23 April 2016 Updates On TDS and TCS CA Pinki Kedia

Updates on TDS :
- Section 194-IA - Filing of 26QB Statement &

Payment against TDS Defaults
- Section 194C TDS on Payment to Transport
Services
- Form 15CA and 15CB
- Form 15G and Form 15H
- Section 194A - TDS on Interest
- Misc
-Refund of TDS
- Password
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CA PINKI KEDIA
Filing of 26QB Statement & Payment against

TDS Defaults
Deposit of Tax deducted with respect to Purchase of Immovable Property
(26QB Statement-cum-challan)
26QB Statement-cum-challan can be filed (along with payment of tax),
under Form 26QB in TDS on Sale of Property on the payment portal of
NSDL.
URL- https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Demand for TDS Defaults with respect to Purchase of Immovable
Property (26QB Statement-cum-challan)
LETTER F.NO.DIT(S)-2/FORM 26QB/100/2015, DATED 22-3-2016
- WITHDRAWAL OF STANDARD OPERATING PROCEDURE (SOP) dated 20-4-2015
password to open intimation letter and justification report sent by CPC
TDS - enter password as ABCD_30092012 First 4 character of PAN and
Date of payment/Credit as regular statement
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TDS Defaults
various types of defaults on 26QB processing
- Short Deduction Computation u/s 200A
when the rate at which TDS Deducted is less than 1%
- Late Payment Interest Computation u/s 200A read with Sec. 201(1A)
Late payment interest will be charged @ 1.5% per month from the date
of tax deduction to date of tax deposition
Due date of TDS deposit will be by 7th of the next month of the month
for which transaction is reported
- Late Deduction Interest Computation u/s 200A read with Sec. 201(1A)
Late deduction interest is charged @ 1% per month from date of
transaction to date of tax deduction.
Due date of deduction will be date of payment/credit whichever is
earlier
- Short Deduction Interest Computation u/s 200A read with Sec. 201(1 A)
provisional in nature
Short deduction interest is calculated @ 1% per month on Part of the
month from the date on which tax was deductible to the date of the
processing of statement
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TDS Defaults
- Late filing fee Computation u/s 234E

a sum of Rs.200 for each day during which the failure continues
Fee amount will not exceed TDS deductible as per 26QB filed
Due date of filing will be by 7th of the next month of the month for which
transaction is reported
demand payment link on the TIN portal through URLhttps://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Requirements for Online Corrections
Corrections related to email address; Mobile Number and Address of the Property
will not require DSC or Assessing Officers approval.
- Registration at TRACES is mandatory
- Can make correction using Digital Signature Certificate (DSC)
- DSC not used then in some case approval of TDS AO is required
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Correction in 26QB statements

- Following fields of 26QB statements can be corrected using the
Online Correction facility:
a. PAN of Buyer Details - Approval needed
b. PAN of Seller Details - Approval needed
c. Buyers Address Auto approval
d. Sellers Address Auto approval
e. Property Details including property value Auto approval
f. Amount Paid/Credited - Auto approval in case of using DSC
g. Date of Payment/Credit - Auto approval in case of using DSC
h. Date of Tax Deduction - Auto approval in case of using DSC
TDS AO may like to ask for the Identity Proof and PAN Card of buyer along
with the documents related to Transfer of Properly and the proofs of
payment made to verify the Amount of Property, Date of Payment,
Property Details etc.
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CA PINKI KEDIA
TDS on Payment to Transport

CIRCULAR NO. - 19 /2015, DATED 27th NOVEMBER, 2015
The new provision of Section 194C effective from June 1, 2015

Non Deduction of tax only for small transport operators who are
eligible for 44AE
owing not more than 10 goods carriage at any time during the
previous year
on the date on which the amount is credited or paid, whichever is
earlier.
Not applicable for transportation vehicle for passengers
a declaration to this effect along with his PAN, to the person paying such
sum.
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Form 15CA and Form 15CB

Notification No. G.S.R. 978(E) dated 16th December, 2015
come into effect from 01st April2016
Both forms 15CA and 15CB are to be filed online
Form 15CA and 15CB not required to file:
a. an individual for remittance which does not require RBI approval under
Liberalised Remittance Scheme.
b. Specified list of 33 Payments including 5 new payments:
- Advance payment against Imports
- Payment towards imports-settlement of invoice
- Import by diplomatic missions
- Intermediary trade
- Import below INR 5 lacs (for use by ECD offices)
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Revised Form Nos.15CA and 15CB divided in 4 parts:

Part A Remittance is chargeable to tax but does not exceed INR 5 lacs
during the financial year
Part B Sum chargeable to tax, remittances does not exceed five lakh rupees
during the financial year and lower WHT certificate obtained under Section
197/195(2)/195(3)
Part C CA Certificate under Form 15CB if payments exceed INR 5 lacs and
are chargeable to tax
Part D Sum not chargeable to tax under the provisions of the Act
Penalty for non-furnishing or inaccurate filing of information INR 100,000 for

each default
filing of quarterly information on remittance by the AD in Form 15CC

electronically under digital signature within fifteen days from the end of the
quarter of the financial year to the Principal Director General of Income-tax
(Systems)
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Procedure :
Generate signature of Remitter for the zip file using DSC Management Utility
(available under Downloads) and upload the generated signature file.
Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To

prefill the details in Part C of Form 15CA, the Acknowledgment number of eFiled Form 15CB (sent on email of remitter and CA by efiling website) should
be provided
ADD CA in Income Tax website for Form 15CB by Remitter
Login as Chartered Accountant on incometaxefiling.gov.in 15CB
Download FORM 15CB utility from Downloads page and prepare the XML File
Login to e-Filing, Go to e-File Upload Form, Enter PAN/TAN of assesse, PAN

of CA, Select Form Name as 15CB, Select Filing Type as Original.
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Upload the XML generated from the downloaded utility. Upload the
signature file generated using DSC Management Utility for the XML.
Login by Remitter to e-Filing, Go to Worklist For Your Information
Click on View Form link to view the Uploaded Form details. The status
of the form on submission shall appear as Submitted.
On successful filing of Form 15CA-Part C against the particular Form 15CB,
the status of Form 15CB shall update as Consumed.
In case of withdrawal of Form 15CA against which Form 15CB was
consumed, then the status of Form 15CB will change from Consumed to
Withdrawn.
Click on Withdraw Form 15CA link against the Form uploaded to
withdraw the uploaded FORM 15CA.
One Form 15CB can be consumed for filing one Form 15CA only.
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Form 15G and Form 15H

Notification No.76/2015/F.No.133/50/2015-dated 29th September 2015
Form 15G and Form 15H can be furnished
- Paper Form
- Electronically
CBDT Notification No.4/2015 Dt: December 01, 2015
F.No.: DGIT(S) /CPC(TDS)/DCIT/15GH/2015-16/14425-556,
Tax payer need to submit form 15G/15H (paper/ electronic) and deductor
on receiving the same will assign Unique Identification Number (UIN) to all
self-declaration in accordance with a procedure by CBDT.
The tax payer can generate and submit Form 15G/Form 15H online
provided the banker has created a link on their individual banks Internet
Banking.
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Form 15G and Form 15H
Deductor shall digitize the paper declaration and upload all declaration received
during a particular quarter to website www.incometaxindiaefiling.gov.in on
quarterly basis
Both the UIN and self-declaration details will have to be furnished by the deductor
in the quarterly TDS statements.
In addition, deductor will be required to retain Form 15G and 15H for seven years.
To fill form 15G or 15H online, you must have access to internet banking
Any individual or HUF, making a false statement in the form 15G/H shall be liable
to prosecution u/s 277 of the IT Act, 1961 and on conviction be punishable
evaded exceeds one lakh rupees - rigorous imprisonment 6 months to 7 yrs with fine
In other case - rigorous imprisonment 3 months to 3 yrs with fine
Form 15G/15H should be submitted to each and every branch where you hold
your deposits
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Section 194A -TDS on Interest
Untill 31st May, 2015, the threshold limit -income credited/paid by a branch of the
banking company or co-operative society, as applicable.
W.e.f. 1 st June 2015 - the income credited/paid by the banking company or the
co-operative society or the public company (i.e. all branches) which has adopted
core banking solutions.
Tax u/s 194A not applicable:

- does not exceed the specified threshold limit
- to any banking company, co-operative bank, public financial institutions, LIC, UTI,
an insurance company, co-operative society carrying the business of insurance or
notified institutions.
- by the firm to its partner(s)
- by co-operative society to its members (Interest on deposit excluding time
deposit)
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- In respect of deposit under Post office Scheme i.e. RD, NSC, KVP, IVP and
Monthly Income
- deposits (other than time deposit made on/after July 1, 1995) with a banking
company or interest paid/credited to non-members on deposit with a cooperative bank.
- deposits (by non-members) with a primary agricultural credit society or
primary credit society or co-operative land mortgage bank or co-operative
land development bank.
- on compensation awarded by the Motor Accidents Claim Tribunal if the

