Click : e-Tutorial for TDS Correction
What are C3 Corrections?
Important points to adhere while submitting Corrections:
Your attention is, therefore, invited to the following information:
What are C9 Corrections?
Important points to adhere 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 :
What actions to be taken :
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
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-
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:
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
Following are some important facts to be adhered to, while submitting TDS statements, to avoid each type of Default:
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:
Functionalities available without Digital Signature:
Additional Functionalities available with 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:
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:
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:
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:
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)
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:
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.
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