As you may be aware, the due date (May 15, 2015) for filing of TDS statements for Q4, Financial Year 2014-15 is approaching fast and therefore,  we are giving below the  action to be taken for timely , complete and correct reporting  in exercise of the above activity :-

Key information to note:

  • CPC (TDS) emphasizes timely, correct and complete reporting for taxes deducted at source, to ensure that the deductees have correct TDS Credits to claim.
  • CPC (TDS) informs you of possible PAN Errors and Short Payment Defaults through an Intermediate Communication on filing of Original TDS Statements. The above can be corrected by using Online Correction facility at TRACES after waiting for 24 hours on receipt of above communication. You are, therefore, requested to file your TDS Statements well in advance to correct above errors, ensure timely processing and avoid defaults.
  • Short Payment Defaults ought to be closed at the time of submitting requests to download TDS Certificates from the web portal TRACES.

Timely Reporting:

  • The due dates to file TDS statements for Q4, FY 2014-15 and to distribute TDS Certificates are May 15 and 30, 2015 respectively.
  • Please submit the statement well before the due date to facilitate processing of TDS Statements and availability of TDS Certificate, in advance of the applicable due dates.
  • Please do not wait for the last moment to avoid any delays and levy of 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, AIN details in case of Government deductors and other particulars of deduction of tax correctly in the quarterly TDS statement.
  • For claiming lower rate of tax under DTAA, please mention correct Country Code and Nature of Remittance in form 27Q of TDS Statements.
  • Please use 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.
  • Correct details with respect to Challans/ BINs must be reported to avoid mismatches resulting into Short Payment defaults in TDS Statements.

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.
  • Completeness of statement will ensure that a C4, 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 ensure to complete Annexure II for all deductees employed (Form 24Q) for any period of time during the current financial year, including Annexure I for TDS details. Incomplete reporting in Annexure II results into Short Deduction Defaults and unavailability of TDS Certificates for missing deductee rows.

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