MULTIPLE CERTIFICATES U/S 197 MULTIPLE CERTIFICATES U/S 197 Problem Solution • Deductor gets short The problem was arising deduction notices with in case where the justification that the deductee had taken amount of payment multiple 197 certificates made to a deductee on w.r.t. the same deductor which TDS has been during a financial year. In deducted at lower rate such case, the software exceeds the limit at TRACES was reading mentioned in the the last certificate given certificate u/s 197. to the deductee only. Now, the system has been streamlined. 12/24/2013 By Anup Singh 21
DEMAND PERTAINING TO WRONG PAN/ TAN DEMAND PERTAINING TO WRONG PAN/ TAN STATUS STATUS Problem Reason/ Solution • Deductor gets short The deductee’s PAN may deduction notice with have a foreign company justification that PAN status (rates of education cess, surcharge surcharge and education have been paid at a rate cess are different for a lower than the foreign company), while prescribed rates the deduction has been made w.r.t. domestic company’s details. 12/24/2013 By Anup Singh 22
Problem Reason/ Solution • Deductor gets short The deductee is a family deduction notice with trust (and not of an justification that the individual). The system deduction u/s 194C has has correctly processed been done @1%, instead the statement. of @2%. The deductor claims that since TDS @1% is required to be deducted in the case of individuals, hence the notice is incorrect 12/24/2013 By Anup Singh 23
FEES u/s 234E FEES u/s 234E Problem Reason/ Solution • Deductor is not able to The software of the bank deposit fees at the bank needs to be upgraded. as bank is not having any The issue needs to be provision in its software addressed at the level of to collect fees u/s 234E bank. • As per the deductors, Considering the extent the provision is very of defaults in filing of harsh statements by the deductors, the provision is justifiable. 12/24/2013 By Anup Singh 24
CORRECTION STATEMENTS PERTAINING TO CORRECTION STATEMENTS PERTAINING TO PAPER STATEMENTS OF F.Y. 2007 PAPER STATEMENTS OF F.Y. 2007- -08 08 Problem Reason/ Solution • Deductor is not able to The correction file correction statement can be filed in statements pertaining to paper format only as paper statements new statement after pertaining to F .Y. 2007-08 cancelling the original statement. 12/24/2013 By Anup Singh 25
CORRECTION STATEMENTS PERTAINING TO CORRECTION STATEMENTS PERTAINING TO GOVT GOVT AIDED SCHOOLS AIDED SCHOOLS Problem Reason/ Solution • Deductor is a school The issue is being taken (PAN status: trust) up with CPC TDS, will getting government be resolved soon. grant. TDS u/s 192 is by book entry. The deductor is making the payment of short deduction. He is not able to file correction statements. Error: Book entry not allowed in trust. 12/24/2013 By Anup Singh 26
CANCELLATION OF STATEMENTS FACILITY CANCELLATION OF STATEMENTS FACILITY Problem Reason/ Solution • A deductor while filing a The cancellation of statement quotes wrong statement functionality was TAN. The deductor whose withdrawn few years back TAN was quoted is not because of its misuse. The able to file the statement as issue is being taken up with the system reads “original CPC TDS. statement already filed”. The deductor cannot even file the correction statement in absence of data. Hence, justification for “cancellation of statement” facility. 12/24/2013 By Anup Singh 27
CANCELLATION OF TAN FACILITY CANCELLATION OF TAN FACILITY Problem Reason/ Solution • A deductor stops using a The TAN can be made TAN and wants to cancel it inactive through ITD as it keeps on getting “non system. filer notices” from the The TAN cannot be department. cancelled because the deductor’s statements can be scrutinised till six years. Any default detected later may create complications. 12/24/2013 By Anup Singh 28
PROBLEMS RELATING TO 16B PROBLEMS RELATING TO 16B Problem Reason/ Solution • Seller not getting the The Deductor (Buyer) should fill the amount of tax in 'TDS credit (zero credit) in form Amount to be Paid' field and 16B. not in 'Interest' or 'Fee' field. Else, the seller will not get the credit of such tax 12/24/2013 By Anup Singh 29
PROBLEM IN DOWNLOADING CONSO FILE PROBLEM IN DOWNLOADING CONSO FILE Problem Reason/ Solution • Deductor is not having No alternative remedy as per law as of now. the mandatory detail of at least one Challan and three PANs, in order to download conso file 12/24/2013 By Anup Singh 30
