FAQs on E-Filing of TDS Returns

Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties (deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments and deposit the same at any of the designated branches of banks authorised to collect taxes on behalf of Government of India. They should also furnish TDS returns containing details of deductee(s) and challan details relating to deposit of tax to ITD. It is mandatory for corporate deductors to furnish their TDS returns in electronic form (e-TDS return). Deductors (other than government and corporates) may file TDS return in electronic or physical form.

1. What is quarterly e-TDS/TCS statement?

TDS/TCS returns filed in electronic form as per section 200(3)/206C, as amended by Finance Act, 2005, are quarterly TDS/TCS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from FY 2005-06 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in case of both e-TDS/TCS statements.

2. Who is required to file e-TDS/TCS return?

As per Income Tax Act, 1961, all corporate and government deductors/ collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.

3. e-TDS/TCS returns have been made mandatory for Government deductors. How do I know whether I am a Government deductor or not?

All Drawing and Disbursing Officers of Central and State Governments come under the category of Government deductors.

4. Under what provision should e-TDS/TCS returns be filed?

An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated August 26, 2003 for electronic filing of TDS return notified by the Central Board of Direct Taxes (CBDT) for this purpose. CBDT Circular No. 8 dated September 19, 2003 may also be referred.

An e-TCS return should be filed under Section 206C of the Income Tax Act in accordance with the scheme dated March 30, 2005 for electronic filing of TCS return notified by the CBDT for this purpose.

As per section 200(3)/206C, as amended by Finance Act 2005, deductors/ collectors are required to file quarterly TDS/TCS statements from FY 2005- 06 onwards.

5. Who is the e-Filing Administrator?

CBDT has appointed the Director General of Income Tax (Systems) as e-Filing Administrator for the purpose of electronic filing of TDS/TCS returns.

6. Who is an e-TDS/TCS Intermediary?

CBDT has appointed National Securities Depository Limited, (NSDL), Mumbai, as e-TDS/TCS Intermediary. NSDL has established TIN Facilitation Centres (TIN-FCs) across the country to facilitate deductors/ collectors file their e-TDS/TCS returns.

7. What is the current RPU version for preparation of e-TDS/TCS statements?

Return Preparation Utility (RPU) version 2.8 is to be used for preparation of e-TDS/TCS regular and correction statements pertains to Financial Year 2007-08 onwards.

To download the RPU, please visit the link https://www.tin-nsdl.com/downloads/e-tds/eTDS-download-regular.htmlL

8. How should the e-TDS/TCS return be prepared?

e-TDS/TCS return has to be prepared in the data format issued by e-Filing Administrator. This is available on the Income Tax Department website (www.incometaxindia.gov.in) and NSDL e-Gov-TIN website (www.tin-nsdl.com). There is a validation software (File Validation Utility) available along with the data structure which should be used to validate the data structure of the e-TDS/TCS return prepared. The e-TDS/TCS return should have following features:

• e-TDS/TCS return file should be furnished in a CD/Pen Drive. It should not span across multiple computer media.
• Each e-TDS/TCS return file should be accompanied by a duly filled and signed (by an authorised signatory) Form No. 27A in physical form. With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility).
• If an e-TDS return file is required to be compressed, it should be compressed using Winzip 8.1 or ZipItFast 3.0 compression utility (or higher version thereof) to ensure quick and smooth acceptance of the file.
• There should not be any overwriting/striking on Form No. 27A.
• No bank challan or copy of TDS/TCS certificate should be filed along with e-TDS/TCS return file
• CD/Pen Drive should be virus-free.

In case any of these requirements are not met, the e-TDS/TCS return will not be accepted at TIN-FCs.

9. Is there any software available for preparation of e-TDS/TCS return?

NSDL has made available a freely downloadable return preparation utility for preparation of e-TDS/TCS returns. Additionally, you can develop your own software for this purpose or you may acquire software from various third party vendors. A list of vendors, who have informed NSDL that they have developed software for preparing e-TDS/TCS returns, is available on the NSDL-TIN website.

10. Are the forms used for e-TDS/TCS return same as for physical returns?

Forms for filing TDS/TCS returns were notified by CBDT. These forms are same for electronic and physical returns. However, e-TDS/TCS return is to be prepared as a clean text ASCII file in accordance with the specified data structure (file format) prescribed by ITD.

11. What are the forms to be used for filing annual/quarterly TDS/TCS returns?

Following are the forms for TDS/TCS returns and their periodicity:

Form No.	Particulars	Periodicity
Form No. 24Q	Quarterly statement for tax deducted at source from ‘Salaries’	Quarterly
Form No. 26Q	Quarterly statement of tax deducted at source in respect of all payments other than ‘Salaries’	Quarterly
Form No. 27Q	Quarterly statement of deduction of tax from interest, dividend or any other sum payable to non-residents	Quarterly
Form No. 2 7EQ	Quarterly statement of collection of tax at source	Quarterly

12. What is Form No. 27A?

Form No. 27A is a control chart of quarterly e-TDS/TCS statements to be filed in paper form by deductors/collectors alongwith quarterly statements. It is a summary of e-TDS/TCS returns which contains control totals of ‘amount paid’ and ‘income tax deducted at source’. The control totals of ‘amount paid’ and ‘income tax deducted at source’ mentioned on Form No. 27A should match with the corresponding control totals in e-TDS/TCS return. A separate Form No. 27A is to be filed for each e-TDS/ TCS return.

