NATURE & REMEDIES A Presentation by K.M. SHAHI, … Shahi ITO TDS.pdfAssessee deposits TDS in Bank Bank Transmits CIN* TIN-NSDL Assessee files TDS Return with CIN* & Deductee details

K.M. SHAHI, ITO(TDS) 2(4), MUMBAIK.M. SHAHI, ITO(TDS) 2(4), MUMBAIK.M. SHAHI, ITO(TDS) 2(4), MUMBAIK.M. SHAHI, ITO(TDS) 2(4), MUMBAI

A Presentation by �

NATURE & REMEDIES

DEFAULTs u/s. 201(1) &

MISMATCHEs u/s. 200AMISMATCHEs u/s. 200A

Reasons for Default

How to Correct?

What is the Advantage?

Types of Default

Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)

Show Cause Notice U/s. 201(1) of I.T. Act, 1961


A. Treat it like any other Notice.

B. SCN is outcome of ‘system’ trouble.

How do we react to Show Cause Notice (SCN) from TDS ?

Notice.

C. SCN is a mischief by Assessing Officer

D. No need to bother, once the dues have been paid.

‘system’ trouble.


Deductor’s Response to Show-Cause Notice?

Response is very poor: In about 20��25% cases

Photocopy of Return/ Challans are enclosed.


No attention paid to the direction in SCN

Person who attends, knows nothing about TDS

Generally, system is blamed………….

Show Cause Notice U/s. 201(1) of I.T. Act, 1961


Report on Short deduction/Collection


Report on Short Payment/Non-Payment


Report on Interest Payable on Late Payments


Assessee

deposits TDS

in Bank

Assessee

deposits TDS

in Bank

Bank

Transmits

CIN*

Bank

Transmits

CIN*

TIN-NSDLTIN-NSDL

Assessee files TDS

Return with CIN* &

Deductee details

Assessee files TDS

Return with CIN* &

Deductee details

Assessee

files

Correction

Return

Assessee

files

Correction

Return

Reasons for Default – Steps involved

NONO

ITD

System

Processes

ITD

System

Processes

Match

ed?

Match

ed?

Show Cause

Notice to

Assessee

Show Cause

Notice to

Assessee

EndEnd

Y

E

S

Y

E

S

*CIN�� Challan Identification Number

Contains��

•TAN +

•AMOUNT +

•DATE OF DEPOSIT +

•BSR CODE +

•CHALLAN SR. NO.

*CIN�� Challan Identification Number

Contains��

•TAN +

•AMOUNT +

•DATE OF DEPOSIT +

•BSR CODE +

•CHALLAN SR. NO.


The Data Flow

TAXPAYER

TIN-SITE

ITD

DEDUCTOR

BANKSCENTRAL

NSDLSYSTEM

SITE

TIN-FC


The Responsibility of Data Handling

BANKS DEDUCTORS

CIN Details –• TAN

CIN Details –

TIN - NSDL

BULK PROCESSING ON ITD SYSTEM

• TAN•AMOUNT•BSR Code•Challan Sr. No.•Date of Deposit

CIN Details –+

Deductee Details


Possibility of Error while Data Handling

BANKS DEDUCTORS

CIN Details –• TAN

CIN Details

Computerized �� Less probable

Computerized �� Less probable

• TAN•AMOUNT•BSR Code•Challan Sr. No.•Date of Deposit

CIN Details +

Deductee Details

Manual �� More probable

Manual �� More probable



BANKS (10%) [Assigning Equal Weightage to Each Variables ]

• TAN

•AMOUNT Amount �� Computerized/Matched

TANTAN�� Manual : Bank/AssesseeManual : Bank/Assessee

•AMOUNT

•BSR Code

•Challan Sr. No.

•Date of Deposit

BSR Code �� Computerized

Challan Sr. No. �� Computerized

Date �� Computerized

Amount �� Computerized/Matched



Deductor(90%)

• CIN Info-ManualTANAMOUNT

Some Common Errors

Challan SplittingAMOUNTBSR CodeChallan Sr. No.Date of Deposit•Deductee Details-PANSectionAmountDate of DeductionDate of Deposit

Challan Splitting

Challan Combining

Wrong TAN/PAN data

Wrong Amount

Wrong Challan Sr. No.

Wrong Date

Wrong Section/Sub-section

Non-Marking �� “L”/ “P”/ “B”/ “C” etc.


Types of Default

Non-marking of “L” deduction (197 Cases)

Quoting Incorrect Section/Sub-section

Short

Referring to an outdated Rate chart

Considering wrong amount of paymentShortdeduction

Thursday, August 25, 2011

Considering wrong amount of payment

Wrong amount of Payment

Indicating wrong Deductee code

Wrong gender of Employee

Wrong Salary / Exemption information

By -- K. M. SHAHI, I.T.O. (TDS)

Types of Default

Non-marking of “B” for 4th Quarter

E-payment after 8:00 p.m.

No interest paid in case of delay

Less interest paid for delayed paymentLate

Payment


Less interest paid for delayed payment

Wrong CIN quoted for Interest Challans

Wrong linking of Challan – Deductions

TDS paid by cheque, realized after due date

TDS paid 1 day late, bank holiday on due date.


