Gsoftnet

Additional D.A. from July-2015 may hike 5 to 6 Percent.

By the issued Press Release of Consumer Price Index for Industrial Workers of April-2015 on 29th May, 2015. The All-India CPI-IW for April, 2015 increased by 2 points and pegged at 256 (two hundred and fifty six). On 1-month percentage change, it increased by (+) 0.79 per cent between March, 2015 and April, 2015 when compared with the increase of (+) 1.26 per cent between the same two months a year ago..

As per the Index AICPIN Value the Additional Dearness Allowance will be hike by 6% from July-2015 i.e. 116%

How Dearness Allowance is calculated ?

Month Year /  CPI(IW) BY 2001=100 / Total / Average / App. DA / DA%

First is the month and year. Then the CPI (IW) Base Year 2001=100 and the relevant data. In the next column, you have the sum total of all the 12  months, i.e., the total of the declared AIPCIN numbers for the past 12 months. Next comes the division of the sum total by 12.

The next step is the most crucial one. You will have to find out by how much it exceeds 115.76. You will have to calculate the excess as percentage of 115.76.

(12 Monthly Average) – 115.76
-------------------------------------- X  100 = Percentage increase in prices
            115.76

Three Simple Steps for Tax Deductors to follow and Important Information regarding TDS Certificates.

Below are the three simple steps for Tax Deductors to follow in case of TDS and TCS:

1. Deduct

  1. Correct TDS while making payment as required by law
  2. Deduct tax at higher rate in case valid and correct PAN of deductee is not available with you

Failure to deduct /collect tax at source shall result in penalty equal to the amount of tax failed to be deducted/collected.

2. Deposit

i) Non Government Deductors to deposit:

The tax deducted within 7 days from the end of the month in which deduction was made and by 30th April, 2015 where deduction (Other than deduction u/s 194IA) was made in the month of March, 2015.

ii) Government Deductors to deposit:

The tax deducted at source on the same day in case of book transfer & by 7th of the following month if using challan

Non-deposit of tax deducted / collected to the Government account shall invite Prosecution.

3. Issue

TDS certificate in Form 16A on income other than salary for the quarter ended on 31st March, 2015 by 30th May, 2015

TDS certificate in Form 16 for the financial year ended on 31st March, 2015 by 31st May, 2015

Delay in issue of TDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding amount of tax deductible/collectible.

Important Information for Deductors regarding TDS Certificates

Below are the important information regarding TDS Certificates which deductors should take care of:
Deductors who have deducted TDS and have not deposited the same by the due date, must do so immediately.

  • All deductors must register themselves at https://www.tdscpc.gov.in (TRACES Portal)
  • TDS certificate in Form 16A and part A of Form 16, containing 7 character TDS certificate number, has to be mandatorily downloaded from https://www.tdscpc.gov.in
  • TDS certificate cannot be downloaded from TRACES Portal in case of non/incorrect quoting of PAN
  • Quote correctly PAN of the deductee so that they get their due tax credit
  • Quote correctly CIN of challan to avoid any short payment default
  • Deductors need to first close short payment default, if any, to download TDS certificates

Visit www.tdscpc.gov.in for:

  • e-Tutorials
  • Frequently Asked Questions (FAQs)
  • Online correction of statements


Source: www.tdsman.com

Due Date to issue TDS Certificates (Form-16 or 16A) is 30th & 31st May, 2015 Respectively to avoid Penalties.

As per the circular of CBDT, due date to issue TDS certificates i.e. Form-16 or Form-16A is 30th May or 31st May, 2015 for the Financial Year 2014-15 to avoid penalties.

Last date for issuance of TDS certificates for Q4 of Fin.Year 2014-15 are as under:
  1. Form 16A (Non Salary) - 30th May 2015
  2. Form 16 (Salary) - 31st May 2015

Delay in issue of TDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding amount of tax deductible/collectible.

Consequences of TDS defaults
Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit):

Default/ Failure
Section
Nature of Demand
Quantum of demand or penalty
Failure to deduct tax at source
201(1)
Tax demand
Equal to tax amount deductible but not deducted
201(1A)
Interest
@1 % p.m. of tax deductible
271C
Penalty
Equal amount of tax deductible but not deducted
Failure to deposit tax at source
201(1)
Tax demand
Equal to tax amount not deposited
201(1A)
Interest
@1.5% p.m. of tax not deducted
276B
Prosecution
Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine
Failure to apply for TAN No. u/s 203A
272BB
Penalty
Rs. 10000
Failure to furnish prescribed statements u/s 200(3)
272A(2)(k)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to issue TDS certificate u/s 203
272(A)(g)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount.
Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)
272(A)(i)
Penalty
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
Failure to mention PAN of the deductee in the TDS statements and certificates
272B
Penalty
Rs. 10000


If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.

Source: www.tdsman.com

Income Tax Calculator for Fin. Year 2015-16 (Salaries).

Recently, Mr. Vijaykumar has developed Income Tax Calculator for Fin. Year 2015-16 for Salaried Employee on Monthly Salary Basis. This utility for salaried individuals to compute Income Tax on salaries in simple way.  

Efficient tax planning enables you to reduce tax liability to the minimum. This is done by legitimately taking advantage of all tax exemptions, deductions & rebates. Tax Planning is NOT tax evasion which is illegal under laws. It involves planning of income & investments. Tax Planning can be practiced easily. Often staff gives estimated declaration at FY starting to minimize tax liabilities but could not save till FY end; and faces burden in last months. Better start investing from the beginning of FY to get interest & appreciation from April.

Tax deduction on monthly basis (employer's corner): Normally employer estimates total income of employee & calculates I-Tax, estimated tax is to be divided by 12 months & avg tax from monthly salary is to be deducted. Hence raise saving plans in advance considering the pay hike & send the correct proofs to payroll. Ensure the document delivery within the pay roll's time frame.


If employee resigns: An employee resigns or otherwise leaves the service, only the salary due and payable up to the date on which he leaves service shall be considered and tax shall not be deducted from the future salary.

Download Income Tax Calculator FY 2015-16

Things to note before you deduct TDS from 1st June.

Amendments.. Amendments in our Indian Tax Laws… these days we encounter it very frequently. Till the time we understand the law properly… law changes. Though coping up with the amendments is very difficult but now, it has become an integral part of our tax life.   images

Throughout the financial year, we come across various amendments. It is to note that occasionally we even miss out few either due to unawareness or due to misunderstanding of its effective date. Sometimes we desire these amendments and sometimes we are forcefully made to desire it.

Till now, you must be aware of new service tax rate getting effective from 1st June, 2015. Today, we are here, again to lay out some amendments that will be effective from 1st June, 2015. These are related to TDS/ TCS.

Things to note before you deduct TDS from 1st June:
1. Section 192- TDS from Salary
   The employer has to obtain evidence or proof or particulars of prescribed claims (including claim for set-off of loss) in such manner and form prescribed.

2. Section 192A- TDS from amount paid from Recognized Provident Fund
   The trustees of the Employees’ Provident Fund authorized to make payment of accumulated balance due to employees shall deduct tax @10 per cent. No tax shall be deducted where aggregate amount of such payment due to payee is less that Rs. 30,000.
   Note: Form No. 15G/15H available for non deduction. Deduct tax at the Marginal Rate if no PAN furnished.

3. TDS from interest (other than interest on securities)–Section 194A- TDS from Recurring deposit-TDS from deposit in cooperative Banks- Interest from all branches of a Bank is to be considered to check cut off amount of Rs 10000.

4. Section 194C- TDS on payment to contractor or sub-contractor

Till 31st May- If recipient is a transport operator and he furnishes PAN to the deductor then TDS is not to be deducted. Such deductors will be required to intimate PAN details to the Income tax Department in the prescribed format.

From 1st June- Only transport operators who owns ten or less goods carriages at any time during the financial year is allowed for such exemption. Transport operator has to furnish a declaration to this effect to the person paying him to get such exemption.

5. Section 203A- Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons.

6. Section 206CB- Processing of TCS statements on the same lines as TDS statements.

7. Sections 194DA and 197A- Self-declaration in the prescribed Form No. 15G/15H made applicable.

8. Section 194LD- Concessional rate of tax on Interest on certain bonds and Government securities earned by FIIs is proposed to be extended up to 30th June 2017.

9. Sections 195 and 271- The obligation to furnish Form 15CA (also Form 15CB) will have to be complied with.

If the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information then penalty of Rs. 100000 shall b levied.

Thorough up these amendments as these are effective from 1st June, 2015.

Source: www.taxmantra.com

How to download Form 16/16A from TRACES ? FAQs.

