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New Validations : FVU 3.1

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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

3 Comments

  1. […] FVU version 3.1 was released on March 18,2011. Details can be viewed in our blog https://blog.ffcs.in/2011/03/21/new-validations-fvu-3-1/ […]

  2. KGS says:

    Is it necessary to inform the details of tds not deducted parties details if the party is below threshold limit?

    If it is necessary, could u inform the circular or notice details for reference purpose.

  3. R Raman says:

    Dear Sir/Madam

    Payment of Sitting fees to Non resident director. Maximum amount payable in a year is far below the taxable limit. In this case if we apply for non deduction certificate u/s 197 now NR PAN is compulsory. But procedure for obtaining a PAN for a Non resident that too related to non taxable amount(since far below the taxable limit)involves combersome procedure.

    As per TINFC NR should attach copies of Visa/passport/driving licence/bank statement along with PAN application duly certified by Indian embassy in that country.While considering the quantum it is better to issue direction to concern officer for issue of order u/s 195(2) for non deduction of TDS based on genuiness.

    Since there no clear cut instruction from Board we are finding it difficult for getting an order u/s 195(2). Need immediate attention by way of an instruction to solve the issue.

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