Archive for the ‘FVU 3.2’ Category
FVU 3.2 : Key Changes
In quick succession , NSDL has released new FVU version 3.2 for FY 2010-11 and FVU 2.130 for prior years.
FVU version 3.1 was released on March 18,2011. Details can be viewed in our blog http://blog.ffcs.in/2011/03/21/new-validations-fvu-3-1/
Based on user feedback, the present FVU has been launched
The key changes vis-à-vis FVU 3.1 are described below
Rounding Off problem leading to T-FV-4278 Error
In our earlier blog Fast Facts Bulletin had mentioned how rounding off to nearest rupee was resulting in validation error T-4278. http://blog.ffcs.in/2011/04/27/fvu-3-1-tds-rounding-off-validation/
This problem was reported to NSDL and Income-tax department and now stands resolved in FVU 3.2
Reporting Transactions below threshold
Transaction below threshold limit must have : “Y” in the column “Reason for non deduction /lower deduction” , 0.00 as rate of Deduction, 0.00 as Amount Deducted, 0.00 as Amount Deposited
Deductor has option to report such transactions
- The new guidelines issued by Directorate of Income Tax – Systems state the words “..if deductor wishes to report ……”
- Hence it is clear that user has the option to report transaction below threshold limit
Deductor can adopt one of three approaches to show such transactions
n FVU 3.1 only one method of showing such transaction was given. Now there are three different ways such transactions can be shown. For ease of explanation,we will use the following abbreviations :
TBT : Transaction below threshold
TCT : Transaction crossing threshold
Approach 1
- Show TBT and TCT in the same quarter in which payment is made / amount is credited
Approach 2
- Show TBT in the quarter in which related TBC is shown and TBT to be shows with Rate 0 and Date of deduction blank
Approach 3
- Show TBT in the quarter in which related TBC is shown and TBT to be shows with Applicable Rate and Date of deduction as date of TBC
Example
Interest paid in Q1, Q2 and Q3. Threshold crossed in Q3
| Date of Payment | Amount Paid | Rate | Date of Deduction | Tds Amount | Flag | To be Shown in | Approach |
|
01/04/2010 |
1000 |
0 |
0 |
Y | Q1 |
Approach 1 |
|
|
01/07/2010 |
1000 |
0 |
0 |
Y | Q2 | ||
|
01/10/2010 |
4000 |
15 |
01/10/2010 |
600 |
Q3 | ||
|
01/04/2010 |
1000 |
0 |
0 |
Y | Q3 |
Approach 2 |
|
|
01/07/2010 |
1000 |
0 |
0 |
Y | Q3 | ||
|
01/10/2010 |
4000 |
15 |
01/10/2010 |
600 |
Q3 | ||
|
01/04/2010 |
1000 |
10 |
01/10/2010 |
100 |
Y | Q3 |
Approach 3 |
|
01/07/2010 |
1000 |
10 |
01/10/2010 |
100 |
Y | Q3 | |
|
01/10/2010 |
4000 |
10 |
01/10/2010 |
400 |
Q3 |
View point by Fast Facts
In our view, such important and far reaching changes must be announced for Q1 and not in Q4.
This will create confusion for deductors about treatment of TBT and TCT transaction already shown in Q1 , Q2 and Q3