aggregate amount does not exceed Rs.50,000
- by an infrastructure capital company/fund or public sector company in
relation to zero coupon bonds
- by an Offshore Banking Unit on deposits made (or borrowings) on/after Apr 1,
2005, by a person who is resident but not ordinarily resident in India
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Time Deposit as amended by Finance Act 2015 w.e.f 1 st June 2015:
- include recurring deposits
- the existing threshold limit of Rs.10,000 - applicable in case of interest
payment on recurring deposits
Interest on FDRs, made in the name of the Registrar General of Court or
the depositor of the fund on the directions of the court,
Circular No.23/2015 in F.no. 279/Misc./140/2015-ITJ dt.28.12.2015
Interest component on Decree
Madhusudan Shrikrishna Vs. Emkay Exports 188 Taxman 195(Bom)
Akbar Abdul Ali Vs. Additional CIT (2012) 146 TTJ 57 (Mum) (UO)
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Misc
Section 40(a)(i)/(ia)
Expenditure paid during the Financial Year on which tax is not deducted,
whetherdisallowance of expenditure is called for?
_ W.e.f 01/04/2015 Proviso to Section 40(a)(ia) has been inserted which states:
Provided that where tax has been deducted in any subsequent year or has been
deducted during the previous year but paid after the due date specified in section
139(1), thirty percent of such sum shall be allowed as a deduction in computing
the income of the previous year in which tax has been paid.
_ W.e.f 01/04/2015, no disallowance shall be made under Section 40 (a)(i) if tax is
deducted and deposited by the due date of filing the Return of Income .
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Updates on TCS
In this Budget, from 1st June 2016
sale of a motor vehicle(include high-end two wheeler) of value exceeding Rs.10

lakh
receipt of money for sale of goods or provision of services exceeding Rs.2 lakh
Applicable to all i.e. salaried employee, Vehicle Manufacturer, Vehicle Dealer
government departments, public sector undertakings, clubs, and some others are
excluded
purchasing goods for personal consumption also excluded
for the purchase of goods or services exceeding Rs.2 lakh in cash, these exclusions
would not apply
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Refund of TDS
Refund for Excess Claim to be made in Form 26B
Provided there is no outstanding demand or credit is not claimed by the Assessee
Mandatory to register DSC
Contain max of 5 challans. For more challans, submit new request
Max refund amount will be the min chllan bal amount in challan history
Available amount per challan > Rs.100/-
Statements should be processed before claiming refund
Refund chq will be issued in the Name and Address of the Deductor as per TRACES
profile
Google Chrome does not support Java Platform which is required for Digital
Signature Utility Functionality
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PASSWORD
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CA PINKI KEDIA
B1, GANDHI SADAN
NR PINKY TALKIES
ANDHERI EAST
Mumbai 400 069
Contact 98690 30652
Email [email protected]
24/04/2016
CA PINKI KEDIA
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Updates on TDS :

- Section 194-IA - Filing of 26QB Statement &

Filing of 26QB Statement & Payment against

- Late filing fee Computation u/s 234E

Correction in 26QB statements

TDS on Payment to Transport

The new provision of Section 194C effective from June 1, 2015

Form 15CA and Form 15CB

Form 15CA and Form 15CB

Revised Form Nos.15CA and 15CB divided in 4 parts:

Penalty for non-furnishing or inaccurate filing of information INR 100,000 for

filing of quarterly information on remittance by the AD in Form 15CC

Form 15CA and Form 15CB

Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To

ADD CA in Income Tax website for Form 15CB by Remitter

Login as Chartered Accountant on incometaxefiling.gov.in 15CB

Login to e-Filing, Go to e-File Upload Form, Enter PAN/TAN of assesse, PAN

Form 15CA and Form 15CB

Form 15G and Form 15H

Form 15G and Form 15H

In other case - rigorous imprisonment 3 months to 3 yrs with fine

Section 194A -TDS on Interest

Tax u/s 194A not applicable:

Section 194A -TDS on Interest

- on compensation awarded by the Motor Accidents Claim Tribunal if the

Section 194A -TDS on Interest

sale of a motor vehicle(include high-end two wheeler) of value exceeding Rs.10

Applicable to all i.e. salaried employee, Vehicle Manufacturer, Vehicle Dealer

purchasing goods for personal consumption also excluded

Provided there is no outstanding demand or credit is not claimed by the Assessee

Mandatory to register DSC

Contain max of 5 challans. For more challans, submit new request

Available amount per challan > Rs.100/-

Statements should be processed before claiming refund

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