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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 3.8 : Key changes effective July 2013

NSDL has released FVU version 3.8 effective July 1,2013. There are some important changes in the data structure of eTDS statement. Several new fields have been added,  few fields removed effective FY 2013-14 .

Major changes and data structure amendments are explained in this blog.

Challan Amount Allocation

  • Till now Section code was mentioned in the Challan sheet and deductee sheet only had reference of the challan. Hence all dedcutee records pertaining to a particular challan number were considered belonging to section code of the challan.
  • This posed problem for deductors who had combined two or more sections while depositing challans. While a workaround to take care of this situation was available, it was difficult for deductors to comprehend and put into practice.
  • Now there is no need to mention Section Code in the challan sheet and the same has been shifted to deductee sheet.
  • This means that a challan amount deposited can be allocated to deductees belonging to different section codes. The only restriction being those sections must be valid for that particular form. Hence a section code pertaining to Form 27Q cannot be mentioned in Form 26Q

Income and Tax deducted by Previous Employers in Salary Details

One of the main deficiency in data structure so far no place to mention tax deducted by previous employer. This was a cause of confusion for employers as they were supposed to consider tax deducted by previous employer while computing tax deductible , but no place to mention the same in eTDS Statement. This has been addressed now by incorporating the following fields in Q4 Form 24Q

  • Reported Taxable Amount on which tax is deducted by previous employer(S)
  • Reported amount of Tax deducted at source by previous employer(s)/deductor(s)

Discontinuation of “Y” type correction.

  • So far a regular statement filed can be cancelled by filing a Y type of correction statement.
  • This is being discontinued now. Hence a regular statement once filed cannot be cancelled

Discontinuation of quarterly TDS/TCS statements (regular and correction) pertaining to FY 2005-06 and 2006-07.

  • Currently there was no time limit for filing regular or correction statements.
  • Now no regular statement  or correction statement for FY 2005-06 and 2006-07 can be filed.
  • This means a deductor can still file regular and correction statements for past 6 years i.e  2008-09 to 2012-13

Other Changes : Common across all forms

 Deductors Details

Additional details to be provided

  • TAN Registration Number
  • Alternate Phone number and email ID of deductor
  • Alternate Phone number and email ID of Responsible Person
  • Accounts Office Identification Number in case of Governement Deductors

Challan Details

  • The following fields are not to be mentioned starting Financial Year 2013-14
    • Section Code
    • Cheque / DD Number
  • Total amount deposited as per challan has to be in rupee, no paise allowed
  • A new field for entering  fee paid in terms of Section 234E is introduced. Applicable for FY 2012-13 onwards
  • A new field for entering Minor head of challan . Valid for FY 2013-14 onwards and mandatory

Deductee Details

  • A new field to enter “Deductee Reference Number “ where PAN is not available
  • Book Entry / Cash indicator is to be given only upto FY 2012-13
  • Section Code is to be mentioned for each deductee starting FY 2013-14
  • Certificate Number issued by the AO under section 197 for non-deduction / lower deduction is to be mentioned

Other Changes : Form Specific

Form 24Q : Salary Details

New fields added

  • Taxable Amount on which tax is deducted by the current employer
  • Reported Taxable Amount on which tax is deducted by previous employer(S)
  • Total Amount of tax deducted at source by the current employer for the whole year [aggregate of the amount in column 323 of Annexure I for all the four quarters in respect of each employee]
  • Reported amount of Tax deducted at source by previous employer(s)/deductor(s) (income in respect of which included in computing total taxable income in column 344)
  • Whether tax deducted at Higher rate due to non furnishing of PAN by deductee

Section code changes

Nature of Payment Section Section code to be used in the return
Payments made to Govt. employees other than Union Govt. employees 192 92A
Payments made to employees other than Govt. employees 192 92B
Payments made to Union Govt. employees.Applicable from for statement pertaining to FY 2013-14 onwards. 192 92C

Form 26Q

Bifurcation to be given in respect of deduction under section 194I

Nature of Payment Section Section code to be used in the return
Payments in respect of use of any machinery or plant or equipment; 194I ( a) 41A
Payments in respect of use of any land or building 194I ( b) 41B
  • Reason for lower/Nil Deduction : In case of no deduction on account of payment under section 197A (1F), applicable from FY 2013-14 onwards, ‘Z’ is to be mentioned.

Form 27Q : Deductee Details

New fields introduced

  • if TDS Rate is as per income-tax Act or DTAA :  Enter A : If TDS rate is as per Income Tax Act   or B : If TDS rate is as per DTAA
  •  Nature of remittance as per given 66 codes
  •  Country to which remittance made as per given 286 codes
  •  Unique Acknowledgement Number of Form 15CA , if available

Form 27EQ : Deductee Details

If there is non collection in terms  section 206c(1A) , update  flag ‘B’ in the field “Reason for lower/non-deduction”

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.