Recently, we observed that many TDS Deductors can't download TDS Certificate i.e. Form-16 or Form-16A from TRACES only due to not understanding the procedure.  Therefore, TRACES can placed some questions to solve that difficulties, which are as under :

How can I request for Form 16 / 16A?
Login to TRACES as deductor and submit download request for Form 16 / 16A under ‘Downloads’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.

Text file will be provided containing details of all requested PANs. User must convert this text file to PDF using ‘TRACES PDF Generation Utility’. This utility will convert the text file into individual PDFs for each PAN. Deductor can also opt to digitally sign the PDFs while converting.

Can deductor download Form 16 without being registered on TRACES?
No, only registered user (deductor) on TRACES can download Form 16 / 16A.

I have submitted download request for Form 16 for all employees. All forms have been successfully downloaded except one. What should I do?
Form 16 is generated only for valid PAN. In case of invalid PAN or if the PAN is not reported in TDS statement, Form 16 will not be generated.

While submitting request to download Form 16 / 16A, deductor has entered details correctly in Part 1 and Part 2 in validation details screen, yet it shows error as 'Invalid Details' in Part 1 and Part 2. What should deductor do?
Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement..

Is there any data downloading limit for Form 16 / 16A?
There is no such limit.

I am unable to download Form 16 / 16A as the number of PANs for which Form 16 / 16A were submitted was higher, however the PDFs generated were less. What should I do?
Check the status of the PANs for which Form 16 / 16A has not been generated. These PANs might be with inactive status or not present in the TDS statement filed.

What is the password for opening Form 16 / 16A text file?
The password for opening Form 16 / 16A will be your TAN in capital letters, i.e., AAAA11111A.

Registered user on TRACES has updated the communication and address details on TRACES. However while downloading Form 16A, it shows a different address. How can deductor edit address details in Form 16A?
Details updated in 'Profile' section of your TRACES account will be saved only in TRACES and will not be updated in TAN database. To change details in TAN database, submit TAN change request form (Form 49B) at www.tin-nsdl.com.

CBDT issues Circular for Early & Satisfactory Resolution of Taxpayers’ Grievances

The Income Tax Department has taken note of grievances of taxpayers arising on account of outstanding tax demand which may be inaccurate due to non-reporting or delayed reporting of TDS by deductors leading to mismatch between the claim and data available with the Department, non-posting of challans, non-disposal of rectification applications, incorrect details of income or pre-paid taxes reported by taxpayer etc.

In order to swiftly and accurately resolve such grievances, the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance has issued a comprehensive Circular No. 8 of 2015 dated 14.05.2015 which is available on the websites of the Department http://www.incometaxindia.gov.in & www.incometaxindiaefiling.gov.in. The Circular explains the various steps to be taken by the taxpayers to view and submit their response with regard to their outstanding tax demand. The Circular elucidates the range of facilities available and the responsibilities of the Assessing officers to verify and take corrective actions. Demand up to Rs. 1,00,000/- for an Assessment year in case of an Individual or HUF which has already been paid but is shown as outstanding due to mis-match etc. can be rectified on the basis of evidence of tax paid as submitted by the taxpayer.

The taxpayers may view their outstanding tax demand on their e-filing account at www.incometaxindiaefiling.gov.in and follow the steps elucidated in the Circular to submit their response either agreeing with or disputing the demand.

The Income Tax Department is committed to early and satisfactory resolution of taxpayers’ grievances. About 95% of entries of Demand involve demand up to Rs. 1 lakh and about 90 % of such assessees are Individuals and HUFs. It is expected that majority of the grievances of small taxpayers can be redressed by following the procedure prescribed in the circular.


Updated New ITR Form ITR-1, ITR-2, ITR-4S with Acknowledgment and New Instructions for Asstt. Year 2015-16

Income Tax Department has been released New Income Tax Return Form ITR-1, ITR-2, ITR-4S vide Notification 41/2015 dated 15.04.2015 in ".PDF" format for offline Income Tax Return Filing and by this Notification CBDT mandates e-filing for Individuals & HUFs who are claiming Income Tax Refund and for ordinarily residents earning overseas income.

Download Updated New Income Tax return Form Asstt. Year 2015-16 from below Link.

1. Income Tax return form SAHAJ ITR-1 (INSTRUCTIONS)
4. ITR-V (Acknowledgement)

There are a few diffrences in old ITR and New ITR forms which is applicable for Asstt. Year 2015-16.  The details regarding ITR form we will inform you soon before this you must check all the above forms and send us your comments, suggestions, views and quries by email to gsoftnet@rediffmail.com or give comments in comment section below.

