax collecting branches across the country.
- Central PAN Ledger Generation System (CPLGS) which is the central system that consolidates for each PAN:
- details of tax deducted/collected on its behalf (TDS/TCS) which is obtained by matching the TDS/TCS returns submitted by the deductors/collectors with the tax deposit (challan) information from the banks;
- details of the tax deposited (advance tax/self assessment tax) directly by the taxpayer with the bank;
Refer to http://www.tin-nsdl.com/ for furthur details.
How to deduct correct eTDS
August 14th, 2009The sections 192 to 196 of Income Tax Act, directs “Any person responsible for paying any income chargeable to tax” to deduct income-tax thereon at the rates specified respectively.
Salaries:
While making the payment of Salary, deductor should consider the following and deduct correct TDS from the payment being made.
- Calculate the annual Approximate/Actual Salary
- Calculate the Exact Taxable Salary amount Paid/Payable till current month for the financial year.
- Calculate the approximate salary that will be paid for rest of the FY, assuming the current month salary for rest of the year salary.
- Add any other income reported by the Assessee [Employee].
- Deduct if any Loss declared by the Employee, from the annual taxable salary. Note that, only House property loss (interest in case of Self Occupied House Property) should be considered.
- Deduct the allowed deductions declared by employee under Section 80C, 80D, 80G, etc.
- Calculate the Income Tax, Surcharge and cess on the net Income, as per the “Rates in Force”
- Deduct if any rebate U/s 88E or Relief U/s 89. (explain the heads)
- Keeping it as total tax, now deduct the TDS made till last month from it.
- Divide the net TDS by “Remaining number of months in the FY, including current month”.
- Deduct this amount from employees Salary
Non Salaries:
A deductor accordingly, should follow the below points while making/preparing each payment.
- Categorizing each payment to relevant “type of Payment” or “Section”.
- Check that the payment is not a payment is being done to Government, Reserve Bank, certain corporations established under Central Act, or Mutual Funds. [comes under Section 196]
- Refer the Threshold limit for such section or Type of Payment.
- Refer the Rate of Tax
- Check the Assessee [party] has not submitted his declaration under Section 197A for non-deduction of TDS. [Only for payment of Interest (Securities and Other than securities), Dividends and Interest on NSC, Viz: sections 194, 194A, 193, 194EE]
- Check the Assessee [party] has not submitted a certificate by Assessing Officer under Section 197 for non-deduction of TDS or deduction at a Lower Rate.
- Check the relevant rate of TDS under respective type of payment [sections 193 to 196]
- Get the effective rate TDS, including Surcharge and Cess [if any].
- Deduct the amount as per the effective rate of TDS from the amount being paid.
