Centralized Processing Cell (TDS) has started sending notices to those deductors who have  paid 40 to 60% lesser TDS during the period from April 1 to October 15, 2015 as compared to the corresponding period in Financial Year 2014-15.

If as a deductor you have reasonable causes for less Deduction and less Payment of tax with respect to the abovementioned reduction. CPC TDS has released a “Self Declaration” feature on its web-portal TRACES with respect to Lower TDS deposited during a Quarter/s to facilitate the deductors to share the reasons for reduction in TDS deposited during the year or quarter compared to last year.

How to use the functionality:

  • Login to your deductor account on TRACES Website ( http://contents.tdscpc.gov.in/en/home.html) using your user id and Password
  • Navigate to “Declaration to Deposit Lower TDS” under “Statements/ Payments” Menu
  • Add statement details with respect to Financial Year, Quarter and Form Type for which declaration needs to be made.
  • Add “Nature of Payment” and “TDS Lower by %”
  • Select “Reasons for Lower Deduction” from the drop down menu.
  • Check declaration by submitting “I Agree” radio button.

The following provides a view of the final screen after submitting required details:

addtdslowerbyIf any amount needs to be deducted and deposited, immediate action may be taken without any further delay to avoid Penal consequences and interest payment.Otherwise, you are requested to submit at your option the “Self-Declaration for Lower Deposit of TDS” as prescribed above.

(Compiled by Taxguru Team)

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0 responses to “How deductor can Submit Self-Declaration for Lower Deposit of TDS”

  1. Ram Babu B. Com says:

    “centralisation of deposit at corporate level” ? does this mean.
    This is happening with the branches of nationalised banks. Central office without verifying the %age they remit whatever is deducted. In some cases the T D S deducted by the (auto) system – sometimes this would be less than required % age. Will this system excuse such cases.
    Another reason allowed is “excess deposit was made last year by mistake/otherwise”
    what does this mean…..!!!!

  2. Suresh Jain says:

    We are deductor of TDS as a company corporation under company Act. We deduct TDS from Transporter freight 1% on toal freight paid to them. Please clarify the rate of TDS on freight of Transporter and what is minimum limit of freight on which we can deduct the TDS.

  3. Satya Prakash says:

    What about penalty on Income Tax Department when they are harassing Income Tax payer?
    It should be five hundred Rupees per day.

  4. SENTHIL says:

    @ Mr. MG Raman well said sir. Now various proceedings against Deductor in the course of TDS. Demand of Short Deduction when PAN entered with wrong PAN in 5 or more spellings, Late payment Interest. Late filing fee Rs.200 per day, Prosecution on Late payment of TDS and etc etc…. TDS is the new concept introduced to collect tax from the earlier of the income arose to a person and get that person from Incometax circle for that income, eventhough he escaped from payment of Tax. But now a days TDS/TCS is very tedious to Deductors and Collectors.

  5. M G RAMAN says:

    A YEAR OR SO BACK A CLIENT OF MINE ( A PUBLIC SECTOR BANK BRANCH ) RECEIVED NOTICE THAT DURING THE EARLIER YEAR SO MUCH TDS WAS DEDUCTED & DURING THE NEXT YEAR LESS TDS WAS DEPOSITED. THEREFORE NOTICE WAS SENT BY A DY. COMMISSIONER AS TO WHY ACTION SHOULD NOT BE TAKEN FOR NON-DEDUCTION & NON-DEPOSIT OF TDS. A STRONG REPLY WAS GIVEN BY THE BRANCH ELUCIDATING THAT TDS IS NOT DEPENDENT ON THE DEDUCTOR . IT IS DEPENDENT ON WHETHER SERVICE IS RENDERED TO THE BANK BY A PERSON OR FIXED DEPOSIT IS KEPT WITH THE BANK RESULTING IN INTEREST PAYABLE WHICH MAY GIVE RISE TO TDS. HENCE THREATENING TO TAKE ACTION FOR NOT DEDUCTING TDS WHICH WAS NOT DEDUCTIBLE BECAUSE OF LOWER DEPOSIT OR OTHER REASONS WAS NOT THE PROPER COURSE OF ACTION FOR THAT I-T AUTHORITY. HENCE IT IS OF UTMOST IMPORTANCE THAT TDS PROVISIONS WHICH WERE INTRODUCED INTO THE INCOME TAX ACT/ RULES DURING THE LAST CENTURY & WHICH R BEING VIGOROUSLY IMPLEMENTED IN THIS CENTURY BE PROPERLY EXPLAINED TO THE ENFORCING AUTHORITIES.

  6. Ravindra says:

    Very Nice , one can clarify in advance.
    One would love the tax regime if we could have the freedom to tell the TDS deductor to deduct tax at a lower rate. This happens in case of those who generate thier own pension from Bank interests . when one gets all income from interest then 10% rate can be high as it does not consider computation like form 16 does (for exemptions )from an employer.

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