How to download Consolidated TDS/TCS statement for preparing Correction Returns
Preparation of correction TDS/TCS statement made easy. Register your TAN online and get your consolidated TDS/TCS statement.
Deductors / collectors are required to furnish a quarterly TDS / TCS statement as per guidelines of the Income Tax Department (ITD). For any update in the quarterly TDS / TCS statement, a correction statement is furnished by the deductor / collector. Correction statement is prepared on the latest statement details (accepted) at TIN central system. To facilitate the deductor to ensure that the deductor uses the latest statement, request for TDS/TCS statement can be made online at TIN website. TDS/TCS statement (consolidated) provided by TIN will include all the updates done vide correction statements (accepted at TIN central system) filed by deductor/collector. Consolidated TDS/TCS statement will be available for:
- TDS/TCS statements pertaining to F.Y. 2007-08 and onwards.
- TDS/TCS statements accepted and existing at TIN central system.
1. Features of consolidated TDS/TCS statement are as below:
- Details as per latest statement: Updated details of deductor/challan/deductee/salary records will be provided.
- Challan matching flag:No updates should be done if the status of the Challan/Transfer Voucher is “Matched”. Considering the same the status (matching flag) of the challan / transfer voucher as below is provided:
- “M” = Matched (No update should be done for such challans/transfer voucher)
- “U” = Unmatched (Challan can be updated)
- “P” = Provisionally booked (No update should be done for such transfer voucher)
- Expected challan/ deductee/ salary detail record number: In correction statement for addition of records, sequence number for record (challan/deductee/salary detail) should be continued from the record number (challan/deductee/salary detail) of earlier regular/ correction statement. Example,
1. There are 5 challans in regular statement.
2. 1 challan is added by furnishing correction statement
If one more challan is to be added vide another correction statement, sequence of the challan record no. will be 7.
To facilitate the deductor/collector in quoting record number in sequence for added records, expected record number for challan, deductee and salary detail (wherever applicable) is incorporated in the consolidated TDS/TCS statement.
- Provisional receipt number (PRN): In correction statement, deductor/collector is required to quote PRN as under to identify the statement in TIN central system for update:
- Corresponding regular statement and
- Latest accepted/Partially accepted correction statement
To facilitate the deductor/collector in quoting correct PRN of Regular and Correction statement, same is provided in the consolidated TDS/TCS statement.
2. Data structure for consolidated TDS / TCS statement.
3. Pre-requisite for requesting TDS/TCS statement online.
- Online request for TDS/TCS statement can be made only on successful registration of TAN (creating TAN registration account) at TIN website.
- Register TAN online at TIN website. For registering TAN click here
4. Steps to be followed for placing the request of consolidated TDS/TCS statement
1. Login to TAN Registration Account with user id, password and TAN.
2. On successful login, under option TDS/TCS, select option “Request- Consolidated TDS/TCS statement”.
3. Request for consolidated TDS / TCS statement can be made for your TAN only.
4. On clicking the aforementioned option, provide details of statement as below for which consolidated file is required:
· Provisional Receipt Number of regular statement
· Form no.
· Quarter
· Financial Year
5. On successful validation of the above details, two questions related to the TDS/TCS statement requested will be asked as a part of verification.
6. On successful verification of answers to the aforementioned two questions, request number will be generated and the consolidated TDS/TCS statement will be e-mailed to the user on the e-mail ID provided on TAN registration within 24 hours.
7. Consolidated TDS/TCS statement will be available only if correct answers are provided to the questions for verification.
8. Two attempts within a day will be provided to correctly answer the verification questions.
9. In case of two unsuccessful attempts within a day for the same statement, request for such statement can be placed on next day.
10. In case of large number of records in the TDS/TCS statement requested, the statement will be split in multiple files owing to restriction of mail size.
11. In case TDS/TCS statement is split in multiple files then each file will be sent by separate e-mail.
5. Merging the split TDS/TCS statement
1. In case of multiple files, Merge the files using “File Merge Utility” (FMU) and then extract the contents.
2. “File Merge Utility” can be downloaded from TIN website under the option “TAN Registration” in download section.
3. Click the below link for detailed procedure for merging the split files”
7. Using Consolidated TDS/TCS statement for preparing correction statement.
1. Consolidated TDS/TCS statement provided will be in compressed form.
2. Extension of the consolidated TDS/TCS statement will be .tds
3. In case of single file, extract the content of the file by providing password to the file.
4. In case of multiple files, merge the files using FMU and then extract the contents of the merged file by providing password.
5. After extracting the consolidated TDS/TCS statement, import the same in the return preparation utility for making any correction.
eTDS Correction Returns – Common reasons for rejection of TDS Returns and solution for the same
Correction Returns of TDS statements filed may in certain cases be rejected by the department. There are a number of common reasons of rejection of Correction returns. In some cases persons are unable to find the exact cause of rejection even after having tried all possible methods. Below is a list of most common errors or rejection of ETDS revised return given as under for your ready reference along with remedial action. We hope that after implementing the suggestions given below you may not have to file any more correction statements in respect of TDS returns file by you.Sr.No. | Error description | Explanation | Course of action |
1 | Assessment Year of the statement cannot be updated | Fields such as TAN, Form No, FY/AY and Quarter of a statement cannot be rectified by filing a correction statement | Do not update mandatory fields by filing a correction statement. Deductor should ensure that correct details corresponding to the regular statement for which correction statement is being filed are provided in the mandatory fields while filing a correction statement |
2 | Bank BSR code of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
3 | Bank Challan Number of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
4 | Book Cash Entry of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
5 | Correction cannot be made as deductee for which updation/deletion is required has been already cancelled by Correction statement. | Record from the original statement for which correction is being made has already been deleted, hence correction cannot be applied | Deductor should ensure that the record being updated vide correction statement is present in the TIN central system and not deleted vide earlier correction |
6 | Correction cannot be made as statement has been cancelled | Original statement for which correction has been filed has already been cancelled, hence correction cannot be applied | Deductor should ensure that the regular statement on which correction statement is filed is present in the TIN central system and not deleted/cancelled vide earlier correction. Deductor should check the status of the regular statement filed before filing any correction statement |
7 | Correction in Salary details is not applicable, as corresponding salary detail record is cancelled by filing correction statement filed earlier. | Record from the original statement for which correction is being made has already been deleted, hence correction cannot be applied | Deductor should ensure that the record being updated vide correction statement is present in the TIN central system and not deleted vide earlier correction |
8 | Date of Transfer Voucher/ Bank Challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
9 | Deductee details with same record number is available in TIN Central System | Sequence of challan/salary/deductee detail record being added in a correction statement should follow from the last sequence no for the said record in the original statement. | Deductor should ensure correct sequence number of the challan/deductee details being added vide the correction statement. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
10 | Either Previous Provisional Receipt No. provided is incorrect or combination of Original Provisional Receipt No. and Previous Provisional Receipt No. is not in sequence | Value in the field Previous provisional receipt no. (PRN) should be the PRN of last correction statement accepted at TIN. In case of the first correction being filed, he previous PRN should be the PRN of original statement | Deductor should ensure that 1) the value in the field ‘Original Provisional receipt number’ should be that of the corresponding regular statement for which correction is being filed 2) the value in the field ‘Previous Provisional receipt number’ should be that of the last accepted statement corresponding to the regular statement for which correction statement is being filed; i.e. in case of first correction, PRN of the regular statement should be provided in both the fields. In case of subsequent correction, PRN of last accepted correction statement should be provided in the field ‘Previous PRN’ |
11 | File type of Regular and Correction file should be same (i.e. either both of them should be electronic or both of them should be Paper) | If regular statement is in electronic, then corresponding correction should also be in electronic form If regular statement is in paper form, then corresponding correction should also be in paper form | Deductor should ensure that the Provisional receipt number of the regular statement corresponding to the correction being made is quoted correctly in the correction statement |
12 | For addition of challan details, Challan detail record number should be the next number of challan detail record number mentioned in last regular/correction statement. | Sequence of challan/salary/deductee detail record being added in a correction statement should follow from the last sequence no for the said record in the original statement. | Deductor should ensure correct sequence number of the challan/deductee details being added vide the correction statement. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
13 | For addition of salary details, salary detail record number should be the next number of salary detail record number mentioned in last regular/correction statement. | Sequence of challan/salary/deductee detail record being added in a correction statement should follow from the last sequence no for the said record in the original statement. | Deductor should ensure correct sequence number of the challan/deductee details being added vide the correction statement. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
14 | Form no. of the statement cannot be updated | Fields such as TAN, Form No, FY/AY and Quarter of a statement cannot be rectified by filing a correction statement | Do not update mandatory fields by filing a correction statement. Deductor should ensure that correct details corresponding to the regular statement for which correction statement is being filed are provided in the mandatory fields while filing a correction statement |
15 | Interest amount of the challan cannot be updated as the updation flag for challan is not present in the statement uploaded | In case of update in the challan details then the prescribed updation flag for challan details should be selected | Deductor should ensure that in case of updating values in the fields Interest or Others appropriate flag for updation as per prescribed file format should be selected which is 1 in case of ‘update’ and 0 in case of ‘no update’ |
16 | Interest Amount of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
17 | Last Bank BSR code of the statement is not matching with corresponding statement details available at TIN Central System | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
18 | Last Bank challan serial number of the correction statement is not matching with corresponding statement details available at TIN Central system | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
19 | Last Date of Transfer Voucher/ Date of Bank Challan of correction statement is not matching with corresponding statement details available at TIN Central System | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
20 | Last Employee PAN of the statement is not matching with corresponding statement details available at TIN Central System. | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
21 | Last Employee PAN Reference number of the statement is not matching with corresponding statement details available at TIN Central System. | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
22 | Last Gross Income provided in the statement is not matching with corresponding statement details available at TIN Central System | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
