What is Form 26AS?

Income tax can be paid to the income tax department through these three methods:

1.        TDS
2.        TCS
3.        Advance Tax / Self Assessment Tax.

Form 26AS is the form that is issued to the tax payer by income tax department. This form contains the total Tax Deducted at Source/ Tax Collected at Source/Advance Tax or Self Assessment Tax details. The amount that is to be refunded to the tax payer is also a part of the Form 26AS.

Form 26AS is divided into three parts:

·         Part A: Details of Tax Deducted at Source

·         Part B: Details of Tax Collected at Source

·         Part C: Details of Tax Paid (Self Assessment Tax / Advance Tax)

To get your Form 26AS, you need to visit the following URL:

https://www.tdscpc.gov.in.

If you are a new user, you have to register and create an account. If you are an existing user, you have to login and click on the respective assessment year and check the tax deducted amount with the amount that is reported in your Form 26AS. If there are no some discrepancies, it means that you have paid all the taxes and it has been received by the income tax department.

Few Common Mistakes To Avoid While Filing Taxes

While preparing the income tax return, one should make sure about the correctness of the data provided, as incorrect and incomplete data can result in problems for you.

• a) Correct assessment year should be entered.
  
• b) Correct PAN number should be entered.
  
• c) Correct bank details must be entered.
  
• d) Income from all sources must be entered.
  
• e) Enter all taxes paid and deducted.
• f) Tally all taxes deducted and taxes paid with form 26AS
  
• g) All TAN numbers of tax deductor must be entered properly.
  
• h) Pay all your taxes before filing your returns.
  

I-T Refund will not be processed by CPC if IFSC code not filled in Upper Case in ITR

Eventhough,  it is said that CPC only accepts IFSC code in uppercase letters, if you have entered IFSC in the lower case in your ITR, you are likely to receive the failure of credit of refund process.

The Income Tax Department is requested to implement a small routine in its schema and the templates which shall automatically convert the lower case alphabet to upper case or at least informing the inappropriateness of the lower case IFSC to the tax payer while filing of the Income Tax Returns.

Till then, beware to write the IFSC code in upper case for prompt processing and credit of the refund.

TDS Corrections Submitting - Important Points To Consider

Following are some useful information to adhere before submitting Corrections, with special reference to C3 & C9:

C3 Correction -  Updation or Addition of Deductee details in the TDS statement.

Delete option: The facility to delete Deductee records has now been discontinued for the purpose of correct reporting and is no longer permissible in the TDS statements.

Accordingly, the delete option available under “Updation mode for Deductee” has been removed from RPU 3.8. 

C9 Correction - Revision of TDS Statement by way of Adding a new Challan and underlying Deductees is referred as C9 Correction.

Important points to follow while submitting Corrections: ·

1. Correct and Complete Reporting: All the valid particulars like TAN of the deductor, Category (Government / Non-Government of the deductor, PAN of the deductees and other particulars of deduction of tax) in the TDS statement should be correctly reported.
2. New deductee rows and chalans: New deductee rows and challans addition is not encouraged by CPC (TDS).  Kindly ensure that complete data is reported in the first instance, while quarterly TDS Statement is submitted.
3. Valid PAN: Before quoting in the correction statement, please ensure that the PAN and name of fresh deductees from TRACES are validated.
4. Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN · TDS statement cannot be filed without quoting any valid challan and deductee row ·
5. Valid Chalan: Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer ·
6. Download the Justification Report to know the details of TDS defaults, if any, on processing of TDS statements and submit corrections accordingly ·
7. File correction statements promptly in case of incomplete and incorrect reporting

Updated utility of Form 15CA released by IT Department

Tax deductor and collector holding valid TAN can register  and use the TAN based credentials to file Form 15CA but to fill form 15CA if no tax is been deducted it is still not mandatory for remitter to have TAN.

Link To Register on Income Tax E-Filing Website

https://incometaxindiaefiling.gov.in/e-Filing/Registration/RegistrationHome.html

Link to Download Revised updated utility of Form 15CA

https://incometaxindiaefiling.gov.in/eFiling/Portal/DownloadUtil/FORM_UTILITY/1.0/FORM_UTILITY_PR4.zip

How to use the form?
1. On e-Filing home page, go to Downloads menu and click on the link “Forms (Other than ITR)”.
2. Download Form 15CA and save it in the desired path/location.
3. Unzip and extract the files in the desired path/location.
4. Double click on the executable jar file (ITD_EFILING_FORM_UTILITY) to open the form.
5. To submit the form you should be connected to internet.
6. Minimum java version 1.7 is required to open the Form.


