30 Tax Quries and answers

1.What is quarterly e-TDS/TCS statement?

• Ans. TDS/TCS returns filed in electronic form as per section 200(3)/206C, as amended by Finance Act, 2005, are quarterly TDS/TCS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from FY 2005-06 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in CD/floppy should be accompanied by a signed verification in Form No. 27A in case of both e-TDS/TCS statements.

2.Who is required to file e-TDS/TCS return?
 

• Ans. As per Income Tax Act, 1961, all corporate and government deductors/collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.

3.Are the forms used for e-TDS/TCS return same as for physical returns?
 

• Ans. Forms for filing TDS/TCS returns were notified by CBDT. These forms are same for electronic and physical returns. However, e-TDS/TCS return is to be prepared as a clean text ASCII file in accordance with the specified data structure (file format) prescribed by ITD.

4.What are the forms to be used for filing annual/quarterly TDS/TCS returns?
 

• Ans. Following are the forms for TDS/TCS returns and their periodicity:

• Form No. Particulars Periodicity
• Form No. 24 Annual return of 'Salaries' Annual
• Form No. 26 Annual return in respect of all payments other than 'Salaries' Annual
• Form No. 27 Statement of deduction of tax from interest, dividend or
   
• any other sum payable to certain persons Quarterly
• Form No. 27E Annual return of collection of tax Annual
• Form No. 24Q Quarterly statement 'Salaries' Quarterly
• Form No. 26Q Quarterly statement in respect of all payments other than 'Salaries' Quarterly
• Form No. 27Q Quarterly statement of deduction of tax from interest, dividend other sum payable to non-residents Quarterly
• Form No. 27EQ Quarterly statement of collection of tax at source Quarterly

5.Is it mandatory to mention Tax Deduction Account Number (TAN) in e-TDS/TCS return?
 

• Ans. Yes, it is mandatory to mention the 10 digit reformatted (new) TAN in your e-TDS/TCS return.

6.Can I file Form No. 26Q separately for contractors, professionals, interest etc.?
 

• Ans. No. A single Form No. 26Q with separate annexures corresponding to each challan payment for each type of payment has to be filed for all payments made to residents.

7.I do not know the Bank Branch Code of the branch in which I deposited tax. Can I leave this field blank?
 

• Ans. Bank Branch code or BSR code is a 7-digit code allotted to banks by RBI. This is different from the branch code, which is used for bank drafts etc. This number is given in the OLTAS challan or can be obtained from the bank branch or from the search facility at NSDL-TIN website. It is mandatory to quote BSR code both in challan details and deductee details. Hence, this field cannot be left blank. Government deductors transfer tax by book entry, in which case the BSR code can be left blank.

8.By whom should the control chart Form 27A be signed?
 

• Ans. Form 27A is the summary of the TDS/TCS statement. It has to be signed by the same person who is authorized to sign the TDS/TCS statement in paper format

9.What if e-TDS/TCS return does not contain PANs of all deductees?
 

• Ans. In case PANs of some of the deductees are not mentioned in the e-TDS/TCS return, the Provisional Receipt will mention the count of missing PANs in the e-TDS/TCS return. The details of missing PANs (to the extent it can be collected from the deductees) may be filed within seven days of the date of Provisional Receipt to TIN-FC. e-TDS/TCS return will be accepted even with missing PANs. However, if PAN of deductees is not given in the TDS return, tax deducted from payment made to him cannot be posted to the statement of TDS to be issued to him u/s 203AA

10.Is the Challan Identification Number compulsory?
 

• Ans. Yes. Challan Identification Number is necessary for all non-Government deductors

11.I am a deductor having more than one office/branch, do I file separate e-TDS/TCS returns for each office/branch or can I file a consolidated return for all offices/branches? Can I quote the same TAN for filing e-TDS/TCS returns for each branch?
 

• Ans. If you have more than one office/branch you can file a consolidated e-TDS/TCS return for all offices/branches. In this case you should quote the same TAN. You can also file e-TDS/TCS returns office/branch-wise individually. In such cases you need to have separate TAN for every branch. In case you do not have separate TAN for each branch then you should apply for TAN for each of the branches filing separate e-TDS/TCS return
   

12.Should I file copies of certificate for no deduction or concessional deduction of tax along with the e-TDS/TCS return?
 

• Ans. In case of salary e-TDS/TCS return (Form No. 24), you have to file certificate for no deduction or concessional deduction of TDS alongwith the e-TDS/TCS return. In case of non-salary (Form No. 26/27) you need not file certificates for no deduction or concessional deduction of TDS alongwith the e-TDS/TCS return. This is not required in case of any quarterly statements.

13.Is the procedure for filing of e-TCS different from that of filing e-TDS return?
 

• Ans. The procedure for filing of e-TCS return is the same as that of e-TDS return except the forms to be used are different. The relevant forms for filing the e-TCS return are:

• a) Annual return: Form No. 27E, 27B (Control Chart)
• b) Quarterly statement: Form No 27EQ, 27A (Control Chart).
• The e-TCS returns are also to be filed with NSDL at the various TIN-FCs.

14.What if e-TDS/TCS return does not contain PANs of all deductees?
 

• Ans. In case PANs of some of the deductees are not mentioned in your e-TDS/TCS return, the Provisional Receipt will contain the count of missing PANs in the e-TDS/TCS return. You may file the details of missing PANs within seven days of the date of Provisional Receipt to TIN-FC as a corrected e-TDS/TCS return.

