Archive for the ‘eTDS Correction’ Category
FVU 3.6 : Key Changes Effective October 2012
File Validation Utility version 3.6 has been released on Sept 25, 2012.
Effective Date
- FVU version 3.6 will be mandatory w.e.f October 16, 2012.
- Upto October 15, 2012 FVU version 3.5 and FVU version 3.6 will be applicable.
- This means for Q2 of FY 2012-13, both FVU 3.5 and FVU 3.6 will be accepted, if filed on or before October 15, 2012.
Challan File is now mandatory during validation
- Upto FVU version 3.5 , challan file ( with extension .csi ) was optional. With version 3.6 , this file will be mandatory while validating eTDS file
- The challan file can be downloaded from TIN web site under the link Challan Status Enquiry
- This file will be required only if TDS is deposited through challans. Hence, Govt. deductors who do not use challan for depositing TDS will not be required to provide challan file during validation
- Challan file is required for validating regular statements. For correction statements , it is required only when a new challan is added or existing challan is updated
Changes in Form 24Q : TDS on Salaries
- For Q4 Salary details are to be provided in Form 24Q.
- The exemption limit for senior citizens above age 80 is different from senior citizens above 60 years and upto 80 years.
- A separate flag is now to be given for such senior citizens , appropriately termed as “Super Senior Citizens”
| Description | Senior Citizen | Super Senior Citizen |
| Age | Above 60 but upto 79 years | 80 years and above |
| NIL Rate for income upto | Rs. 2,50,000 | Rs. 5,00,000 |
| Category of Employee in Form 24Q | S | O |
- This categorization is applicable from FY 2011-12 onwards. However, since the eTDS Statements for Q4 2011-12 have already been filed upto May 31, 2012, this requirements may be applicable for those filing delayed statement or filing correction statement
Changes in Form 26Q : TDS on other Payments
- TDS not deducted on software purchases in terms of Notification 21/2012 is now to be reported separately.
- Above notification exempts a deductor from making deduction of tax at source, if software ( without any modifications ) is acquired in a subsequent transfer and tax has been deducted on previous transfer of software. For more details please read
http://blog.ffcs.in/2012/08/14/tds-on-purchase-of-standard-software/
- For this purpose flag “S” is to be mentioned in the field “Reason for NIL/ Lower deduction” for transactions pertaining to section 194J
- This requirement is applicable from FY 2012-13 onwards only
Changes in Form 27Q : Payment to Non – Residents
- TDS not deducted on software purchases in terms of Notification 21/2012 is now to be reported separately.
- Above notification exempts a deductor from making deduction of tax at source, if software ( without any modifications ) is acquired in a subsequent transfer and tax has been deducted on previous transfer of software. For more details please read
http://blog.ffcs.in/2012/08/14/tds-on-purchase-of-standard-software/
- For this purpose flag “S” is to be mentioned in the field “Reason for NIL/ Lower deduction” for transactions pertaining to section 195
- This requirement is applicable from FY 2012-13 onwards only
- Two additional codes are introduced for the following sections
|
Section code |
Section code to be quoted in Quarterly Statement |
Applicable from FY |
Description |
|
194LB |
4LB |
2011-12 |
Interest : infrastructure debt fund |
|
194LC |
4LC |
2012-13 |
Interest : foreign currency loans etc |
Changes in Form 27EQ : Tax Collection at Source
- The following additional codes are prescribed
|
Section code |
Section code to be quoted in Quarterly Statement |
Applicable from FY |
Description |
|
206CJ |
J |
2012-13 |
Minerals |
|
206CK |
K |
2012-13 |
Bullion and Jewellery |
FVU Version 3.3 : Effective Feb 1, 2012
NSDL has released File Validation Utility Version 3.3. The new features of the same are being described in this blog.
What is effective date of FVU 3.3
- FVU 3.3 is effective from Feb 1, 2012
- For Quarter III eTDS filing, both FVU version 3.3 and FVU Version 3.2 can be used.
