Things to be remember while filling TDS Returns

Tax Deducted at Source (TDS) Return Filing Financial year 2013-14, Quarter 4

It is already the last week of April. As the Due Date of the Fourth Quarter comes closer here are a few points to ensure adequate compliance.

Due Date of Filing:

As we all know the due dates for TDS return filing arrives in every three months i.e, Quarterly Statements the corresponding due dates for Q1, Q2 and Q3 are15^th of July, 15th of October and 15^th of January but for the Last Quarter is an exception. There is an extension of 30days ie, the due date is 15^th of May.

Consequence of Delayed Filing of TDS Return:

Delayed Filing of TDS Return will attract Late Filing Fee U/s 234E at the rate of Rs. 200 per day till the return is furnished. Being Statutory in nature it cannot be waived.

For Example, If you Furnish return on the 19^th day of May. You have a default of Rs. 800 (=Rs 200*4 days)

Some Other Common Practical Errors Which Attracts Intimation from the Department U/s 200A:

1. Interest: In the new RPU 3.8, FVU 4.1; iff any Interest has been paid the proper breakup should be feeded to get its effect in the statement. In the Challan tab interest must be given in the Interest column (column no 7) and simultaneously in the Interest to be Allocated/ Apportioned Column(Column no 20)

In case you forget to fill in Interest to be Allocated/ Apportioned Column you will not get correct Credit of payment of Interest and it may again attract intimation

2. Breakup of Tax and Cess portion: This usually occurs if you are filing up the 24Q statement for salaried employees. Do Not forget to bifurcate the Tax and the cess.

3. Fee: The Fee column is to be filled only if you are submitting a delayed return and you have paid the related fee under 234E.

Suggested Post: How to file TDS Return

4. Challan payment dates: Unlike previous quarters here you cannot include an old challan not related to this Quarter.

5. Minor Head Of challan: It should 200 in all cases unless the Challan has been paid in response to any Intimation raised by the department( Only in such instances it is 400)

6. PAN mismatch or Wrong PAN: the Department discourages PAN error. Hence it’s advisable to cross verify all the deductee details before feeding the Return. You may log in your profile at TRACES and check the PAN in the TAN-PAN Master tab.

Consequences of Wrong Quoting of PAN – Firstly the deductee does not get the Credit for the Tax deducted. Secondly it amounts to intimation from the Department Stating Short Deduction. This is actually because incase the PAN does not exist tax should be deducted at a flat rate of 20%.

7. Date of Payment or Credit and Date of Deduction: To avoid Intimation it should be noted that both these dates should match.

8. Lower Deduction: Another Key area where department is issuing Notices and the Impact is high. Do check whether the Transactions have crossed the Certificate Limit. A recent Addition at TRACES gives you an opportunity to validate the 197 Certificates. Proper Certificate number Along with Flag A must be given.

9. Lastly, in Form 24Q you’ll get an additional tab in Quarter 4, wherein you should submit the details of the Employee pertaining to the entire financial year.

Hope these suggestions are helpful. These were certain Practical difficulties that I had encountered in my due course of Articleship. Any Further Queries you may contact me at somaghosh.tax@gmail.com

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