Centralized Processing Cell (TDS) 1

Deductor TRACES

Existing Functionalities in TRACES

Progress since 30 th November,2012 Statements Processed (1st stage)More than 10 million Deductee Transactions processed500 million Deductors registered on TRACES Portal 1 million Form 16/16A download200 million approx. Taxpayers viewed Online 26ASNearly 25 million Call Volumes3500 plus per day Queries through s1200 per day 4

Committed to sustained tax compliance framework logon to CPC (TDS) Performance Statistics FunctionalityCount (Apr 1 – Dec 31, 2013) Form 16/16A file downloads Lakhs Conso File downloads Lakhs Justification Report downloads 8.07 Lakhs 26AS Forms viewed 5.44 Crores hits Correction statements filed 22 lakhs Educational s 60 Lakhs

Impact of CPC(TDS) 1 Growth in filers within due date (23% up over last year) 2 Growth in TDS payment within due date 3 Better awareness among stakeholders (Tax professionals, Deductors and Department) 4 5 Growth in TDS collections (19% growth against 8% growth in Non-TDS) 6 Reduction in PAN errors (97% valid quoting) Reduction in TDS mismatch (matching more than 95%)matching 6

Status of Default related issues Sr. No. Issues 1Wrong classification as Government /Non Government Deductor 2Mismatch of 197 TDS certificate details 3Citizen Type in 24Q 4Challan overbooking under certain specific scenarios 5Short Deduction under section 206AA in case of Tax Collection at Source 6 Surcharge rate 7DTAA tax rate (Total pendency against such issues as on date is around 6000 cases. Expected to be closed within Feburary,2014.)

Upcoming Functionalities in TRACES

Roadmap ahead at CPC(TDS) 1 Short deduction default resolution on auto basis in case of corrected PANs using data of ITR filing of the deductee 2 Profiling of Deductors based on their compliance pattern using Business Intelligence tools 3 Digital signature based access as an alternative to KYC based access 4 5 Facilitating deductors to populate valid and correct PAN using Data quality tool 6 Linking of TDS defaults with item no. 27 of Form 3CD Collating TDS compliance of branches at Corporate Level 9

Total5924 Correct2621 Incorrect3303 Expectations from Deductors-correct TAN category

Impact of Mentioning Invalid PAN in Statement Incorrect TDS Certificates Penal Action and Prosecution u/s 139A(5)  Section 139A is regarding Permanent Account Number. Sub-section (5) of section 139A of the I T Act makes it mandatory to quote PAN in return and at other times. The said provision is as under : (5) Every person shall (a) quote such number in all his returns to, or correspondence with, any income-tax authority; (b) quote such number in all challans for the payment of any sum due under this Act;  277 provision will be applicable and prosecution will be done accordingly  272B. (1) If a person fails to comply with the provisions of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees. Expectations from Deductors---quoting valid PAN

Total Delay Defaulters 1425 Delayed Defaulters with Average Delayed Days >30 Days in FY Expectations from Deductors—Late filing

Expectations from Deductors- Implication of Correction In respect of count of deductee row

14 THANK YOU

Deductor’s Dashboard Deductor’s Dashboard displays important information at one screen. The following information can be viewed by the deductor in its dashboard: Statement Status: Processing status of the Statements of last four quarter along with Default Summary. Communication Inbox: - To view the recent communication made between TRACES and Deductor. This also facilitates the downloading of Intimations sent to the deductor. Summary of recent activity by the deductor. Back Deductor Dashboard on TRACES

Online Corrections This feature enables the Deductor to file Online Correction statements through TRACES portal without downloading TDS/TCS Consolidated File. For this facility, the user needs to register its Digital Signature. Currently facilities for PAN Correction and Matching of unmatched OLTAS challans are functional and more functionalities are planned to be added in near future Back

Enhanced Version of Online Corrections Apart from the currently available facilities for PAN Correction and Challan Correction. Following facilities are to be allowed Add challan to statement Modify/Add deductee row Modify Salary details Pay 220I, LP, LD late filing interest Update of personal information Online Correction on TRACES

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Deductor files TDS statement to ITD 26AS generated by ITD is used at CPC ITR Deductor issues 16A to the Tax Payer Tax payer uses 16A for ITR filing TDS Mismatch at CPC ITR TDS Matching- Before CPC(TDS)

Deductor files TDS statement that goes to TDS CPC 26AS generated by ITD is used at CPC ITR Tax payer uses 16A for ITR filing Perfect TDS Match at ITR CPC TDS Matching- After CPC(TDS) Form 16A is issed by TDS CPC to the Deductor Deductor passes Form16A to the Tax Payer