Error " Application blocked by deployment rule set" TDSCPC Website: Online TDS Correction

We receive an error message that the " Application blocked by deployment rule set" when we try to correct the TDS return on line on the website of www.tdscpc.gov.in This error is due to the fact that either the JAVA version is not updated or the URL https://downloads.tdscpc.gov.in has not been added in the JAVA Exception site List.

To Add this following are the steps

1. Go to the Control Panel- Program

2. Go to Java and open it 

3. Go to the Security Tab of Java and got to Edit Site List

4. Add https://downloads.tdscpc.gov.in and Press ok

Now you will be able to submit your corrected file to TDS CPC  online after digital signatures.

How to check Income Tax Refund Status in India Online?

1. Go to the Link : Check Income  Tax refund Status

2. Enter PAN (Permanent Account Number) of the Person for whom you want to check the Refund Status

3. Enter the Assessement Year (It is the year next to the Financial Year) e.g if you had earned/ received the salary or any other Income during 1st April 2013 to 31st March 2014 than your Financial Year (FY) is 2013-14 and the Assessement Year is 2014-15 as the income us earned during the Financial year and Assessed in the next year.

How to Pay TDS(Tax Deducted at Source) Online in India

Procedure to Pay on line TDS in India :Challan No / ITNS 281

Link to Pay on line TDS: Challan No / ITNS 281

All aboutt Permanent Account Number (PAN):

Process to fill PAN Form

Download PAN Form: 49A

How to Apply PAN car On line :-

Section 269T Repayment of Loans or Deposits

⁴²[Mode of repayment of certain loans or deposits⁴³.

269T. No branch of a banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit if—

(a)  the amount of the loan or deposit together with the interest, if any, payable thereon, or

(b) the aggregate amount of the loans or deposits held by such person with the branch of the banking company or co-operative bank or, as the case may be, the other company or co-operative society or the firm, or other person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such loans or deposits,

is twenty thousand rupees or more:

Section 269SS : Accepting Loans and Deposits

³⁵[Mode of taking or accepting certain loans and deposits.

³⁶269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,—

(a)  the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or

(b)  on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid ; or

(c)  the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b),

is ³⁷[twenty] thousand rupees or more :

Section 194-IA. TDS on Immovable Property

^86a[Payment on transfer of certain immovable property other than agricultural land.

194-IA. (1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon.

(2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees.

(3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.

Explanation.— For the purposes of this section,—

(a)  "agricultural land" means agricultural land in India, not being a land situate in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2;

(b)  "immovable property" means any land (other than agricultural land) or any building or part of a building.]

86a.  Inserted by the Finance Act, 2013, w.e.f. 1-6-2013.

TDS is to be deducted on total amount: 

Section 194 LA : TDS on compensation on acquisition of certain immovable property

⁸[Payment of compensation on acquisition of certain immovable property⁹.

194LA. Any person responsible for paying to a resident any sum, being in the nature of compensation or the enhanced compensation¹⁰ or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land), shall, at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon:

Section 194I : TDS on Rent

⁷⁸[Rent.

⁷⁹194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to ⁸⁰[a resident] any income by way of rent⁸¹, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, ⁸²[deduct income-tax thereon at the rate of—

⁸³[(a)  two per cent for the use of any machinery or plant or equipment; and

(b)  ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:]]

Section 194 H : TDS on Commission or Bokerage

Commission or brokerage.

194H. Any person, not being an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st day of June, 2001, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of [ten] per cent :

Provided that no deduction shall be made under this section in a case where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed [five thousand rupees] :

[Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section:]

[Provided also that no deduction shall be made under this section on any commission or brokerage payable by Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited to their public call office franchisees.]

Explanation.—For the purposes of this section,—

 (i)  "commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities;

(ii)  the expression "professional services" means services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or such other profession as is notified by the Board for the purposes of section 44AA;

(iii)  the expression "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(iv)  where any income is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.]

Q What is the meaning if Commission and how it is different from Discount ?

