TDS Notifications

Following are some of the recent amendments/ notifications/ circulars on (TDS) tax deducted at source.

Revised Procedure for acceptance of e-TDS/TCs Correction Statement and Upload of Scanned Documents to TIN Central System[Dated 30th May, 2014]

As per the revised procedure, the documents to be Accepted along with E-TDS\TCS Correction statements -Revised Procedure (W.E.F 01-June-2014) is Physical Form 27A whereas in the existing procedure along with the Physical Form 27A, Statement Statistics Report (SSR) and Copy of Provisional Receipt of Original statement are to be submitted.

The revised procedure is applicable w.e.f June 1, 2014.

In view of above, TIN-FCs is required to accept e-TDS/TCS correction statements from Deductors/Collectors with .FVU file and duly signed Form 27A (generated from the latest File Validation Utility).

Based on the information present on Form 27A, the verification of control total screen has to be carried out.

Upload of Scanned Documents to TIN Central System

Further, the revised procedure for upload of scanned images of e-TDS/TCS correction Statements, is as per the following table wherein e-TDS/TCS statements are accepted on or after June 1, 2014.

For Original and Correction Statement
Documents Accepted at Time of Acceptance of ETDS\TCS Statement
Documents to be Returned to Deductor\ Collector
Documents to be Scan
CD\Pen Drive
CD\Pen Drive
Form 27A
Form 27A
Provisional receipt copy generated from SAM
Online Facility of PAN Verification on Traces [Dated 3rd March,2014]

Online facility of PAN verification has been introduced by CPC (TDS). You can validate the PAN with confidence for the recording and reporting the transactions in the TDS Statements correctly.

You can login into TRACES and navigate to Dashboard, under quick menu, click PAN verification.

Consolidate PAN TAN file can also be downloaded now

TDS Certificates downloaded only from TRACES are valid [Dated 28th Feb,2014]

In the view of the below circulars:

CBDT circulars 04/2013 dated 17.04.2013, CBDT Circular No. 03/2011 dated 13-5-2011 and CBDT Circular No. 01/2012 dated 9-4-2012

Kindly note that, TDS Certificates downloaded only from TRACES portal are valid. Certificates issued in any other form or manner will not comply with the requirements referred in the Income-tax Act 1961.


TDS Corrections Submitting - Points To Comsider [Dated 24th Feb, 2014]

Following are some useful information to adhere before submitting Corrections, with special reference to C3 & C9:

C3 Correction -  Updation or Addition of Deductee details in the TDS statement.

Delete option: The facility to delete Deductee records has now been discontinued for the purpose of correct reporting and is no longer permissible in the TDS statements.

Accordingly, the delete option available under “Updation mode for Deductee” has been removed from RPU 3.8.  

C9 Correction - Revision of TDS Statement by way of Adding a new Challan and underlying Deductees is referred as C9 Correction.

Important points to follow while submitting Corrections: ·

  1. Correct and Complete Reporting: All the valid particulars like TAN of the deductor, Category (Government / Non-Government of the deductor, PAN of the deductees and other particulars of deduction of tax) in the TDS statement should be correctly reported.
  2. New deductee rows and chalans: New deductee rows and challans addition is not encouraged by CPC (TDS).  Kindly ensure that complete data is reported in the first instance, while quarterly TDS Statement is submitted.
  3. Valid PAN: Before quoting in the correction statement, please ensure that the PAN and name of fresh deductees from TRACES are validated.
  4. Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN · TDS statement cannot be filed without quoting any valid challan and deductee row ·
  5. Valid Chalan: Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer ·
  6. Download the Justification Report to know the details of TDS defaults, if any, on processing of TDS statements and submit corrections accordingly ·
  7. File correction statements promptly in case of incomplete and incorrect reporting
No TDS on service tax if charged separately[Dated 13 January ,2014]

The CBDT via a circular #01/2014 has clarified that if there exists a prior agreement according to which the service tax amount is to be paid separately and not included in the fees for professional and technical services.


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