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Tds return

piyushi (Chartered Accountant) (105 Points)

06 January 2012

Sir,

if in TDS threshold of dedutee cross in IIIrd Quarter and we are making him payment since II nd Quarter.. Do v need to file TDS nil Return of IInd quarter????????? or can show entire amount till III rd of IInd Quarter...

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21 Replies

Nagaraja T S (prop) (28 Points)
Replied 06 January 2012

Dear piyush,

The TDS Return to be filed for every quarter is 0n or before due date. if you have not deducted tax on any value, how can you show the same in that quarter. in case if you are filing return balatedly, you should consider in the quarter in which you have actually remitted tax with interest.

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Keval Ponkiya (CA CS MBA(Fin.) M.Com. L.L.B.) (223 Points)
Replied 06 January 2012

Piyushi,

in 2nd qtr file return with 0/NIL

in 3rd qtr file return with total amt.

beause return has to be filled. Madam

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 07 January 2012

Please go through the below mentioned guidelines.

Guidelines for reporting TDS transactions not exceeding / exceeding threshold limit in quarterly TDS statements (as issued by Directorate of Income Tax - Systems).

Below guidelines may be referred, if deductor wishes to report the transaction in the quarterly TDS statement where no tax is deducted as threshold limit (as per the provisions of the Income tax Act) of amount paid/credited to deductee has not exceeded in the initial quarter (s) but has exceeded in subsequent quarter.

Flag “Y” may be selected in the field of ‘Reason for non deduction/ lower deduction/ higher deduction’ to highlight transactions where TDS is not deducted as the threshold for deducting tax has not exceeded.
Threshold flag 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
Following approach may be referred for reporting threshold transactions in quarterly statements:
1. 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%. In the third quarter the threshold limit exceeds.

Approach 1:

The deductor may 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. 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:

Pertaining to quarter	Reporting Quarter	PAN	Rate of deduction	Date of payment*	Amount paid (Rs.)	Date of deduction	Amount deducted (Rs.)	Amount deposited (Rs.)	Reason for non deduction /lower deduction
Q1	Q1	PAN1	0	Q1	1,00,000	-	0	0	Threshold flag Y present
Q2	Q2	PAN1	0	Q2	1,00,000	-	0	0	Threshold flag Y present
Q3	Q3	PAN1	30	Q3	1,00,000	Q3	30,000.00	30,000.00	No flag present

*The deductor must report the actual date of payment irrespective of the manner of reporting

Approach 2:

The deductor may report all transactions in the quarter in which the threshold has exceeded, represented as follows:

Pertaining to quarter	Reporting Quarter	PAN	Rate of deduction	Date of payment*	Amount paid (Rs.)	Date of deduction	Amount deducted (Rs.)	Amount deposited (Rs.)	Reason for non deduction /lower deduction
Q1	Q3	PAN1	0.0000	Q1	1,00,000	-	0	0	Threshold flag Y present
Q2	Q3	PAN1	0.0000	Q2	1,00,000	-	0	0	Threshold flag Y present
Q3	Q3	PAN1	30.0000	Q3	1,00,000	Q3	30,000.00	30,000.00	No flag present

*The deductor must report the actual date of payment irrespective of the manner of reporting

Approach 3:

The deductor may report all transactions in the quarter in which the threshold has exceeded, represented as follows:

Pertaining to quarter	Reporting Quarter	PAN	Rate of deduction	Date of payment*	Amount paid (Rs.)	Date of deduction	Amount deducted (Rs.)	Amount deposited (Rs.)	Reason for non deduction /lower deduction
Q1	Q3	PAN1	10.0000	Q1	1,00,000	Q3	10,000.00	10,000.00	Threshold flag Y present
Q2	Q3	PAN1	10.0000	Q2	1,00,000	Q3	10,000.00	10,000.00	Threshold flag Y present
Q3	Q3	PAN1	10.0000	Q3	1,00,000	Q3	10,000.00	10,000.00	No flag present

*The deductor must report the actual date of payment irrespective of the manner of reporting

Yashaswini.M.R (CA and CS Final) (50 Points)
Replied 07 January 2012

what ll be happen if tds deducted late and remitted late to the bank?

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 07 January 2012

No interest will be payable as threshold limit was not crossed earlier and liability to deduct tax did not arise. As soon as it will cross the limit, liability to deduct TDS arises on the same day. If not deducted at that time, only then interest will payable.

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Shyam Kanabar (Article) (160 Points)
Replied 07 January 2012

in 2nd qtr file return with 0/NIL

in 3rd qtr file return with total amt.

beause return has to be filled.

THANK YOU.

Yashaswini.M.R (CA and CS Final) (50 Points)
Replied 07 January 2012

what interes amount for that late return?

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 07 January 2012

(a) If TDS deducted late, 1% per month from the date on which tax was deductible to the date it was actually deducted.

(b) if TDS deposited late, 1.5% per month from the date on which tax was deducted to the date it was actually deposited.

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 07 January 2012

For TDS Return, Rs 100/- per day for the period of default. But do not deposit late fees on your own. AO has got discretionary power in this matter. So. would suggest you to file the TDS return and wait for any instruction from AO (TDS).