TRACES - Reminder for raising Flag "B" in TDS Quarterly Statements against 15G/H Forms for FY 2013-14

CPC (TDS) reminder for raising Flag "B" in TDS Quarterly Statements against 15G/H Forms for FY 2013-14

           

Communication Number 65 dated 06th August, 2014

As you may be aware that the depositors submit form 15G/H to the bank for no deduction of tax to be made on the interest payments made to them.

However, it has been observed in your case that you have not raised Flag 'B'(No deduction on account of 15G/H) even against a single transaction as reported in the TDS Statement(s)(Form 26Q) submitted for various quarters of Financial Year 2013-14.

It is highly improbable that not even a single depositor has submitted form 15G/H to you for non-deduction of tax on the interest payments. Accordingly, you are advised to take the following action:

Actions to be taken:

·         Check the details of 15G/H cases from your source data.

·         Download the Conso File from our portal. Please use the e-tutorial for necessary help.

·         Prepare the correction statement with appropriate changes. Please ensure that the TDS Deposited amount equals the TDS Deducted amount in your correction statement.

·         Submit the Correction Statement at TIN Facilitation Centre.

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Source: TRACES.

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TRACES – Government Deductors for quoting AIN details in the TDS Statements

CPC (TDS) communication to Govt. Deductors for quoting AIN details in the TDS Statements

Communication Number 64 dated 06th August, 2014

As per the records of the Centralized Processing Cell (TDS), it has been observed that the Accounts Office Identification Number (AIN) has not been mentioned in the TDS statements submitted by you.

What is AIN and its relevance:

·         AIN is a unique seven digit number allotted by NSDL, to the Pay and Accounts Office (PAO), District Treasury Office (DTO) or Cheque Drawing and Disbursing Office (CDDO). It is mandatory for the PAO / CDDO / DTO to have an AIN.

Why is AIN important to be quoted in TDS Statement:

·         Quoting of AIN in TDS Statement facilitates complete reporting and results into correct mapping of the TAN with the AIN.

·         The AIN details in Form 24G, filed by the PAO / CDDO / DTO forms part of G-OLTAS database. CPC (TDS) processes TDS statements on the basis of information contained in G-OLTAS.

In view of the above, you are requested to provide AIN details in point 2(b) of the Forms 24Q and 26Q of the TDS Statements.

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Source: TRACES.

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TRACES - Short Payment Defaults in TDS Statements for FY 2013-14

CPC (TDS) communication regarding Short Payment Defaults in TDS Statements for FY 2013-14

Communication Number 63 dated 31st July, 2014

In our endeavor to facilitate improved TDS administration and lower TDS default rates, we are glad to provide information on common mistakes committed by the deductors while submitting TDS statements. These mistakes result into TDS Defaults in the respective statements.

Following are some useful guidelines to avoid common mistakes, while submitting TDS Statements and you are requested to go through the following in detail.

Incorrect reporting of 197 Certificates:

Please refer to the following guidelines for correct reporting of 197 Certificates:

·         The Certificate Number should be of 10 digits with Alpha-numeric structure. Please refer to the following examples:

o   Correct Format 1111AA111A;

o   Incorrect Format: 1111AA111A/194C

·         Certificate Number should be valid during the period for which it is quoted.

·         The Certificate Number should be for the same PAN, Section Code and Section Rate for which it has been mentioned in the statement

·         Threshold limit Amount of the Certificate should not be exceeded.

·         Please ensure that the Certificate is not expired. Please refer to the following illustration:

o   Lower deduction Certificate under section 197, issued in April 2013 (e.g. Certificate Number - 1) stands cancelled by Assessing Officer on 10/11/2013.

o   A fresh certificate Under Section 197 (e.g. Certificate Number - 2) is issued with effect from 11/11/2013.

o   Deductor quotes Certificate Number - 2 against the transactions recorded during the period from 01/11/2013 to 10/11/2013 in Q3 TDS statement.

o   Deductor should have quoted Certificate Number - 1 for the transactions conducted till 10/11/2013.

Common errors resulting into Short Payment Defaults:

·         Typographical errors committed by deductor, in reporting the date '20032014' in the "Tax Deducted" column.

·         Total of "Amount Paid / Credited" reported in the "Tax Deducted" column of the statement. This results into short payment and Deductors need to ensure that the TDS/TCS Deducted/Collected amount should be equal to TDS/TCS Deposited Amount.