- Fast Facts recommends filing of Q3 eTDS Statements with FVU Version 3.2 only
Encryption of files
- Files validated with FVU will be encrypted .
- Both regular and correction files will be encrypted.
Regular Statement : Penal Rate Deductee Records
- If deductee record flag contains “C” to indicate penal rate and rate of deduction of less than 20%, a warning will be generated by FVU 3.3 which will contain details of such inconsistent deductee records.
- Change applicable for FY 2010-11 onwards.
Regular Statements : Govt Deductors to quote BIN
- Book Identification Number ( BIN) is applicable only in respect of Government deductors
- BIN can be obtained from
- the respective Pay and Account Office (PAO) / District Treasure Office (DTO)
- TIN Web site by logging into TAN Account
- BIN Consists of
- Seven digit 24G receipt number (provided on successful acceptance of Form 24G statement at TIN central system)
- Five digit DDO serial no. (provided for each DDO transaction in Form 24G statement)
- Date of deposit of Tax
- Government deductors will have to mention the BIN in regular eTDS statements
- Change applicable for FY 2010-11 onwards.
Correction Statements : Deductee records with Flag “C”
- Deductee records with flag “C” indicate deduction at penal rate of 20% in case of deductees not having valid PAN.
- Several deductors filed regular eTDS Statement containing valid PANs and Flag “C”. FVU 3.2 does not allow editing of deductee records with flag “C”
- FVU 3.3 will now allow editing of such records for all fields except the flag “C”
- Change applicable for FY 2010-11 onwards.
Correction Statement : Import of Consolidated FVU
- In order to avoid rejection of correction statement, FVU 3.3 will require consolidated FVU file to be imported before validating correction statement
- Correction statement will also contain Hash Value as per consolidated FVU file – which is used for preparation of correction statement.
- Change applicable for all financial years
FVU 2.131 for FY upto 2009-10
- For validating regular / correction statements pertaining to period upto FY 2009-10 , FVU 2.131 has to be used
- This will be effective Feb 1, 2012
- Correction statements will require import of consolidated fvu file and a hash value will be inserted in output files
- All files validated will be encrypted.
eTDS Correction : Changes effective November 2011
Some of the common reasons why eTDS correction statements are rejected by TIN are :
- If a valid PAN is changed more than once, it is rejected at the TIN.
- PAN though structurally valid but not found in ITD is rejected at the TIN
- If amount deposited is allocated to deductees over two or more quarters and the amount of such allocation exceeds deposit amount
In all the above scenarios the FVU file will be created successfully but the same will be rejected at the TIN central system.
Changes in consolidated statement data structure
To avoid the above types of rejections, NSDL has made changes in the consolidated statement data structure. They are listed below :
- Deductee PAN valid flag : If the PAN is not found in Income Tax Database (ITD) then “N” will be provided under this field
- PAN update counter : If the counter is 2 then no modification of PAN is allowed
- Pending balance : For matched Challan, pending balance is the Challan amount above which the deductor cannot utilize TDS deductions
Fast Facts has incorporated the above changes in its #1 eTDS Correction utility and version 2.95 can be downloaded for the same.
With above changes, the probability of eTDS correction statements getting rejected at TIN will be further minimized.
TAN Registration Number : What to do if it is forgotten or lost
What is a TAN Registration Number( TRN)
- TIN web site provides for registration of TAN by deductor , which is necessary , among other things, for downloading consolidated fvu file, Form 16A text file.
