Fwd: NashiCAs Clarifications from DIT (Systems) re TDS

---------- Forwarded message ----------

From: CA. Rahul Bajaj <ca.rahulbajaj@gmail.com>
Date: Thu, Mar 28, 2013 at 10:19 AM

Dear All,

Following mail received from Bombay Chartered Accountants' Society FYI.

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25^th March 2013

 

Dear Member,

 

The DIT (Systems) through CIT (TDS) has given clarifications on few points which are mentioned below:

 

Sr. No.	Questions	Resolution
1.	The T.D.S. software should be modified so that at the time of uploading form 24Q, 26Q etc., if there is a mistake in PAN, the system should prompt to such mistake that can be corrected online before uploading the relevant form.	TAN PAN download has been enabled which may be used to populate PAN in TDS statement. In case of any new deductee, PAN verification facilities has been provided free of cost to the deductee.
2.	The uploading of T.D.S. statement through NSDL should be free of cost.	Online uploading of TDS statement through NSDL is free of cost.
3.	If a deductor has made excess payment of T.D.S. during a quarter / Financial Year, he should be allowed to carry forward and set off the same in the next quarter / Financial Year.	It is allowed to carry forward / set off the excess payment of TDS in the next quarter / financial year.
4.	The issue of charging interest on interest keeps on surfacing in each meeting. During the course of National Seminar on T.D.S. on 15.02.2013 in Mumbai, the Addl.DIT (Systems), Shri Satpal Gulati, informed that there is misconception on this account among the tax payers. According to Shri Satpal Gulati, the amount paid by the deductor / assessee was first apportioned towards the interest which sometimes resulted in reduced payment of the principal amount and hence, interest is charged thereon. However, in view of great concern among all tax payers detailed clarification on this issue is required – probably by giving an illustration.	Illustration:   PAN Date of Deduction Date of Payment TDS Deducted Date of  Deposit (Challan Dpst_Dt) AMIPP4724G 10/31/2012 10/31/2012 10000 8/12/2012     Step 1: Check if Date of Payment = Date of Deduction (No Late Deduction)   Step 2: Due Date:7-Nov-12,Challan Deposit Date:8-Dec-12   Step 3: Challan Deposit Date is after Due Date, so late pament  by 2 month   Step 4: Calculate the Late Payment:2*1.5%*10000=300   Step 5:   Rs. 300 out of Rs. 10,000 paid on 08 December 2012     got adjusted towards interest so principal amount remaining = 300 Rs. If date of processing is 01 February 2013 then   Step 6:  Hence interest amount calculated after 2 months on the date of processing = 300*2*1.5 /100                                   = 9 Rs.
5.	The procedure for claiming refunds may also kindly be elaborated.	The facility for claiming the refund by deductor will be available on CPC TDS web portal. The procedure will be as follow: 1)      Only registered users will be allowed for claiming the refund. 2)      Registered users with digital signature facility will have to file Form 26B online through TDS CPC Portal. 3)      They will have to provide the CIN (Challan identification number) details for which refund to be claimed with his Bank account details. 4)      The claimed refund will be first adjusted towards pending demands only after that remaining refund, if any will be claimed.