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E-TDSPRE REQUISITES
&AVOIDING COMMON ERRORS
ByCA. Jayakumar.J. Mcom, FCA.Chartered Account,M/s. Jayakumar.J & AssociatesRajajnagar, Bangalore -560010
TYPES OF ERRORS
• SHORT DEDUCTIONS DUE TO TAX RATES APPLIED• SHORT DEDUCTIONS DUE TO PAN ERRORS• LATE DEDUCTION – COMPLICATIONS - SOLUTIONS• SHORT/LATE PAYMENT / CHALLAN INSUFFICIENT / OVERBOOKED CHALLANS /
CHALLAN MISMATCH• LATE FILING PENALTY – UN AVOIDABLE
CHECK TAX RATES TO AVOID SHORT DEDUCTIONS
• CROSS CHECK OF DATA – DO NOT TRUST ACCURACY OF SYSTEM UNLESS VERIFIED• CHECK IF TAX DEDUCTED IS NOT BELOW PRESCRIBED TAX RATES • 194D - 10% - AGENCY COMMISSION - 94D• 194J - 10% - PROFESSIONAL FEES - 94J• 194DA – 2% - CLAIMS AND SURRENDER PAYMENTS - 4DA• 194 C - 2% - CONTRACT PAYMENTS – EX SODEXO/ AMC 94C• 194 I - 10% - RENT PAID FOR PREMISES - 41A
• USE SPREADSHEETS/ OFFFICE ORG APPLICATIONS TO CROSS CHECK THE TAX RATES WITH HELP OF FORMULAS
• SORT THE DATA RATE WISE AND MAKE NECESSARY CHANGES FOR SHORT DEDUCTED ROW AND SUCH ALTERATION SHOULD NOT BRING GREATER DIFFERENCE IN GROSS AMOUNT PAID
• FOR EXAMPLE FOR AN AGENT IF TAX IS DEDUCTED AT 9.86% - COMMISSION TO BE ROUNDED OFF TO MAKE IT 10%
STEPS TO – AVOID SHORT DEDUCTIONS
SHORT DEDUCTIONS• EXCEPTIONS :-• AGENTS HAVING NO TAXABLE INCOME - FLAG Y TO BE MARKED IF BELOW THRESHOLD LIMIT
SECTION
PAYMENTS TDS RATE
THRESHOLD LIMIT
194 C CONTRACTORS 2% Rs. 30,000/-( PER PAYMENT) OR Rs. 75,000/- P.A.
194 D INSURANCE COMMISSION 10% Rs. 20,000/- P.A.194 IA RENT OF LAND AND
BUILDING10% Rs. 1,80,000/- P.A.
194 J PAYMENT FOR PROFESSIONAL
10% Rs. 30,000/- P.A.
194 DA CLAIMS AND SURRENDER PAYMENTS
2% NIL
VALID PAN NUMBER COMPULSORY FOR CLAIMING THRESHOLD LIMIT EXEMPTION
SHORT DEDUCTIONS
• EXCEPTIONS • LOWER DEDUCTIONS SHOULD BE SUPPORTED WITH FLAG A WITH TAX NON –
DEDUCTION CERTIFICATE NUMBER – SUCH TAX CERTIFICATES TO BE VERIFIED WITH TRACES PRIOR ACCEPTING FROM AGENTS
• CHECK TAN NUMBER, FY, AY, TAX RATE AND EXEMPTION LIMIT
SHORT DEDUCTIONS DUE TO PAN ERRORS
• IF VALID PAN NUMBERS ARE NOT TRACEABLE KINDLY REMOVE SUCH WRONG PAN NUMBERS FROM YOUR DATABASE SO THAT SYSTEM TAKES CARE OF CONDITION TO LEVY 20% TAX RATE AUTOMATICALLY
LATE DEDUCTION – COMPLICATIONS - SOLUTIONS
• TAX TO BE DEDUCTED AT THE TIME OF PAYMENT • FOR EX MR.X HAS BEEN PAID RS.10000/- COMMISSION ON 02/03/2016 TAX HAS TO BE
DEDUCTED ON 02/03/2016 ITSELF.• DATE OF PAYMENT AND DATE OF DEDUCTION HAS TO BE SAME . DO NOT PUT
CHALLAN DATE FOR THIS DATE OF DEDUCTION COLUMN
SHORT/LATE PAYMENT / CHALLAN INSUFFICIENT / OVERBOOKED CHALLANS/
CHALLAN MISMATCH• DEPOSIT THE TAX AMOUNT WITHIN DUE DATE STRICTLY.• ENTER CORRECT TAN NUMBER • DO NOT MENTION FINANCIAL YEAR IN CHALLAN - ONLY ASSESSMENT YEAR • MENTION CORRECT SECTION CODE & NATURE OF PAYMENT• USE RECENT UPDATE FORM NO 281 FOR REMITANCES• DO NOT LINK SAME CHALLAN TO MULTIPLE QUARTERS – EX RENT PAYMENTS /
CONTRACT • AFTER LINKING DEDUCTEE DETAILS WITH CHALLANS , CROSS CHECK THE TOTAL
AMOUNT LINKED WITH CHALLAN AMOUNT• ENTER CORRECT CHALLAN DETAILS SUCH AS BSR CODE, CHALLAN NO, DATE, AMOUNT
LATE FILING PENALTY – UN AVOIDABLE
• UPLOAD RETURN FVU FILES WITHIN DUE DATE TO AVOID LATE FILING FEE• IT CANNOT BE WAIVED OFF