- When a deductor applies for TAN Registration online , a confirmatory email is sent giving 12 digit TAN Registration Number. Example :
“The TAN has been successfully registered on 31th October, 2009. Your registration number is T20098776DAC”
Where is TAN Registration Number needed
- TRN is required to be quoted in all correspondence with NSDL
- The following files are emailed by NSDL / available for download are password protected and the password is TRN
- Reset password
- Form 16A
Hence if TRN is lost, it is not possible to access downloaded Form 16A files
What is the procedure to retrieve TRN
- A written request on the letter head has to be sent to NSDL mentioning name of Deductor, TAN and requesting for retrieving TRN
- The letter should be signed by ‘Managing Director’ or ‘Chief Financial Officer’ or authorized signatory in the organization along with name and designation and should be preferably digitally signed
- If the letter is not digitally signed then one the following support documents will have to be provided
- Board resolution certifying the authorized person list, which includes the name of the authorized person.
- If name of the person is not present in the board resolution then supporting documents from ROC website mentioning name of the authorized person, Power of attorney or any other legal document authorizing the person to sign documents on behalf of the entity
- An undertaking on the letter head owning responsibility in case of misuse of login. Format of the undertaking is given at the end of this post
- Latest copy of Provisional Receipt Number
After receipt of above documents, the TRN will be emailed to the deductor.
Error in challan : New mechanism for correction
Deposit of TDS can be made either electronically or by a physical challan. e-Payment of tax is mandatory for companies and others covered under mandatory tax audit. Several times, while depositing tax, errors may creep in. To rectify these errors, income-tax department has issued new guidelines effective 01-09-2011.
This new mechanism allows Banks to correct physical challans only.For correction in electronic challan, request will have to be made to Assessing Officer.
Correction in Physical Challans
What fields can be corrected by bank
- Assessment Year
- Major Head Code
- Minor Head Code
- TAN/PAN
- Total Amount
- Nature of payment (TDS Codes)
What is the time frame for correction request ?
- Request for correction has to be made within 7 days of deposit of challan for correction in PAN, TAN and Assessment Year
- For Major head, minor head and nature of payment, request can be made within 3 months of deposit of challan.
What is the remedy available after time frame is over ?
- After lapse of time frame, request can be made to the Assessing Officer.
What is the time frame given to bank to carry out correction?
- After receipt of request, bank must carry out the correction within 7 days
What are other conditions for correction ?
- Correction in name is not allowed
- Any combination of correction of Minor Head and Assessment Year together is not allowed
- PAN/TAN correction will be allowed only when the name in the challan
matches with the name as per the new PAN/TAN. - The change of amount will be permitted only on the condition that the
amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account. - For a single challan, correction is allowed only once. However, where 1st
correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields. - There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.
What is the procedure for requesting correction ?
- The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
- The tax-payer has to attach copy of original challan counterfoil.
- In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
- In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual taxpayer is required to be attached with the request form.
- A separate request form is to be submitted for each challan.
Correction in Electronic Challans
- For correction in electronic challans and for correction after the time period for application to bank lapses, a written request in prescribed format has to be made to the Assessing Officer
- Assessing Officer has power to rectify the error , in bona fide cases, to enable credit of tax to assessee
What is form of application to bank ?
income-tax department has given a format in which application can be made to the bank. The form is given in pdf format below
Fast Facts eTDS Correction Software Most Reliable ! It is official !!
