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
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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.
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Deductor’s Response to Show-Cause Notice?
Response is very poor: In about 20����25% cases
Photocopy of Return/ Challans are enclosed.
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Report on Short deduction/Collection
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Report on Short Payment/Non-Payment
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Report on Interest Payable on Late Payments
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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.
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
The Data Flow
TAXPAYER
TIN-SITE
ITD
DEDUCTOR
BANKSCENTRAL
NSDLSYSTEM
SITE
TIN-FC
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Possibility of Error while Data Handling
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
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Possibility of Error while Data Handling
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.
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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
Thursday, August 25, 2011
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.
By -- K. M. SHAHI, I.T.O. (TDS)
Types of Default
Splitting of Challan
Short Payment
/ Non-
Combining of Challan
Practically not paid and applied some dummy CIN/ Non-
Payment
Thursday, August 25, 2011
Mistake in quoting the CIN*
Wrong minor code
*Challan Identification Number Contains����• TAN +
• AMOUNT +
• DATE OF DEPOSIT +
• BSR CODE +
• CHALLAN SR. NO.
By -- K. M. SHAHI, I.T.O. (TDS)
Screen-shot of Unmatched Challan
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Rectification of Errors
Deductor
FilesCORRECTIONSTATEMENTSTATEMENT
RETURN IS
PROCESSED
Default Is
Removed
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
Rectification of Errors
TYPES OF CORRECTIONS
CORRECTIONS IN CHALLAN
DETAILS
CORRECTIONS IN e-TDS
STATEMENTS
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
ASSESSING OFFICERS
BANKS DEDUCTOR
Rectification of Errors
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.)
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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.
Rectification of Errors
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
�File Format 26Q Correction Q1 to Q4 Version 4.3
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
DUCTORS
�File Format 26Q Correction Q1 to Q4 Version 4.3
�File Format 27EQ Correction Q1 to Q4 Version 4.3
�File Format 27Q 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 26Q Correction Q1 Q4 Version4.0
�File Format 27EQ Correction Q1 Q4 Version4.0
�File Format 27Q Correction Q1 Q4 Version4.0
CORRECTIONS IN e-TDS STATEMENT
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
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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
CORRECTIONS IN e-TDS 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
•C3 - Correction in deductor and deductee details
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
UCTORS
•C3 - Correction in deductor and deductee details
•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
Rectification of Errors
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.
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
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
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
In Nutshell………Garbage In ����Garbage Out
GARBAGEGARBAGEDATADATA
PERFECT PERFECT MODELMODEL
GARBAGE GARBAGE RESULTSRESULTS
PERFECT PERFECT DATADATA
GARBAGE GARBAGE MODELMODEL
GARBAGE GARBAGE RESULTSRESULTS
Thursday, August 25, 2011
DATADATA MODELMODEL RESULTSRESULTS
PERFECT PERFECT DATADATA
PERFECT PERFECT MODELMODEL
PERFECT PERFECT RESULTSRESULTS
DEDUCTORDEDUCTOR GOVT.GOVT. ALLALL
By -- K. M. SHAHI, I.T.O. (TDS)
The Ultimate Advantage
• TIN-FC• DEDUCTOR
1. TDS Paid/ Stmt
filed
2. OLTAS + Stmt.
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
• ITD• DEDUCTEE
3. Statement + OLTAS
4. Tax Credit
26AS
The Ultimate Advantage
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
For Details on e-TDS Statements& Various Other Queries
Please Log On To
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
http://www.tin-nsdl.com/
Thursday, August 25, 2011 By -- K. M. SHAHI, I.T.O. (TDS)
for being such afor being such awonderful wonderful
audience………….audience………….
>> > K.M. SHAHI….>> > K.M. SHAHI….