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File Validation Utility (FVU) 4.0 and 2.136 – Applicable from 01st October 2013

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NSDL came out with FVU version 4.0 and 2.136  on 25th September 2013.

FVU Applicability

Date Applicable from FVU Version
From 01st Oct 2013 4.0 & 2.136
Till 30th Sept 2013 4.0 & 2.136 and3.9 & 2.135

 

 

Points added/introduced in the new version are:

Nil Challan/ transfer vouchers

Applicable Forms – 24Q, 26Q,27Q, 27EQ

  • In case of Nil Challan/ transfer vouchers, it’s now mandatory to update reasons for such non deduction
  • Along with entering all the other transaction details one now needs to, also, update either of the following flags “A/B/S/T/Y/Z” in the ‘Reason for Non deduction/Lower deduction’ field
  • It needs to be seen how one treats a situation where there are no transactions in a quarter.

Section 194LD

Applicable Forms –27Q

  • As per Section 194LD, introduced in the Finance Bill 2013, TDS @ 5% needs to be deducted on interest payments for Rupee denominated bonds issued by the Government of India or any other Indian company.
  • TDS would be applicable on all such interest payments made from 01st June 2013 till 31st May 2015
  • These payments are made to Qualified Foreign Investors (QFI) and/or Foreign Institutional Investors (FII)

Section 194LC

Applicable Forms –27Q

  • Section 194LC covers following payments made to non residents
    • Interest (other than interest on securities) and
    • Other payments except for salary
  • Now onwards only an Indian Company or it’s Branch, may deduct TDS under this section
  • Earlier this Section was open to use by all Deductors. Ex – Company, AOP, BOI etc
  • It’s still not clear on how Deductors (apart from Company or Branch) deal with payments under this Section

Section 194LC (Correction Statement)

Applicable Forms –27Q

  • Pursuant to the change in this FVU, Correction Statement may be filed, only, if there are any changes in the existing Challan or Deductee or in case a new challan has been paid.
  • Under the ‘Correction Type’ field, Deductor may only use
    • C2 – Correction in Deductor and/or Challan details
    • C3 – Change in Deductor, challan, and/or Deductee details
    • C9 – Additional Challan payments
  • This change is applicable from 2012-2013 onwards

Provisional Receipt Number (PRN)

Applicable Forms –24Q,26Q,27Q,27EQ

  • It is now mandatory to mention the PRN for all Regular statements
  • PRN from the last filed Regular Statement (for the same Form) needs to be quoted
  • Ex – In case a Deductor is filing Form 24Q for quarter ending June 2013, he has to mention the PRN from previous period, would henceforth be required to mention their PRN

Date of Challan Deposit

Applicable Forms –24Q, 26Q, 27Q, 27EQ

  • Surplus challan payments, from the immediate previous financial year (FY), may now be adjusted against current year dues. Eg – While filing returns for FY 2013-2014, one can use the surplus from the previous FY 2012-2013
  • Surplus arising from any year prior to the previous FY cannot be entered
  • A Deductor would now be allowed to enter details of surplus payments made in the previous FY
  • Excess payments from previous FY occurring on account of Book entry adjustments, would not be allowed

23 Comments

  1. lava kishan says:

    how to rectify if i have updated Flag C by mistake in rpu 3.9

  2. swati munj says:

    I file quarterly return regularly but I never use FVU. I just fill the details in RPU validated the same and sent it to Curvy computers with 27A form. Now I have to use FVU I am confuse.
    swati munj

    • mayank says:

      no… you not have.. because RPU has built in FUV which is you not to use this… see RPU folder in that can found fuv..

