Etds – FVU 3.1 – Rounding Off problem leading to T-FV-4278 Error

FVU 3.1 was launched on March 18,2011 and is applicable for Q4 eTDS Statements for FY 2010-11 and 2011-12.

Many deductors are not able to create eTDS statement and are getting the following error:

T-FV-4278 Invalid tax deducted amount. Enter valid tax deducted amount.

New Validation for TDS Amount

The above error is because of a new validation introduced in FVU 3.1

Correct TDS Amount = Amount Paid * TDS Rate

TDS Amount Shown in Statement

Variance Amount = Correct TDS Amount – TDS shown in statement

Variance % = Variance Amount / Correct TDS Amount * 100

If the variance % is 10 or above – the above error is generated

Rounding Off problem leading to T-FV-4278 Error

A common practice among deductors is to round off TDS payable to nearest rupee.  This practice has been followed for last several years. Now suddenly because of this new validation , such records are being flagged as erroneous.

Example : Amount Paid : Rs. 130 Rate 1% TDS Deducted Re 1.00

Correct TDS Amount =  130 * 1% = Rs 1.30

TDS Amount Shown in Statement = Re 1

Variance Amount = 1.30 – 1.00 = 0.30

Variance % = 0.40/ 1.40 * 100 = 23.08%

Solution

Income-tax department and NSDL have been apprised of this problem. A possible solution could be change in FVU to ignore the validation for rounding off cases.

Source- Fastfact

Related posts:

1. Forthcoming changes in eTDS Filing
2. How to get consolidated eTDS / FUV file from NSDL
3. Corrections in TDS payment challan if TDS return already filed
4. Rectification of computational error- A simple computational error can be resolved by rectifying an order of assessment under Section 154(1)
5. Recent changes in eTDS Statement Filing Requirements applicable from 2nd quarter of financial year 2010-11 – FVU 3.0