13. What are the precautions to be taken while submitting Form No. 27A?

While submitting Form No. 27A, one should ensure that:

1. Form 27A is generated by TDS/TCS FVU (File Validation Utility). (With effect from February 1, 2014).

2. There is no overwriting/striking on Form No. 27A. If there is any, Please make necessary changes in the file, validate and generate new Form 27A from File Validation Utility (FVU).

3. Name and TAN of deductor and control totals of ‘amount paid’ and ‘income tax deducted at source’ mentioned on Form No. 27A should match with the respective totals in the e-TDS/TCS return.

4. All the fields of Form No. 27A are duly filled. The Form 27A needs to be signed by the responsible person.

14. What is the data structure (file format) for preparing e-TDS/TCS return?

e-TDS/TCS return should be prepared in accordance with the data structure (File Format) prescribed by the e-filing administrator.

15. What is Challan Serial Number given by the Bank?

Bank Challan Number is a receipt number given by the bank branch where TDS is deposited. A separate receipt number is given for each challan deposited. You are required to mention this challan number in the e-TDS/TCS return.

16. What is ‘Bank Branch Code’? Where do I get it from?

Reserve Bank of India has allotted a unique seven-digit code to each bank branch. You are required to mention the code of the bank branch where TDS is deposited in the e-TDS/TCS return. You can get this code from the bank branch where TDS amount is deposited.

17. Is it mandatory to mention Tax Deduction Account Number (TAN) in e-TDS/TCS return?

Yes, it is mandatory to mention the 10 digit reformatted (new) TAN in your e-TDS/TCS return.

18. Can I file Form No. 26Q separately for contractors, professionals, interest etc.?

No. A single Form No. 26Q with separate annexures corresponding to each challan payment for each type of payment has to be filed for all payments made to residents.

19. I do not know the Bank Branch Code of the branch in which I deposited tax. Can I leave this field blank?

Bank Branch code or BSR code is a 7-digit code allotted to banks by RBI. This is different from the branch code, which is used for bank drafts etc. This number is given in the OLTAS challan or can be obtained from the bank branch or from the search facility at NSDL-TIN website. It is mandatory to quote BSR code both in challan details and deductee details. Hence, this field cannot be left blank. Government deductors transfer tax by book entry, in which case the BSR code can be left blank.

20. What should I mention in the field ‘paid by book entry or otherwise’ in deduction details?

If payment to the parties (on which TDS has been deducted) has been made actually i.e. by cash, cheque, demand draft or any other acceptable mode, then ‘otherwise’ has to be mentioned in the specified field. But if payment has not been actually made and merely a provision has been made on the last date of the accounting year, then the option ‘Paid by Book Entry’ has to be selected.

21. By whom should the control chart Form 27A be signed?

Form 27A is the summary of the TDS/TCS statement. It has to be signed by the respective authorized person who is designated to sign the same.

22. What if e-TDS/TCS return does not contain PANs of all deductees?

In case PANs of some of the deductees are not mentioned in the e-TDS/ TCS return, the Provisional Receipt will mention the count of missing PANs in the e-TDS/TCS return. The details of missing PANs (to the extent it can be collected from the deductees) may be filed within seven days of the date of Provisional Receipt to TIN-FC. e-TDS/TCS return will be accepted even with missing PANs. However, if PAN of deductees is not given in the TDS return, tax deducted from payment made to him cannot be posted to the statement of TDS to be issued to him u/s 203AA.

23. Is the Challan Identification Number compulsory?

Yes. Challan Identification Number is necessary for all non-Government deductors.

24. Is PAN mandatory for deductors and employees/deductees?

PAN of the deductors has to be given by non-Government deductors. It is essential to quote PAN of all deductees failing which credit of tax deducted will not be given.

25. I am a deductor having more than one office/branch, do I file separate e-TDS/TCS returns for each office/branch or can I file a consolidated return for all offices/branches? Can I quote the same TAN for filing e-TDS/TCS returns for each branch?

If you have more than one office/branch you can file a consolidated e-TDS/TCS return for all offices/branches. In this case you should quote the same TAN. You can also file e-TDS/TCS returns office/branch-wise individually. In such cases you need to have separate TAN for every branch. In case you do not have separate TAN for each branch then you should apply for TAN for each of the branches filing separate e-TDS/TCS return.

