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As the due date for filing quarterly TDS statement for 4th quarter is approaching close,TDS deductors must take note of following important information before submitting TDS statements to  ensure that the deductees are able to correctly claim TDS Credits and for generating  correct TDS Certificates.

Payment of Taxes deducted/ collected:

  • In accordance with Central Government Account (Receipts and Payments) Rules, 1983, Government dues are deemed to have been paid on the date on which the cheque or draft tendered to the bank, was cleared and entered in the receipt scroll.
  • Rule 125 of Income Tax Rules, 1962 provisions for Electronic Payment of Tax by way of internet banking facility, for a Company and a Person to whom provisions of section 44AB of the Act are applicable.

Timely Filing:

  • The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.
  • Please submit the statement within due date to avoid Late filing fee, which, being statutory in nature, cannot be waived.

Correct Reporting:

  • Please use your correct contact details, including Contact Number and email IDs in TDS Statements.
  • It is very important to report correct and valid particulars in respect to deductor and deductees. Please report the TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax correctly in the quarterly TDS statement.
  • Please make use of TAN-PAN Master from TRACES to Validate PAN and name of deductees before quoting it in TDS statement. Please note that there are restrictions for correction of PAN.
  • Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at Lower/Nil rate on the basis of certificate issued by the Assessing Officer. Please raise Flag “A”/ “B”, as appropriate, and quote valid and correct Certificate Numbers.
  • TDS statement must be filed by quoting challan(s) validated by CSI (Challan Status Inquiry) File and using correct Challan Identification Number (CIN)/ Book-entry Identification Number(BIN).
  • Please maintain your correct Contact details in your Registration profile at TRACES.

Complete Reporting:

  • Please ensure completeness of your TDS statement by including all your deductees. Please note that the obligation to report each transaction correctly in the relevant quarter is on the deductor and non-compliance amounts to incorrect verification of completeness of TDS statement.
  • Completeness of statement will ensure that a C5, C3 or C9 correction can be avoided. It may be noted that CPC (TDS) does not encourage C9 corrections by addition of a new challan and underlying deductees.
  • Please also complete Annexure II (in case of 24Q) for all deductees employed for any period of time during the current financial year, including Annexure I for TDS details.

Downloading TDS Certificates from TRACES:

  • On the basis of information submitted by the deductor, CPC(TDS) will issue TDS Certificates that can be correct depending on correct and complete reporting by deductors.
  • Your attention is invited to 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 now mandatory for all deductors to issue TDS certificates after generating and downloading the same from TRACES.
  • Please note 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.

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Category : Income Tax (25322)
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Tags : cpc (62) TDS (906) TRACES (52)

0 responses to “How to ensure correct credit of TDS to dedcutee & generation of TDS certificate”

  1. HARSHADRAI says:

    If CBDT introduce TDS Challan-cum-Form No 16A than all the problem will solve. TRACE’s Form No 16A have two pages. Above challan have one page. GO GREEN SAVE TREE. Finance Ministry should change the procedure & SAVE TREE.If TDS appears at 26AS no need to issue Form No 16A by downloading. 9425517209

  2. Harish Aery says:

    Can the deductor rectify Section if inadvertently e-paid

  3. Jitendra Kumar says:

    Dear Sir/Madam,
    Jab main ek TAN number ko register karta hun traces me to TAN no not in master batata hai but jab main use ITD ke website pe search karta hun to wo saare details sahi show karta hai.
    So sir please help me.
    and reply soon.

  4. chandrakant says:

    once we have submitted the e tds statement and we are providing e mail than it cpctds job to send automatically form 16 and 16A to there mail id or post it hard copy to concern organisation

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