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File Validation Utility (FVU) 4.2 and 2.138 – Applicable from 26th April 2014

It’s the start of Tax compliance Season  and as with the last 3 quarters, there is a new FVU. NSDL came out with the latest  utility on 25th April 2014 late evening

FVU Applicability

Date Applicable from FVU Version
From 26th April 2014 4.2 & 2.138
Till  25th April 2014 4.1 & 2.137

Through the new FVU  the following changes/validations have been brought in place:

NIL Returns

Applicable Forms – 24Q

  • A Deductor would now be able to file NIL returns for all years
  • Since FVU 4.0, there was a lot of confusion on the filing on NIL returns
  • It’s still not clear whether NIL returns need to submitted for other Forms

Unique Acknowledgement Number (UAN)

Applicable Forms – 27Q

  • UAN refers to the acknowledgement received on successful filing of Form 15CA
  • The new utility now allows a User to key in alphanumeric values from 12 to 15 characters

Validation in the absence of Deductee’s PAN

Applicable Forms – 24Q

  • It’s well understood that, in case a Deductee doesn’t have a PAN, TDS needs to be deducted at higher of 20% or applicable rate.
  • This point was not being checked till the previous FVU filings.
  • Henceforth, the new Utility would now be validating this feature (i.e – If a Deductee does not have a PAN, and if the TDS deducted amount is less than 20%, the FVU would show an error

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

Budget 2014/2015 – Personal Tax Rates & TDS

The Finance Minister (FM) presented the Interim Budget and introduced Finance Bill 2014 on 17th February 2014.

He has not proposed any changes in the existing Personal Tax (PT) or Tax Deducted at Source (TDS) rates

The PT rates for Financial Year 2014-2015 are going to be as below:

1. Tax Slab for an Individual (resident & below 60 years) or HUF/AOP/BOI/AJP

Income Slabs

Tax Rates

Total income up to Rs. 2 Lac 0% Tax
Total income above Rs. 2 Lac and below Rs.5 Lac 10% on amount exceeding Rs. 2 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 30,000
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,30,000

* u/s 87A the Individual having taxable income up to Rs. 5 Lac , can claim rebate, on the Actual Tax amount subject to a maximum of Rs.2,000

Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

2. Tax Slab for an Individual (resident & above 60 years but below 80 years)

Income Slabs

Tax Rates

Total income up to Rs. 2.50 Lac 0% Tax
Total income above Rs. 2.50 Lac and below Rs.5 Lac 10% on amount exceeding Rs. 2.50 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 25,000
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000

Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

3. Tax Slab for an Individual (resident & above 80 years)

Income Slabs

Tax Rates

Total income up to Rs. 5 Lac 0% Tax
Total income above Rs. 5 Lac and below Rs.10 Lac 20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

Form 16 Part A to be downloaded from TRACES portal

Income-tax department has issued Circular No 04/2013 dated April 17, 2013 in respect of Form 16.

New Form 16

  • Revised Form 16 has been notified vide Notification 11/2013 dated 19.02.2013
  • Form 16 has two distinct parts
    • Part A : contains details of tax deduction and deposit
    • Part B : contains details of salary and total income
  • Form 16 has to be issued on or before May 31, 2013 in respect of Financial Year 2012-13

Procedure for Issuance

  • Form 16A , TDS in respect of other than salaries is to be issued quarterly only by downloading the same from TRACES web site. ( Circular 01/2012)
  • There was no such requirement in respect of Form 16
  • Now vide Circular 04/2013, a deductor is required to issue
    • Part A of Form 16 by downloading the same from TRACES web site
    • Part B of Form 16 is to be issued by deductor manually
  • Form 16 generated from TRACES will contain unique TDS Certificate Number
  • Form 16 by Govt. deductors, who make TDS payment by book entry , is also to be issued by generating and downloading from TRACES

Authentication of Form 16

  • Form 16 must be signed manually or using digital signature

Analysis

  • Issuing Form 16 will be a challenge for deductors for FY 2012-13, as this involves two distinct parts being issued from two different sources
  • Part A will have to be generated and downloaded from TRACES. Part B will have to be prepared manually or using a third party software.
  • The deductee should not feel that two different parts are being given
  • Software vendors will have to provide utility to merge two Parts created in PDF formats  to make it easier for deductors to issue Form 16

TRACES : Download and Print Form 16A

Now onwards, Form 16A text file will be available at TRACES web site only.