26. Should I file copies of certificate for no deduction or concessional deduction of tax along with the e-TDS/TCS return?

No, you need not file certificates for no deduction or concessional deduction of TDS alongwith the e-TDS/TCS return. This is not required in case of any quarterly statements.

27. After I prepare my e-TDS/TCS return, is there any way I can check/ verify whether it conforms to the prescribed data structure (file format)?

Yes, after you have prepared your e-TDS/TCS return you can check/verify the same by using the File Validation Utility (FVU). This utility is freely down loadable from the NSDL-TIN website.

28. What is File Validation Utility (FVU)?

FVU is a program developed by NSDL, which is used to ascertain whether the e-TDS/TCS return file contains any format level error(s). When you pass e-TDS/TCS return through FVU, it generates an ‘error/response file’. If there are no errors in the e-TDS/TCS return file, error/response file will display the control totals. If there are errors, the error/response file will display the error location and error code along with the error code description. In case you find any error, you can rectify the error and pass the e-TDS/TCS return file again through the FVU till you get an error-free file.

29. What is the ‘Upload File’ in the new File Validation Utility?

Earlier the e-TDS/TCS return file after validating using File Validation Utility (FVU) had to be filed with TIN-FC. Now ‘Upload File’ that is generated by the FVU when the return is validated using the FVU has to be filed with TIN-FC. This ‘upload file’ is a file with the same filename as the ‘input file’ but with extension .fvu. Example ‘input file’ name is 27EQGov.txt, the upload file generated will be 27EQGov.fvu.

30. What are the platforms for execution of FVU?

For Quarterly Returns, Java has to be installed to run FVU. Details are given in FVU section of NSDL e-Gov-TIN website.

31. What are the Control Totals appearing in the Error/Response File generated by validating the text file through File Validation Utility (FVU) of NSDL?

The Control Totals in Error/Response File are generated only when a valid file is generated. Otherwise, the Error/Response File shows the nature of error. The control totals are as under:

• Number of deductee/party records: In case of Form 24/24Q, it is equal to the number of employees for which TDS return is being prepared. In case of Form 26/27/26Q/27Q, it is equal to the total number of records of tax deduction. 10 payments to 1 party would mean 10 deductee records.
• Amount Paid: This is the Total Amount of all payments made on which tax was deducted. In case of Form 24/24Q, it is equal to the Total Taxable Income of all the employees. In case of Form 26/27/26Q/27Q, this is equal to the total of all the amounts on which tax has been deducted at source.
• Tax Deducted: This is the Total Amount of tax actually deducted at source for all payments.
• Tax Deposited: This is the total of all the deposit challans. This is normally the same as Tax Deducted but at times may be different due to interest or other amount.

32. Are the control totals appearing in Form 27A same as that of Error/ Response File?

Yes, the control totals in Form 27A and in Error/Response File are same.

33. What If Any Of The Control Totals Mentioned In Form No. 27a Do Not Match With That In E-TDS/TCS Return?

In such a case the e-TDS/TCS return will not be accepted by the TIN­FC. You should ensure that the control totals generated by FVU and that mentioned on Form No. 27A match. In case of any difficulties/queries, you should contact the TIN-FC or TIN Call Centre at NSDL.

34. Where can I file my TDS/TCS return?

You can file your TDS/TCS return at any of the TIN-FCs managed by NSDL. TIN-FCs are set-up at specified locations across the country. Details are given in the NSDL-TIN website. These can also be furnished directly at NSDL-TIN web-site.

35. What are the basic details that should be included in the of e-TDS/ TCS return?

Following information must be included in the e-TDS/TCS return for successful acceptance. If any of these essential details is missing, the returns will not be accepted at the TIN-FCs:

• Correct Tax-deduction/collection Account Number (TAN) of the deductor/collector should be clearly mentioned in Form No. 27A and also in the e-TDS/TCS return, as required by sub-section (2) of section 203A of the Income-tax Act.
• With effect from February 1, 2014, if the duly signed Form 27A submitted, is not the one generated by TDS/TCS FVU (File Validation Utility).
• The particulars relating to deposit of tax deducted at source in the bank should be correctly and properly filled.
• The data structure of the e-TDS/TCS return should be as per the structure prescribed by the e-Filing Administrator.
• The Control Chart in Form No. 27A (enclosed in paper form with the e-TDS/TCS return on CD/Pen Drive) should be duly filled and signed.

36. What are the charges for filing e-TDS/TCS return with TIN-FCs?

You have to pay charges as mentioned below:

No. of deductee records in e-TDS/TCS return	Upload charges (inclusive of service tax)
Returns having upto 100 records	42.37
Returns having 101 to 1000 records	178.00
Returns having more than 1000 records	578.50

37. What are the due dates for filing quarterly TDS Returns?

The due dates for filing quarterly TDS returns, both electronic and paper are as under:

Quarter	Due date for TDS statements (all Deductors)
April to June	31 July
July to September	31 October
October to December	31 January
January to March	31 May

38. Is the procedure for filing of e-TCS different from that of filing e-TDS return?

The procedure for filing of e-TCS return is the same as that of e-TDS return except the forms to be used are different. The relevant forms for filing the e-TCS return are:

Quarterly statement : Form No 27EQ, 27A (Control Chart).

