Best practices
to be followed for filing Q4 TDS statements for Financial Year 2013-14
Communication 38
dated 10th April, 2014
CPC (TDS) is reaching out to you to
ensure that the best practices are followed for filing of your Q4 TDS
statements. The emphasis is on timely, correct and complete reporting for taxes
deducted at source, to ensure that the deductees are able to correctly claim
TDS Credits and for generating correct TDS Certificates. As the due date for
filing Quarterly TDS statement for 4th quarter is approaching close, you
are requested to take note of following important information before submitting
TDS Statements.
Payment of
Taxes Deducted/ Collected:
·
In accordance with Central
Government Account (Receipts and Payments) Rules, 1983, Government dues are
deemed to have been paid on the date on which the cheque or draft tendered
to the bank, was cleared and entered in the receipt scroll.
·
Rule 125 of Income Tax Rules, 1962
provisions for Electronic Payment of Tax by way of internet banking
facility, for a Company and a Person to whom provisions of Section 44AB of the
Act are applicable.
Timely
Filing:
·
The due date to file TDS Statements
for Q4, FY 2013-14 is 15th May, 2014.
·
Please submit the statement within
due date to avoid Late filing fee, which, being statutory in nature, cannot be
waived.
Correct
Reporting:
·
Please use your correct contact
details, including Contact Number and email IDs in TDS Statements.
·
It is very important to report
correct and valid particulars in respect to deductor and deductees. Please
report the TAN of the deductor, Category (Government / Non-Government) of
the deductor, PAN of the deductees and other particulars of deduction of tax
correctly in the quarterly TDS statement.
·
Please make use of TAN-PAN Master
from TRACES to Validate PAN and name of deductees before quoting it in
TDS statement. Please note that there are restrictions for correction of
PAN.
·
Quote
correct and valid lower rate TDS certificate
in TDS statement wherever the TDS has been deducted at Lower/Nil rate on the
basis of certificate issued by the Assessing Officer. Please raise Flag
"A"/ "B", as appropriate, and quote valid and correct
Certificate Numbers.
·
TDS statement must be filed by quoting
challan(s) validated by CSI (Challan Status Inquiry) File and using correct
Challan Identification Number (CIN)/ Book-entry Identification Number (BIN).
·
Please maintain your correct
Contact details in your Registration profile at TRACES.
Complete
Reporting:
·
Please ensure completeness of
your TDS statement by including all your deductees. Please note that the obligation
to report each transaction correctly in the relevant quarter is on the deductor
and non-compliance amounts to incorrect verification of completeness of TDS
statement.
·
Completeness of statement will
ensure that a C5, C3 or C9 correction can be avoided. It may be noted
that CPC (TDS) does not encourage C9 corrections by addition of a new
challan and underlying deductees.
·
Please also complete Annexure II
(in case of 24Q) for all deductees employed for any period of time during
the current financial year, including Annexure I for TDS details.
Downloading
TDS Certificates from TRACES:
On the basis of information
submitted by the deductor, CPC (TDS) will issue TDS Certificates that can be
correct depending on correct and complete reporting by deductors.
Your attention is invited to CBDT
circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No.
01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at
Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all
deductors to issue TDS certificates after generating and downloading the same
from TRACES.
Please note that under the
provisions of section 203 of the Income Tax Act, 1961 read with rule 31A,
Certificate of tax deducted at source is to be furnished within fifteen (15)
days from the due date for furnishing the statement of tax deducted at
source.
You can logon to our portal TRACES
and refer to our e-tutorials to download TDS Certificates.
Please ensure that data for all
deductees reported in TDS Statements are duly corrected which will help the
deductees in claiming correct TDS Credits, besides generating correct TDS Certificates.
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