Three Simple Steps for Tax Deductors to follow and Important Information regarding TDS Certificates.

Below are the three simple steps for Tax Deductors to follow in case of TDS and TCS:

1. Deduct

1. Correct TDS while making payment as required by law
2. Deduct tax at higher rate in case valid and correct PAN of deductee is not available with you

Failure to deduct /collect tax at source shall result in penalty equal to the amount of tax failed to be deducted/collected.

2. Deposit

i) Non Government Deductors to deposit:

The tax deducted within 7 days from the end of the month in which deduction was made and by 30th April, 2015 where deduction (Other than deduction u/s 194IA) was made in the month of March, 2015.

ii) Government Deductors to deposit:

The tax deducted at source on the same day in case of book transfer & by 7th of the following month if using challan

Non-deposit of tax deducted / collected to the Government account shall invite Prosecution.

3. Issue

TDS certificate in Form 16A on income other than salary for the quarter ended on 31st March, 2015 by 30th May, 2015

TDS certificate in Form 16 for the financial year ended on 31st March, 2015 by 31st May, 2015

Delay in issue of TDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding amount of tax deductible/collectible.

Important Information for Deductors regarding TDS Certificates

Below are the important information regarding TDS Certificates which deductors should take care of:

Deductors who have deducted TDS and have not deposited the same by the due date, must do so immediately.

• All deductors must register themselves at https://www.tdscpc.gov.in (TRACES Portal)
• TDS certificate in Form 16A and part A of Form 16, containing 7 character TDS certificate number, has to be mandatorily downloaded from https://www.tdscpc.gov.in
• TDS certificate cannot be downloaded from TRACES Portal in case of non/incorrect quoting of PAN
• Quote correctly PAN of the deductee so that they get their due tax credit
• Quote correctly CIN of challan to avoid any short payment default
• Deductors need to first close short payment default, if any, to download TDS certificates

Visit www.tdscpc.gov.in for: