Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Saturday, April 26, 2014

HOW TO MINIMISE TDS DEFAULTS

Now a Days TDS has become more tedious and to avoid getting demands for every default in TDS Statement one can minimize TDS defaults by following the basics of Valid TDS Quarterly Statements as given hereunder : 
Pay On Time TDS Deducted or Collected
Report Correctly PAN ,Tax Rate and Challan
Deductees Details must be Completely Reported 
TDS Statement must contain all the necessary information’s

AVOID DEFAULT WHILE SUBMITING TDS STATEMENT

1) LATE PAYMENT DEFAULT: Tax deducted must be deposited within the due date.

2) SHORT PAYMENT DEFAULT:  Challan 281 properly filled with complete details:
Challan Details must be Verified by using Challan Status Inquiry at www.tin-nsdl.com
Mismatch should not occur in the amount “Deducted” and “Deposited.
Challans filed in  the statement must have be sufficient against specific deductee rows.
Government Deductor need to report Book Entry Flags as “Y” in challan details

3) SHORT DEDUCTION DEFAULT:
Tax must be deducted at correct rates as specified
Correct flags must be raised for Inappropriate deduction.
PAN quoted For Deductees must be Valid and Correct.
Certificate No. u/s 197 must be specified correctly
In 24Q Statement  Correct flag should be raised for particular Deductees ,as the case may be
At the time of filing 27Q Statement, DTAA Flag “B” must be raised UNDER Section 195

4) LATE DEDUCTION DEFAULT: Taxes must be deducted at the time of Payment or Credit, whichever is earlier

5) LATE FILING DEFAULT: Quarterly TDS Statement must be filed within due date of filing statement as prescribed by Rule 31A of Income Tax Act. In case the Return is being filed late then, Late filing Fees u/s 234E must be deposited before filing the TDS Statement.

Contributed by : Ms Suhasini Dang 

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