1. TAX DEDUCTION/ COLLECTION AT SOURCE

2. RELEVANCE OF TDS Govt makes welfare schemes
Forecasts revenue for a year (Borrowings/ taxes)
Round the year fund flow ensures effective funding of schemes
TDS deposited every month ensures circulation of money
Effective implementation of schemes

3. TDS/ TCS WORK FLOW
Obtain TAN
Deduct/ collect taxes from liable payments (at the time of payment/ receipt or, at the time of debiting/ crediting the books) at prescribed rates
Deposit TDS/ TCS (Challan 281) within the prescribed time limit
File quarterly statements (24Q, 26Q, 27EQ) withinn the prescribed time limit in the prescribed manner
Issue TDS/ TCS certificates within the prescribed time limit

4. WORK FLOW OF e-FILING OF STATEMENTS (prior to CPC TDS)
Deductor deducts/ collects tax
Deductor pays tax
Preparation of e-statement and submitting it at TIN-FC in e-format
Uploading of statement to agency of NSDL
Uploading of statements to NSDL
Processing of statement by NSDL
Intimation generated by I.T.Department
Correction statement filed at TIN FC, followed by processing at NSDL
26AS generated followed by processing

5. WORK FLOW OF e-FILING OF STATEMENTS (post CPC TDS)
Deductor deducts/ collects tax
Deductor pays tax
Preparation of e-statement and submitting it at TIN-FC in e-format
Uploading of statement to agency of NSDL
Uploading of statements to NSDL
Transfer of statement to CPC TDC
Processing of statement by CPC TDS
Intimation generated by I. T. Department
Correction statement filed at TIN FC, followed by transfer of statement to CPC TDS
Processing of correction statement by CPC TDS
26AS generated followed by processing

6. CPC-TDS Taxpayer Deductor Advance Tax,SA Tax TDS Deposit Banks
12/27/2012
Taxpayer
Deductor
Advance Tax,SA Tax
TDS Deposit
Banks
e-TDS statement
e-filed Income tax Returns
OLTAS
TIN-FC
CPC-TDS
AST/CPC-Bengaluru
Matching of Challans
Generation of PAN ledgers
Identification of defaults
Portal,DMS,BI, Other
Tax Credits
DEDUTORS PORTAL
26AS VIEW -TAXPAYERS
AO portal

7. CPC (TDS): Game Changer
- Deductors will get benefitted by non-intrusive integrated online services related to Statement/ Challan processing status, Default information, TDS certificates and real-time support for clarifications.
- Taxpayers will have the convenience of viewing 26AS on a real-time basis and real-time support for clarifications.
- Field AOs will be enabled to ensure enforcement and compliance through online Ticket Management System.

8. CPC (TDS) for Deductors
Downloads
TDS Certificates Form 16/ 16A
Form 16B
Form 27D
Transaction Based Report for Non - Residents
Consolidated Statement File
Justification Reports
Aggregated TDS Compliance Report
Non - Resident Taxpayer Registration
e-Tutorials and FAQs
Circular and Notifications
CPC (TDS) Communications
TRACES:
Dashboard
Statement Status and Default payable
Deductor Compliance Profile
Online Corrections
View Defaults Summary
Online PAN Verification
Statement and Challan Status
TAN – PAN Consolidated File

9. Deductor Functionalities in TRACES
Online correction
Default Summary
Deductor Dashboard
Statement Status
Challan Status
View TDS/TCS Credit
PAN Verification
Justification report
Download Forms
Validation of 197 Certificate
Non Filing of Statement
Request for Resolution
Tag Replace Challan

10. 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.

11. Deductor Dashboard

12. Statement/ Payment Status

13. Back

14. View Default Summary

15. View Default Summary

16. Aggregated TDS Compliance Report
An entity level PAN associated with more that one TANs, for example PAN of the Central Office, Headquarter etc., having more that one TANs for its branches, can review the "Aggregated TDS Compliance" report on a regular basis to improve TDS compliance at Organization level.
The feature assists in effective TDS administration, monitoring, control and compliance at Organization level.
While conducting Audits, the above feature can be used for the purpose of identifying Defaults in respect of all TANs associated with the entity level PAN.
The feature will be extremely useful for the purpose of complying with the provisions of Section 40(a)(ia) of the Income Tax Act, 1961 by the concerned entity, to ensure that correct information is disclosed in paragraph 27 A & B of the Tax Audit Report (Form 3CD) u/s 44AB of the Act.
Functionality available for Financial Year onwards.
The download of the list of defaults of various TANs associated with a PAN will be available in Excel Format for which a request has to be placed.

