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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

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

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.

Revised Guidelines for filing eTDS Correction Statement

eTDS Correction statements are to be filed to rectify any error / omission in the original statement. The need to file eTDS  correction also arises because of 85%/ 95% valid PAN requirement for filing eTDS statement.

Recently NSDL has released revised guidelines for filing of correction statement. These guidelines can be viewed by typing the link http://www.tin-nsdl.com/RevisedReturns.asp

Why file eTDS Correction ?

  • In case of deficiencies in the accepted regular TDS/TCS statement such as incorrect challan details or PAN not provided or provided incorrectly, the tax credit will not reflect in the Form 26AS of the deductees in your statement.
  • “To facilitate correct credit in Form 26AS of the deductees you are required to remove deficiencies, if any, in the accepted regular TDS/TCS statement by filing a correction statement.”

What cannot be corrected ?

  • TAN, Form no., quarter, FY and A.Y quoted in a regular statement cannot be updated by furnishing a correction statement.
  • For this file a cancellation statement , followed by a new regular statement.

Before you file Correction Statement

  • Provisional receipt of the corresponding accepted regular statement should be available.
  • .fvu file of the corresponding accepted regular statement should be available
  • Check the status of the regular statement on the TIN website by entering the TAN and PRN. correction statement should be prepared only if the corresponding regular statement has been accepted at the TIN central system.

Correction in Challan Record

  • You can add a new Challan
  • Deletion of a Challan is NOT ALLOWED
  • Update of  a challan is based on the Status of Challan Online
Status of Challan Correction
Booked Correction cannot be done
Match Pending Correction in CIN can be done
Match Failed Correction in Challan Amount can be done

Correction in Deductee Records

  • You can add new deductee, update details of a deductee and delete a deductee
  • Updation of a valid PAN to another valid PAN can be done only once

Correction in Salary Record

  • You can add a salary record and delete a salary record

Online TAN Registration

NSDL has started facility of online TAN registration.

The benefit of online TAN registration is availability of

  • view of the status of all statements filed;
  • download of consolidated quarterly e-TDS / TCS statement for preparation of correction statement

The online simple registration process will ask for

  • TAN , PAN of deductor
  • Contact details of deductor
  • Acknowledgement No of any eTDS Statement filed after 01-04-2008

On submission Ackonwledgement Number will be generated