  3. mayank patel says:

    hello expert, can any one rejected his tds correction return for q2 on ground total tax validation falied, i got this for defult… mistake is in one of deductee anexer i write rs. 28 instade of 280 rs. now try to rectifiy is but return rejected due to new validation check system.. :- note( challan payment amount correct, fuv scucessfully validate also ) …. if yes then any one shorted this issuse ?

    https://www.tdscpc.gov.in/en/tdscpc-communication2.html

    • Fast Facts India says:

      FVU validation for every transaction is Gross * Tds Rate = Tds Amt.
      Here you may have updated as Tds amount = Gross * Tds Rate, as a result of which a valid FVU file was created. As such the NSDL FVU does not match Tds amount with corresponding challan.

      So kindly contact TRACES Helpdesk to clarify the exact reason of rejection.

  4. Jai says:

    I got a default notice from TDS CPC/TRACES ( Q1 FY 2013-14) for short deduction . When I checked the justification report it seems that the Certificate for lower deduction u/s 197 is not considered. Why TRACES is not considering the flag “A” and certificate number. Also in the justification report under the column the limit under certificate is showing as ” null” . Kindly reply.

  5. ganesh says:

    how I filed my non salary nil etds return this is mandatory?

  6. mohan luke says:

    Sir, How is these alphabets be useful to 24q nil return. If you cannot file this qtr nil return ,how are you in a position to file next qtr since you cannot get the prn no which is mandatory to file the next qtr. is there any alphabet for 92B people where salary is not taxable.

  7. srinivas says:

    How to file nil e tds returns for 2nd quarter of f y 2013-14 please give reply

  8. SAURABH GHAI says:

    What does Flag “A/B/S/T/Y/Z” stands for????

    • Dear Kishor & Saurabh ,

      Each of the above mentioned flag mean the following :

      A – In case of lower deduction/no deduction on account of certificate under section 197

      B – In case of no deduction on account of declaration under section 197A. Allowed only for section 194, 194A, 194EE and 193

      S – For software acquired under section 194J (Notification 21/2012). Applicable from FY 2012-13 onwards.

      T – In case of Transporter transaction and valid PAN is provided

      Y – Transaction where tax not been deducted as amount paid/credited to the vendor/party has not exceeded the threshold limit (as per the provisions of income tax act). Applicable for sections 193,194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I, 194J, 194LA.

      Z – In case of no deduction on account of payment under section 197A (1F). Applicable from FY 2013-14 onwards

      • CA V.SIVARAMAN says:

        Thanks for the info.

        There is one more flag “C” where 20% deducted for no “PAN”

        Regards
        V. Sivaraman

    • Lakshminarayana says:

      please help me i want Nil Challan sample file format in FVU 4.0 version

      • Kishor Doshi says:

        Dear Sir,

        It is necessary to file Nil Tds Retutn / it is compulosry or no Pl. confirm the same.

        Thanking you, Kishor

      • Divyesh says:

        In a recent communication by TDS (CPC) to all Deductors, it’s clear that a TDS statement can be filed only with a valid challan and Deductee record.

        Am I correct in assuming that a Deductor having no transactions in a quarter, won’t be required to file a return in the latest FVU?

      • Hi Divyesh,

        Yes. You are correct. You would not be able to file a return where you have no transactions & payments.

  9. Dear Kishor,

    It’s still not clear how Nil TDS returns would be handled.

    But if one were to read the Nil Challan return in conjunction with the requirement for PRN, it does seem that one needn’t submit a Nil TDS return.

  10. kishor says:

    Pl let me know also In case of Nil Challan/ transfer vouchers, it’s now mandatory to update reasons for such non deduction

    in which where is to use this flags i.e. following flags “A/B/S/T/Y/Z” in the ‘Reason for Non deduction/Lower deduction’ field what is the full form of the same & where is to be use the same.

  11. kishor says:

    it is necessary / compulsory to file Nil E Tds return.

    • Suraj Mani says:

      What is the procedure for filing of Nil TDS return where no transaction is done & no payment is made in the quarter, Please clearfy ?

      • Hi Suraj,

        If there are no transactions & payments in a quarter, you are not required to file a return. The latest FVU has been designed to restrict creation of such files

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