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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
|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:
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
CBDT has issued Notification No 11/2013 dated 19-2-2013 , which is being explained and analysed in this blog.
Furnishing of TDS Statement under digital signature
- Amendment in Rule 31A provides for submission of TDS return electronically under digital signature. It also states furnishing of statement alongwith verification of statement in Form 27A OR Verification through electronic process.
- Currently a very large percentage of TDS statements are filed by visiting TIN facilitation centres and carrying TDS statement in a CD/Pen drive alongwith a signed Form 27A.
- NSDL , has also provided for submission of return online under digital signature , but this requires prior registration.
- We have to wait for new guidelines for online submission under digital signature or verification through electronic process.
Form 26A for Certificate from accountant under section 201
- Under certain conditions, a deductor shall not be deemed to be assessee in default for non deduction of tax at source. One of the conditions is that such deductor will have to produce a certificate from accountant .
- Form 26A has been prescribed for this purpose.
- Director General of Income-tax (System) will specify the procedure , format and standards for furnishing of Form 26A
- We have to wait for new guidelines for submission and verification of Form 26A
New Form 26B for Claim for refund
- If any excess TDS is deposited, the claim for refund now can be filed by the deductor in newly inserted Form 26B.
- This form will have to be submitted electronically under digital signatures.
- Director General of Income-tax (System) will specify the procedure , format and standards for furnishing of Form 26B
Submission of certain details of amounts paid without deduction of tax at source
- Notification 56/2012 dated 31-12-2012 had provided for no deduction of tax at source for certain payments made to banks.
- The amended Rule provides for submission of details of such payments in TDS Statement.
- We have to wait for changes in data structure to be notified by NSDL.
Change in Forms
Changes have been notified in
- TDS/TCS Certificate : Forms 16,16A,27D
- TDS Statements : Forms 24Q,26Q,27Q and 27EQ
- Declarations for payments without TDS/TCS : Form 15G, 15H, 27C
We have to wait for changes in data structure to be notified by NSDL to give effect to this change. Detailed analysis of these changes will be discussed in a separate blog.
TDS certificate in Form 16A are to be issued for all deductions other than salary on quarterly basis. The due date of issuing Form 16A is within 15 days of the due date of filing eTDS statement.
Income-tax department has also mandated corporates and banks to issue such certificates only after downloading Form 16A files from TIN web site.
It has been observed that income-tax department is tracking all downloads of form 16A . Those who have not made request for Form 16A are being sent reminder letters by the “Directorate of Income-tax Systems” . The reminder letter states…
It is noticed that you have not downloaded Form No 16A for Quarter ended Sep 2011 from the TIN Central System till 31/10/2011. Since, issue of TDS certificate in Form No 16A by downloading from TIN web site has been made mandatory from 1.4.2011 for corporate and banks , and only these are valid certificates, you are advised to download the same from the TIN web site ….”
Erroneous Reminders ?
Several deductors who are neither corporate nor banks have also received such reminders. This is possible if their status is not updated in TAN database , or erroneous generation of letters by income-tax department.
What should be the response
If deduductor is a bank or corporate, it must immediately submit request for downloading Form 16A thru TAN login and after downloading issue the same to deductees.
For other deductors, though it is not mandatory to download Form 16A from TIN web site, nevertheless they have to issue Form 16A within due date. They can also download Form 16A from TIN web site at their option and issue the same to deductees.
Also if the status of TAN on TIN web site is not correct, TAN rectification form must be submitted.
Format of Form 16A , TDS certificate in respect of other than salary payments has been amended vide Notification No 41/2010 Dated 31-05-2010. The changes are described in detail in the following paragraphs
- The amended form is to be given only for TDS deduction made on or after 01-04-2010.
- Since Form 16A is quarterly, first amended form has to be issued by 30th July.
Form 16A must contain
- Valid TAN of deductor
- Valid PAN of deductee : This implies that a deductee not submitting valid PAN cannot be issued Form 16A
- Challan Identification Number : This implies that Form 16A cannot be issued before depositing TDS
- Receipt No of relevant quarterly eTDS Statement : This implies that Form 16A cannot be issued before submitting eTDS Statement.