The following are the features that are available in the Form(offline):
1. New – Click on this button, to open a new Form 15CA.
2. Open – Option is for importing the XML (successfully generated earlier) from your hard disk. Select the path and import the XML. This option will work irrespective of any version change. It will caution you to check the contents before finalizing upload/submission.
3. Save – You can save your completed XML in the desired path/location of your desktop.
4. Save Draft – Option can be used to save your XML. Please note you cannot upload an XML which was saved using the ‘Save draft’ option. Only a complete XML generated using the ‘Save’ option can be uploaded successfully.
5. Submit – Option is used to upload/submit a single Form.
6. Previous/Next – Will help you to navigate to the various tabs of the Form.
7. Submit Bulk – Option is used to upload/submit multiple XMLs of the form.
8. Help – Option will let you know the instructions, short keys, settings and how to use this form.

Car and Mobile To Get Cheaper - Interim Budget 2014

Presenting the interim budget 2014, The Union Finance Minister, Shri P. Chidambaram, proposed the following changes in some Indirect Tax Rates. He said that the current economic situation needs a immediate boost in the manufacturing sector, so the following changes are being made: 

1.  Capital goods and Consumer Non-Durables

• The excise duty from 12% to 10% on all goods falling under Chapter 84 and 85 of the schedule to the Central Excise Tariff Act for the period up to 30.06.2014. 
• The rates are to be reviewed at the time of the regular budget.

Reason for this proposal: To stimulate growth in the capital goods and consumer non-durables.

2. Automobile Industry:
The excise duty has been reduced as follows for the period up to 30.06.2014:

• (i) Small cars, motorcycles, scooters and commercial vehicles  from 12% to 8%
• (ii) SUVs  from 30% to 24%
• (iii) Large & Mid-segment Cars from 27/24% to 24/20%

Appropriate reductions in the excise duty on chassis and trailers are also proposed. 

Reason for this proposal: This has been proposed to give relief to the automobile industry which is registering unprecedented negative growth. 

3. Mobile Handsets:

• The excise duties for all categories of mobile handsets are to be restructured. The rates will be 6% with CENVAT credit or 1% without CENVAT credit.

Reason for the proposal: This has been proposed to encourage domestic production of mobile handsets and reduce the dependence on imports. 

Service Tax Amendments - Interim Budget 2014

In the Interim Union Budget, in Service Tax, two amendments have been made.

1.1 Handling, storage or warehousing of rice: To rationalize the levy and to equate paddy and rice, an exemption has been extended to handling, storage and warehousing of rice also becausue the definition of ‘agricultural produce’ in section 65B(5) of the Finance Act, 1994, leads to a differential treatment between paddy and rice.

Amendment: The mega exemption notification dated  Notification No.4/2014-ST dated 17th February 2014] has been amended to insert an entry at sl.no. 40 which reads as “services by way of loading, unloading, packing, storage or warehousing of rice”. 

1.2 Transportation of rice: 

Amendment: A clarification has been issued by way of circular [Circular No. 177/3/2014 dated 17th February 2014] that “food stuff” includes rice and hence service tax on transportation of rice by rail or a vessel or by a Goods Transport Agency by way of transport in a goods carriage, is exempt as per sl.nos. 20(i) and 21(d) of notification number 25/2012-ST.

1.3 Milling of rice:

Amendment: In the same circular referred above in para 1.2, it is also clarified that milling of paddy into rice carried out as job work is covered by the exemption at sl.no.30 of notification number 25/2012-ST  , since such milling of paddy into rice is an intermediate production process.

1.4 Services provided by cord blood banks: Health Ministry had recommended that services provided by the cord blood banks should be treated as health care services and should be exempted. 

Amendment: By inserting entry sl.no.2A in the exemption notification number 25/2012-ST , which reads as “2A. Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation”, an exemption has been extended. 

This would cover services provided by cord blood banks, such as collection of umbilical cord blood, processing the same for segregation of stem cells, testing and cryo-preservation of stem cells.

2. In case of any doubt pertaining to the above changes, a reference may be made to

the undersigned or Shri J.M.Kennedy, Director, TRU atjm.kennedy@inic.in