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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.

Blog Review : 1,60,000 views in Year 2012 !

Fast Facts is excited to share excerpts from the annual report of this blog prepared by The WordPress.com stats helper .

             Crunchy Numbers

  • 19,000 people fit into the new Barclays Center to see Jay-Z perform. This blog was viewed about 160,000 times in 2012. If it were a concert at the Barclays Center, it would take about 8 sold-out performances for that many people to see it.In 2012,
  • there were 12 new posts, growing the total archive of this blog to 39 posts

Attractions in 2012

These are the posts that got the most views in 2012.

  1. Form 16 : To be downloaded from NSDL Web Site ? 9 comments May 2012
  2. TDS Default Notices : How to avoid Interest Defaults 47 comments August 2011
  3. eTDS filing 2012-13 Q1 : FVU 3.5 and new penal provisions 4 comments July 2012
  4. Lost TAN Registration Number ? Re-Register 6 comments December 2011
  5. TRACES : new TDS web interface from Income-tax Dept. 84 comments December 2012

Comments

Most commented on post in 2012 was TRACES : new TDS web interface from Income-tax Dept.

These were your 5 most active commenters:

  1. N. Gopala 19 comments
  2. K GANESH NAYAK 11 comments
  3. Anand Dhyani 5 comments
  4. SUNDARAM.V.V 5 comments
  5. Adv sameerkumar 5 comments

Many thanks to each one of you and all other commenters , who made this blog interactive and useful for the visitors

We look forward to serving you again in 2013! Happy New Year!

TRACES : new TDS web interface from Income-tax Dept.

TRACES stands for TDS Reconciliation Analysis and Correction Enabling System and has been set up by TDS Centralised Processing Cell of the income-tax department.

TRACES will integrate the following components

  • Tax information Network
  • Automated TDS Challan Matching
  • TDS Defaults Processing
  • IVR/ Call Centre
  • Web Portal

New Web Portal :  https://www.tdscpc.gov.in

The new portal has been created using latest technology to enhance swift interaction between the deductor, deductee, income-tax department and CPC. The following features are/ will be  available to deductors and deductees

  • Dashboard giving summary of Deductors account
  • Online registration of TAN
  • Online filing of TDS Statements
  • Online corrections of TDS  statements
  • Default Resolution
  • View Form 26AS
  • Download Form 16/16A/Consolidated TDS File
  • Grievance registration and resolution

Not all of the above features have been activated so far

NSDL web site V/s TRACES web Site : Current Status

Currently several online services are provided to deductors and deductees on TIN  site by NSDL.  The following table presents various services at both the sites

1

Registration at TRACES

  • Users who have already registered at NSDL TIN site, need not register again on TRACES. Their registration details are migrated and they can login at TRACES with their NSDL-TIN login details
  • Fresh registrations on NSDL site have been stopped
  • New registrations can be done at TRACES site and online help is available under the FAQ link

It appears; gradually TRACES will become the only site for deductors and deductees. As more features appear and existing features understood, we will keep sharing the information with you

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

TDS On Purchase of Standard Software

Finance Act 2012 has amended the definition of “royalty”. The amendment in section section 9 (1) (vi) now defines ‘royalty’ as any ‘right for use’ or ‘right to use’, a computer software (including granting of a license), irrespective of the medium through which such right is transferred.

Section 194J provides for deduction of tax at source on payment of professional fees, technical fees, directors remuneration and royalty payments

Hence payments towards right to use computer software will be liable to tax deduction at source under section 194J @ 10%

Notification 21/2012 Dated July 1, 2012

sale of computer software involves a channel i.e. from developer to distributor  to dealer to end-user. To avoid tax deduction at several levels, CBDT issued the Notification 21/2012

As per the said notification, the tax deduction at source (‘TDS’) will not apply on acquisition of software from another person, being a resident,

  • if the software is acquired in a subsequent transfer and
  • the transferor has transferred the software without modification and
  • TDS has been deducted under section 194J or 195 of the Income tax Act, 1961 (‘the Act’) on payment of previous transfer of software

Deduction by end-user

Based on above description, the following check-list will be helpful in deciding about deductibility of tax on software purchase

Payments towards Standard Software

Deduct Tax

Reason

Payment below  Rs. 30,000

No

Section 194J provides for no deduction in case payment is below Rs. 30,000

Payment to a non-resident Indian

Yes

Tax is deductible in all cases and no exemption under Notification 21/2012 is available

Payment above Rs. 30,000 to resident where no declaration under Notification 21/2012 is given by the transferor

Yes

Declaration is mandatory under Notification 21/2012

Payment above Rs. 30,000 to resident where declaration under Notification 21/2012 is given by the transferor

No

Declaration is mandatory under Notification 21/2012

Declaration under Notification 21/2012

The declaration under above Notification can be given by the transferor only if

  • The software in question is being transferred without any modification
  •  Tax has been deducted under section 194J or 195 by transferor or by a previous transferor

Case

Can Declaration be given

Reason

Developer is directly selling to End-user

No

No tax deduction at any stage

Dealer is paying to Developer but making no deduction of tax being exempt ( Individual not covered under mandatory tax audit)

No

No tax deduction at any stage

Dealer is paying to Developer but making no deduction as amount is below Rs.30,000

No

No tax deduction at any stage

Dealer buys from distributor who has deducted tax while making payment to developer , but Dealer does not have PAN

No

Valid PAN is required

Sample Declaration

“Declaration in terms of CBDT Notification (Income Tax) No. 21/2012 dated 13.6.2012:  ‘The transaction represented in this Invoice  is a resale of Software without any modification, and tax has been deducted previously under Sec. 194J. Our PAN number is ….”

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