NSDL new FVU for quarterly TDC / TCS returns

The NSDL has released new FVUs for TDS / TCS returns. The details are as under

Key features of File Validation Utility (FVI) version 2.130

·       Applicable for quarterly e-TDS/TCS statement (regular and correction) upto F.Y. 2009-10

·       Rupee symbol incorporated for amount fields in FVU statement statistic report.

·       For validating e-TDS/TCS statement upto FY 2009-10 refer the table below:

Key features of File Validation Utility (FVU) version 3.1

·       FVU 3.1 will be applicable for quarterly TDS/TCS statements pertaining to FY 2010-11 onwards and will be mandatory w.e.f April 01, 2011.

·       Mandatory to quote Mobile No. in quarterly TDS/TCS statements for deductor category other than Central govt. and State Govt.

·       Re-introduction of PAN reference no. field in deductee/ collectee details.

·       Provision to quote the deduction under section 80CCF in salary details (applicable for 24Q Q4).

·       Total deduction under chapter VI A to include:

o   Deduction under section 80CCE

o   Deduction under section 80CCF

o   Deduction under other sections of chapter VI A

·       ‘Surcharge’ amount in salary details (provided annually in Annexure II -- 24Q Q4) should be less than or equal to ‘Total Taxable Income’.

·       ‘Education cess’ amount in salary details (provided annually in Annexure II -- 24Q Q4) should be less than or equal to ‘Total Taxable Income’.

·       ‘Net Income tax payable’ amount in salary details (provided annually in Annexure II -- 24Q Q4) should be less than or equal to ‘Total Taxable Income’.

·       Highlight transaction where tax has not been deducted as threshold limit is not exceeded (as per the provisions of Income Tax Act). in the first quarter (s) but in subsequent quarter has exceeded the threshold limit.

·       Guidelines for reporting such transactions is as below:

Guidelines for reporting TDS transactions where amount paid to deductee has not exceeded the threshold limit in the first quarter but in subsequent quarters has exceeded threshold limit (as issued by the Directorate of Income Tax – Systems)

1)     Flag “Y” should be selected in the field of ‘Reason for non deduction/ lower deduction’ to highlight transactions where TDS is not deducted as the threshold for deducting tax has not exceeded.

2)     If threshold flag is provided then rate of deduction should be ‘0.0000’ and tax deducted/ deposited (deductee) amount should be ‘0.00’.

3)     Threshold flag is can be quoted only  against the following section codes in corresponding challan details:
193,194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I, 194J, 194LA

4)     Example:

·       In case there is no deduction of tax in the first two quarters of a F.Y., where the prescribed rate of deduction as per Income Tax Rules is 10%, the deductor should report those transactions in the respective quarterly TDS statements with zero rate of deduction (‘0.0000’), zero tax deducted/ deposited (‘0.00’) and amount paid in the respective quarters with threshold flag.

·       In the third quarter the threshold limit exceeds, the deductor will mention the prescribed rate of deduction, the amount paid in the third quarter, tax deducted/ deposited (deductee) on the total amount paid till that quarter. The same is represented as follows:

• For validating e-TDS/TCS statement (regular and correction) for FY 2010-11 and onwards refer the table below: