Income Tax - How to Control PAN Errors in TDS Statements Submitted by Deductors ?

Friends,

CPC (TDS) Team has already communicated to their stakeholders vide their communication No 9 Dated 20-12-2014 that there are too many errors of PAN in the statements submitted by deductors.  To control or remove such type errors some actions are required on the part of deductors which are given in circular detailed below :

Dear Deductor,

(TAN:_____________)

Centralized Processing Cell (TDS) has observed from its records that though you have reported deductees with more than Rs. 50,000 of TDS in your Quarterly TDS statements, but the PANs are either "Not Available" or "Invalid". The "Invalid" PANs appear structurally valid, however, they are actually incorrect, as they are not available in the PAN Master records.

Please note the following details in reference to your TDS statements for Financial Year 2013-14 only for Form types 24Q & 26Q:

Form Type 24Q:

	PAN Not Available		PAN Applied For		Invalid PAN
	Instances	TDS	Instances	TDS	Instances	TDS
Q1 2013-14
Q2 2013-14
Q3 2013-14
Q4 2013-14

Form Type 26Q:

	PAN Not Available		PAN Applied For		Invalid PAN
	Instances	TDS	Instances	TDS	Instances	TDS
Q1 2013-14
Q2 2013-14
Q3 2013-14
Q4 2013-14

Required Immediate Attention:

Quarter wise details of PANs and transactions, where such errors have been identified are available in the Justification Reports that can be downloaded from TRACES. Therefore, you may take immediate steps to correct Invalid/ Incorrect PANs that have been reported in the statement. In case, the PAN was Not Available / Applied For at the time of reporting the transaction, the deductee may be contacted and respective PAN may be replaced.

What is the impact:

The impact of such errors is significant in nature, in view of following:

• You would not have been able to generate TDS Certificates for deductees with such PANs.  In case, you have issued TDS Certificates outside TRACES, they will not be valid.
• In view of CBDT circulars 04/2013 dated 17.04.2013, No. 03/2011 dated 13.05.2011 and No. 01/2012 dated 09.04.2012, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.
• Correct TDS Credits in 26AS statements to the taxpayers will not be available and they will not be able to avail the same, while filing their Income Tax Returns.
• As per section 206AA of the Income Tax Act, the tax is to be deducted at a higher rate, in case of "Not Available/ Invalid PANs". Therefore, Short Deduction, including Interest is charged, if the tax has not been deducted at higher rate or Section Rate, whichever is higher, as per the provisions of section 206AA.

What actions to be taken:

• TRACES provides for a user friendly "Online Correction facility with Digital Signatures" for correction of PANs. To avail the facility, you are requested to Login toTRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down menu. For any assistance, please refer to the e-tutorial available on TRACES.
• You may also download the Conso Files and Justification Reports from TRACES to identify the above errors and submit C5 Correction Statement to correctly complete the details of the deductees.
• PAN Verification facility on TRACES can be used for verifying the deductees. You are requested to Login to TRACES and navigate to "Dashboard" to locate "PAN Verification" in the Quick Links menu.
• You can make use of the "Consolidated TAN - PAN File" that includes all the valid PANs attached with the respective TANs. To avail the facility, Login to TRACES and navigate to "Dashboard" to locate "Consolidated TAN - PAN File".

You can refer to our e-tutorial and FAQs on "TRACES" website for necessary help. For any further 

assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number :

Toll Free Number : 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

For more information Click Here

TRACES:New Website Replaces TIN-NSDL for TDS Return Filing , Matching, correction , Form 16/16A, FVU files

Friends,

Income Tax Department has started a new Website TRACES which will replace all the works done through the website TIN-NSDL to this site. From now onward filing of Income Tax Return in Online mode, Matching, Correction, Downloading Form 16, Form 16A, FVU files. TRACES  stands for TDS Reconciliation Analysis and Correction Enabling System and has been set up by TDS Centralized Processing Cell of the income-tax department.

