Analysis of File Validation Utility (FVU) Version 5.0

The Income Tax Department has released the new File Validation Utility (FVU) Ver. 5.0 on 13th April 2016 and is applicable from all TDS Returns & Correction Statements filed from the same date onwards.

Highlights and its analysis are summarized below:

Changes is Form 26Q (TDS Returns for Non-Salary)

The applicability of value ‘B’ in the ‘Remarks’ (No Deduction / Lower Deduction) has been extended to include Section Code 192A (Payment of accumulated balance due to an employee). This had been a past anomaly which has now been taken care of.

Section Code ‘194IA’ for ‘Payment on certain immovable property other than agricultural land’, which was earlier reported in Form 26QB through NSDL website, has now been included in Form 26Q as well.

Validation of Tax Account Number (TAN) and TAN Name

The FVU will now validate the TAN as per the Department’s records through the CSI file (Challan Status Inquiry) and that appearing on the TDS / TCS Return Statement. Mismatch in TAN is not acceptable and the FVU will reject it with appropriate message. Similarly, TAN Name will also be validated as in the CSI file with that provided on the TDS / TCS Return Statement. In case of mismatch, the message will be displayed accordingly. It is important to have the same name in TDS Statements as that on records with the Income Tax Department.

Other Changes

It is now mandatory to provide an Email ID for Deductor / Collector or the Responsible Person. The FVU will reject, if at least one Email ID is missing.