TDS deduction Transactions
- Before amendment, a monthly TDS certificate would contain TDS deductions made during the month. Same way yearly certificate contained TDS deductions made during the year.
- After amendment, quarterly certificate will contain TDS deductions reported in the eTDS statement for the quarter. If for a certain reason, there is a delayed deposit the TDS deduction will appear in the quarter in which TDS is deposited and reported in eTDS Statement
|TDS Deduction Date MM-DD||TDS Deposit Date MM-DD||Reported in eTDS Statement||Before Amendment||After Amendment|
|April 04||May 07||Q1||Monthly – April||Quarterly – Q1|
|April 04||June 07||Q1||Monthly – April||Quarterly – Q1|
|April 04||July 31||Q2||Monthly -April||Quarterly – Q2|
TDS Section wise or one for all TDS Sections ?
Before amendment , a separate certificate for each TDS section was required to be issued. Hence if a deductee is covered under two different sections, two TDS certificates needed to be issued.
After amendment, is will be sufficient compliance if one TDS certificate is issued to one deductee. In the amended form the following info needed to be shown per TDS deduction transaction
- Amount Paid/ Credited
- Nature of Payment
- Date of Payment / Credit
Note : The heading given to this section “Summary of payment” is confusing . It should have been Details of Payment. The very fact that Date of Payment / Credit is being asked, goes to show that TDS deduction entries need to be shown date wise.
Challan Identification Number
- All Non-Govt deductors and Govt deductors depositing TDS thru challan will have to give challan identification Number wise amount deposited in respect of deductee.
- This implies that a quarterly eTDS statement will generally contain 3 entries for each TDS section in respect of deductee.
- Before amendment, TDS amount, surcharge and cess was to be shown separately. After amendment total of TDS, surcharge and cess need to be shown
- Before amendment, Cheque /DD no was required to be shown. After amendment, this is removed.
- Before amendment, Challan Identification No / Transfer voucher was one column. After amendment there are separate requirements for TDS deposit by Govt Deductors and non-Govt Deductors.
- In the amended form , address of commissioner (TDS) is to be mentioned
Govt deductors making TDS deposit without production of challan, will have to mention details in Form 16A
- Receipt No of Form 24G
- DDO Sequence Number in the Book Adjustment Mini Statement
- Date on which tax deposited
Format of Form 16/16A , TDS certificate in respect of salary and other than salary payments have been amended vide Notification No 41/2010 Dated 31-05-2010. The changes were explained in detail in our bulletin issue of July 2010.
Thereafter on TIN web site, a new requirement has been prescribed in respect of Receipt Number. The same is explained in the following paragraphs
Summary of tax deducted at source in respect of deductee
The above part of Form 16A asks user to submit the following information
- Receipt Numbers of original quarterly statements of TDS under sub-section (3) of section 200
- Amount of tax deducted in respect of the deductee
- Amount of tax deposited/remitted in respect of the deductee
Similar information is asked about all the four quarters in respect of employee in Form 16
Provisional Receipt No
Till now, after submitting eTDS statement , a Provisional Receipt Number was allotted by TIN system. This is a 15 character numeric number. Provisional receipt number will be referred as Token no for the statements pertaining to FY 2010-11 and onwards.
- Receipt number to be quoted in Form 16/16A will be generated by TIN.
- Receipt number will be generated for the quarterly TDS/TCS statements pertaining to FY 2010-11 and onwards uploaded to TIN.
- Receipt number generated will be of eight digits (alphabets) and will be applicable only for statements pertaining to FY 2010-11 and onwards.
- Eight digit receipt number can be obtained by viewing the status of the quarterly TDS/TCS statement at under Quarterly Statement Status feature available at TIN website
- Receipt number provided by TIN is in addition to the provisional receipt number provided on acceptance/upload of quarterly TDS/TCS statement.