TRACES - Best practices to be followed for filing Q4 TDS statements for Financial Year 2013-14

Communication 47 dated 10th May, 2014

CPC (TDS) Reminder: Best practices to be followed for filing Q4 TDS statements for Financial Year 2013-14

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.

·         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 for all deductees employed for any period of time during the current financial year, including Annexure I for TDS details.

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Source: TRACES.