Change in Service Tax Rate will effect on expesnes from 1st June, 2015.

Recently, Department of Revenue has been issued a notification about change in service Tax Rate i.e. 14% w.e.f. 1st June, 2015. This new rate of service tax i.e., 14% definately increases expenses from 1st June.  The detailsed Notification is as under:

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

NOTIFICATION

New Delhi, the 19th May, 2015
No. 14/2015-Service Tax

G.S.R. ---(E).- In exercise of the powers conferred by clauses (a), (c) and (f) of section 107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the Finance Act, 2015 (No. 20 of 2015), the Central Government hereby appoints the 1st day of June, 2015 as the date on which the provisions of clauses (a), (c) and (f) of section 107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the said Act shall come into force.

[F.No. 334/5/2015 - TRU]

(Akshay Joshi)
Under Secretary to the Government of India

Important Information - TDS Return - Resons to reject the correction in Salary Details and Deductee Records by TDS (CPC).

Recently TDS (CPC) has clarify that reasons to reject the correction in salary detail records and Reasons to reject the correction in deductee records are as follows respectively:

Rejection reasons pertaining to salary details are as follows:

  • In case of salary detail PAN update or delete of salary detail record, last total gross income should match with corresponding value in regular / previous statement
  • Salary detail record on which correction is filed does not exist in the regular / previous return
  • In case of addition of salary detail record, the record number should be unique and in sequence with the existing records in regular / previous return.

Rejection reasons pertaining to deductee details are as follows:

  • In a correction statement that updates / deletes deductee rows, verification keys from deductee data that should match with corresponding fields in regular / previous return are – Last PAN, Last total amount deducted at source, Last total amount deposited
  • Updation / deletion on deductee record is submitted in a correction statement but this deductee record does not exist in previous/ regular return
  • Valid PAN to invalid PAN update is not allowed for a deductee row
  • Deductee detail record number should be unique in case of addition of deductees
  • If value of Reason for non-deduction / lower deduction / higher deduction / threshold field as per regular or last correction statement is ‘C’ , then update can be performed only on ‘PAN’, ‘Amount of Payment’ and ‘Date of Payment’
  • Deletion of deductee record having value C in Reason for non-deduction / lower deduction/ higher deduction / threshold field, is not allowed
  • Valid PAN to another valid PAN update can be done only once for a given deductee row.


Source: www.tdsman.com

Don't misuse Forms 15G, 15H to avoid TDS

Imprisonment and fines await those who wrongly file the two forms to avoid tax on interest income.

Getting a tax refund can be cumbersome as delays by the Income Tax Department are common. It makes sense to plan your taxes at the beginning of the year, to avoid overpayment and the refund process. Submitting investment declaration with your employer on time and filling form 15G15H will save you half the hassles. However, you cannot randomly submit forms 15G and 15H.

If your interest income exceeds `10,000 a year, the bank will deduct 10% tax at source.If you do not furnish PAN details, the TDS rate will be higher at 20%. However, you can submit a Form 15G and 15H to avoid TDS on interest income. While Form 15G is for Indian residents below 60 years of age, HUFs and trusts, Form 15H is for those above 60.

The repercussions of wrong filing is stiff.A false or wrong declaration in Form 15G attracts penalty under Section 277 of the Income Tax Act. "Prosecution includes imprisonment ranging from three months to two years, and a fine. The term can be extended to seven years and fine, where tax sought to be evaded exceeds `25 lakh," says Sudhir Kaushik, CA and CFO, Taxspanner.Keep in mind the following points.

Eligibility:

The basic conditions for filing 15G are--the final tax on estimated total income computed as per the Income Tax Act should be nil; and, the aggregate of the interest (excluding interest earned on securities) received during the financial year should not exceed the basic exemption slab of `2.5 lakh. If these criteria are met, you can submit Form 15G and the entire interest income would be credited without any tax cut.

You need to meet both criteria. Even if the interest income is less than the basic exemption allowed during that financial year, but your total tax liability is not nil, you will not be eligible for filing Form 15G. The reverse is also true. Say your income is `4 lakh, of which `3 lakh is earned as interest from the bank. You might invest `1.5 lakh in PPF and be out of the tax net, but you are not eligible for Form 15G as though your tax liability is zero, the interest income is high er than the basic exemption of `2 lakh. The refund route is your only recourse.