Section 194 J :TDS on Fees for Professional or Technical Services

Fees for professional or technical services.

^88a194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

(a)  fees for professional services, or

(b)  fees for technical services [or]

Section 194 C : TDS on Payments to Contractors

Payments to contractors.

194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work(including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to—

Section 24 of Income Tax Act

Deductions from income from house property.

Section 24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:—

 (a) a sum equal to thirty per cent of the annual value;

 (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Section 80 C : Questions and Answers

Q  Whether is is necessary that Investment under Section 80C of Income-tax Act, 1961  should be from the Income earned during the period?

Answer: Investment in National Savings Certificates, etc. for claiming deduction under section 80C need not be from income earned up to that period; it would be sufficient if total income of assessee for that year covers investment [Assessment year 1992-93] [In favour of assessee] [2009] 318 ITR 286 (ALL.) HIGH COURT OF ALLAHABAD Commissioner of Income-tax v. Pursottam Sa.

Section 80C of the Income Tax Act

 Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

80C.  (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed  Rs 150000 w.e.f 01.4.2015 (Before this the limit was Rs 1,00,000)

Aslo Read  Section 80 C : Questions and Answers

Income Tax Return : Questions and Answers

Questions and Answers of Filing the Income Tax Return  

Q . What are the modes of filing return of income?

Return of income can be filed in paper mode or in e-filing mode. If return of income is filed through electronic mode, then the assessee has following two options:

(1)		E-filing using a Digital Signature
(2)		E-filing without a Digital Signature

Section 40A (3) : Dis allowance of Cash Payments

Sub Section 3 and 3A of Section 40 A are :-

(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.

(3A) Where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, the payment so made shall be deemed to be the profits and gains of business or profession and accordingly chargeable to income-tax as income of the subsequent year if the payment or aggregate of payments made to a person in a day, exceeds twenty thousand rupees:

Section 40A (7): Disallowance of Gratuity

Section 40A (7): Disallowance of Gratuity :-

 (a) Subject to the provisions of clause (b), no deduction shall be allowed in respect of any provision whether called as such or by any other name) made by the assessee for the payment of gratuity to his employees on their retirement or on termination of their employment for any reason.

(b) Nothing in clause (a) shall apply in relation to any provision made by the assessee for the purpose of payment of a sum by way of any contribution towards an approved gratuity fund, or for the purpose of payment of any gratuity, that has become payable during the previous year.

Section 40A (9) of Income Tax Act 1961: Disallowance of Contribution

Section 40A(9)  of the Income Tax Act 1961:-

No deduction shall be allowed in respect of any sum paid by the assessee as an employer towards the setting up or formation of, or as contribution to, any fund, trust, company, association of persons, body of individuals, society registered under the Societies Registration Act, 1860 (21 of 1860), or other institution for any purpose, except where such sum is so paid, for the purposes and to the extent provided by or under clause (iv) [or clause (iva)] or clause (v) of sub-section (1) of section 36, or as required by or under any other law for the time being in force.

Section 40(a)(ia) of Income Tax Act 1961

Brief History of Section 40(a)(ia):-

The provision of section 40(a)(ia) of the IT Act, 1961 was brought on the Statute by the Finance Act, 2004, w.e.f. 1-4-2005.

- It provides for disallowance of any interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted, or, after deduction, has not been paid during the P.Y., or in the subsequent year before the expiry of the time specified under section 200(1).

Disadvantages of filing a late return

Disadvantages of filing a late return

As per Income Tax Department of India : “A tax return may be furnished any time before the expiry of two years from the end of the financial year in which the income was earned’. This means that if you earned your income during FY 2013-14, you may file a belated return anytime before 31st March, 2016 ” . But there are some disadvantages if you don’t file your returns on time .   They are

• 1. You will not be able to carry forward your Business loss (Speculation or otherwise) , capital loss , loss due to 
•      owning and maintaining of race horses.
• 2.  Loss of Interest on refund : You may loose interest on refund u/s 244A specially in case if you are claiming a 3.  Major amount as refund.
• 4.  You cannot revise your return.
• 5.  late filing can delay processing for tax refunds.
• 6.  Incremental Interest U/s. 234A – If the tax has not been paid before the end of the tax year concerned and you file the return late, incremental interest at the rate of 1% per month will be payable on the unpaid amount after the due date. This is in addition to the 1% per month interest for non-payment of advance tax, that is, tax due after tax deduction at source exceeding Rs 10,000. Thus, late returns can result in an additional interest burden.