17. Aggregated TDS Compliance Request (Contd.)
Select ; Aggregated TDS Compliance

18. Aggregated TDS Compliance Request (Contd.)
Enter Request Number (Search Option 1) or Request Date (Search Option 2
Click on ‘View All’ to view all download requests
Copyright © 2012 Income Tax Department

19. Online Corrections Functionality
Important Facts:
Statements for Financial Year onwards only will be available for Online Corrections.
Digital Signature is mandatory for all type of Online Corrections, except for
Challan Corrections.
The following actions can be performed with Online Corrections:
Tag Unmatched Challans
Corrections for Overbooked Challan – movement of Deductee Rows
Modify/ Add Deductee details
PAN Correction
Update Personal Information
Pay 220, Interest, Levy for Late filing

20. Online Corrections
This feature enables the Deductor to file Online Correction statements through TRACES portal without downloading TDS/TCS Consolidated File.
Apart from the currently available facilities for PAN Correction and Challan Correction. Following facilities are to be allowed
PAN Correction
Challan Correction
Add challan to statement
Modify/Add deductee row
Modify Salary details
Pay 220I, Late Payment, Late Deduction and Late Filing Interest
Update of Personal Information
Movement of Deductee Rows

21. PAN AND CHALLAN CORRECTION BY DEDUCTOR
New functionality
Utility
PAN Correction mechanism introduced at the deductor portal of TRACES
Deductor will not have to go through the tedious process of filing correction statement, by downloading conso file in case only PAN needs to be corrected.
Challan correction mechanism introduced at the deductor portal of TRACES
Matched challans can be corrected to the extent of section, amount of interest and others
Unmatched challans can also be consumed now.

24. Download Form 16
Data in Form 16 will be as per latest statement processed (Form 24Q ) for selected FY & Quarter
Download request for Form 16 for a particular FY can be submitted only after Form 24Q statement for Q4 for the selected FY is filed by deductor and processed by TDS CPC. Statement filed should not have been cancelled or NIL Statement.
Form 16 can be downloaded from FY onwards
For a given FY, TAN and PAN, there will be only one Form 16. In case of more than one employer, a PAN holder can have those many Form 16s

25. Click on Help icon for help text for this screen
Justification Report
Click on Help icon for help text for this screen
Select Financial Year, Quarter and Form Type for which Justification Report is required and click on ‘Go’
Validation screen will be presented on click of ‘Go'
Request for Justification Report can be submitted only if:
Selected statement has been not filed as paper return

26. Back

27. Back

28. Back

29. Recent COMMUNICATION FROM CPC

30. COMMON ISSUES PERTAINING TO TRACES FACED BY DEDUCTORS
Rejection of correction statements
Refund
197 certificate verification
Demand pertaining to interest
Correction statements pertaining to paper statements of F.Y
Cancellation of statement facility
Cancellation of TAN facility
Problems relating to 16B
Problem in downloading conso file
Intimation u/s 200A issues

31. REJECTION OF CORRECTION STATEMENTS
Probable Reasons for rejection
Solution
Sequence of challan / salary/ deductee detail record being added in a correction statement is not in continuation of the last sequence number for the said record in the original statement.
Add deductee row in sequence to the preceding row in the conso file followed by filing of the corrected statement
Deductor may have changed the field which are not updatable fields by Mistake
Deductor should not make any changes in non updatable fields
Deductor has not used latest conso file for filling correction statement
Use the latest conso file

32. Probable Reasons for rejection
Solution
Valid to Valid PAN correction can be done only Once. The statement is rejected, since Deductor has already filed one Valid to Valid PAN correction before the present correction statement.
Check the PAN from PAN verification at TRACES portal before making the PAN correction
If deductor submit a correction statement to update existing matched / partially matched challan with updates on one or more of fields other than the following.
a) Interest,
b)Others and
c)Section Code.
Change in any other field will lead to rejection of the correction statement.
Deductor should not make any changes in any field of BOOKED Challan except Interest,Others & Section Code

33. REJECTION OF CORRECTION STATEMENTS
Probable Reasons for rejection
Solution
Total Challan Amount is less than the sum of TDS + Interest + Others Amount
Deductor should not quote the amount more than the available balance in the correction statement.

34. OLTAS CHALLAN CORRECTION VIA BANK/ AO
Problems faced by the deductors
Reasons and Solution
Challan not getting corrected in a reasonable period of time
Issue taken up with CPC

35. REFUND THROUGH DEDUCTOR PORTAL
New functionality
Utility
Claim of refund in case of excess payments through the deductor portal of TRACES
(Digital signature required)
Deductor can apply for refund online
No direct interface with field AO
The refund will be issued by TDS CPC only fter making certain verifications from field AO
Field AO- CPC TDS interface yet to be established in this regard

36. 197 CERTIFICATE VERIFICATION
New functionality
Utility
Deductor can verify the details/ validity of the low deduction certificate u/s 197 of the Act before filing the statement by the deductor portal of the TRACES
Short deduction demand pertaining to low deduction certificate can be resolved by using this functionality

37. DEMAND PERTAINING TO INTEREST
Problem
Solution
Deductor gets short deduction notices for default in interest payment. Payment made, correction statement filed, but still get a short deduction notice.
The amount of interest mentioned in the notice/ intimation is provisional (as on the date of processsing).The deductor needs to recompute interest at the time of making payment/ filing statement for correct compliance.

38. DEMAND PERTAINING TO INTEREST
Problem
Solution
Deductor gets short deduction notices for default in interest payment. Deductor complaints that though interest has been computed correctly, he/ she is getting notice/ intimation.
The period for computing interest should be calculated from the date of tax dedution till payment made (and not from the due date of payment). E.g., if TDS is deducted on 30th Nov and paid on 9th Dec, interest has to be paid for two months.