TECHNICAL/ SYSTEMIC ISSUES TECHNICAL/ SYSTEMIC ISSUES Problem Reason/ Solution • It is taking very long time As per CPC TDS, the problem is related to less than 5% for processing of original cases. The problem was mainly and correction statements. because of delay in supplying data by NSDL earlier. • Very long time lag in • The process will get “correction of Challan” streamlined very soon through AO • Other technical issues • Software is evolving with such as delay in generation each complication/ problem of 26AS after processing, faced by it every day. time lag in unlocking of account if locked once. 12/24/2013 By Anup Singh 31
Problem Reason/ Solution • The assessee is not able There is no such issue. Statement will be accepted, to file statement as the processed charging TDS FVU requires 95% @20%. structurally valid PANs in a statement for processing. • Demand was generated in • The process has been case of inactive PANs of streamlined. Demand will the deductees not be generated in case of even inactive PANs 12/24/2013 By Anup Singh 32
197 CERTIFICATE UTILITY AT TDS, 197 CERTIFICATE UTILITY AT TDS, AHMEDABAD AHMEDABAD- - A WORKFLOW A WORKFLOW All Application accepted at central level Unique Six Digit Bar coded Number is provided to every Form No 13 Online approval is taken from Joint/Additional Commissioner TDS Range Ahmadabad 12/24/2013 By Anup Singh 33
ADVANTAGES OF THE NEW SYSTEM ADVANTAGES OF THE NEW SYSTEM Tracking the application status at any point of time Disposal of application made very speedy Manual register for 197 applications are no longer required by the TDS Range Ahmadabad 12/24/2013 By Anup Singh 34
CHECK LIST PERTINENT TO FORM 13 CHECK LIST PERTINENT TO FORM 13 Form No. 13 Duly Filled in complete , correct & true in all respect. Copy of Acknowledgment of Return of last 3 years.Self declarations for non taxable income for respective years. Copy of provisional Profit & Loss Account , Balance Sheet & Income / Expenditure A/c Computation of Tax working for F.Y 2013-14, A.Y 2014-15 Self Declaration on letter head in respect of outstanding demand for I.T / W.T/ TDS 12/24/2013 By Anup Singh 35
Name , Address and respective amounts of receipts from the deductors should clearly mention TAN Authority letter. Correct calculation of TAX. In case of Trust / AOP copy of certificate u/s 12A and 80G, Trust Deed ( English Version) If Lower Deduction certificate required for Rent Income(194-I) copy of rent agreement. Last 3 Year’s P& L A/c , Balance Sheet & 3CD Reprot , if any Copies of TDS Statement for 2 years & for current year up to date of form no 13 filed. 12/24/2013 By Anup Singh 36
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TAN TAN Every deductor is required to obtain a unique identification number called TAN (Tax Deduction Account Number) which is a ten digit alpha numeric number. This number has to be quoted by the deductor in every correspondence related toTDS 12/24/2013 By Anup Singh 38
• Every person deducting tax or collecting tax should obtain a tax deduction & collection account number (u/s 203A, 206CA) • Such person should quote such number in every challan for payment u/s 200 (3) or 206C(3), in every certificate furnished u/s 203 or u/s 206C(5) • In all the TDS/ TCS statementsdelivered • In all other documents pertaining to such transaction as may be prescribed in the interest of revenue. 12/24/2013 By Anup Singh 39
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CHAPTER XVIIB, XVIIBB OF THE I.T.ACT,1961 CHAPTER XVIIB, XVIIBB OF THE I.T.ACT,1961 Income Income Tax Act Tax Act Chapter Chapter XVIIB (TDS) XVIIBB (TCS) Other than Salary (24Q) 27EQ salary (26Q) 12/24/2013 By Anup Singh 41
TDS RATE CHART FOR SALARY PAYMENTS TDS RATE CHART FOR SALARY PAYMENTS • TDS is deducted if the Criterion of Criterion of estimated income of the Deduction Deduction employee is taxable. • As per Income tax, surcharge, education cess applicable on TDS Rate TDS Rate the estimated income of employee for the year. 12/24/2013 By Anup Singh 42