TRACES will integrate the following components

• Tax information Network\
• Automated TDS Challan Matching
• TDS Defaults Processing
• IVR/ Call Centre
• Web Portal

New Web Portal : https://www.tdscpc.gov.in

The new portal has been created using latest technology to enhance swift interaction between the deductor, deductee, income-tax department and CPC. The following features are/ will be available to deductors and deductees :-

1. Dashboard giving summary of Deductors account
2. Online registration of TAN
3. Online filing of TDS Statements
4. Online corrections of TDS statements
5. Default Resolution
6. View Form 26AS
7. Download Form 16/16A/Consolidated TDS File
8. Grievance registration and resolution

Not all of the above features have been activated so far.

NSDL web site V/s TRACES web Site : Current Status

Currently several online services are provided to deductors and deductees on TIN site by NSDL. The following table presents various services at both the sites. 

Registration at TRACES

Users who have already registered at NSDL TIN site, need not register again on TRACES. Their registration details are migrated and they can Login at TRACES with their NSDL-TIN login details.however Tin Login details will work at TRACES only single time and you will be asked to create new id immediately .Fresh registrations on NSDL site have been stopped. 

New registrations can be done at TRACES site and online help is available under the FAQ link. It appears; gradually TRACES will become the only site for deductors and deductees. As more features appear and existing features understood, we will keep sharing the information with you.

TRACES : FAQ's ON HOW TO REGISTER YOUR TAN AT TRACES

Friends,

TRACES stands for TDS Reconciliation Analysis and Correction Enabling System and has been set up by TDS Centralised Processing Cell of the income-tax department.

TRACES will integrate the following components

• Tax information Network\
• Automated TDS Challan Matching
• TDS Defaults Processing
• IVR/ Call Centre
• Web Portal
• New Web Portal : https://www.tdscpc.gov.in

How to register at TRACES , FAQ is given below.

I am a registered user in TIN. How do I login to TRACES?

If you already have a TAN Account in TIN, you can use the existing User Id and Password as in TIN to Login to TRACES. However, if you are not able to register on TRACES using existing User Id and Password, you can register as new user on TRACES.

I am a registered user at TIN but I have forgotten my User Id and / or Password. How do I register on TRACES?

If you are not able to register on TRACES using your TIN User Id and Password (for your TAN Account), please register as a new user. Click on 'Register as New User', select type of user as 'Deductor' and proceed. This will create your new profile as deductor in TRACES and you will be able to login to TRACES after you activate the account.

How do I activate my account?

After completing registration, you will receive an activation link and activation code on your email id registered with TRACES. You will also receive an activation code through SMS on your mobile number registered with TRACES. Click on the activation link and enter User Id and the activation codes received through email and SMS and proceed. After successful activation, you can log in to TRACES. Click here for more details.

When I provide my TAN and Token Number, I get the message 'Invalid details'. Why?

Token Number (Provisional Receipt Number) provided must be of any accepted Regular statement filed by you on or after April 1, 2010 or of any accepted Correction statement filed by you from April 1, 2010 to October 15, 2012.

What are the details that I need to enter in the registration form?

For Deductors

Step–1

1. TAN of Deductor
2. Token Number of any accepted Regular statement filed by you on or after April 1, 2010 or of any accepted Correction statement filed by you from April 1, 2010 to October 15, 2012

Step–2

• Token Number of the regular statement corresponding to the Financial Year, Quarter and Form Type displayed on screen
• Challan details of one particular CIN which has been mapped to at least three deductee rows. If there is no such challan, please enter details of challan having maximum number of deductee rows

Step–3

• PAN of Deductor
• PAN of Authorised Person (person responsible for deduction of tax at source)
• Date of Birth of Responsible Person as in PAN database
• Designation of Responsible Person
• Communication Address
• Mobile Number
• Email Id

For Tax Payers

Step–1

• PAN of Tax Payer
• Date of Birth as on PAN Card
• Name as in PAN database
• Option 1 – Details from Form 26AS or salary slip (in case of salaried persons). Provide TAN of deductor who has deducted TDS / TCS, month & year of deduction and Amount of tax deducted
• Option 2 – Details of any tax paid by you. Provide Assessment Year for which payment was made by you, Challan Serial Number of the challan using which payment was made and amount as per the challan

Step–2

• Communication Address
• Mobile Number
• Email Id

The Token Number that I have provided on Step-1 is different from the Token Number which appears on Step–2 of registration process. Why is it so?