Form 15H can be only filed by individuals above 60. This form imposes only the first condition--the final tax on the investor's estimated total income should be nil. So, if you are above 60, your taxable income for the financial year can be up to `3 lakh for you to be eligible for 15H. For super senior citizens above 80 years, this limit is `5 lakh.

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

How to file your Income Tax Return for Asstt. Year 2015-16 ? and Advantages & Disadvantages of Income Tax Return Filing.

Income Tax Return Filing is not mandatory whose income below Rs. 250000/-.  Apart from this if you have pan card must file income Tax Return before due date, evenif your Taxable Income is less than Rs. 250000/-.  

Heads of Income :

Salaries & Perquisites :  Salary and allowance (House Rental Allowance, Hardship allowance) and benefits (such as Rent free accommodation, car, stock options etc.) provided by employer either free or at a concessional rate.

Income from House Property : Rental income from House Property.

Profits & Gains of business or profession : Business Income
.
Capital Gains : Profit/loss on sale of shares, mutual funds, Property etc.

Income from other sources : Interest on fixed deposit, dividend, Gifts etc. 

Allowable Deductions :

  • Professional Tax levied State govt. from salary is deducted,
  • Transport allowance is deducted from salary upto Rs. 800/- per month,
  • Children education allowance is deducted from salary upto Rs.100/- per month per child,
  • Insurance Premium u/s 80C up to 1 lac,
  • Payment of medical insurance premium. Deduction is available upto Rs.15,000/ for self/ family and also up to Rs. 15,000/- for insurance in respect of parent/ parents of the assesse,
  • Donation to certain funds, charitable institutions u/s 80G,
  • Deduction of up to Rs.10,000/- for interest on savings bank account or post office savings account,
  • Rebate of Rs. 2000/- is available if Total income is less than Rs. 5 lacs

Deductions for Housing Loan:
For Principal Repayment:

  • Deduction of Rs. 1 lac u/s 80C is allowed on Payment Basis if construction of house property is completed.

For Interest on loan:

  • If Property is constructed/bought within 3 years then For self occupied Property : upto Rs. 2 lacs, For Let out Property: No limit,
  • If Property not constructed/bought within 3 years thenDeduction upto Rs. 30,000/- only.
  • Pre-construction interest is allowed after completion in 5 equal installments without any limit.

Clubbing of Income
Concept of joint filing of tax return does not exist.

There exists clubbing provisions for income of minor children and spouse in certain circumstances.

Salary earned by spouse :  Spouse salary from a concern where individual has a substantial interest ( > 20% stake)- Salary due to technical/professional expertise excluded).
Transfer of asset to spouse : Transfer of asset to spouse for inadequate consideration or otherwise than in connection with an agreement to live apart.
All Income of minor child : Exclusion available for manual work and Activities involving application of skills

Modes of tax payment
Withholding Tax

  • Tax to be withheld from the remuneration paid by the employer even after departure if income exceeds maximum threshold limit not chargeable to tax .
  • Annual certificate to be issued by the employer for salary and benefits.
  • Withholding at prescribed rates on personal income.

Advance Tax

  • Advance tax payable on
  • other income, where it is liable to tax in India. (Tax Limit INR 10,000)
  • Advance tax payable on personal income in three installments
  • 30 per cent by 15 September
  • 60 per cent by 15 December
  • 100 per cent by 15 March

Income Tax slab for individuals (Click Here)

Advantages and Disadvantages of filing Return.

  • Return filing is mandatory for getting any loan,
  • Return filing is mandatory for getting VISA,
  • For getting Credit Card,
  • Standard proof of income,
  • For quick registration of immovable properties,

Disadvantages of filing Return. If Return is not filed

  • Penalty of Rs. 5000/- will be levied & also interest u/s 234A is required to be paid,
  • Losses can not be carried forward to next year,
  • No Revise Return can be filed,
  • Interest upto 1% per month will be levied.

Don't wait for the Last moment to submit TDS Statement for Q4 for Fin. Year 2014-15.

Recently, CPC (TDS) has issued an advisory communication to all deductors stating that they should not wait for the last moment to submit their TDS statements for 4th quarter of Financial Year 2014-15. The issued communication has been given below:

Dear Deductor,

As you may be aware, the due date (May 15, 2015) for filing of TDS statements for Q4, Financial Year 2014-15 is approaching fast and therefore, CPC (TDS) is reaching out to you to ensure that best practices are followed in exercise of the above activity.

