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TDS Return Clarification

CA Lakshman M (Mphasis an HP Company) (72 Points)

02 November 2010

My Client have passed a journal entry for Interest on 31.3.2010, thereby crediting the third party's account. TDS is deducted on such Interest amount and paid on 30.5.2010 @ respective rate.

While filing the TDS Return, the 26Q Challan asks a Question as : * Whether TDS deposited by BOOK ENTRY ...................... The option "NO" is selected. Then other respective data is fed into the software and finally TDS Return is filed with in the due date.

Later the client received a notice and i have enclosed a proforma Notice Stating the details.

Please clarify and point out the Rectifications to be done.

Thanking in advance!

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22 Replies

(Guest)

I think, you must revise the TDS return, by writing "NO" for book entry, the TDS is treated as payable on 7th April as regular TDS for the month of March. You must revise the return and give the requisite clarification that it indeed was a book entry (i.e. a provision) and the TDS was payable within 2 months from the date of deduction

1 Like

(Guest)

i m not sure, after they have raised the demand, whether u will be allowed to make rectifications, but surely u must hold your stand that it was a typing error.. which it clearly seems from the details u gave..i think u must make a representation to the authorities and see what happens

mallela.ravikiran (learner) (136 Points)
Replied 03 November 2010

you need to calculate interest @ 1% per month for the defult period.

plz see once s.no: 2, Date of payment 31-01-09 and date of deposit 02-11-09.

(Guest)

You hve two option

first revise the return ,,after revising ur new record is updated,,reply to concerned Ito by drafting a letter that you hve revised the return ,also enclosed the revised return reciept.

second simply deposit the interest which has showed in the notice by the department.

Mushak shareef (eFiling Consultant) (144 Points)
Replied 05 November 2010

Dear Lakshman,

Meaning of The BOOK ENTRY in the challan is totally different from what you are thinking about it. Tds is adjusted in the books means ( In NSDL RPU) like govt drawing Officers adjust their TDS collection against their demands for Payments. It is called BOOK ENTRY. When you choose the BOOK ENTRY “yes” you cant give the challan no, bsr no, the system refuse to accept as a valid return. Because there is no cin, no bsr. I think your problem is different not about BOOK ENTRY. Please verify once again. Then go to revise. please attach the notice.

1 Like

(Guest)

I m sorry i interpreted Book Entry wrongly, Mushak Shareef is right, it is for the govt officers, that the concept of book entry becomes applicable.

(Guest)

f payment to the parties (on which TDS has been deducted) has been made actually i.e. by cash, cheque, demand draft or any other acceptable mode, then 'otherwise' has to be mentioned in the specified field. But if payment has not been actually made and merely a provision has been made on the last date of the accounting year, then the option 'Paid by Book Entry' has to be selected.

rgds

Kundan singh

(Guest)

No kundan i believe it is regarding the govt paying the TDS...not the provisional TDS.. How can anyone else PAY TDS BY BOOK ENTRY, BUT THE GOVT? FOR THE GOVT..It is a mere BOOK ENTRY because, It deducts and Pays to itself...

(Guest)

Dear Revati , i agree that book entry is used for govt ,who is doing both deduction and collection of tax.

But whenever u search for ,what should be mentioned in the field"paid by book entry or otherwise' in deduction field,u will get my above answer.

For More clarification go to https://www.incometaxindia.gov.in/etds_faqs.asp and also on Tin-Nsdl site

1 Like

(Guest)

Thanks for the clarification..

(Guest)

I thought tht i had given wrong advice hence i was getting hyper

D Ponmalar (ACCOUNTS ASST) (22 Points)
Replied 08 November 2010

Dear Friends,

I have a TDS FUV File but i want form 24g Receipt No, So How to get form 24 g Receipt No. Help me any bady

S SRINIVASAN (CHARTERED ACCOUNTANT) (199 Points)
Replied 08 November 2010

Dear Lakshman

I agree with Mushak Shareef. As per section 194A, TDS on interest is payable with in 7 days from the date of credit of interest or date of payment of interest which ever is earlier. Therefore your selection of Book Entry yes in TDS payment has no bearing on this issue. Its due to late payment of TDS beyond due date.

S SRINIVASAN (CHARTERED ACCOUNTANT) (199 Points)
Replied 08 November 2010

Dear Ponmalar

Ask your client's jurisdictional Pay & accounts officer (Usually District Treasury) to provide the receipt no of 24G. PAO has to obtain a 7 digit unique AIN (ACCOUNTS OFFICE IDENTIFICATION NUMBER) by filing an application with CIT (TDS) and they have to file monthly 24G with the TIN FC and month wise receipt no would be generated which should be quoted in all the tds returns filed by the DDOs under that concerned PAO