-

Invalid details in Part 1 and/or Part 2” in Justification Report

E - Tutorial for  Correction of TDS Statement

Guide-1 : To Identify Correct Challan

Guide-2 : To Identify Correct PAN amount Combinations

1.Particulars in Part 1 and Part 2 of Justification Report are required to be exactly the same as reported in the TDS statement. Please enter the challan details and unique PAN-Amount combination as reported in the regular statement. However if challan details and the unique amount combination reported in the regular statement have been modified in the correction statement, then use the modified particulars of challan details and unique PAN -Amount combination.

Case Law on Section 54F

 Section 54F. - 

1) Whether in the absence of completion and possession by way of registration and transfer of its title of flats booked by the assessee on the date of transfer of original capital asset, the income from House Property could be assessed 

2) Whether any payment made towards acquisition of a new residential house by way of making payment in advance even by booking or by paying installments within the prescribed has to be treated as investment towards purchase/construction of a new house.

TDS Default Correction- Process

Click : e-Tutorial for TDS Correction

What are C3  Corrections?

• C3 Correction involves Updation or Addition of Deductee details in the TDS statement. The facility to delete Deductee records has now been discontinued for the purpose of correct reporting and is no longer permissible in the TDS statements. Accordingly, the delete option available under "Updation mode for Deductee" has been removed from RPU 3.8.

Important points to adhere while submitting Corrections: 

• Correct and Complete Reporting: It is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the TDS statement. Please ensure that records are corrected for all deductees reported in the corrections to avoid multiple submissions.
• Addition of new deductee rows and thereby, challans is not encouraged by CPC (TDS), except for inadvertent errors. Please ensure that complete data is reported in the first instance, while quarterly TDS Statement is submitted.
• Validate PAN and name of fresh deductees from TRACES before quoting it in correction statement. Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN.
• TDS statement cannot be filed without quoting any valid challan and deductee row.
• Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer.
• Download the Justification Report to know the details of TDS defaults, if any, on processing of TDS statements and submit corrections accordingly .
• File correction statements promptly in case of incomplete and incorrect reporting. Please use the new version 3.8 of the Return Preparation Utility (RPU) and version 4.1 & 2.137 of the File Validation Utility (FVU) released by NSDL.

C9 Corrections :-

Centralized Processing Cell (TDS) has observed from its records that C9 Corrections for Quarterly TDS Statements have repeatedly been submitted during Financial Year 2013-14. Please note that CPC (TDS) does not encourage frequent submission of C9 corrections.

Your attention is, therefore, invited to the following information:

What are C9 Corrections?

• Revision of TDS Statement by way of Adding a new Challan and underlying Deductees is referred to as C9 Correction.
• The above revision indicates that the TDS data has not been reported correctly by way of omission of deductees, at the time of filing Original statements.
• This also means that not all tax amount deducted/ collected has timely been deposited by way of challans to CPC(TDS).
• The omission results into lower deposit of tax collected/ deducted by the deductor to CPC (TDS).

Important points to adhere while submitting Quarterly TDS Statements:

• Correct and Complete Reporting: It is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the TDS statement.
  Please ensure that records are corrected for all deductees reported in the corrections to avoid submission of multiple revisions.
• Addition of new deductee rows and thereby, challans is not encouraged by CPC (TDS), except for inadvertent errors.Please ensure that complete data is reported in the first instance, while submitting quarterly TDS Statements.

Please ensure that data for all deductees reported in TDS Statements are duly corrected which will help the deductees in claiming correct TDS Credits, besides generating correct TDS Certificates.

