Saturday, October 6, 2012

e-TDS:-Defaults regarding e-tds/e-tcs due to Codes

           Everyone knows that lot of default notices regarding Tds have been issued by Income Tax Department              .  Out of which, lot of defaults have been generated either non-entry of Flag and  Codes  or wrong entry of Flag and Codes.  Present RPU 2.7 do not check following control, which is required. 

26Q- Transport Detail - 94C - Rate 0 % - "T" Reason Code for Transporter not selected in Lower or No deduction/collection

Some important flag and codes are given as under for knowledge of Deductor :-

Short deduction details
Note: * Category of deductee: 'G' - General ,  'S' - Senior citizen, 'W' - Woman,  'C' - Company, 'N' - Non-Company.
          **Tax rate flag: 'L' : Indicates tax deducted at Lower rate as specified in the return.
                                     'P' : Indicates tax deducted at prescribed rates as per the Income Tax Act.
                                     'H' : TDS calculated on higher rate by ITD due to invalid PAN
                                     (For sections having multiple sub sections " Tax Rate Basis " is assumed to be 'L')
          ***Reason code: 'A' - Lower or No deduction/collection under section 197/ 206C (9)
                                       'B' - No deduction under section 197 or 197A
                                       'Y' - Threshold transaction
                                       'T' - Transporter transaction
                                       'H' - TDS deducted at higher rate (as per the TDS return)
          ****Amount rounded off
          # Applicable only if Tax rate flag is 'L'

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