The e-TCS returns are also to be filed with NSDL e-Gov at the various TIN-FCs

39. Should I file TDS certificates and bank challans along with the e-TDS/TCS return?

No, you need not file TDS certificates and bank challans for tax deposited along with the e-TDS/TCS return.

40. Can more than one e-TDS/TCS return be filed in a single computer media (CD/Pen Drive)?

Yes, More than one e-TDS/TCS statements can be furnished in same computer media.

41. Can a single e-TDS/TCS return be filed in two or more CD / Pen Drive?

No, one return cannot be furnished in two computer media.

42. Can e-TDS/TCS return be filed in compressed form?

Yes, if e-TDS/TCS return file is filed in compressed form, it should be compressed using Winzip 8.1 or ZipItFast 3.0 (or higher version compression utility only), so as to ensure quick and smooth acceptance of the file.

43. Do I have to affix a label on the e-TDS/TCS return CD/Pen Drive? What do I mention on the label affixed on the e-TDS/TCS return CD/Pen Drive?

No, there is no need to affix a label on computer media.

44. What if e-TDS/TCS return does not contain PANs of all deductees?

In case PANs of some of the deductees are not available with you for quoting in the TDS statement, you need to deduct tax at a higher rate as prescribed by ITD and flag such deductee records as ‘C’ in the statement.

In case of TCS statement, PAN quoting compliance of 85 % is mandatorily required for validation, i.e. out of the total collectee records in the TCS statement, the PAN should be presentfor 85% of the records failing which the statement will not be validated through the File Validation Utility. In view of this, it is recommended that the records comprising 85% of valid PAN be reported first and the records for the remaining collectees may be reported as and when PAN details are received.

45. If a deductor faces any difficulty in filing of e-TDS return where can it approach for help?

The details regarding the help required for filing of e-TDS are available on the Income-Tax Department website and the NSDL-TIN website. The TIN­FCs are also available for all related help in the e-filingofTDS returns.

46. Will computer media be returned by TIN-FC after acceptance of e-TDS/TCS statement?

Yes, computer media will be returned to deductor after acceptance of the e-TDS/TCS statements.

47. Form No. 24Q shows a column which requires explanation for lower deduction of tax. How can a DDO assess it? Please clarify.

Certificate for lower deduction or no deduction of tax from salary is given by the Assessing Officer on the basis of an application made by the deductee. In cases where the Assessing Officer has issued such a certificate to an employee, deductor has to only mention whether no tax has been deducted or tax has been deducted at lower rate on the basis of such a certificate.

48. Will a deductee be able to view his ledger account on NSDL-TIN website?

Yes. The scheme for such views is expected to be notified by ITD soon.

49. Can the e-TDS/TCS return be filed online?

Yes e-TDS/TCS return can be filed online under digital signature.

50. What are the different views available for Tax Payers?

On the NSDL-TIN website, three types of views are available for a tax payer:

a)    Access without authentication.

b)    Access with Digital Signature Certificate (DSC). c) Access through TIN-FC.

51. What is access without authentication?

On providing the TAN and provisional receipt number / Token Number, the deductor can view the following details:

• Whether quarterly statements have been uploaded to TIN central system by TIN-FC.
• Whether quarterly statements have been accepted by TIN central system.
• Whether challans in statements have been matched with challans uploaded by banks.
• Number of deductees whose PAN accounts have been booked.
• Line no. of deductees in statements whose PAN accounts could not be booked.
• Confirm whether a specific PAN account has been booked.

52. What is access with authentication?

To access this view, the tax payer should have a Digital Signature Certificate (DSC) which has to be registered with NSDL in advance. (Details of the same are available at Online Uploads section of the NSDL­TIN website.) The tax payer has to authenticate its identity using the DSC. All the views mentioned above will be available with financial details.

53.  What is access through TIN-FC?

Deductors can access details of their statements through the TIN-FC who has uploaded their statements.

54. Will the Paper TDS data be available online on TIN?

Yes, the Paper TDS data will also be available in TIN database after the digitalization of the Paper TDS return by the e-intermediary.

55. Will the TIN-FC give any acknowledgment/receipt after acceptance of e-TDS/TCS return?

If the e-TDS/TCS return file is complete in all aspects, TIN-FC will issue a provisional receipt to you. The provisional receipt issued by TIN-FC is deemed to be the proof of e-TDS/TCS return filed by you.

56. What if my e-TDS/TCS return is not accepted by TIN-FC, how will I know the reason for rejection?

In case of non-acceptance of your e-TDS/TCS return file, TIN-FC will issue a Non-Acceptance Memo which will state reason for rejection.