23 | Last TAN provided in correction statement is not matching with corresponding statement details available at TIN Central System | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
24 | Last Total Deposit amount value of the correction statement is not matching with the corresponding statement details available at TIN Central System | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
25 | Last Total Income Tax Deducted at Source of the statement is not matching with corresponding statement details available at TIN Central System. | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
26 | Last Total Tax deposited provided in the statement is not matching with corresponding statement details available at TIN Central System | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
27 | Last Transfer Voucher Number of the correction statement is not matching with corresponding statement details available at TIN Central System | Certain fields in the e-TDS/TCS correction statement are used for verification of the statement. Details of these fields as present in the last accepted TDS/TCS statement to be corrected should be mentioned. | Deductor should prepare correction statement on the last TDS/TCS (regular/correction) statement submitted by them. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
28 | Others amount of the challan cannot be updated as the updation flag for challan is not present in the statement uploaded | In case of update in the challan details then the prescribed updation flag for challan details should be selected | Deductor should ensure that in case of updating values in the fields Interest or Others appropriate flag for updation as per prescribed file format should be selected which is 1 in case of ‘update’ and 0 in case of ‘no update’ |
29 | Period of the statement cannot be updated | Fields such as TAN, Form No, FY/AY and Quarter of a statement cannot be rectified by filing a correction statement | Do not update mandatory fields by filing a correction statement. Deductor should ensure that correct details corresponding to the regular statement for which correction statement is being filed are provided in the mandatory fields while filing a correction statement |
30 | Record for which updation or deletion is required is not present at TIN Central System | Deductor to verify the record being corrected as correction cannot be applied on a record which is not originally present in the NSDL central system | Deductor should ensure that the correction being made should be on a record which was earlier filed vide a regular statement or previous correction statement. If the deductor wishes to add details vide a correction then the same should be provided in the correction statement in the ‘Add’ mode. If amendments to existing records is to be done then ‘Update mode’ should be selected. |
31 | Record to be deleted has already been cancelled by filing correction statement | Record to be deleted vide the correction statement has already been deleted vide an earlier correction, hence correction cannot be applied | No action can be taken as correction cannot be applied on a deleted record |
32 | Salary detail record number provided in the statement is not in sequence | Sequence of challan/salary/deductee detail record being added in a correction statement should follow from the last sequence no for the said record in the original statement. | Deductor should ensure correct sequence number of the challan/deductee details being added vide the correction statement. Deductor may request for consolidated TDS/TCS statement from the TIN central system and prepare correction statement on the consolidated statement |
33 | Section of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
34 | TAN mentioned in the statement is not at present available in TAN master. | TAN is the identifier for any TDS/TCS statement. It is necessary that the TAN of the deductor quoted in the statement should be present in the TAN Master Database at the TIN central system, failing which the statement will get rejected for this reason | 1) Deductor should file the statement with the correct TAN. 2) If the TAN quoted in the statement is correct, deductor should send the proof of TAN to NSDL at tin_returns@nsdl.co.in or to TIN, NSDL, Times Tower, 1st floor, Kamala Mills Compound, S B Marg, Lower Parel, Mumbai – 400013 |
35 | Total Cess of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with those provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
36 | Total Deposit amount of deductees is more than Challan amount actually deposited in bank. | Tax deposited as per a particular challan should be greater than or equal to the total tax deducted from deductees against that challan | Statement has to be filed again with the amount of tax deducted less than or equal to total amount deposited as per challan. |
37 | Total Deposit amount of deductees mentioned in the transfer voucher is more than Transfer voucher amount intimated by PAO | Tax deposited as per transfer voucher should be greater than or equal to the total tax deducted from deductees against that challan | Statement has to be filed again with the amount of tax deducted less than or equal to total amount credited to government account through transfer voucher |
38 | Total Deposit amount of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
39 | Total Income Tax of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
40 | Total Surcharge of the challan cannot be updated as payment details mentioned in previous statement (Regular/Correction) has matched with details provided by Bank. | Challan details from the TDS statement is verified with the corresponding payment information provided by the bank. If these details match then the status of challan is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan is ‘Booked’ no corrections in the challan details are allowed | Deductor should check the status of challan in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challans is Booked then do not file any correction statement for updating the details of such challan |
41 | Transfer Voucher Number cannot be updated as the payment details mentioned in previous statement (Regular/Correction) has matched with the details provided by PAO. | Challan/Transfer voucher details from the TDS statement is verified with the corresponding payment information provided by the PAO. If these details match then the status of challan/transfer voucher is updated as ‘Booked’ and the tax credit is provided to the corresponding deductees with valid PAN. Once the status of challan/transfer voucher is ‘Booked’ no corrections in the challan/transfer voucher details are allowed | Deductor should check the status of challan/transfer voucher in the TDS statement filed at Quarterly statement status view on the TIN website before preparation of correction statement. If the status of challan/transfer voucher is Booked then do not file any correction statement for updating the details of such challan/transfer voucher |
42 | Updation of PAN from valid to valid has exceeded the specified limit | Deductor is not allowed to make corrections in a PAN of deductee/employee more than once. | Deductor should verify the PAN of the deductee before quoting the same in the TDS statement |
Request for the consolidated TDS/TCS statement from the TIN website which will faciliate preparation of correction statement. In order to avail this facility, you need to register your TAN online on the TIN website. Detailed procedure to register your TAN and request for consolidated TDS/TCS statement are available at: | |||
How to rectify and avoid interest default in Payment of TDS and How to calculate interest on TDS defaults
Income Tax Department displaying defaults in TDS returns filed on its website www.tin-nsdl.com (TAN registration login). The defaults will be raised as & when processed and will be kept updated in this area. It will be in a Zipped Excel sheet (no password) and quarter wise separate files will be available. (for which defaults are identified).
