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Guidelines for reporting TDS transactions where amount paid to deductee has not exceeded the threshold limit in the first quarter but in subsequent quarters has exceeded threshold limit (as issued by the Directorate of Income Tax – Systems)

  1. Flag “Y” should be selected in the field of ‘Reason for non deduction/ lower deduction/higher deduction/ threshold’ to highlight transactions where TDS is not deducted as the threshold for deducting tax has not exceeded.
  2. If threshold flag is provided then rate of deduction should be ‘0.0000’ and tax deducted/ deposited (deductee) amount should be ‘0.00’.
  3. Threshold flag is can be quoted only  against the following section codes in corresponding challan details:
    193,194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I, 194J, 194LA
  4. Example:
    • In case there is no deduction of tax in the first two quarters of a F.Y., where the prescribed rate of deduction as per Income Tax Rules is 10%, the deductor should report those transactions in the respective quarterly TDS statements with zero rate of deduction (‘0.0000’), zero tax deducted/ deposited (‘0.00’) and amount paid in the respective quarters with threshold flag.
    • In the third quarter the threshold limit exceeds, the deductor will mention the prescribed rate of deduction, the amount paid in the third quarter, tax deducted/ deposited (deductee) on the total amount paid till that quarter. The same is represented as follows:

PAN

Rate of
deduction
(%)

Amount
paid (Rs.)

Amount
deducted (Rs.)

Amount
deposited (Rs.)

Reason for non deduction /
lower deduction

Q1

         

PAN1

0.0000

1,00,000.00

0.00

0.00

Threshold flag ‘Y’ present

Q2

         

PAN1

0.0000

1,00,000.00

0.00

0.00

Threshold flag ‘Y’ present

Q3

         

PAN1

30.000

1,00,000.00

30,000.00

30,000.00

No flag present

Source: NSDL Website

 

FVU version 3.1 and 2.130 released by NSDL having Amended file format and applicable to e-TDS/TCS statement pertaining to FY 2010-11 and onwards

Key features of File Validation Utility (FVU) version 3.1

  • FVU 3.1 will be applicable for quarterly TDS/TCS statements pertaining to FY 2010-11 onwards and will be mandatory w.e.f April 01, 2011.
  • Mandatory to quote Mobile No. in quarterly TDS/TCS statements for deductor category other than Central govt. and State Govt.
  • Re-introduction of PAN reference no. field in deductee/ collectee details.
    • Provision to quote the deduction under section 80CCF in salary details (applicable for 24Q Q4).
  • Total deduction under chapter VI A to include:
    o Deduction under section 80CCE
    o Deduction under section 80CCF
    o Deduction under other sections of chapter VI A
  • ‘Surcharge’ amount in salary details (provided annually in Annexure II — 24Q Q4) should be less than or equal to ‘Total Taxable Income’.
  • ‘Education cess’ amount in salary details (provided annually in Annexure II — 24Q Q4) should be less than or equal to ‘Total Taxable Income’.
  • ‘Net Income tax payable’ amount in salary details (provided annually in Annexure II — 24Q Q4) should be less than or equal to ‘Total Taxable Income’.
  • Highlight transaction where tax has not been deducted as threshold limit is not exceeded (as per the provisions of Income Tax Act). in the first quarter (s) but in subsequent quarter has exceeded the threshold limit.
  • Guidelines for reporting such transactions is given at the link given below :-

Guidelines for reporting TDS transactions where amount paid to deductee has not exceeded the threshold limit in the first quarter but in subsequent quarters has exceeded threshold limit (as issued by the Directorate of Income Tax – Systems)

  • For validating e-TDS/TCS statement (regular and correction) for FY 2010-11 and onwards refer the table below:

FVU version of  e-TDS/TCS Regular statement  submitted

 

FVU version applicable for e-TDS/TCS Correction statement

FVU version 2.128

FVU version 3.1

FVU version 3.0

FVU version 3.1

FVU version 3.1

FVU version 3.1

 

 

 


 

Key features of File Validation Utility (FVU) version 2.130

  • Applicable for quarterly e-TDS/TCS statement (regular and correction) upto F.Y. 2009-10
  • Rupee symbol incorporated for amount fields in FVU statement statistic report.
  • For validating e-TDS/TCS statement upto FY 2009-10 refer the table below:

 

FVU version of  e-TDS/TCS Regular statement submitted

FVU version applicable for e-TDS/TCS Correction statement

FVU version 2.126

FVU version 2.130

FVU version 2.128

FVU version 2.130

FVU version 2.129

FVU version 2.130

FVU version 2.130

FVU version 2.130

 

 

 

 

FVU for quarterly e-TDS/TCS statement pertaining to FY 2010-11

FVU for quarterly e-TDS/TCS statement up to FY 2009-10

Instructions for extracting the files are given in:

Extraction of e-TDS/TCS FVU:

  1. To extract these files, double-click on ‘e-TDS FVU.exe’.
  2. A ‘WinZip Self-Extractor – e-TDS FVU.exe’ will open.
  3. By default, the path selected for extraction of the three files will be ‘C:\e-TDS FVU’.
  4. The files can also be extracted in any other location (other than C:\e-TDS FVU). In that case, the appropriate path has to be defined by clicking the ‘Browse’ button where the three files should be extracted.
  5. Thereafter, click on ‘Unzip’ button.
  6. On clicking the ‘Unzip’ button, the three files mentioned above will get extracted to the specified path (i.e. in folder ‘C:\ e-TDS FVU’ by default or at the specified path).

Installation of e-TDS/TCS FVU:

The e-TDS/TCS FVU can be setup as per the procedure mentioned in the ‘e-TDS FVU Readme.rtf’ file (one of the three files extracted).

Running the FVU:

The procedure to run FVU is given in the Readme button on the window opened by clicking e-TDS/TCS FVU icon.

 

Acceptance of e-TDS/TCS statements in Pen Drive

  1. Submission of e-TDS/TCS statement has been enabled in Pen Drive in addition to the existing option of CD.
  2. Deductors /Collectors are advised to check the feasibility of acceptance of statement in pen drive with TIN Facilitation centers before submission.
  3. The Pen Drive / CD may contain details of multiple e-TDS/TCS statements.
  4. The computer media (CD/Pen Drive) will be return after acceptance of statements.

Source: NSDL

Manish Agarwal

mr_manish_ca@yahoo.com




Category Income Tax, Other Articles by - Manish Kumar Agarwal 



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