57. What is course of action in case a regular statement is rejected

Please refer to Course of action – regular rejection for the common causes for rejection of a regular statement and corresponding course of action for a deductor.

58. What is course of action in case a correction statement is rejected?

Please refer to Course of action – correction rejection for the common causes for rejection of a correction statement and corresponding course of action for a deductor.

59. What is a correction TDS/TCS statement?

Deductor/collector is required to furnish one regular TDS/TCS statement for a particular TAN, Form, Financial year and quarter. In case there are any additions/updations to be made to the details of the regular statement accepted at the TIN central system, the same should be done by furnishing a correction statement.

60. Why should I furnish a correction statement?

The payment information provided in the regular TDS/TCS statement, is verified with the corresponding details provided by the bank where tax was deposited. On successful verification credit of tax deducted/collected by you is reflected in the annual tax statement (Form 26AS) of the deductees/transacting parties where PAN of deductee / transacting party is present.

In case of deficiencies in the accepted regular TDS/TCS statement such as incorrect challan details or PAN not provided or provided incorrectly, the tax credit will not reflect in the Form 26AS of the deductees in your statement.

To facilitate correct credit in Form 26AS of the deductees you are required to remove deficiencies, if any, in the accepted regular TDS/TCS statement by filing a correction statement.

61. What are the different types of corrections that I can make?

The following are the various types of corrections that you can make to an accepted regular TDS/TCS statement:

• Update deductor details such as Name, Address of Deductor. This type of correction is known as C1
• Update challan details such as challan serial no., BSR code, challan tender date, challan amounts etc. This type of correction is known as C2.
• Update/delete /add deductee details. This type of correction is known as C3.
• Add / delete salary detail records. This type of correction is known as C4.
• Update PAN of the deductee or employee in deductee/salary details. This type of correction is known as C5.
• Add a new challan and underlying deductees. This type of correction is known as C9.
• Cancel accepted statement. This type of correction is known as Y. Regular TDS /TCS statement can be cancelled only if the TAN of the deductor is to be corrected. After the regular statement with incorrect TAN is cancelled a regular TDS / TCS statement with the correct TAN should be filed.

62. Can I update / add deductee and challan details in the same correction statement? Do I need to file separate correction statements for updating a PAN as well as adding a challan and its underlying deductees?

Yes. There is no need to file separate statements for different types of corrections. In case you need to update or add different deductees / challans in the same statement, it can be done in a single correction file.

Depending on the type of correction a single correction file may contain multiple correction statements. A correction file containing more than one correction statement is called “multiple batch correction statement”.

63. Can I file the correction e-TDS/TCS statement with any TIN-FC?

You can file the corrected e-TDS/TCS return at any TIN-FC.

64. Do I have to pay upload fee for filing correction e-TDS/TCS return?

Yes. Upload fee is payable for each and every e-TDS/TCS return accepted by the TIN-FC, irrespective of whether it is a correction e-TDS/TCS statement or an original e-TDS/TCS statement. Upload fees applicable for correction statement is as per table below:

No. of deductee records in e-TDS/TCS return	Upload charges (inclusive of service tax)
Returns having upto 100 records	Rs. 42.37
Returns having 101 to 1000 records	Rs. 178.00
Returns having more than 1000 records	Rs. 578.50

65. Do I have to pay upload fee for filing correction e-TDS/TCS return?

Yes. Upload fees are applicable for cancellation (Y) statements. Charges would be as per regular statement being cancelled.

66. Will the TIN-FC give any acknowledgment/receipt after acceptance of corrected e-TDS/TCS return?

Yes, TIN-FC will issue a Provisional Receipt in case corrected e-TDS/TCS return file is valid and accepted by the TIN-FC. The Provisional Receipt issued by TIN-FC is deemed to be the proof of corrected e-TDS/TCS return filed by you.

67. What are the prerequisites for furnishing a correction TDS/TCS statement?

The following are the prerequisites for furnishing a correction TDS/TCS statement:

• check the status of the regular statement on the TIN website by entering the TAN and PRN at https://onlineservices.tin.egov-nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp Correction statement should be prepared only if the corresponding regular statement has been accepted at the TIN central system.
• .fvu file of the corresponding accepted regular statement should be available for preparing a correction statement
• Provisional receipt of the corresponding accepted regular statement should be available.

68. How can I check the status of the TDS/TCS statement submitted by me?

You can check the status of the statement submitted by you at https://onlineservices.tin.egov-nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp

You need to mention the TAN and PRN in the field provided. Details of the statement along with status whether accepted (displayed as Received by TIN) or rejected (along with reason for rejection) will be displayed to you.

In case statement is accepted, you can further check the status of challans and deductee PANs in the statement.