It is presumed that you have already registered on TRACES web site. If not , please read https://blog.ffcs.in/2012/12/27/traces-deductor-registration-and-login/

When will Form 16A file be available?

  • Form 16A text file will be available only after you have submitted regular statement in Form 26Q/27Q and the same has been processed at TDS CPC
  • Form 16A files are available from FY 2007-08 onwards

Steps to download Form 16A file

  1. Login with your UserId and Password
  2. In the main menu ,click Downloads->Form 16A
  3. You can either download file for all PANs or for selected PANs. For all PANs ,you need to select FY and Quarter. For Selected PANs, you have to select PANs from the given list.
  4. Validation Screen will appear. Enter validation details. This will also generate an authentication code.
  5. Details of authorized signatory will be picked up from “profile” and displayed
  6. Click Submit
  7. File will be available in Download->Requested Downloads

Downloading Form 16A text File

  • Click Download->Requested Downloads
  • Search option 1 is Request Number . Search Option 2 is Request Date.  Enter requisite details and click “View All”
  • All requests will be displayed. Click on the desired row
  • Download file either thru HTTP Download or thru Download Manager. HTTP Download is for smaller files while Download Manager is useful for large files and has the capability of resuming download in case of interruption

Entering Validation details

  • Enter Token Number for the Form type displayed on the screen. For this you must have acknowledgement copy ready
  • Non-Government Deductors must enter Challan Identification Details . The details must pertain to the selected FY, Quarter and Form
  • Amount must be entered in 2 decimal places.
  • Government deductors must enter BIN details
  • Enter any three PAN and Amounts from the CIN/ BIN details. If the number of PANs in the given CIN/BIN is less than three, then enter all such details i.e. one or two
  • Click Proceed. An authentication code will be generated
  • If for some reason , you need to submit request for download again , you will not be asked to enter validation details again. In such case, you can simply enter “authentication code” and proceed.

Downloading PDF Generator

  • Download PDF Generator from Quick Links under Deductor Tab
  • If your download is not complete or hangs, try again
  • The downloaded file is a zip file. Unzip it and Run. This will install the utility
  • Run the Utility
  • Please make sure that you have the latest version of PDF generator. As of writing this blog, the version is 1.1. dated Jan 18, 2013

Printing/ Generating Form 16A PDF files

  • After you have downloaded PDF Generator and Form 16A text file, run PDF Geneator
  • Select Form 16A text file in zip format. Do not unzip it
  • Enter TAN as password
  • Select Folder where Form 16A PDFs will be saved
  • Select Digital Signature file, if you want to digitally sign your Form 16A
  • Click Proceed
  • Separate PDF will be generated for each PAN in the selected folder

Frequently Asked Questions

Q : While entering Validation details for downloading Form 16A text file, I am getting “invalid details”

A : Unfortunately , TRACES is not giving exact cause of error. The possible causes can be:

  • You are entering amount without decimal places
  • You have entered incorrect CIN details
  • You have entered correct CIN details, but they do not pertain to the given FY, Quarter and Form
  • You have entered incorrect PAN/Amount details
  • You have entered correct PAN/Amount details, but they do not pertain to given CIN

Q : I am not able to download PDF Generator. It interrupts or gives error messages “Download interrupted”

A :  The only solution is to try again or try on a PC having better internet connectivity

Q : While generating Form 16A PDF file thru PDF Generator, I am getting message “input file is tempered”

A :  Download Form 16A file has a checksum and you may have tried to open it in notepad and edited it. Download again and do not edit anything in the file.