Furnishing and Verification of Form 26A for removing of default
of Short Deduction and/or Non deduction of TDS
1. Section 201(1) of
Income Tax Act, 1961, any person, including the principal officer of company, who fails to deduct the whole or
any part of the tax in accordance with the provision on the sum paid or credited to the account of resident shall
not be deemed to be assessee in default in respect of such tax if such
resident-
(i)
has furnished his return of income under section 139
(ii)
has taken
into account such sum for computing income in such return of income; and
(iii)
has paid the
tax due on the income declared by him in such return of income
2. As per
sub-rule (1) of Rule 31ACB of Income-tax Rules, 1962, the certificate from an
accountant under the first proviso to sub-section (1) of section 201 shall be
furnished in Form 26A to the Principal Director General of Income-tax (Systems)
or the person author issued by the Director General of Income-tax (Systems) in
accordance with t he procedures, formats and standards specified under sub-rule
(2), and verified in accordance with the procedures, formats and standards
specified under sub-rule (2).
3. In exercise of the
powers delegated by the Central Board of Direct Taxes (Board) under sub-rule
(2) of Rule 31ACB of Income-tax Rules, 1962 the Principal Director General of
Income-tax(Systems) hereby authorizes the persons mentioned at Col. No.1 to
receive the form-type mentioned in Col. No. 2 to be filed in the mode specified
at Col. No. 3 for the assessment years mentioned at Col. NO. 4 and pertinent to
defaults under Sect ions of the Act mentioned at Col. No. 5:
1
|
2
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3
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4
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5
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Authorized A.O
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Form type
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Mode of furnishing
form
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A.Y.
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To be used exclusively for default under section
|
Field Assessing Officer(TDS)[1]
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26A
|
Paper
|
Up to & including 2016-17
|
201(1) and/or 40(a l(ia)
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CPC-TDS
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26A
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Electronic
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Up to & including 2016-17
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200A
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CPC-TDS
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26A
|
Electronic]
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Including & from 2017-18
|
200A; 201(1) and/or 40(al(ia)
|
Note1. The AD should
ensure that interest on non-deduction of the whole or any part of the tax
or failure in payment after deduction as required by or under this Act
shall be paid before furnishing the statement in accordance with the provisions
of the Act .
Note2:Furnishing of Form 26A in
electronic shall be enabled with effect from 15.01.2017.
4.
Procedure for electronic filing of Form 26A is as follows:
As there are many defaults in TDS
statements so as per Traces to reduce such defaults on account of Shortfall or
no deduction the role of the deductor, Chartered Accountant/ Accountant ( if
managed in house)for E filing and Traces has been prescribed specifically which
is given hereunder:
4.1
Role of Deductor
:
STEPS
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PLACE OF ACTION
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ACTION
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1
|
TRACES Portal
|
Get
Details of Short Deduct ion:
Deductor needs to submit request to get
details of short deduction .
|
2
|
TRACES Portal
|
Enter
No Deduction transactions: Deductor needs to enter
details of No-
Deduction transaction at
TRACES, if any and submit transaction details at
TRACES in the rows provided for
this purpose.
|
3
|
TRACES Portal
|
Submit
Request: On submitting request, a Unique Request Number
will be
generated for further
reference. The Short- Deduct ion and/or Non-Deduction
request so submitted will be
processed by TRACES and the 'successful
transaction will be displayed
to the Deductor after certain time. A unique DIN[3]
will be generated by TDSCPC for
unique Short deduction transaction. Similarly
a unique Alpha-Numeric String
(combination of TAN, PAN and F.Y.) will be
generated for No-deduction
transaction. Both of these unique numbers and
strings will be displayed after
successful processing by TRACES. These unique
DINs and Alpha-Numeric Strings
will be communicated electronically to E-Filing
Portal and available for
further act ion by Deductor.
|
4
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Offline
|
The deductor will communicate
the DINs and/or Alpha-Numeric St rings
generated in step no. 3 for
each of the Short-Deduction and/or Non-Deduction
transact ions to the accountant
identified for certifying Annexure A and obtain
the membership no. of such
accountant to be used in step no. 5.
|
5
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E-Filing Portal (Login as
Deductor)
|
locate DIN on which Form 26A effect
is to be given : Locate and select relevant
DIN in menu driven opt ion for which request for Form 26A is to be submitted.
