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We can easily avoid Defaults in TDS statements, by way of adherence to the following basic principles:

· Timely Payment of total taxes deducted/ collected
· Correct Reporting with regard to PANs, Tax Rate and Challans
· Complete Reporting for all Deductees
· Timely filing of TDS Statements

Following are some important facts to be adhered to, while submitting TDS statements, to avoid each type of Default:

· Late Payment Defaults:

o The taxes deducted must be deposited within the due dates, as prescribed by Rule 30 of the Income Tax Rules 1962.

o Please also refer to our communication on Important Guidelines for payment towards liability on account of Tax Deducted / Collected at Source

· Short Payment Defaults:

o All the taxes deducted must be deposited with challan 281 quoting correct TAN, Assessment Year, Minor Head etc.

o Challan details/BIN details quoted in the statement should be correct. Challans can be validated by using Challan Status Inquiry(CSI) file. Correct details can also be verified at TRACES in “Challan Status” menu under “Statement Status” after login.

o There should not be any difference in the amounts quoted in “Deducted” and “Deposited” columns of the deductee rows.

o Challans quoted in the statement must have balance available for consumption against specified deductee rows. Available balance can be verified at TRACES in “View Consumption Details” under “Statements/ Payments” menu after login.

o Government Deductors need to report Book entry flag as “Y” in challan details.

· Short Deduction Defaults:

o Taxes must be deducted at correct rates specified in the Act.

o Correct flags (A, B, C, T and Y) must be raised for no deduction/ lower deduction/ higher deduction, as appropriate.

o The PAN for deductees must be valid and correct. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs.

o Correct and valid 197 Certificates must be specified.

o For 24Q statements, correct flags should be raised for Woman/ Man/ Senior Citizen/ Super Senior Citizen deductees, as may be appropriate.

o DTAA flag “B” must be raised under section 195 of the Act, at the time of filing 27Q  statements.

· Late Deduction Defaults:

o Taxes must be deducted at the time of Payment or Credit, whichever is earlier.

· Late Filing Defaults:

o Quarterly TDS/TCS statements must be filed within due dates of filing statements as prescribed by Rule 31A of the Income Tax Rules, 1962. The due date to file TDS statements for Q4, FY 2013-14 is 15th May, 2014.

o Please refer to our Articles  Reminder for filing of TDS Statements within Due Date and CBDT extends due of TDS/TCS statement for Govt. deductees – No Refund of Fees Paid U/s. 234E   in this regard.

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  1. PC MEENA says:

    Dear friends
    I have submitted correct tax while e filling in the month of July 2014. I have send electronic copy to CPC Bangaluru. I got confirmation also. Today, I have received a mail from CPC saying that My income is zero and I have not paid any tax for the AY 204-15. In form 26 is shown that tax is deducted Rs. 60933.

    Similarly for AS year 2013-14, I have paid tax 59000 but it is showing only Rs. 2000 and IT department sent the notice to submit Rs. 56000 more. What shall I do?

    I have visited IT department in Hyderabad but they are not having any information.

    Help me in this regards

  2. b.sekar says:

    Dear friend,
    All things are ok. Then where should I show the sec.87A-Rs.2000/- from tax, exemption given by the govt in form no: 24q 4th Quarter to be filed by me.
    Mail to me “”.>>>>>>sekar

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