69. What are the different statuses of a challan in the TDS/TCS statement?

The following are the various statuses of challans in a TDS/TCS statement:

• Booked: Challan / transfer voucher detail in the statement matches with corresponding details received from banks / PAO.
• Match Pending: Corresponding challan details not received from the bank.
• Match Failed (Challan): TAN and/or amount relating to a challan in the statement do not match with the corresponding details received from banks.
• Match Failed (Transfer Voucher): Amount relating to a transfer voucher does not match with corresponding details received from PAO.
• Provisionally Booked: In case of Government deductors where TDS/ TCS statement is received by TIN and mode of payment of TDS/TCS is through book entry (transfer voucher) and e-TBAF details from PAO is not received by TIN.

70. What is the significance if the status of challan is ‘Booked’?

If the challan is in Booked status, credit of tax deducted will be reflected in the annual tax statement (Form 26AS) of all the underlying deductees with a valid PAN.

Correction in challan details is not allowed once a challan is booked. Correction can be made on underlying deductee records of a booked challan.

71. What should I do if the status of challan is Match pending?

A challan is in Match pending status as the CIN is not present in the payment information provided by the Bank. As a result the credit of tax deducted will not be reflected in the Form 26AS of corresponding deductees with valid PAN.

The possible cause could be due to error in quoting CIN details (Challan serial no., BSR code and challan tender date) either in the TDS statement or in the details provided by the Bank. Error in TDS statement can be rectified by filing a correction statement, where as error.

72. What should I do if the status of challan is in status ‘Match failed’?

A challan is in Match failed status as the TAN/challan amount in the statement does not match the details provided by the Bank. As a result the credit of tax deducted will not be reflected in Form 26AS of corresponding deductees with valid PAN.

The possible cause could be error in quoting challan amount. The same can be rectified by filing a correction statement.

73. How do I prepare the first correction on a regular TDS/TCS statement?

Correction statement should be prepared as per data structure prescribed by Income Tax Department which is different from the data structure of a regular TDS/TCS statement. Data structure of correction statement is available on the NSDL TIN website at http://www.tin-nsdl.com/ Downloadsquarreturns_correct.asp

Correction in challan details is not allowed once a challan is booked. Correction can be made on underlying deductee records of a booked challan.

74. Is any utility/software available for preparing correction TDS/TCS statement?

There are many software providers who have developed softwares for preparation of TDS/TCS statements. List of software providers along with their website details are available on the TIN website at http://www.tin­nsdl.com/eTDSswProviders.asp

Alternatively, freely downloadable return preparation utility (RPU) developed by NSDL is available on the TIN website at http://www.tin­nsdl.com/Downloadsquarreturns_correct.asp.

75. What are the steps involved in preparing a statement using NSDL RPU?

NSDL RPU can be used to prepare correction statements being filed the first time on an accepted regular statement. The steps to be followed for making a correction statement using NSDL RPU are as under:

1. You should have the .FVU file of the accepted regular statement on which corrections need to be made.

1. After downloading the NSDL RPU, you have to execute the same (double click the exe).
2. You have to select the option “Correction” for preparation of correction statement and import the .FVU file of the regular TDS/TCS statement into the RPU.

4. You will have to provide the provisional receipt number / Token Number of the regular statement to be corrected.

Details of the regular statement will be displayed to you in the utility. You can make the required corrections by selecting the option Add/Update/ Delete in the utility.

After making the corrections, you need to click on “Create file” and the correction statement will be created.

76. Can I update a challan?

Yes. You can update a challan.

77. How can I update a challan?

You can update any of the details provided in the challan viz; CIN details, amounts etc.

Points to be kept in mind while updating challan:

• identify the challan to be updated by
• its sequence no as per regular statement
• CIN, deposit amount as per regular statement
• Update the challan detail as required.
• Along with the updated values, the correction statement should contain value of the CIN and deposit amount as per regular statement as well.

Example: In order to correct challan serial number from 013 to 014 in the sixth chal lan of the regular statement filed by you, the steps as under need to be followed

1. Identify the challan by the sequence number as well as the CIN and deposit amount as per regular statement.

2. Update the value in the field challan serial number to 014.

3. Ensure that the value in the field Last Bank challan no is 01 3, i.e. as per regular statement.

78. Can I add a challan?

Yes. You can add a challan.

79. How can I add a challan?

You can add a new challan as well as the underlying deductee records. The procedure for adding a chal lan is as under:

1. Maintain the sequence of the new challan record in continuation to the sequence number of the last challan as per regular statement and add details of challan in this record.

2. Add the underlying deductee records and associate the same with the sequence number of the newly added challan.

Example: If a regular statement filed by you has six challans and you wish to add one more challan and underlying five deductees, the steps as under need to be followed:

1. Sequence of new challan being added should be 7.

2. Add underlying five deductees in the deductee annexure and associate them with new challan having sequence no. 7.

80. Can I delete a challan?

No. You cannot delete a challan.

81. Can I update a deductee record?

Yes. You can update a deductee record.