Token Number (Provisional Receipt Number) that is displayed on Step–2 is for the last accepted regular statement.

In Step–1, you can enter Token Number of any accepted Regular statement filed by you on or after April 1, 2010 or of any accepted Correction statement filed by you from April 1, 2010 to October 15, 2012.

Hence, Token Numbers in Step–1 and Step–2 are not required to be same.

I have entered incorrect communication details (Email Id or Mobile Number) during registration. What should I do now as I am not able to activate / login to my TRACES account?

Please wait for 24 hours for your account to be deactivated and try again.

Your registration process is valid only for 24 hours and you must activate your account within this time using the activation codes sent through Email and SMS.

During registration, please ensure to verify your details in the Confirmation Screen (Step–5). In case of any incorrect details, click on 'Edit' to change your details.

How can I ensure that I have entered correct communication details (Email Id or Mobile Number) during registration? Can I edit this information before submitting my registration form?

During registration, please ensure to verify your details in the Confirmation Screen (Step–5). In case of any incorrect details, click on 'Edit' to change your details.

What is Authentication Code?

Authentication code is generated when you clear validation details for a statement for certain functionalists such as Download Form 16 / 16A, Download NSDL Consolidated File, Download Justification Report, etc. Authentication code generated for a particular statement will be valid for the calendar day (i.e., an authentication code generated on 10-Dec-2012 can be used only on 10-Dec-2012 to clear validation details for the same statement. It will not be valid the next day).

Why does TRACES have different types of Authentication Codes?

There are two types of validations after which Authentication Code will be generated. Statement Specific Validation – On this screen, details about a particular statement will be asked.

For e.g., If you want to download NSDL Conso File for Financial Year 2010-11, Quarter 2 and Form Type 24Q, you have to provide challan details and PAN-Amount details for this statement. The Authentication Code generated will be for that particular statement Generic Validation – On this screen, details about a generic statement will be asked.

For e.g., If you want to update your profile, you have to provide challan details and PAN-Amount details about a generic statement will be asked. The Authentication Code generated will be for the FY, Quarter and Form Type displayed on the validation screen. It is advised to copy and save the Authentication Code so that you can reuse it for that day for the same statement.

Should I enter Authentication Code if I am trying to clear validation details for the first time during a day?

No. While trying to clear validation details for first time, you will not have the Authentication Code, hence you are not required to enter this value. You can proceed by entering other details for validation on this screen (i.e., Token Number, CIN / BIN Details and PAN-Amount). On completion of validation, Authentication Code will be generated and displayed when you proceed to next page.

Is it mandatory to enter Authentication Code?

No. If Authentication Code has been generated for the statement for which you are filling up validation details, you can enter it in the field provided for the same. It will facilitate users to avoid filling up validation details repeatedly in case user logs in again at different time of the day. If it has not been generated or if you have not saved it, you can proceed by entering other details on this screen (i.e., Token Number, CIN / BIN Details and PAN-Amount).

What is the advantage of Authentication Code?

Authentication Code is generated to facilitate users to avoid filling up of validation details repeatedly in case user logs in again at different time of the day.

Can I download NSDL Conso File for a quarter for which correction statement has been filed after 18-Oct-2012?

No. Such Consolidated file will not be available presently. Communication regarding the same will be published on TRACES once the Consolidated file will be available.

I am not able to download Justification Report. Why?

Justification Reports can be downloaded till Financial Year 2011-12. Justification report will not be available if your statement has no defaults.