- 100% Valid PANs
- Reporting of Transport Contract payments without deduction of TDS
- Flagging penal rate deductions
- Mandatory Contact details of Deductor
- Reporting requirements for Govt Deductors
100% Valid PANs
At present a minimum percentage of valid PAN is mandatory in any eTDS statement. This is 95% for Form 24Q and 85% for others
- All deductee records must have valid PANs. Even deductee records where tax has been deducted at lower/NIL rate must have valid PAN
- Only exception is deductee records where tax has been deducted at higher rate u/s 206AA
- The existing rule of 85% continues
Reporting of Transport Contract payments without deduction of TDS
Finance Act 2009 had made an important change in respect of applicability of TDS on transport contractors. Section 194C was replaced and the following two sub sections provided for non deduction of TDS on transport contractors
(6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
(7) The person responsible for paying or crediting any sum to the person referred to in subsection (6) shall furnish, to the prescribed income-tax authority or the person authorised by it, such particulars, in such form and within such time as may be prescribed.
- In terms of sub section (7), now such transactions are to be reported in regular eTDS statement.
- All such deductions to transport contractors where tax has not been deducted are to be marked “T” in the column Reason for Non-deduction / Lower Deduction, if any in the deductee details
Penal rate deductions
- All deductions where tax has been deducted at hiigher rate in terms of section 206AA are to be marked “C” in the column Reason for Nond eduction / Lower Deduction, if any in the deductee sheet
Such transactions need not have valid PAN.
Amount of payment
Date of payment
Mandatory Contact details of Deductor
In the deductor details , contact details of deductors are provided
- Email-Id of deductor / responsible person is now mandatory
- Field for mobile number of responsible person has been added.
- Any one of the contact details of deductor is mandatory:
Deductor telephone no. along with STD code
Responsible person telephone no. along with STD code
Mobile no. responsible person
Reporting requirements for Govt Deductors
For TDS deposited by book entry, 7 digit number
generated by TIN for accepted Form 24G
statement to be quoted in BSR code field. This
value will be provided by the Accounts Officer to
- For TDS deposited by book entry, 5 digit number
generated by TIN for DDO record of accepted
Form 24G statement will be quoted in Transfer
voucher field. This value will be provided by the
Accounts Officer to the deductor
Form No 27EQ
- Form No 27EQ is to be filed for tax collection at source
- Validation for no/lower/higher deduction will not be applicable for Form no. 27EQ
- PAN compliance validation of 85% will be applicable for Form no. 27EQ
New File Validation Utility : FVU 3.0
- Quarterly e-TDS statements (regular and correction) upto FY 2009-10 should be validated with FVU version 2.129. There is no change in the validations for statements upto F.Y. 2009-10
- Quarterly e-TDS statements (regular and correction) for FY 2010-11 should be validated with FVU version 3.0.
- If statement for Q1 FY 2010-11 is being filed late , does it need to be validated with FVU 3.0 ?
- The answer is Yes. it needs to be validated with FVU version 3.0.
- eTDS Statements are accepted at TIN-Centres by SAM software. Latest SAM will not accept any statement for FY 2010-11 , unless it is validated with FVU 3.0