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/-.
************

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}.

ePayment and efiling

ePayment has been made mandatory of companies and assessees whose accounts are liable to be audited u/s 44AB. All type of direct Tax payments including TDS has to to be paid through NetBanking w.e.f 01/04/2008.
However those assessees who do not have the facility of NetBanking may pay taxes electronically through the account of any other persons. CBDT has clarified the issue vide this circular.
For details please visit http://www.incometaxindia.gov.in/archive/CircularNo.5-21072008.pdf

STEPS FOR efiling

1. Visit the website www.incometaxindiaefiling.gov.in

2. Go to “Download” section.

3. Select the relevant utility (software) and download it.

4. “Excel” utilities are zipped. Unzip the file.

5. Set the security level of any excel file to ‘medium’ or ‘low’ to enable macros. (Tools-macro-Security and set medium or low)

6. Open the unzipped ‘excel’ file and click on ‘enable macro’ button.

7. Enter data in the Return Prep. Utility. (Green cells are meant for data entry. Red fields are mandatory. Do not use any cut/copy/paste option.)

8. After entering data validate each sheet and if found O.K., generate .xml file.( This file will be uploaded as e-return. )

9. Visit the site again and create user id and p/w if not created earlier.

10. Log in with user id and p/w, click on ‘Submit Return’.

11. Browse and select the .xml file, attach Digital Signature if any and click on ‘Upload’.

12. A message appears “The return has been successfully uploaded.” The ITR V will be dispatched by email to the registered mail address. It may also be obtained from My Account-My Return menu.

13. Print the ITR V ,and if it is uploaded without Digital Signature, get signed by the assessee and submit to the respective ward/circle within 15 days. If it is digitally signed, no need to submit anything to the Income Tax Dept.

It is mandatory for all corporate and firms(where audit u/s 44AB is required) to e-file their return of income for the A.Y. 2007-08 onwards.

Refund Banker Scheme

This is a scheme for sending I-T refunds directly to the assessees by the State Bank of India. The scheme was inaugurated by the Finance Minister Sh. P. Chidambaram on 24th January, 2007. This scheme is running on a pilot basis in the cities of Delhi, Mumbai, Chennai, Kolkata, Bangalore and Patna, except for corporate and exemption charges.
How does it work?
The scheme of Refund Banker is loosely based on the concept of Refund Bankers for Initial Public Offerings (IPO) of companies. The Assessing Officer (AO) processes the Income Tax returns on his computer. The AO feeds in the Bank Account Number, MICR Code and Address of the assessee. After this is done and if a refund is due to the assessee, the data is automatically transmitted to the bank. The bank then sends the refund as indicated by the AO through Electronic Clearance Scheme (ECS), if it has been opted by the assesee followed by an advice by post. The refund is sent by cheque, if ECS is not opted, to the assessee’s address as indicated on the Return of Income. The bank dispatches the refund cheques/ECS within 3 working days of receipt of data from Income Tax Department.
Tracking of Refunds:
There are three modes of tracking the refund for those covered by the above scheme. The facility is available only for assessees in the above Scheme.
	1. Through the website www.tin-nsdl.com
	2. By email to refunds@incometaxindia.gov.in
	3. By dialing SBI helpdesk at Bangalore 080-26599760

e-Filing Procedure

e-Filing of Returns

(1) What is E-Filing? The process of electronically filing Income tax returns through the internet is known as e-filing. It is mandatory for companies and Firms requiring statutory audit u/s 44AB to submit the Income tax returns electronically for AY 2007-08. E-filing is possible with or without digital signature.

(2) Types of E-Filing… AY 2008-09 There are three ways to file returns electronically. Option 1: Use digital signature, in which case no further action is required. Option 2: File without digital signature, in which case ITR-V form is to be filed with the department. This is a single page receipt cum verification form. Option 3: File through an e-return intermediary who would do eFiling and also assist the Assessee file the ITR -V Form.

(3) Types of E-Filing

(4) E – filing process : This is explained below with the help of a flow chart.

(5) Change in the procedure of e- filing for 2008-09 Type Change For digitally signed returns No Change Paper Returns -Two step Procedure After uploading data -instead of filing paper return assessee to file verification form called ITR-V (Combination of Acknowledgement of e-return and verification Paper Returns - through e-intermediaries

(6) e-Filing Process – At a glance Select appropriate type of Return Form . Download Return Preparation Software for selected Return Form. Fill your return offline and generate a XML file. Register and create a user id/password . Login and click on relevant form on left panel and select "Submit Return". Browse to select XML file and click on "Upload" button . On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form. Incase the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. Assessee may take a printout of the Acknowledgement for his record. Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be submitted with the local Income Tax Office withing 15 days of filing electronically. This completes the Return filing process for non-digitally signed Returns.