Procedure for filing TDS returns with insufficient deductee PAN

As per instructions issued by the Central Board of Direct Taxes (CBDT), it is
mandatory for deductors to file TDS/TCS statements with a threshold limit of
Permanent Account Number (PAN) of deductees. To facilitate deductors who face
problem in filing TDS returns because of insufficiency of PAN of the deductees and
also to accommodate the deductees who have intimated their PAN, the Income Tax
Department (ITD) has specified the following procedure for filing TDS/TCS returns:
• Deductors can file a return containing deductee records which meets the
specified threshold limit of PAN quoting, i.e., a deductor can file a return
containing deductee details who have provided valid PAN. It can
subsequently file a correction return with details of remaining deductees.
E.g. as below:
o Suppose a challan payment of Rs.1,00,000/- has been made for nonsalary
TDS against 100 deductees each with TDS of Rs.1,000/-. Under
the existing procedure the deductor will have to quote at least 85 PAN
failing which his return will be rejected.
o If there are only 50 deductees whose PAN is available and the
deductor attempts to file a return with details of 100 deductees with
PAN of only 50 deductees, the return will automatically be rejected at
present.
o However, if he files a return with challan amount of Rs. 1,00,000/- and
with details of 50 deductees with PAN, with deductee total of
Rs.50,000/-, the return will be accepted. It means the deductor can
furnish the details relating to such deductees whose PANs are
available.
o The deductor can later file correction returns with other details of
remaining deductees with the same challan details, i.e., the challan
amount should be the amount deposited (in this case Rs. 1,00,000/-).
o The return will be accepted so long as the TDS total of incremental
deductees is less than or equal to the balance of Rs.50,000/-.
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Forgot to file your return ?

DUE DATE OF FILING OR RETURN

The due date of filing of Income Tax return for the Financial Year 2007-08 (Assessment Year 2008-09) for assessees other than corporate and those whose books of accounts are not liable to be audited u/s 44AB was 31^st July 2008. So the due dates of filing of return for the salaried persons are gone on the last day of July.

DID YOU MISS THE BUS?

No Problem. The “Due Date” is most commonly mistaken as “Last Date”. Return can easily be filed after the due date. The return can be filed at any time {before the assessment is made} before the end of one year from the end of relevant Assessment Year.

For instance, you may easily file your return for the F.Y. 2007-08 within 31^st March 2010. But it should be filed before the Assessment is made.

Consequence of Late Submission

1] The assessee is liable for penal interest u/s 234A.

2] A penalty of Rs 5000/- may be imposed if belated return is submitted after the end of Assessment year {For the Financial Year 2007-08 the cut of date is 31/03/2009 for this purpose}.

3] Certain losses can not be carried forward to the next years if the return is not submitted within the due date.

4] Certain deductions under Chapter VIA {Applicable mostly for companies} will not be available.

For your case who has already paid the taxes {By TDS/Advance Tax}/saved taxes by virtue of investments but forgot to file the return…

Do not worry. File your Income Tax return within 31^st March 2009 and there will be no problem. No consequences of late submission will be applicable for you. Penal interest u/s 234A can not be charged as the interest is calculated on tax due [Tax Payable –{TDS + Advance Tax}]. In your case there is nothing due at your part and the taxmen can not charge anything. No Penalty can be leviable as it is chargable only if the return is submitted after 31/03/2009 in this case {discussed earlier}. Other two cases are not common for an individual taxpayer. If only you had a Capital Loss, you will not be able to carry it forward for set off next year.

The rush is over in the Income Tax Offices.

Prepare your return of income and submit it there. You may be fully aware that Income Tax returns are annexure less, nothing is to be attached [No Form 16, not even copy of last year’s acknowledgement]. You should retain your documents with you and submit only if the Assessing Officer wants them to verify in course of Assessment. Even if the counter clerk insists on it, bring it to the notice of higher officials.

You can easily file your return electronically also. If you are in a possession of a Digital Signature, there will be no need to visit the Income Tax offices for filing the return. Without Digital Signature, you can still file your return through the web, but it must be followed by a signed authentication from you.

{Details about efiling of return has been discussed in separate post in this blog}.