How to keep away from TDS notice?
Category : Uncategorized
By remembering and following these rules you can simply keep away from TDS notice :
Determine correct amount Calculate correct amount of TDS to stay away from TDS notice :
a. TDS needs to be deducted considering the correct interpretation of the sections of Income Tax Act.
b. After correct interpretation, it is important to determine correct amount of TDS
○ Timely deduction and payment of total taxes deducted/ collected
a. Taxes must be deducted at the time of Payment or Credit, whichever is earlier
b. The taxes deducted must be deposited within the due dates, as prescribed by Rule 30 of the Income Tax Rules 1962
c. All the taxes deducted must be deposited with challan 281 quoting correct TAN, Assessment Year, Major Head, Minor Head etc.
d. Challan details/BIN details quoted in the statement should be correct. Challans can be validated by using Challan Status Inquiry (CSI) file. Correct details can also be verified at TRACES in “Challan Status” menu under “Statement Status” after login.
Correct and Complete Reporting with regard to Challans and Deductees to stay away from TDS notice :
a. There should not be any difference in the amounts quoted in “Deducted” and “Deposited” columns of the deductee rows.
b. Challans quoted in the statement must have balance available for consumption against specified deductee rows. Available balance can be verified at TRACES in “View Consumption Details” under “Statements/ Payments” menu after login.
c. Correct flags (A, B, C, T and Y) must be raised for no deduction/ lower deduction/ higher deduction, as appropriate.
d. The PAN for deductees must be valid and correct. TAN-PAN Master can be downloaded from TRACES and be used to file statement to avoid quoting of incorrect and invalid PANs.
e. Correct and valid 197 Certificates must be specified.
f. For 24Q statements, correct flags should be raised for Woman/ Man/ Senior Citizen/ Super Senior Citizen deductees, as may be appropriate.
Timely filing of TDS Statements to keep away from TDS notice :
a. Quarterly TDS/TCS statements must be filed within due dates of filing statements as prescribed by Rule 31A of the Income Tax Rules, 1962.