82. How can I update a deductee record?

You can update deductee details viz; PAN of deductee, name, amount etc. Steps to update a deductee record are as under:

• Identify the challan corresponding the deductee record to be updated by

–         its sequence no as per regular statement

–         CIN, deposit amount as per regular statement

• Identify the underlying deductee record to be updated by

–         its sequence number as per regular statement under the challan identified as above.

–         PAN of deductee, total tax deducted and total tax deposited as per regular statement.

• Update the deductee details as required.
• Along with the updated values, the correction statement should contain CIN, deposit amount in challan details, PAN of deductee, total tax deducted and total tax deposited in deductee details as per regular statement as well.

Example: In order to correct deductee PAN from PANINVALID to AAAPI0147G in the sixth deductee record of the fourth challan of the regular statement filed by you, the steps as under need to be followed:

1. Identify challan no. 4 and corresponding deductee record having sequence no. 6 as per regular statement

2. Update the value in the field deductee PAN to AAAPI0147G.

3. Ensure that the value in the field Last deductee PAN is PANINVALID, i.e. as per regular statement.

83. Can I add a deductee?

Yes. You can add a deductee record.

84. How do I add a deductee record?

You can add a new deductee records under an existing challan. The procedure for adding deductee records is as under:

• identify the chal lan corresponding the deductee record to be updated by

–         its sequence no as per regular statement

–         CIN, deposit amount as per regular statement

• Add the new deductee record
• Maintain sequence of the new deductee record in continuation to the sequence number of the last deductee record under the said challan as per regular statement add details of deductee in this record.
• Along with newly added deductee record, correction statement should contain value of CIN and deposit amount as per regular statement as well.

Example: If a regular statement filed by you has six challans and you wish to add five more deductees to challan 4 which has 4 deductees as per regular statement, the steps as under need to be followed:

1. Identify chal lan having sequence no. 4

2. Sequence of new deductee being added to 5 in the chal lan details section

3. Add underlying five deductees in the deductee annexure and associate them with challan having sequence no. 4.

85. Can I delete a deductee record?

Yes. You can delete a deductee record.

86. How can I delete a deductee record?

Steps to delete a deductee record are as under:

• identify the challan corresponding the deductee record to be updated by

–         its sequence no as per regular statement

–         CIN, deposit amount as per regular statement

• Identify the deductee record to be updated by

–         its sequence number as per regular statement under the challan identified as above.

–         PAN of deductee, total tax deducted and total tax deposited as per regular statement.

• Flag the deductee details to be deleted
• Along with the flag for deletion, the correction statement should contain CIN, deposit amount in challan details, PAN of deductee, total tax deducted and total tax deposited in deductee details as per regular statement as well.

87. Can I update a salary detail?

Yes. You can update a salary detail record.

88. How can I update a salary record?

You can update salary details viz; Name and PAN of employee, salary amount, deductions etc. Steps for updating salary record are as under:

• Identify the salary detail record by

–         its sequence number as per regular statement

–         Value in the field ‘Gross total Income’ as per regular statement.

• Update the salary details as required

–         Along with updated values, Gross Total Income as per regular statement should also be provided in the correction statement.

89. Can I add a salary record?

Yes. You can add a salary record.

90. How can I add a salary record?

You can add a new salary records as per following procedure.

1. Maintain the sequence of the new challan record in continuation to the sequence number of the last challan as per regular statement and add details of challan in this record..

Example Regular statement filed by you has three salary records and you wish to add one more salary record

1. Sequence of new record being added should be 4 in the Annexure II.

2. Add new salary record.

91. Can I delete a salary record?

Yes. You can delete a salary record.

92. How can I delete a salary record?

Steps for deleting a salary record are as under:

• Identify the salary record to be deleted by
• Its sequence number as per regular statement
• Gross total income as per regular statement
• Flag the salary detail record to be deleted.
• Along with flag for deletion, correction statement should also contain value of the field Gross total Income as per regular statement.

93. Can I update the Assessment Year of a regular TDS/TCS statement by filing a correction statement?

No, the fields TAN, Form no., quarter, FY and A.Y quoted in a regular statement cannot be updated by furnishing a correction statement

94. What is the significance of a identifying a record while updating/deleting the same?

While preparing a correction statement, the record to be updated/deleted is required to be identified by its sequence number as well as values of certain fields as per regular statement. List of fields used for identifying a record are as under:

1. Challan detail – CIN details and deposit amount

2. Deductee detail – PAN of the deductee, total tax deducted and total tax deposited

3. Salary details – Gross total income.

The correction statement should contain values of the fields referred to above as per regular statement along with the corrections made. Once the correction statement is received at TIN central system, the values of the identification fields are verified with the corresponding values as per TIN central system.

If the values match, the correction statement will get accepted. If the values do not match, the correction statement will get rejected at the TIN central system.