PANs appear structurally valid, however, they are actually invalid,

Centralized Processing Cell (TDS) has observed from its records that you have reported deductees with invalid PANs in your quarterly TDS statements. These PANs appear structurally valid, however, they are actually invalid, as they are not available in the PAN Master records.

For example, ARUPS4625S appears to be a valid PAN according to the alphabets and numerals in its structure, however, this is an invalid PAN, as this is not available in PAN Master.

What is the impact :

• The impact of such errors is significant in nature, in view of following :
  • As per section 206AA, the tax is to be deducted at a higher rate, in case of reporting of invalid PANs. Therefore, Short Deduction is charged even if the tax has been deducted at the Section Rate, due to the applicability of section 206AA.
  • The deductor will not be able to generate TDS Certificates for their deductees with invalid PANs.
  • The taxpayer will not be able to avail correct TDS Credits

What actions to be taken :

• The impact of such errors is significant in nature, in view of following :
  • PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to Login to TRACES and
    navigate to "Dashboard" to locate "PAN Verification" in the Quick Links menu.
  • You can also use "Consolidated TAN - PAN File" that includes all the valid PANs attached with the respective TANs. To
    avail the facility, Login to TRACES and navigate to "Dashboard" to locate "Consolidated TAN - PAN File".
  • To correct an invalid PAN reported earlier, a C5 Correction Statement is required to be filed.
  • The PANs can also be corrected using our Online Correction facility
    with Digital Signatures. To avail the facility, you are requested to Login to TRACES and navigate to "Defaults" tab to locate"Request for Correction" from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.

 Quote correct Book Identification Number (BIN), while filing TDS/TCS statement.

This is to inform you that it is mandatory for Government deductors, who are reporting TDS without payment through bank challans, to quote correct Book Identification Number (BIN), while filing TDS/TCS statement. In case correct BIN is not quoted in the respective TDS statement, a Short Payment demand shall be raised by CPC(TDS).

As you may be aware, BIN is generated by the Tax Information Network (NSDL) once the respective Principal Accounts Officer files monthly statements in Form 24G. You are requested to contact your respective PAO/ AO/ AAO/DTO/ TO/ CDO and collect the BIN details. You can also check BIN from TIN portal athttps://onlineservices.tin.egov-nsdl.com/TIN/JSP/etbaf/ViewBIN.jsp

Important CPC (TDS) Communication to Govt. Deductors for Downloading of TDS Certificates

As per the records of Centralized Processing Cell (TDS), the TDS Statements have been filed by you for different quarters and you are requested to download TDS Certificates (Forms 16/ 16A) from our portal. Please refer to the following provisions of the Income Tax Act, 1961:

Downloading of TDS Certificates from TRACES made mandatory:

    
In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is nowmandatory for all deductors to issue TDS certificates after generating and downloading the same from "TDS Reconciliation Analysis and Correction Enabling System" or http://www.tdscpc.gov.in (hereinafter called TRACES Portal).


TDS Certificates downloaded only from TRACES hold valid:

  
In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.


Due Date for downloading and Penalty for non-compliance:

  
Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.


Assistance for downloading TDS Certificates from TRACES:

  
You can logon to our portal http://www.tdscpc.gov.in and refer to our e-Tutorial e-tutorial to download TDS Certificates. For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

Important Guidelines for payment towards liability on account of Tax Deducted / Collected at Source

A. Central Government Account ( Receipts and Payments ) Rules, 1983:

Date of Receipt for Cheques or Drafts: The Central Government Account (Receipts and Payments) Rules, 1983 contain, inter alia, regulate public moneys received by or on behalf of the Government of India. As per clause 20 of Part I (Preliminary and General Principles), the Date of receipt of Government revenues, dues etc. is determined as follows:

20. Date of receipt of Government revenues, dues etc.-
Government dues tendered in the form of a cheque or draft which is accepted under the provisions of rule 19 and is honoured on presentation, shall be deemed to have been paid-

i. where the cheque or draft is tendered to the bank, on the date on which it was cleared and entered in the receipt scroll;

B. Rule 125 of Income Tax Rules, 1962:

Electronic Payment of Tax: Rule 125 of Income Tax Rules, 1962 relates to Electronic Payment of Tax. The relevant provisions are as under:

• The following persons shall pay tax electronically on or after the 1st day of April, 2008:
•   a company; and 
•   a person (other than a company), to whom the provisions of section 44AB are applicable.

