Thursday, September 12, 2013

e-TDS :- Correction of arithmetic mistakes and adjustment of incorrect claim during computerized processing of TDS statements [Section 200A]

(i) At present, all statements of tax deducted at source are filed in an electronic mode, thereby facilitating computerised processing of these statements.
(ii) Therefore, in order to process TDS statements on computer, electronic processing on the same lines as processing of income-tax returns has been provided in section 200A with effect from 1st April, 2010.
(iii) The following adjustments can be made during the computerized processing of statements of tax deducted at source –
(1) any arithmetical error in the statement; or
(2) an incorrect claim, if such incorrect claim is apparent from any information in the statement.

The term “an incorrect claim apparent from any information in the statement” shall mean such claim on the basis of an entry, in the statement, –
(a) of an item, which is inconsistent with another entry of the same or some other item in such statement;
(b) in respect of rate of deduction of tax at source, where such rate is not in accordance with the provisions of the Act.
(iv) After making such adjustments, tax and interest [say, under section 201(1A)] would be calculated and sum payable by the deductor or refund due to the deductor will be determined.
(v) An intimation will be sent to the deductor, informing him of his tax liability or the refund due, within one year from the end of the financial year in which the statement is filed. The refund due shall be granted to the deductor.
(vi) For this purpose, the CBDT is empowered to make a scheme for centralized processing of statements of TDS to determine the tax payable by, or refund due to, the deductor.

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