Last Date To File TDS Statement Is May 31. Rs 100 Per Day Penalty levied In Case Of Delay
The tax deducted at source (TDS) deductors who have deducted and have not deposited the same by the due date must do so immediately, warned the income tax (I-T) department on Wednesday. The tax department further informed that any delay in the filing of TDS statement results in penalty of Rs 100 for each day of default, not exceeding the amount of tax deductible/collectible. As a matter of fact, all TDS deductors must download the TDS certificate from the TRACES portal. The downloaded TDS certificate must be issued in form 16 to the salary income (by the employer to the employee) and form 16A on income other than salary (for instance by bank to account holder) by March 31 and by June 15, respectively. The tax payers ought to register themselves at tdscpc.gov.in, the tax department informed on Wednesday.
What Is TAN?
While PAN is the permanent account number used by every tax payer, and the TAN is tax deduction and collection account which is allotted to everyone who is supposed to deduct tax at source. It is supposed to be quoted in TDS or TCS (tax collected at source) return.
Also Read: All 7 ITR Forms Released For E-filing Of Income Tax Returns
The income tax department informed that the tax payers should quote correctly their TAN and also PAN of the deductees so that they get their due credit. It is noteworthy that the TDS certificate cannot be downloaded by quoting the wrong PAN number. The income tax department cautions the tax deductors to verify the genuineness of PAN of the deductees via the PAN/TAN master facility of TRACES portal.
TRACES
TRACES is a virtual interface of the Income Tax Department useful to all stakeholders associated with TDS administration. It enables viewing of challan status, and Form 16 / 16A as well as viewing of annual tax credit statements. However, even if there is no transaction liable to TDS/TCS for the quarter, the TDS deductor is supposed to intimate the same to TRACES to avoid the notice for non-filing of TDS statement.
Who deducts TDS
There are several category of tax payers who are meant to deduct the TDS. For instance, as a tenant, you are supposed to deduct the TDS from the rent if you are paying rent over Rs 50,000. Similarly, the banks are meant to deduct the TDS when the interest paid is over Rs 10,000. Deductors may avoid defaults about PAN and challan errors in preliminary screening by responding to email/sms from CPC (TDS) within seven days of receipt of email/sms.