Key information to note:

  • CPC (TDS) emphasizes timely, correct and complete reporting for taxes deducted at source, to ensure that the deductees have correct TDS Credits to claim.
  • CPC (TDS) informs you of possible PAN Errors and Short Payment Defaults through an Intermediate Communication on filing of Original TDS Statements. The above can be corrected by using Online Correction facility at TRACES after waiting for 24 hours on receipt of above communication. You are, therefore, requested to file your TDS Statements well in advance to correct above errors, ensure timely processing and avoid defaults.
  • Short Payment Defaults ought to be closed at the time of submitting requests to download TDS Certificates from the web portal TRACES.

Timely Reporting:

  • The due dates to file TDS statements for Q4, FY 2014-15 and to distribute TDS Certificates are May 15 and 30, 2015 respectively.
  • Please submit the statement well before the due date to facilitate processing of TDS Statements and availability of TDS Certificate, in advance of the applicable due dates.
  • Please do not wait for the last moment to avoid any delays and levy of 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, AIN details in case of Government deductors and other particulars of deduction of tax correctly in the quarterly TDS statement.
  • For claiming lower rate of tax under DTAA, please mention correct Country Code and Nature of Remittance in form 27Q of TDS Statements.
  • Please use 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.
  • Correct details with respect to Challans/ BINs must be reported to avoid mismatches resulting into Short Payment defaults in TDS Statements.

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.
  • Completeness of statement will ensure that a C4, 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 ensure to complete Annexure II for all deductees employed (Form 24Q) for any period of time during the current financial year, including Annexure I for TDS details. Incomplete reporting in Annexure II results into Short Deduction Defaults and unavailability of TDS Certificates for missing deductee rows.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Source: TRACES

Be careful while submitting TDS/TCS Returns - Common Errors

This is the important part to avoid common mistakes, while TDS Return (Statement).  If the TDS Statements are filed with following common mistakes you may cause the penalty or interest or default notices by Income Tax Department, therefore must read carefully the following common Errors in TDS Returns:

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:
  • Correct Format 1111AA111A;
  • 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:

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

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

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

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
220420.00
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)

Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana Details.

Friends,  Indian Government has started good general / life policies in the interest of Indian.  Name of the schemes are given below :-

  • Pradhan Mantri Suraksha Bima Yojana 
  • Pradhan Mantri Jeevan Jyoti Bima Yojana 
  • Atal Pension Yojana 

Sometime we feel that different  policy providers force us to take policy by hook or crook and  and we feel  frustration to view the different thoughts of the policy providers.   Everyone present their policies with new idea which creates great confusion for a general person.   Their main aim is to collect maximum money from Individual  and get maximum commision from insurance company. Nobody wants to insure anyone. 

But now Indian Government has started above policy in the interest of  Individuals.   When we check its benefit it is totally surprise.   Payment is less than Rs. 1.00 per day and sum assured is 4 Lakh.  

State Bank of India has also provided online facility to apply the above policy to those who are using internet banking facility.   There is no need to go anywhere, amount of premium will be deducted automatically from Saving Account as auto-debit facility. 

Name of main website of above scheme is  http://www.pmjdy.gov.in/

Suraksha Bima

  • For all Bank account holders whose age is between 18 to 70 years.
  • Insurance amount can also be availed if in a handicapped state.
  • Accident insurance worth Rs. 2 lacs at just Rs. 12 per annum.

Period of Insurance 

  • Annual : 1st June - 31st May
  • The premium will be deducted from the account holder's saving bank account through 'auto debit' facility.
  • The person would be eligible to join the scheme through one saving bank account only.

Jeevan Jyoti Bima

  • For all Bank account holders whose age is between 18 to 50 years.
  • Life Insurance amount for your family, in your absence.
  • Life insurance worth Rs. 2 lacs at just Rs. 330 per annum.

Period of Insurance 

  • Annual : 1st June - 31st May
  • The premium will be deducted from the account holder's saving bank account through 'auto debit' facility.
  • The person would be eligible to join the scheme through one saving bank account only.

Pension Scheme

  • For all Bank account holders whose age is between 18 to 40 years.

Period of Insurance

  • Annual : 1st June - 31st May
  • The premium will be deducted from the account holder's saving bank account through 'auto debit' facility.
  • The person would be eligible to join the scheme through one saving bank account only.


Source: TDSTAXINDIA.com