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File Validation Utility (FVU) 4.1 and 2.137 – Applicable from 04th January 2014

NSDL came out with a new FVU late evening yesterday 02nd January 2014

FVU Applicability

Date Applicable from FVU Version
From 04th Jan 2014 4.1 & 2.137
Till  03rd Jan 2014 4.1 & 2.137 and 4.0 & 2.136

Points introduced in the new version are:

Deletion of Deductee Record

Applicable Forms – 24Q, 26Q, 27Q, 27EQ

  • Deletion of Deductee’s records (in Correction Return) is no longer permitted.
  • Till the prior FVU versions Deductee records could be deleted, while filing the Correction Return.
  • Henceforth a Deductor would be required to modify the particular Deductee  details in the Correction return and enter zero against the following fields:
    • Amount of payment
    • Amount of Deduction
    • Amount of Deposit
    • Rate of Deduction
    • Date of Deduction should be blank

Form 27A

  • Form 27A is used for providing summarized information with the Statement of Tax deduction/Tax Collection at source.
  • Now on, the Form 27A would be auto generated on creation of the .fvu file
  • The new Form27A also contains a barcode (refer file attached)

27A

Date of Tax Deduction and/or Tax Collection

Applicable Forms – 24Q, 26Q, 27Q, 27EQ

  • Going ahead transactions, on which tax is deducted prior to the filing period, cannot be included in the TDS return.
  • Ex – In the Dec 2013 quarter, a Deductor cannot include a TDS deduction entry prior to 01st October 2013
  • Earlier there were no restrictions and one could declare transaction related to previous quarter in the subsequent filing quarters
  • Now on, a Deductor is required to file a Correction return, if they have any (such) transaction relating to previous filing periods.

Challan/Transfer Voucher validation

Applicable Forms – 24Q, 26Q, 27Q, 27EQ

  • Challan amount should be more than or equal to total of Tax deducted, interest payments, late filing fees and other amounts.
  • i.e – No challan can be submitted with a short payment
  • Ex –  Assume a scenario as below:
TDS Amount 10,000
Interest  5,000
Other Amount  4,000
Fees  1,000
TOTAL 20,000
  •  In this case, the Challan amount has to be more than/equal to Rs. 20,000

* Points expressed here are the Author’s interpretation. This cannot substitute Expert advice

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

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

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   https://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   https://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

eTDS filing 2012-13 Q1 : FVU 3.5 and new penal provisions

eTDS  statement for 2012-13 first quarter is to be filed on or before July 15,2012. Few important changes and points to remember are given below

Mandatory Fees and Penal provisions

File eTDS Statement in time or pay late filing fees ( Section 234E)

From 1st July 2012, failure to submit eTDS statement in time will result in fees

  • A mandatory fees of Rs. 200 per day is applicable for any delay in furnishing of eTDS statement.
  •  Total fees will be limited to the amount of TDS deducted
  • Such fees must be paid before filing of eTDS statement and shown appropriately therein.

Penalty for late filing or incorrect filing ( Section 271H)

Effective July 1, 2012

  • A delay beyond one year will result in penalty ranging from Rs. 10,000 to 1 lac.
  • Failure to file eTDS statement or filing incorrect details like PAN, challan details, TDS amount will also result in penalty being levied ranging from Rs. 10,000 to 1 lac

From the above, it is clear that this time when you fie eTDS statement, you need to file in time and also ensure that you are not filing incorrect details in the statement

FVU Version 3.5

  • Effective July 1, 2012 , eTDS file must be validated with file validation utility version 3.5 for current filing
  • For statements pertaining to FY upto 2009-10, there no change in the fvu and and same version <> will continue
  • There is only one change brought about by fvu 3.5 and it is in respect of BIN – Book Identification Number.

Book Identification Number – BIN

BIN consists of the following:

  • Receipt Number: Seven digit unique number generated for each Form 24G statement successfully accepted at the TIN central system.
  • DDO Serial Number: Five digit unique number generated for each DDO record with valid TAN present in the Form 24G statement successfully accepted at the TIN central system.
  • Date: The last date of the month and year for which TDS/TCS is reported in Form 24G. Date will be in DD/MM/YYYY format.

AO has to communicate the BIN details to the respective DDO.BIN is to be quoted by the Drawing and Disbursing Officer (DDO) in transfer voucher details in their quarterly TDS/TCS statements.

FVU 3.5 will verify  structural validation for BIN quoted by the Govt. deductors (where TDS/TCS is deposited by book entry). BIN should be the same that has been provided by TIN on upload of Form 24G by respective PAO/DTO

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.

Amendement in TDS rules effective Nov. 2011

CBDT has issued Notification 57/2011 on October 24, 2011 amending Rule 31A and Rule 37BA

Effective Date:
The amendment shall come into force on the 1st day of November, 2011

Rule 31A : The rule specifies due date for filing of eTDS statement.

The due dates have been changed for Government Deductors

Due date for Govt. Deductors

Qtr Ending                        Earlier Due Date         Changed Due Date

30th June                              15th July                              31st July

30th September                 15th October                       31st October

31st December                   15th January                        31st January

31st March                           15th May                               15th May

Since effective date of amendment is 1st November ,amended due dates for Govt. Deductors will apply from 3rd Qtr onwards.

Due date for other than Govt Deductors – No Change

Qtr Ending                           Due Date

30th June                              15th July

30th September                 15th October

31st December                   15th January

31st March                           15th May

Particulars of transactions with no deduction

  • Earlier there was requirement to submit details of all payments / credits where no deduction was made in view of certificate of no deduction issued by the income-tax officer
  • Additionally, now details of  payments/ credit where no deduction was made in view of submission of self declaration under section 197A for no deduction of tax under the following sections :
    • Section 193 interest on securities ,
    • Section 194A – interest other than interest on securities,
    • Section 194EE – Payment of NSS deposit,
    •  Section 194 Dividend
    • Self declaration is given by senior citizens in  From 15H and in Form 15G by others
  • The existing data structure for submission of eTDS statement already lists above requirement in Annexure 6

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

Hence, the provision to submit such details were existing even at present. The amended rule has now made it mandatory to provide such details

Rule 37BA : This rule provides for credit of tax deducted at source.

Sub rule (2) provided for cases where credit for tax was to be given to a person other than deductee.

The amended sub rule has now removed specific mention of cases with the words “where under any provision of the Act”

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

Bank Letter