Types of Default

Splitting of Challan

Short Payment

/ Non-

Combining of Challan

Practically not paid and applied some dummy CIN/ Non-

Payment


Mistake in quoting the CIN*

Wrong minor code

*Challan Identification Number Contains��• TAN +

• AMOUNT +

• DATE OF DEPOSIT +

• BSR CODE +

• CHALLAN SR. NO.


Screen-shot of Unmatched Challan


Rectification of Errors

Deductor

FilesCORRECTIONSTATEMENTSTATEMENT

RETURN IS

PROCESSED

Default Is

Removed



TYPES OF CORRECTIONS

CORRECTIONS IN CHALLAN

DETAILS

CORRECTIONS IN e-TDS

STATEMENTS


ASSESSING OFFICERS

BANKS DEDUCTOR


CORRECTIONS IN CHALLAN DETAILS

ASSESSING OFFICERS

(TDS)

�ASSESSMENT YEAR�TAN�SECTION CODE (94C/94J etc.)�MINOR HEAD CODE (400/200)�FORM NUMBER (24Q/26Q etc.)


BANKS

�FORM NUMBER (24Q/26Q etc.)

�NAME OF THE DEDUCTOR�AMOUNT�MAJOR HEAD CODE (20/21)

� From Sept ‘2011, the Banks will be allowed to correct A.Y., TAN, Section Code & Minor Head code , if approached within 7 days.


CORRECTIONS IN e-TDS STATEMENT

DED

Data structure (File Format)

•For statements pertaining to FY 2010-11 and onwards

�File Format 24Q Correction Q1 to Q3 Version 4.3

�File Format 24Q Correction Q4 Version 4.3



DUCTORS


�File Format 27EQ Correction Q1 to Q4 Version 4.3


�For statements up to FY 2009-10 and onwards

�File Format 24Q Correction Q1 Q3 Version4.0

�File Format 24Q Correction Q4 Version4.0


�File Format 27EQ Correction Q1 Q4 Version4.0



DEDU

For statement pertaining to FY 2010-11 and onwards ��

•C1 - Correction in deductor details

•C2 - Correction in challan and deductor details

•C2 - Correction in challan details

•C3 - Correction in challan and deductee details

•C3 - Correction in deductee details

•C3 - Correction in deductor and deductee details


UCTORS

•C3 - Correction in deductor, challan and deductee details

•C4 - Correction in salary details records

•C5 - Correction in deductee PAN in deductee detail records

•C5 - Correction in deductee PAN in salary detail records•C5 – Correction in deductee PAN in deductee and salary detail

records

•C9 - Addition of challan

•Multiple batch correction statement - correction in deductor,

challan (updation and addition), deductee details (including PAN)

•Y - Cancellation of statement


DEDU

For TDS Statement up to FY 2009-10 ��

•C1 - Correction in deductor details

•C2 - Correction in challan and deductor details

•C2 - Correction in challan details

•C3 - Correction in challan and deductee details

•C3 - Correction in deductee details



UCTORS


•C3 - Correction in deductor, challan and deductee details

•C4 - Correction in salary details records

•C5 - Correction in deductee PAN in deductee detail records

•C5 - Correction in deductee PAN in salary detail records

•C5 – Correction in deductee PAN in deductee and salary

detail records

•C9 - Addition of challan

•Multiple batch correction statement - correction in deductor,

challan (updation and addition), deductee details (including

PAN)

•Y - Cancellation of e-TDS Statement


Points to be remember while depositing TDS/TCS

•Select correct minor head code (200) while making TDS/TCS deposits

•Select correct minor head code (400) while making regular TDS/TCS payments arising out of Order u/s. 201(1)/201(1A)/271C or 272A(2)(k) etc.


201(1)/201(1A)/271C or 272A(2)(k) etc.

•Ensure due diligence in quoting TAN, section code and assessment year while making TDS/TCS deposits

•For deducting TDS/TCS refer to latest chart/rules for TDS/TCS rates

•On due date deposit tax before 20.00 hours ( i.e. 8:00 p.m.) to avoid interest for late payment.

In Nutshell………Garbage In ��Garbage Out


In Nutshell………Garbage In ��Garbage Out

GARBAGEGARBAGEDATADATA

PERFECT PERFECT MODELMODEL

GARBAGE GARBAGE RESULTSRESULTS

PERFECT PERFECT DATADATA

GARBAGE GARBAGE MODELMODEL

GARBAGE GARBAGE RESULTSRESULTS


DATADATA MODELMODEL RESULTSRESULTS

PERFECT PERFECT DATADATA

PERFECT PERFECT MODELMODEL

PERFECT PERFECT RESULTSRESULTS

DEDUCTORDEDUCTOR GOVT.GOVT. ALLALL


The Ultimate Advantage

• TIN-FC• DEDUCTOR

1. TDS Paid/ Stmt

filed

2. OLTAS + Stmt.


• ITD• DEDUCTEE

3. Statement + OLTAS

4. Tax Credit

26AS

The Ultimate Advantage


For Details on e-TDS Statements& Various Other Queries

Please Log On To


http://www.tin-nsdl.com/


for being such afor being such awonderful wonderful

audience………….audience………….

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Documents

NATURE & REMEDIES A Presentation by K.M. SHAHI, … Shahi ITO TDS.pdfAssessee deposits TDS in Bank Bank Transmits CIN* TIN-NSDL Assessee files TDS Return with CIN* & Deductee details