The above mistakes are illustrated below:

Amount Paid/ Credited	TDS Deducted	TDS Deposited	Remarks
1,55,000.00	1,55,000.00	15,500.00	Wrong TDS Deducted Amount
2,20,420.00	20032014.00	22042.00	Date mentioned in the TDS Deducted Column

Actions to be taken:

·         CIN Particulars (BSR Code, Date of Deposit and Challan Serial Number) mentioned in the TDS statement should exactly match with the CIN Particulars as available on 'Challan Status' at www.tdscpc.gov. in or 'Challan Status Enquiry' at www.tin-nsdl.com

·         For BIN (Book Identification Number), the particulars (24G receipt number, Date of transfer voucher and DDO Serial Number) mentioned in the TDS statement by the Govt. Deductors should exactly match with the BIN Particulars as available on
'Challan Status' at www.tdscpc.gov. in or 'BIN View' at www.tin-nsdl.com

·         Amount of Tax deposited pertaining to different BIN's/ CIN's should not be clubbed together while reporting in the TDS statements.

·         Few other common mistakes in reporting dates are as follows:

Actual Date of Deposit (As per Challan)	Date of Deposit mentioned in TDS Statement	Observations
07/01/2014 (07th Jan, 2014)	07/01/2013 (07th Jan, 2013)	Wrong Year (2013 instead of 2014)
07/01/2014  (07th Jan, 2014)	01/07/2014 (01st July,2014)	Wrong Date Format (MM/DD/YYYY)

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Source: TRACES.

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TRACES - Short Payment Defaults in TDS Statements for FY 2013-14

CPC (TDS) communication regarding Short Payment Defaults in TDS Statements for FY 2013-14

Communication Number 62 dated 23rd July, 2014

As per the records of Centralized Processing Cell (TDS), there are Short Payment defaults, exceeding Rupees One Lakh, in the TDS Statement(s) submitted for various quarters of Financial Year 2013-14.

The Short Payment default is on account of "Total amount of Tax Deducted" exceeding "Total amount of Tax Deposited", as reported in your TDS Statements. Please refer to the following illustration:

Amount Paid/ Credited	TDS Deducted	TDS Deposited	Remarks
1,55,000.00	1,55,000.00	15,500.00	Wrong TDS Deducted Amount
2,20,420.00	20032014.00	22042.00	Date mentioned in the TDS Deducted Column

Intimation u/s 200A of the Income Tax Act, 1961 intimating the outstanding demand for the relevant quarters towards Short Payment, have already been sent by CPC (TDS) on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement.

Actions to be taken:

·         Download the Justification Report from our portal TRACES to verify above Short Payment demand. Please click here for assistance on downloading the Justification Report.

·         Download the Conso File from our portal. Please use the e-tutorials for necessary help

·         Prepare the correction statement with appropriate changes. Please ensure that the TDS Deposited amount equals the TDS Deducted amount in your correction statement.

·         Submit the Correction Statement at TIN Facilitation Centre.

Source:TRACES.

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TRACES - Payment of outstanding Short Payment Defaults

CPC (TDS) communication for payment of outstanding Short Payment Defaults

Communication Number 61 dated 05th July, 2014

As per the records of the Centralized Processing Cell (TDS), there are outstanding Short Payment Defaults for TDS Statements filed by you, however, the demands have not been paid as yet.

The details of the outstanding demand are as follows:

In this respect, you are requested to take not of the following provisions of the Income Tax Act, 1961:

TAN	Financial Year	Demand Amount
XXXXXXXXXX

Consequences of failure to pay the demand:

In accordance with provisions of section 201(1) of the Act, where any person, including the principal officer of a company, who is required to deduct any sum in accordance with the provisions of the Act; does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall be deemed to be an assessee in default in respect of such tax.

As per the provisions of section 220 of the Act,

·         Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.

·         If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.

·         If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.

·         Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.

·         Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

Actions to be taken at the earliest:

·         Download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance on downloading the Justification Report.

·         Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available.

·         Download the Conso File from our portal. Please use the e-tutorials for necessary help

·         Prepare a Correction Statement using version 3.9 of the Return Preparation Utility (RPU) and version 4.2 & 2.138 of the File Validation Utility (FVU).

·         Submit the Correction Statement at TIN Facilitation Centre.

·         You can also use our Online Corrections facility on TRACES to submit corrections for FY 2013-14 onwards, after payment of the demand.

To avail the facility, please Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. You can refer to our e-tutorials for necessary help

Source: TRACES.

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