locate
No Deduction Transactions on which Form 26A effect is to be given :
locate and select No-Deduction transaction
for which request for Form 26A is
to be submitted.
|
6
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E-Filing Portal
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Authorize
Membership Number of Accountant [4] : Deductor, after ascertaining
the membership number of the
accountant who is to certify Annexure A of
Form 26A, needs to authorize
such accountant by entering his membership
number
in respect of each of the Short -Deduct ion and
Non-Deduction
transactions(in one or more
sessions) and submit these authorizations.
|
7
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E-Filing Portal
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Certification
from Authorized Accountant : On
successful authorization by
Deductor, the Account ant so
authorized on E-Filing Portal may fill in the
relevant details in Annexure A
to Form 26A with respect to the Deductee in
question and certify by
digitally signing Annexure A. The details of unique DINs
and Alpha-Numeric Strings will
become visible
to the authorized
accountant(when he logs into
his own account as a registered accountant on
E-Filing Portal) only when
Deductor has authorized such an accountant with
respect to any Short-Deduction and/
or Non-Deduct ion transaction.
|
8
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E-Filing Portal
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Submit
Digitally signed Form 26A : Once registered
Accountant/Accountants
certify DINs and/or
Alpha-Numeric St rings, deductor needs to digit ally sign the
form and submit its final
request . Consequently, these submitted records will be shared with the FAOs
concerned.
|
9
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TRACES Portal
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View
Modified Status of default : Once
request has been processed,
short deduction will be
re-calculated and Late Deduction Interest will be generated accordingly,
which can be viewed by Deductor.
|
10
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NSDL\TRACES Portal
|
Make
payment for Modified Late Deduction Interest : Deductor needs to pay Late deduction Interest amount, according to
the modified computation.
|
4.2 Role of Accountant at E-Filing:
1. Accountant has to get himself
registered at E-Filing Portal and share his membership number with the Deductor
desiring to authorize him with respect to Short-Deduction and/or Non Deduction.
2. Receive DINs and/or Alpha-Numeric
Strings with respect to each of the Short-Deduction and/or Non-Deduction from
the Deductor.
3. After being so authorized by Deductor
and upon receiving DINs and/or Alpha-Numeric
4. Strings from Deductor ; login to E-
Fling Portal with Accountant credentials.
5. Use DINs and/or Alpha-Numeric Strings
to identify the Deductee rows which are to be
6. verified.
7. Complete Annexure A to Form 26A with
respect to the concerned Deductee.
8. Submit the Annexure A so completed by
digitally signing it.
4.3 Role
of e-filer:
For Deductor
|
Validations
|
TRACES
|
1. Provide view of Short-Deduction and/or Non-Deduction transactions to
Deductor as communicated to E-Filing Portal electronically by CPC-
TDS.
2. Allow
Deductor to locate and select Short-Deduction and/or Non-Deduction
transactions and authorize Accountant(s) with respect to each of these
transactions by entering membership number of Accountant(s).
3. Allow Accountants so authorized to view
Annexure
A to Form 26A on the basis of DIN and/or
Alpha-Numeric
String; complete the Annexure; and
submit it by digitally signing
it.
4. Allow Deductor to view Form 26A including
Annexure
A to Form 26A so submitted by authorized
Accountant(s)
and submit this Form 26A by digitally
signing it.
|
Check mandatory compliance :
ITR of Deductee(PAN) should
have been filed u/s 139 and no demand should be payable at the time of
assessment.
|
Share digitally signed Form 26A
with CPC-TDS.
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4.4 Role of TRACES:
For Deductor
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Backend Processing
|
1. Display identified Short-Deduction transactions for viewing of
Deductor.
2. Provide option of adding No-Deduction transactions to Deductor.
3. Provide DIN and/or Alpha-Numeric String for each transaction after
submission by Deductor as per Step 3 of Para 4.1.
4. Display updated status of submitted Form
26A as received from E-Filing
Portal.
|
Processing the request: Once
Deductor submits request of
Form 26A, TDSCPC will reprocess the statement and Short deduction will be
modified.
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Contributed by Suhasini CA Finalist at Sandeep Ahuja & Co
