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For March 2011 deposit TDS before April 30, 2011
Today is April 7 and as a deductor you must be planning to deposit TDS for all payments made during March 2011. Hold ! the rule has been changed and now the last date of deposit for such transactions is April 30.
For non government deductors , earlier tds on all payments made during March was to be deposited before 7th of April. For all provisional entries credited on 31st March, the last date of deposit was 31st May.
The amended rule does not distinguish between payment entries and provisional entries and the last date of deposit for all such entries is April 30
Notification 41/2010 dated 31.05.2010
Above Notification amended rules pertaining to deposit of tax, issue of tds certificate and filing of eTDS statement.
The above amendment was explained in detail in our Bulletin of June 1010. The same can be viewed by clicking the following link
http://fastfacts.co.in/bulletin/FFB_Jun10.pdf
The relevant extract of amended Rule 30 is reproduced below
30.
(1) All sums deducted in accordance with the provisions of Chapter XVII‐B by an office of the Government shall be paid to the credit of the Central Government ‐ (a) on the same day where the tax is paid without production of an income‐tax challan; and (b) on or before seven days from the end of the month in which the deduction is made or income‐tax is due under sub‐section (1A) of section 192, where tax is paid accompanied by an income‐tax challan.
(2) All sums deducted in accordance with the provisions of Chapter XVII‐B by deductors other than an office of the Government shall be paid to the credit of the Central Government ‐ (a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and (b) in any other case, on or before seven days from the end of the month in which‐ (i) the deduction is made; or (ii) income‐tax is due under sub‐section (1A) of section 192.
New Validations : FVU 3.1
NSDL has released FVU version 3.1 and FVU version 2.130 on March 18,2011
- FVU version 3.1 is applicable for statements for the Financial Year 2010-11 and onwards
- FVU version 2.130 is applicable for statements for the Financial Year upto 2009-10
New Validations
Separate flag for TDS transaction below threshold limit
- Tax is not to be deducted in case amount paid/ payable to a deductee is below prescribed threshold limit. Example : For Professional Fees threshold limit is Rs. 30,000.
- However, when payment subsequently exceeds threshold limit, tax has to be deducted on the past payments made without tax deduction also
Example :
10-04-2010 Professional Fees to ABC Consultants Rs. 20,000 No TDS
10-05-2010 Professional Fees to ABC Consultants Rs. 5,000 No TDS
10-09-2010 Professional Fees to ABC Consultants Rs. 15,000 TDS to be Deducted on 40,000
- Earlier there were no clear guidelines for reporting such transactions below threshold. Some deductors were reporting such transactions in statements , others were not. Those who reported such transaction, received notice from income tax department citing this as case of short-deduction.
- To remove such confusion , now it is required to report such transaction.
- 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
- Transaction where threshold limit is crossed and tax is deducted on past transactions also, rate has to be adjusted to show correct TDS amount. In the above example, it will be show as below
10-09-2010 Professional Fees to ABC Consultants Rs. 15,000 TDS to be Deducted on 40,000
TDS on Rs. 40,000 @ 10% = Rs. 4000
TDS Rate = 4000/15000 = 26.67%
New Fields
- Mandatory to quote Mobile No. for deductor category other than Central govt. and State Govt.
- Re-introduction of PAN reference no. field in deductee/collectee details. Value quoted PAN reference no. (Last PAN reference no.) will not be considered as verification key
New Validations and additions in Form 24Q – Q4
- Provision to quote the deduction under section 80CCF in salary details (applicable for 24Q Q4).
- Surcharge’ amount in salary details should be less than or equal to ‘Total Taxable Income’.
- ‘Education cess’ amount in salary details should be less than or equal to ‘Total Taxable Income’.
- ‘Net Income tax payable’ amount in salary details should be less than or equal to ‘Total Taxable Income’.
Changes in Correction Statements
- Mandatory to provide section code irrespective of challan update.
- Book entry flag to be provided in C5 correction (deductee/ collectee PAN update).
Acceptance of e-TDS/TCS statements in Pen Drive:
- As of now, deductor has to submit eTDS statement on CD. That too must contain only one eTDS Statement.
- Now it is possible to submit eTDS Statement in a Pen Drive.
- The pen drive may contain multiple eTDS Statements
- The TIN-FC will return the Pen Drive after accepting the statements