• For the purposes of this rule :
• "pay tax electronically" shall mean, payment of tax by way of-
• internet banking facility of the authority bank; or

In the light of the above, it is suggested that the payments towards TDS may kindly be made through e-payment mode. This helps in better reporting of challan by deductors and consequential matching of such challans.

CPC (TDS) communication: Simple ways to avoid Defaults in TDS Statements

• Timely Payment of total taxes deducted/ collected
• Correct Reporting with regard to PANs, Tax Rate and Challans
• Complete Reporting for all Deductees
• Timely filing of TDS Statements

Following are some important facts to be adhered to, while submitting TDS statements, to avoid each type of Default:

• Late Payment Defaults:
  • The taxes deducted must be deposited within the due dates, as prescribed by Rule 30 of the Income Tax Rules 1962.
  • Please also refer to our communication on Important Guidelines for payment towards liability on account of Tax
    Deducted / Collected at Source

• Short Payment Defaults:
  • All the taxes deducted must be deposited with challan 281 quoting correct TAN, Assessment Year, Minor Head etc.
  • Challan details/BIN details quoted in the statement should be correct. Challans can be validated by using Challan Status Inquiry(CSI) file. Correct details can also be verified at TRACES in "Challan Status" menu under "Statement" after
    login.
  • There should not be any difference in the amounts quoted in "Deducted" and "Deposited" columns of the deductee
    rows.
  • Challans quoted in the statement must have balance available for consumption against specified deductee rows.
    Available balance can be verified at TRACES in "View Consumption Details" under "Statements/ Payments"
    menu after login.
  • Government Deductors need to report Book entry flag as "Y" in challan details.

• Short Deduction Defaults:
  • Taxes must be deducted at correct rates specified in the Act. The Rate table can be accessed at TRACES for
    correct tax rates.
  • Correct flags (A, B, C, T and Y) must be raised for no deduction / lower deduction/ higher deduction, as appropriate.
  • The PAN for deductees must be valid and correct. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs.
  • Correct and valid 197 Certificates must be specified. E-tutorial can be referred to for the purpose of validation.
  • For 24Q statements, correct flags should be raised for Woman/ Man/ Senior Citizen/ Super Senior Citizen
    deductees, as may be appropriate.
  • DTAA flag "B" must be raised under section 195 of the Act, at the time of filing 27Q statements.

• Late Deduction Defaults:
  • Taxes must be deducted at the time of Payment or Credit, whichever is earlier.

• Late Filing Defaults:
  • Quarterly TDS/TCS statements must be filed within due dates of filing statements as prescribed by Rule 31A of the
    Income Tax Rules, 1962. The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.
  • Please refer to our communications CPC (TDS) Reminder for filing of TDS Statements within Due Date and CPC (TDS) Communication-Circular 07/ 2014 for Late Fee Levy for Government Deductors in this regard.

CPC (TDS) brings to you the convenience of Online Corrections without Digital Signature

CPC (TDS) is glad to provide you with enhanced features, to further add to the convenience of online facility of filing corrections to the TDS Statements. With this feature, you will be able to submit Online Corrections at TRACES without even having a Digital Signature. Currently over 20,000 deductors are already using the online facility for corrections.

To avail the facility, it is requested to Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. Click to "Proceed" in absence of Digital Signature.

Pre-requisites for filing online Corrections:

• Digital Signature is not mandatory to be registered on TRACES for raising online corrections.
• Only Challan Correction is permissible in absence of Digital Signature. Digital Signature enables you to carry out PAN Corrections as well.
• Correct KYC information needs to be submitted for the purpose of validation.
• Online request can be submitted, only if there is a regular statement already filed and processed.
• All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.