It is observed that most of the Assessee default on payment of TDS which results in payment of interest, penalty and may also lead to criminal prosecution. Read our Article – Consequences for Non Payment or Late Payment of TDS . In this article we are discussing what is the rate of interest which Assessee may have to pay for delayed payment of TDS, when this interest becomes payable, what is the due date of tds payment, when tds needs to be deducted, how to calculate interest on TDS, Example of Interest Calculation, how to avoid and rectify interest default.
When is interest payable ?
As per income-tax , interest is payable under the following two circumstances
- Tax is not deducted , when it was deductible
- Tax once deducted, is not paid on or before due date
When tax is to be deducted - TDS on all types of payments on which TDS is applicable is required to be deducted, at the time of credit or payment, whichever is earlier.
What is the Due date of deposit of TDS ?
The Tax deducted at source in accordance with the provisions of Chapter XVII-B of the Income tax Act, 1961 by deductors other than an office of the Government shall be paid to the credit of the Central Government -
(i) on or before 30th day of April where the income or amount is credited or paid in the month of March; and
(ii) in any other case, on or before seven days from the end of the month in which the deduction is made; or income-tax is due under sub-section (1A) of section 192.
What is the rate of interest ?
If a person fails to deduct the whole or any part of the tax at source, or, after deducting, fails to pay the whole or any part of the tax to the credit of the Central Government within the prescribed time, he shall be liable to action in accordance with the provisions of section 201. Sub-section (1A) of section 201 lays down that such person shall be liable to pay simple interest
Interest Rate w.e.f 01-07-2010
(i) at one percent for every month or part of the month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted and
(ii) at one and one-half percent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid. Such interest, if chargeable, has to be paid before furnishing of quarterly statement of TDS for each quarter.
Interest Rate Prior to 01-07-2010
(i) From FY 2006-07 onwards for delayed deposit, from date of deduction till actual date of payment, rate of interest is 1.0% p.m. In Other words Prior to 01.07.2010 there was no interest payable for the period of delay in deduction of TDS.
Example of Interest Calculation
Date Of Payment | Date of Deduction | Due Date | Date of Deposit | Delayed Deposit | Delayed Deduction | ||
Months | Rate | Months | Rate | ||||
01/04/2010 | 01/04/2010 | 07/05/2010 | 09/05/2010 | 2 | 1% | - | - |
09/04/2010 | 09/04/2010 | 07/05/2010 | 09/05/2010 | 1 | 1% | - | - |
01/07/2010 | 04/08/2010 | 07/09/2010 | 07/09/2010 | - | - | 2 | 1% |
01/07/2010 | 04/08/2010 | 07/09/2010 | 15/09/2010 | 2 | 1.50% | 2 | 1% |
What is the due date of payment of interest ?
Interest must be calculated and paid before furnishing of quarterly statement of TDS for each quarter.
How is interest to be calculated ?
- Interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month The amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees and for this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated.
Avoiding Interest Default- To avoid interest default Assessee needs to do the following:-
- Deduct tax at source in time
- Deposit TDS by due date
- In case of delayed deduction / deposit ,calculate interest and deposit the same
- Show such interest properly in eTDS statement
Rectifying Interest Default –
- To rectify interest default we need to first login to our TAN account.
- Download default notices -Default Notice is a plain excel sheet without any password protection
- Pay the interest as shown in default notice if the same is payable
- After payment file correction statement by including the interest payment challan.
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