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TDS by way of Book Adjustment

B Vinay Reddy (Hyderabad ) (7842 Points)

14 February 2018

Any one has an Idea about TDS payment by Book Adjustment incase of Central / State Government Departments/Offices

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18 Replies

Rajasekar (TDS Preparer) (1447 Points)
Replied 15 February 2018

Can you explain what you need exactly. I do TDS by book adjustment only.

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B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

My brother is State Government employee serving as Secondary grade teacher under Telangana Government.

Every year he used to prepare his Form 16 by downloading some excel software from third party website (I'll send the link of the same to get an idea about it)
And takes print out of that and submit it's to STO/his head of the department by the end of Feb every year and his employer deducts tax as per details submitted by employee and pay balance salary in next month.

B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

In form 16 prepared by employee he provides PAN number and DDO Code also
But the same TDS details was not reflecting in Form 26AS of any of the earlier years
He was in service from past 7 years

B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

https://sites.google.com/site/sadankumarmittapally/model-papers/KSS%20IT%202017-18%20%20for%20CPS.xls?attredirects=0&d=1

B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

Above is the link for the excel software used to prepare FORM 16

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B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

I heard that in Govt offices TDS will not.be paid by challan just they will pass Book Adjustment entry

B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

What exactly Book Adjustment entry means?

B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

whether TDS amount will be. paid to central government or not?

Rajasekar (TDS Preparer) (1447 Points)
Replied 15 February 2018

This excel software is prepared to compute the tax liability of an employee. This format should be submitted to their concerned DTO/ STO in the month of Feb every year. Tax will be calculated and paid to Govt by Book entry aka book adjustment.

Rajasekar (TDS Preparer) (1447 Points)
Replied 15 February 2018

The process has not yet started. After doing this the DDO the headmaster in your case should called 24G serial number and DDO serial number from the DTO and should file eTDS in Form 24Q. This should be done electronically and for every quarter. After successful filing of 24q only details will get updated in 26as.

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Rajasekar (TDS Preparer) (1447 Points)
Replied 15 February 2018

As far as now your brother has paid his taxes due through book adjustment ie from his salary. The DTO has transferred the tax collected from your into DDOs TAN. Till now the process went on smoothly. One step is pending. Ask the DDO to file TDS for the concerned years. Till then your tax will be in TAN and will not reflect in PAN.

Rajasekar (TDS Preparer) (1447 Points)
Replied 15 February 2018

B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

Thanks Raja Sekar sir,
you have cleared my each and every query.
I have been asking this to may Chartered Accountants and other professionals buy none of them was aware of Book Adjustment entry.
Thanks once again!!!

B Vinay Reddy (Hyderabad ) (7842 Points)
Replied 15 February 2018

But this issue was not only with my brother almost I have checked 10-15 teachers details of 3 different districts and mandals but in none of their TDS was not reflecting in FORM 26AS