Functionalities available without Digital Signature:

• Challan/BIN Correction
  • A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
  • Matched challans can be corrected for "Amount Claimed as Interest and Others". Please note that Matched challans
    cannot be tagged.
  • Unmatched challans can be corrected and tagged to Deductee rows in the statement.
  • In addition, NO CHALLAN, which has been used for other purposes outside the system, should be tagged.
  • The corrections to above challans can be reset by clicking the Reset tab, if this requires to be further corrected.
  • A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.

Additional Functionalities available with Digital Signature:

• PAN Correction
  • Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in "Name as per changed PAN".
  • Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the "Action Status". Please note
    that there is only one opportunity for a Valid to Valid PAN correction.
  • All the corrected rows can be viewed by clicking on "Show Edited Rows" on the screen
• Action Summary:
  • After carrying out all the corrections, Action Summary can be referred for all changes carried out.
  • Please click "Confirm" for all intended changes and the statement is ready for submission.
• Actions to complete Submission:
  • Please navigate to "Defaults" tab to locate "Corrections Ready for Submission"
  • Click on "Submit for Processing", which will prompt to digitally sign the submission.
  • Once the correction is submitted successfully, a Token Number for the same will be available

CPC (TDS) brings to you the convenience of Online Corrections without Digital Signature

In our continuous endeavor to enhance end-user functionalities, we are glad to bring to you the convenience of online facility of PAN Verification on TRACES. With this feature, you will be able to validate the PANs with confidence for the purpose of recording and reporting your transactions in the TDS statements correctly.

To avail the facility, it is requested to Login to TRACES and navigate to "Dashboard" to locate "PAN Verification" in the Quick Linksmenu. The functionality to download Consolidated TAN - PAN File has also been provided that includes all the PANs attached with the respective TANs.

How does it help:

• Reporting of correct data has been made mandatory by CPC (TDS). Reporting of invalid PANs results into Short Deduction defaults<> in processed TDS statements.
• Helps in generating correct TDS Certificates for the deductees.
• The taxpayer is able to avail correct TDS Credits in time.

Additional Functionalities available: 

To correct an invalid PAN reported earlier, a C5 Correction Statement is required to be filed. In addition, the PANs can also be corrected using our Online Correction facility. To avail the facility, it is requested to Login to TRACES and navigate to "Defaults" tab to locate"Request for Correction" from the drop-down menu. For any further assistance, please refer to the e-tutorial available on TRACES.

PAN Correction steps through Online Correction:

• Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in "Name as per changed PAN".
• Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the "Action Status". Please note that there is only one opportunity for a Valid to Valid PAN correction.
• All the corrected rows can be viewed by clicking on "Show Edited Rows" on the screen.
• Click on "Submit for Processing", which will prompt to digitally sign the submission.
• 
  

CPC(TDS) communication regarding Short Deduction defaults in TDS Statements

CPC(TDS) has observed from its records that the TDS statements submitted by you have Defaults on account of Short Deduction. The above default is due to the fact that tax has not been deducted at appropriate higher rate, where PAN has not been reported correctly or PAN information is "Not Available".

In regard to the above, it is requested to take note of the following facts:

• There is a Short Deduction default exceeding Rs. 1,00,000 in your TDS statements.
• Your attention is hereby drawn to the provisions of Section 206AA of the Income Tax Act, 1961:
  (1) Notwithstanding anything contained in any other provisions of this Act, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (hereafter referred to as deductor), failing which tax shall be deducted at the higher of the following rates, namely:-
  • At the rate specified in the relevant provision of this Act; or
  • At the rate or rates in force; or
  • At the rate of twenty per cent.

• Consequences of failure to Deduct or Pay:
• As per provisions of Section 201 of the Act,
  • Where any person, including the principal officer of a company,
  • Who is required to deduct any sum in accordance with the provisions of this Act; or
  • Referred to in sub-section (1A) of section 192, being an employer,
    does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as
    required by or under this Act, then, such person, shall, without prejudice to any other consequences which he
    may incur, be deemed to be an assessee in default in respect of such tax.
• Under section 220(2), if the amount specified in any notice of demand under section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month.
• Under section 277 of the Act, if a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true is punishable.