15.Whether the particulars of the whole year or of the relevant quarter are to be filled in Annexures I, II and III of Form No. 24Q?
 

• Ans. (i) In Annexure I, only the actual figures for the relevant quarter are to be reported.

• (ii) In Annexures II & III, estimated/actual particulars for the whole financial year are to be given. However, Annexures II & III are optional in the return for the 1st, 2nd and 3rd quarters but in the quarterly statement for the last quarter, it is mandatory to file Annexures II & III giving actual particulars for the whole financial year.

16. In Form No. 24Q, should the particulars of even those employees be given whose income is below the threshold limit or in whose case, the income after giving deductions for savings etc. is below the threshold limit?
 

• Ans. (i) Particulars of only those employees are to be reported from the 1st quarter onwards in Form No. 24Q in whose case the estimated income for the whole year is above the threshold limit.
• (ii) In case the estimated income for the whole year of an employee after allowing deduction for various savings like PPF, GPF, NSC etc. comes below the taxable limit, his particulars need not be included in Form No. 24Q.
• (iii) In case, due to some reason, estimated annual income of an employee exceeds the exemption limit during the course of the year, tax should be deducted in that quarter and his particulars reported in Form No. 24Q from that quarter onwards.

17. How are the particulars of those employees who are with the employer for a part of the year to be shown in Form No. 24Q?
 

• Ans. (i) Where an employee has worked with a deductor for part of the financial year only, the deductor should deduct tax at source from his salary and report the same in the quarterly Form No. 24Q of the respective quarter(s) up to the date of employment with him. Further, while submitting Form No. 24Q for the last quarter, the deductor should include particulars of that employee in Annexures II & III irrespective of the fact that the employee was not under his employment on the last day of the year.
• (ii) Similarly, where an employee joins employment with the deductor during the course of the financial year, his TDS particulars should be reported by the current deductor in Form No. 24Q of the relevant quarter. Further, while submitting Form No. 24Q for the last quarter, the deductor should include particulars of TDS of such employee for the actual period of employment under him in Annexures II & III.

18. Form No. 24Q shows a column which requires explanation for lower deduction of tax. How can a DDO assess it? Please clarify.
 

• Ans. Certificate for lower deduction or no deduction of tax from salary is given by the Assessing Officer on the basis of an application made by the deductee. In cases where the Assessing Officer has issued such a certificate to an employee, deductor has to only mention whether no tax has been deducted or tax has been deducted at lower rate on the basis of such a certificate.

19. Will the TIN-FC give any acknowledgment/receipt after acceptance of e-TDS/TCS return?
 

• Ans. If the e-TDS/TCS return file is complete in all aspects, TIN-FC will issue a provisional receipt to you. The provisional receipt issued by TIN-FC is deemed to be the proof of e-TDS/TCS return filed by you.

20. What if my e-TDS/TCS return is not accepted by TIN-FC, how will I know the reason for rejection?
 

• Ans. In case of non-acceptance of your e-TDS/TCS return file, TIN-FC will issue a Non-Acceptance Memo which will state reason for rejection

21. Can I correct e-TDS/TCS annual return?
Ans. Yes, corrected e-TDS/TCS returns can be filed. You can file corrected e-TDS/TCS return on account of any rectification or after incorporating missing PAN(s) details with any TIN-FC.

22. How can I correct quarterly e-TDS/TCS statement?
Ans. The procedure for correction for quarterly e-TDS statement is yet to be notified by ITD.

23. What is the manner of submission of corrected annual e-TDS/TCS return?
 

• Ans. In case you are submitting corrected annual e-TDS/TCS return, you should file the entire e-TDS/TCS return (and not only the amendments to the e-TDS/TCS return) alongwith all the documents submitted at the time of filing original e-TDS/TCS return. You should also file a copy of the Provisional Receipt issued earlier for the original e-TDS/TCS return alongwith the corrected e-TDS/TCS return. You should also mention on the top right hand corner of Form 27A that e-TDS/TCS return being filed is on account of any rectification other than missing PAN(s) or on account of incorporation of missing PAN(s).

24. Can I file the corrected annual e-TDS/TCS return with any TIN-FC?
 

• Ans. You can file the corrected e-TDS/TCS return at any TIN-FC.

25. Do I have to pay upload fee for filing corrected annual e-TDS/TCS return?
 

• Ans. Yes. Upload fee is payable for each and every e-TDS/TCS return accepted by the TIN-FC, irrespective of whether it is a corrected e-TDS/TCS return or an original e-TDS/TCS return.

26. Will the TIN-FC give any acknowledgment/receipt after acceptance of corrected e-TDS/TCS return?
 

• Ans. Yes, TIN-FC will issue a Provisional Receipt in case corrected e-TDS/TCS return file is valid and accepted by the TIN-FC. The Provisional Receipt issued by TIN-FC is deemed to be the proof of corrected e-TDS/TCS return filed by you.

• Ans. On the NSDL-TIN website, three types of views are available for a tax payer:
• a) Access without authentication.
• b) Access with Digital Signature Certificate (DSC).
• c) Access through TIN-FC.

• Ans. On providing the TAN and provisional receipt number, the deductor can view the following details:

• Ans. Deductors can access details of their statements through the TIN-FC who has uploaded their statements.

• Ans. Yes, the Paper TDS data will also be available in TIN database after the digitalization of the Paper TDS return by the e-intermediary.