We always knew it but now it is official ! NSDL has recently published the “Software vendorwise percentage of correction TDS/TCS statements accepted and rejected at TIN central system for the period October 1, 2009 to December 31, 2010”
The table shows that eTDS Correction utility from Fast Facts has
- Acceptance Percentage : 84%
- Rejection Percentage : 16%
Vendor Wise Statistics
To view the complete table , please click on the following link
http://www.tin-nsdl.com/Software-vendor-stats.asp
We feel that is due to twin factors
- Quality control in software and timely upgrades
- Continueus user training and updates thru our bulletin and blogs
We thank all our clients for making us most reliable eTDS Correction software and hope to get your continued support
Forthcoming changes in eTDS Filing
In a meeting with Software Vendors on Jan 21, 1011, NSDL has outlined the following changes in eTDS Statement filing for the Fourth Quarter filing
Mandatory Mobile Number
It will be mandatory for responsible person to provide mobile number. However Central and State Government deductors need not provide mobile number
Validation on TDS Rate
Currently there is no validation on TDS Rate except that it has to be numeric . Forthcoming validation will check that Amount Paid / Credit * TDS Rate = TDS Amount
If there is a mismatch , a warning error will be given
Deductee record below threshold limit
There is a confusion about reporting of transaction below threshold. In the past, when deductors have reported such transactions, the notice from IT , shows these transaction as short deduction and liable to tax demand. Forthcoming FVU will provide for a flag to show that a deductee record is amount paid/ credit below threshold limit , hence without tax deduction at source
Deductee record where excess tax deducted
On the similar lines, a deductee record where excess tax has been deducted will be shown with a different flag
Editing of Provisionally Booked Challans
If consolidated FVU file is downloaded, then provisionally booked challans will be allowed to be edited
Deduction u/s 80CCF
For the fourth quarter, this new deduction will have to be shown separately in the Salary record of Form 24Q
Making download of consolidated FVU Easier
The recently introduced system of allowing deductors to get consolidated FVU file is being seen as complex by users. Various options being considered by NSDL to make system easier are
- Digital Signture based authorization
- Deductor to choose userlogin & password
- Consolidated FVU file will be uploaded in deductor’s login, since complaints are received that these files are not received through emails
Now get consolidated eTDS file from NSDL
- Non availability of original statement FVU file
- Non availability of updated FVU file after incorporating corrections
NSDL has now started this facility of downloading latest TDS/TCS consolidated statement , incorporating all updates done via correction statements
Pre-requisite for requesting TDS/TCS statement online.
- Online request for TDS/TCS statement can be made only on successful registration of TAN (creating TAN registration account) at TIN website.
- Register TAN online at TIN website. For registering TAN click link ‘Online TAN Registration’
Steps to be followed for placing the request of consolidated TDS/TCS statement
- Login to TAN Registration Account with user id, password and TAN.
- On successful login, under option TDS/TCS, select option “Request- Consolidated TDS/TCS statement”.
- Request for consolidated TDS / TCS statement can be made for your TAN only.
- On clicking the aforementioned option, provide details of statement as below for which consolidated file is required:
- Provisional Receipt Number of regular
- statement
- Form no.
- Quarter
- Financial Year
- On successful validation of the above details, two questions related to the TDS/TCS statement requested will be asked as a part of verification.
- On successful verification of answers to the aforementioned two questions, request number will be generated and the consolidated TDS/TCS statement will be e-mailed to the user on the email ID provided on TAN registration within 24 hours.
- Consolidated TDS/TCS statement will be available only if correct answers are provided to the questions for verification.
- Two attempts within a day will be provided to correctly answer the verification questions.
- In case of two unsuccessful attempts within a day for the same statement, request for such statement can be placed on next day.
- In case of large number of records in the TDS/TCS statement requested, the statement will be split in multiple files owing to restriction of mail size.
- In case TDS/TCS statement is split in multiple files then each file will be sent by separate e-mail.
Using Consolidated TDS/TCS statement for preparing correction statement
Consolidated TDS/TCS statement provided will be
in compressed form.
- Extension of the consolidated TDS/TCS statement will be .tds
- In case of single file, extract the content of the file by providing password to the file.
- In case of multiple files, merge the files using FMU and then extract the contents of the merged file by providing password.
- After extracting the consolidated TDS/TCS statement, import the same in the return preparation utility for making any correction
Conclusion
The facility provided by NSDL will go a long way in
helping deductors file correction statements in
organized and better manner.
The process of registration is simple but considering
security every mail attachment from NSDL comes
with password protection. This will require deductor
to keep track of TAN registration number till it is
activated.
The process of placing request for consolidated
statement , again is little complex for the sake of
security. We placed one request and we were asked
two questions . One was to fill up PAN and deductee
amount in respect of 5 deductees. Second question
was to fill up Challan Sr No , date and amount.
The statement arrived via email within 24 hours as
promised