It is, therefore, requested to correct the records reported in your TDS statements, pay the outstanding demand and submit Correction Statement at the earliest. Please ignore, if the corrections have already been submitted.

It is also advised to refrain from repeating such instances in future.

Important CPC (TDS) reminder for Payment of outstanding Default amount

The Centralized Processing Cell (TDS) takes pride in automating for the first time, the Default identification process in respect of TDS statements submitted. CPC (TDS) has always highlighted the need for correct and complete reporting of data in the TDS statements and has therefore, implemented processes to enforce compliance.

With the above functionality made available by TRACES, intimations have been sent to the deductors, wherever applicable, through SMS and e-mail services and through Registered/ Speed Post. Further, TRACES has also provisioned for easy access to this information by way of display in Deductor's Dashboard and by availability of electronic copies of Justification Reports for the defaults generated with respect to relevant TDS statements.

In view of the close of the month approaching fast, you are advised to pay the outstanding demand at an early date to avoid Penal Interest u/s 220(2) of the Act read with Rule 119A, apart from intimation of other recovery proceedings as per Income Tax Act, 1961. If the demand has already been paid, you are requested to file a Correction Statement by tagging the challan and the Justification report can be verified for closure of demand, if the revision has already been submitted and processed.

How to pay the demand?

The following steps shall help you analyze and pay the demand:

• Download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for
  assistance on downloading the Justification Report.
• Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance
  available.
• Download the Conso File from our portal. Please use the e-tutorials for necessary help
• Prepare a Correction Statement using version 3.8 of the Return Preparation Utility (RPU) and version 4.1 & 2.137 of the
  File Validation Utility (FVU).
• Submit the Correction Statement at TIN Facilitation Centre.
• If the demand is due to mismatch of challan(s), the Online Correction facility on TRACES can be used for tagging
  the same. Please refer to the e-tutorials for assistance.

CPC (TDS) Follow up communication for payment of outstanding Demand related with Late Filing

As per the records of Centralized Processing Cell (TDS), the TDS Statement(s) for some of the quarters have not been submitted within the prescribed due date.

Intimation u/s 200A of the Income Tax Act, 1961 intimating an outstanding demand for the relevant quarters, including demand under section 234E towards Fee for delayed filing of TDS Statement(s), have already been sent by CPC (TDS) on Registered email address and by post, at the address, as mentioned in the relevant TDS Statement

Your attention is hereby drawn towards the provisions of section 234E of the Act, which reads as follows:

Levy for Late filing of TDS Statement (Section 234E of Income Tax Act)

• Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time
  prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee,
  a sum of two hundred rupees for every day during which the failure continues.
• The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.
• The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with
  sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.
• The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3)
  of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may
  be, on or after the 1st day of July, 2012.

You are advised to pay the outstanding demand at an early date to avoid Penal Interest u/s 220(2) of the Act apart from intimation of other recovery proceedings as per Income Tax Act, 1961. If the demand has already been paid, you are requested to file a Correction Statement by tagging the challan and the Justification report can be verified for closure of demand, if the revision has already been submitted and processed.

How to pay the demand:

• The following steps shall help you analyze and pay the demand:
  • Download the Justification Report from our portal TRACES to view your latest outstanding demand. Please click here for assistance
    on downloading the Justification Report.
  • Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available
  • Download the Conso File from our portal. Please use the e-tutorial for necessary help
  • In case of payment towards late filing fee, please Tag the challan towards the payment, in the "Fee" column" (Column Number
    305 for 24Q, 404 for 26Q, 706 for 26Q) using RPU Ver. 3.8, mentioning appropriate amount in such column and validate to
    generate the FVU.
  • Submit the Correction Statement at TIN Facilitation Centre.
  • The demand can also be paid by using the Online Correction facility. Please refer to the e-tutorial for assistance.

You can reach out to us on ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.