Example: If the value in the field Last Bank challan no. (i.e. challan no. as per regular statement) in the correction statement does not match the corresponding details as per the regular statement in the TIN central system, the correction statement will get rejected for the reason “Last Bank challan serial number of the correction statement is not matching with corresponding statement details available at TIN Central system”.

95. Can I rectify the details of a challan if the status of the same on the NSDL website is displayed as ‘Booked’?

Once the challan is updated with status ‘Booked’ modifications or rectifications to the details of the said challan are not allowed. As a result any correction TDS/TCS statement with modifications/rectifications on a booked chal lan will get rejected at the TIN central system.

96. How many times can I furnish a correction TDS/TCS statement?

A correction TDS/TCS statement can be furnished multiple times to incorporate changes in the regular TDS/TCS statement whereas a regular TDS/TCS statement will be accepted at the TIN central system only once.

97. What are the important points to be kept in mind while preparing correction statement more than once on the same regular statement?

You have to kept in mind, the following points while preparing correction statement more than once on the same regular statement:

1. The TDS/TCS statement on which correction is to be prepared should be updated with details as per all previous corrections.

2. Modifications/addition/deletion in correction statements accepted at the TIN central system only should be considered.

98. The first correction filed by me contains three types of correction (three PRNs / Token Number) and one of the types of correction has got rejected at the TIN central system. What should I do?

The steps as under should be followed:

1. You have to update modifications as per the accepted corrections in the TDS statement.

2. Identify the record for which correction was rejected earlier by its sequence no. and fields for identification

3. Correct the said record.

4. Correction statement should contain updated values as well as value of identification field as per regular statement.

99. Which Provisional Receipt Number / Token Number should I quote while preparing correction statement more than once on the same regular statement?

There are two fields for Provisional Receipt Number (PRN) / Token Number in a correction statement as under:

1. Original Provisional Receipt Number / Token Number – PRN of the regular statement should be mentioned in this field.

2. Previous Provisional Receipt Number / Token Number – PRN of the last accepted correction statement should be mentioned in this field. In case the value in this field is incorrectly mentioned, the statement will get rejected at TIN central system for the reason: “Either Previous Provisional Receipt No. provided is incorrect or combination of Original Provisional Receipt Number / Token Number and Previous Provisional Receipt Number / Token Number is not in sequence”

Example:

Single batch correction statement – Only one type of correction in the file

1. You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a single batch correction statement having PRN / Token Number 010010300074112. While preparing correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and the PRN / Token Number 010010300074112 in the field Previous PRN.

Multiple batch correction statement – different types of correction in a single file

1. You have filed a regular statement having PRN / Token Number 010010200083255 and subsequently filed a multi batch correction statement having three batches and corresponding PRNs / Token Numbers as 010010300074112, 010010300074123 and 010010300074134. While preparing the correction statement, you have to mention PRN / Token Number 010010200083255 in the field original PRN and check the status of all the three PRNs of correction statement.

• If all the three PRNs / Token Numbers are accepted at the TIN central system, you may mention any of the three PRNs / Token Numbers in the field previous PRN.
• If any of the three PRNs / Token Numbers is rejected, then you should mention the PRN / Token Number which has been accepted at the TIN central system in the field Previous PRN.
• If all the three PRNs / Token Numbers are rejected, then you must mention the PRN / Token Number of the regular statement, i.e. 010010200083255 in the field Previous PRN.

100. How many times can I update PAN of a deductee/transacting party?

Structurally valid PAN of a deductee in the regular statement can be updated to another structurally valid PAN only once.

101. When does a statement get ‘Partially Accepted’?

A correction statement containing updates in PAN of deductee/employee may get Partially Accepted. This is possible when the PAN in the any of the records being updated by you in the correction statement is invalid, i.e. PAN not present in PAN Master Database. In such a scenario, the said record gets rejected resulting in partial acceptance of the statement.

102. What should I do if the status of correction statement filed by me is ‘Partially accepted’?

In case correction statement is in status ‘Partially accepted’, you have follow steps as under:

1. You have to update modifications as per the accepted records in the TDS statement.

2. Identify the deductee/salary record which has got rejected due to invalid PAN.

3. Rectify the incorrect PAN

4. Correction statement should contain value of identification keys as per regular statement along with the updated values.

103. What could be the cause of rejection of TDS/TCS statement for the reason “Total Deposit amount of deductees is more than Challan amount actually deposited in bank”?

The total tax deposited amount as per challan should be greater than or equal to the total tax deposited amount as per deductee details, else a regular TDS/TCS statement will not get validated through FVU.

If you file a correction statement for adding deductee records under a particular challan, the total tax deposited as per challan in regular statement should be greater than or equal to the total tax deposited in deductee details as per regular as well as correction statement.

(Source – Book on Practical Aspects of Tax Audit, TDS, HUF & Capital Gains  written by CA Agarwal Sanjay ‘Voice of CA’ & Team)

Republished with Amendments