39. DEMAND PERTAINING TO PAN STATUS
Problem
Reason/ Solution
Deductor gets short deduction notice with justification that the deduction u/s 194C has been instead
The deductee is not an Individual or HUF.

40. CORRECTION STATEMENTS PERTAINING TO PAPER STATEMENTS OF F.Y. 2007-08
Problem
Reason/ Solution
Deductor is not able to file correction statements pertaining to paper statements pertaining to F.Y
The correction statement can be filed in paper format only as new statement after cancelling the original statement.

41. CANCELLATION OF STATEMENTS FACILITY
Problem
Reason/ Solution
A deductor while filing a statement quotes wrong TAN. The deductor whose TAN was quoted is not able to file the statement as the system reads “original statement already filed”. The deductor cannot even file the correction statement in absence of data. Hence, justification for “cancellation of statement” facility.
The cancellation of statement functionality was withdrawn few years back because of its misuse. The issue is being taken up with CPC TDS.

42. CANCELLATION OF TAN FACILITY
Problem
Reason/ Solution
A deductor stops using a TAN and wants to cancel it as it keeps on getting “non filer notices” from the department.
The TAN can be made inactive through ITD system.
The TAN cannot be cancelled because the deductor’s statements can be scrutinised till six years. Any default detected later may create complications.

43. PROBLEMS RELATING TO 16B Problem Reason/ Solution
Seller not getting the credit (zero credit) in form 16B.
The Deductor (Buyer) should fill the amount of tax in 'TDS Amount to be Paid' field and not in 'Interest' or 'Fee' field. Else, the seller will not get the credit of such tax

44. PROBLEM IN DOWNLOADING CONSO FILE
Reason/ Solution
Deductor is not having the mandatory detail of at least one Challan and three PANs, in order to download conso file
No alternative remedy as per law as of now.

45. Intimations u/s 200A-Issues
Advisory
Paid the demand raised for late payment fee u/s 234E
File a correction statement after adding the payment challan w/o any deductee rows.
Requested for the waiver of Fee levied u/s 234E
Cannot be waived off as it is a statutory levy
Wrong TAN in OLTAS challan leading to Short Payment.
Jurisdictional AO to raise request for challan correction through AO Portal
Paid the demand raised in the intimation u/s 200A
File correction statement for closing defaults.
Details of the defaults not appearing in the intimation u/s 200A
Download a Justification Report from the TRACES website.
Short deduction default in a 197 certificate case or transporter case
Verify relevant flags in the statement

46. How to avoid Defaults in TDS Statements?

47. Late Payment: DO’S 1. Tax should be deposited within seven days from the end of the month in which the deduction is made or income-tax is due, where tax is paid accompanied by an income- tax challan . 2. Date of Deduction and Date of payment should be correctly filled. 3. Book Entry Flag should be raised according to type of Deductor. DONT’S 1. Date of deduction should not be Null 2. Date of Payment/credit should not be Null. 3. Date of Deduction should not be before the date of payment /credit. 4. No Book Entry allowed for Non-Govt. Deductor.

48. Late Filing:
DO’S
1. Quarterly Statement should be filed within due date prescribed by Income Tax under rule 31 A.
2. Select correct deductor type category while filing statement.
DONT’S 1. Don’t delay in filing regular statement.
2. Don’t select wrong deductor type category while filing statement.

49. Short Deduction:
DO’S
1. Deducts TDS according to section rate prescribed in Income Tax Act.
2. Quote valid PAN while filing statement.
3. Appropriate flag should be raised as given below:
A-Lower/No Deduction for Certificate
B-Higher Deduction where PAN is not available.
C-Higher Deduction where PAN is not available
T-No Deduction for Transporters having PAN
Y- No deduction due to payment below threshold limit.
4. Quote Certificate No. issued by ITD for relevant TAN –PAN Combination, F.Y, Quarter and periodicity.
5. Proper slab rate should be use according to deductee type for calculation of income tax in case of salary.
6. Certificate no. should be of 10 digits with alpha numeric structure.

50. Short Deduction: DONT’S 1. Don’t deduct with wrong section rate.
2. Don’t quote invalid PAN in statement..
3. Don’t Raise Flag A for PAN which do not have 197 certificate.
4. Don’t mentioned incomplete certificate number.
5. Don’t use expired certificate.
6. Don’t use wrong Income Tax Slab.

51. Short Payment:
DO’S
1. Deducted/Collected amount should be equal to deposited amount.
2. Oltas Available Balance should be equal or more than deducted /collected amount.
3. Oltas challan should be matched with statement Challan after applying matching rules.
4. Govt. Deductor needs to raise Book Entry Flag “Y” in case of BIN.
DONT’S
2. Available Oltas Balance should not be less than deducted/collected amount.
3. Challan details as per statement should not mismatch with Oltas Challan Details after applying matching rules.
4. Don’t raise wrong book entry flag in statement . 

52. THANK YOU