TAX DEDUCTOR'S GUIDE : How to meet your TDS Obligations ?
WHAT IS STATEMENT OF TDS AND IN WHICH FORM IT IS TO BE FURNISHED ?
- Every person responsible for deducting tax at source has to deliver to the Government the information relating to tax deducted by him. This information is to be furnished in the prescribed form and this form is called statement of TDS (or TDS Statement). Following chart will highlight the form os statement of TDS.
- Correct Reporting Cancellation of TDS statement and deductee row is no longer permissible. Accordingly, it is very important to repot correct and valid particulars TAN of the deductor Category (Goverment/Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS statement.
- Quote correct and valid lower rate TDS certicat in TDS Statement wherever the TDS has been deducted at lower/zero rate on the basis of certificate issued by the Assessing officer.
- Last provisional receipt number to be quoted in regular TDS/TCS Statements: While filling new regular (original) TDS statement, it is mandotory to quote the last accepted provisional receipt number of the regular quarterly TDS/TCS statement of any form type.
- TDS statement cannot be filed without quoting any valid challan and deductee row.
- Download TAN-PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN.
- Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statedment.
- File correction statements promptly in case of incomplete and incorrect reporting.
- Government deductors should obtain BIN (Book identification Number) from their Accounts officer (AIN holder) in time and quote the same correctly in TDS statement.
WHAT ARE THE CONSEQUENCES OF TDS DEFAULTS AND NON-PAYMENT TO GOVERNMENT ?
- Failure to deduct tax or short deduction of tax or failure/delay in payment of the tax deducted to the credit of Govermment by the due date, would make the deductor an assessee in default in respect of such tax and also liable to penalty which is equal to the amount for which the assessee is a deemed defaulter.
- In case of non-deduction/short deduction or delay in deduction of tax, interest @ 1% per month or part of the month is levied on the tax dedutible and in case of delay in payment of tax after duducting, interest @ 1.5 % per month or part of the month, till such time the tax deducted is not credited to the Government shall also be payable.
- Failure on part of the deductor to pay the tax deducted at source, to the credit of Central Government makes him liable to rigorous imprisonment of a minimum period of three months but which may extend to seven years.
- Download the justification report to know the details of TDS defaults, if any, on processing of TDS Statement.
WHAT IS THE DUTY OF DEDUCTOR IF THE DEDUCTEE DOES NOT FURNISH HIS PAN ?