TDS RATE CHART FOR NON SALARY PAYMENTS TDS RATE CHART FOR NON SALARY PAYMENTS Payment to Threshold Section Nature of Payment Total Payment Individual No. Others During the Year or HUF 193 Interest on Debentures 10% 10% Rs. 5000/- - 194 Deemed Dividend 10% 10% 194 A Rs. 10000/- 10% 10% Interest by banks (Other than interest on securities) 194 A Rs. 5000/- 10% 10% Interest by Others (Other than interest on securities) 194 B Winnings from Lotteries / Puzzle / Game Rs. 10000/- 30% 30% 194 BB Winnings from Horse Race Rs. 5000/- 30% 30% 194 C (1) Payment to Contractors Rs. 30000/- 1% 2% Rs. 30000/- 1% 2% Payment to Sub-Contractors / for Advertisements 194 C (2) 194 D Payment of Insurance Commission Rs. 20000/- 10% 10% 194 EE Out of deposits under NSS Rs. 2500/- 20% NA 12/24/2013 By Anup Singh 43
194 G Commission on Sale of Lottery tickets Rs. 1000/- 10% 10% 194 H Commission or Brokerage Rs. 5000/- 10% 10% 194 I Rent of Land, Building or Furniture Rs. 180000/- 10% 10% 194 I Rent of Plant & Machinery Rs. 180000/- 2% 2% 194 J Professional / technical services, royalty Rs. 30000/- 10% 10% 194 J Remuneration / commission to director of the - 10% 10% (1) company 194 J w.e.f. 01 .07.2012,Any remuneration / fees / - 10% 10% (ba) commission to a director of a company, other than those on which tax is deductible under section 192. 194 LA Compensation on acquisition of certain Rs. 2,00,000/- 10% 10% immovable property 194 IA Compensation on transfer of certain immovable Consideration is 1% 1% property other than agricultural land Rs. 50 lakh or (w.e.f. 01 .06.2013) more. 194LD Interest on certain bonds & Govt. securities 5% 5% (w.e.f. 01 .06.2013) 12/24/2013 By Anup Singh 44
TCS RATE CHART TCS RATE CHART Sl. No. Nature of Goods Rates in % 1 Alcoholic liquor for human Consumption 1 2 T endu leaves 5 3 Timber obtained under forest lease 2.5 Timber obtained by any mode other than a forest 4 2.5 lease Any other forest produce not being timber or tendu 5 2.5 leaves 6 Scrap 1 7 Parking lot 2 8 T oll plaza 2 9 Mining & Quarrying 2 10 Minerals, being coal or lignite or iron ore 1 Bullion or jewellery (if the sale consideration is paid 1 11 in cash exceeding INR 2 lakhs) 12/24/2013 By Anup Singh 45
DUE DATES FOR PAYMENT OF TDS/ TCS DUE DATES FOR PAYMENT OF TDS/ TCS (Rule 30) (Rule 30) Deductor For MARCH For April to February Government On the same day (book On the same day (book entry) or entry) or within 7 days within 7 days of next month (challan of next month (challan payment) payment) On or before 30 th April On or before 7 th of next month Other than Government 30 th April Special Cases Quarterly payment on or before 7 th of the month succeeding quarter 12/24/2013 By Anup Singh 46
DUE DATES FOR FILING QUARTERLY DUE DATES FOR FILING QUARTERLY TDS STATEMENTS (24Q, 26Q) (Rule 31A) TDS STATEMENTS (24Q, 26Q) (Rule 31A) Date of ending of the quarter Due date (for government Due date (other than Sl. No. of the financial deductor) government deductor) year (1) (2) (3) (4) 1. 30th June 31st July of the financial year 15th July of the financial year 30th 31st October of the financial 15th October of the financial 2. September year year 31st December 31st January of the financial 15th January of the financial 3. year year 15th May of the financial year 15th May of the financial year immediately following the immediately following the 4. 31st March financial year in which financial year in which deduction is made deduction is made. ] 12/24/2013 By Anup Singh 47
DUE DATES FOR FILING QUARTERLY TCS DUE DATES FOR FILING QUARTERLY TCS STATEMENTS (27EQ) (Rule 31AA) STATEMENTS (27EQ) (Rule 31AA) Quarter of the financial Sl. No. Due date year ended (1) (2) (3) 1. 30th June 15th July of the financial year 2. 30th September 15th October of the financial year 3. 31st December 15th January of the financial year 15th May of the financial year immediately 4. 31st March following the financial year in which collection is made 12/24/2013 By Anup Singh 48
DUE DATES FOR FURNISHING DUE DATES FOR FURNISHING CERTIFICATES OF TDS (Rule 31,37D) CERTIFICATES OF TDS (Rule 31,37D) Sr. Form no Periodicity Cut off Date No. 31 st May of following financial year 1 16 For Salary Annual 2 16A Other Quarterly Within 15 days from due date of than salary furnishing the TDS statement under rule 31A 3 27D Quarterly Within 15 days from due date of furnishing the TCS statement under rule 31AA 12/24/2013 By Anup Singh 49
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