Validation for TDS amounts in case of higher deduction flag for Form 24Q pertaining to FY 2010-11 onwards (fvu-version-4-2)
In case deductor has provided flag for higher rate of deduction i.e., “C” in the TDS statement Form 24Q, the TDS amount for such deductee records should not be less than 20% of the amount paid/credited. This validation is also applicable for correction statement wherein new records are added. The same will not apply for those correction statements where deductee records are being updated.
According to the above statement, considering the below example -
Case 1 -
Employee gets 12,00,000 PA and has no other deductions and hence 20% tax gets deducted, i.e 2,40,000 PA and hence while generating the Quarterly return of 24Q we show Tax deducted as 20,000 and amount paid is Rs. 1,00,000 under deductor details of each challan.
So as per the validation tool, it is not less than 20% i.e (20% of 1,00,000) and in FVU it validates.
Now, lets take another Case,
Case - II
Employee gets 12,00,000 PA and has a deduction under Chapter VIA i.e Donation of Rs 20,000 PA. Due, to this deduction now his total income chargeable to tax is 11,80,000 and on this 20% tax is 2,36,000 PA. While generating the Quarterly return of 24Q we show Tax deducted as 19,667 and amount paid is Rs. 1,00,000 under deductor details of each challan.
So as per the validation tool, now it is less than 20% because of the Chapter VIA deduction and in FVU it fails.
In Case II, please clarify what should be the amount that should be under "Amount Paid to Employee" i.e 1,00,000 or less than 1,00,000
OR
a person who is not having PAN number is not eligible to take any deductions and exemptions?
Please clarify.
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