Centralized Processing Cell (TDS)

1

Deductor Functionalities @ TRACES

Deductor

Deductor Dashboard

Statement Status

Challan StatusDefault SummaryView TDS/TCS creditPAN Verification

Justification reportDownload TDS

Certificates& Conso FilesOnline correction

Existing Functionalities in TRACES

Progress since 30th November,2012Statements Processed (1st stage) More than 10 million

Deductee Transactions processed 500 million

Deductors registered on TRACES Portal

1 million

Form 16/16A download 200 million approx.

Taxpayers viewed Online 26AS Nearly 25 million

Call Volumes 3500 plus per day

Queries through e-mails 1200 per day4

Committed to sustained tax compliance framework logon to www.tdscpc.gov.in

CPC (TDS) Performance Statistics

Functionality Count (Apr 1 – Dec 31, 2013)

Form 16/16A file downloads 30.67 Lakhs

Conso File downloads 22.22 Lakhs

Justification Report downloads 8.07 Lakhs

26AS Forms viewed 5.44 Crores hits

Correction statements filed 22 lakhs

Educational e-mails 60 Lakhs

Impact of CPC(TDS)

1 Growth in filers within due date (23% up over last year)

2 Growth in TDS payment within due date

3

Better awareness among stakeholders (Tax professionals, Deductors and Department)

4

5

Growth in TDS collections (19% growth against 8% growth in Non-TDS)

6

Reduction in PAN errors (97% valid quoting)

Reduction in TDS mismatch (matching more than 95%)

6

Status of Default related issues

Sr. No. Issues

1 Wrong classification as Government /Non Government Deductor

2 Mismatch of 197 TDS certificate details

3 Citizen Type in 24Q

4 Challan overbooking under certain specific scenarios

5 Short Deduction under section 206AA in case of Tax Collection at Source

6 Surcharge rate

7 DTAA tax rate

(Total pendency against such issues as on date is around 6000 cases. Expected to be closed within Feburary,2014.)

Deductor

197 TDS Certificate Validation

Report Non filing of statement

Enhanced version of Online Correction

Deductor Grievance Portal

Green Initiative-Paper less intimationsE-Intermediary—API based webservicesJustification report

versioningNon resident TDS

CertificateOnline view of 26AS---

Outside India

Upcoming Functionalities in TRACES

Roadmap ahead at CPC(TDS)

1 Short deduction default resolution on auto basis in case of corrected PANs using data of ITR filing of the deductee

2 Profiling of Deductors based on their compliance pattern using Business Intelligence tools

3

Digital signature based access as an alternative to KYC based access

4

5

Facilitating deductors to populate valid and correct PAN using Data quality tool

6

Linking of TDS defaults with item no. 27 of Form 3CD

Collating TDS compliance of branches at Corporate Level

9

Total 5924Correct 2621Incorrect 3303

2621; 44%3303; 56%

TAN Category

Correct Incorrect

Expectations from Deductors-correct TAN category

Impact of Mentioning Invalid PAN in Statement Incorrect TDS Certificates

Penal Action and Prosecution u/s 139A(5)

Section 139A is regarding Permanent Account Number . Sub-section (5) of section 139A of the I T Act makes it mandatory to quote PAN in return and at other times. The said provision is as under : (5) Every person shall (a) quote such number in all his returns to, or correspondence with, any income-tax authority; (b) quote such number in all challans for the payment of any sum due under this Act;

277 provision will be applicable and prosecution will be done accordingly

272B. (1) If a person fails to comply with the provisions of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees.

Microsoft Office Excel Worksheet

Microsoft Office Excel Worksheet

Expectations from Deductors---quoting valid PAN

Total Delay Defaulters 1425

Delayed Defaulters with Average Delayed Days >30 Days in FY2013 330

Total Delay Defaulters142581%

Delayed Defaulters with Average Delayed

Days >30 Days in FY2013

33019%

Expectations from Deductors—Late filing

Expectations from Deductors- Implication of Correction In respect of count of deductee row

C9 COUNT 2010 C9 COUNT 2011 C9 COUNT 2012 C9 COUNT 20130

20

40

60

80

100

120

140

12 12

54

117

C9(Addition of Challan) Error Counts - Year on Year Trend

C9 DD COUNT 2010 C9 DD COUNT 2011 C9 DD COUNT 2012 C9 DD COUNT 20130

1000

2000

3000

4000

5000

6000

7000

23615

2325

6313

Deductee Records Added through C9 - Year on Year Trend

Microsoft Office Excel Worksheet

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THANK YOU

Deductor’s Dashboard 

Deductor’s Dashboard displays important information at one screen. The following information can be viewed by the deductor in its dashboard:

• Statement Status: Processing status of the Statements of last four quarter along with Default Summary.

• Communication Inbox: - To view the recent communication made between TRACES and Deductor. This also facilitates the downloading of Intimations sent to the deductor.

• Summary of recent activity by the deductor.

Back Deductor Dashboard on TRACES

Online Corrections

This feature enables the Deductor to file Online Correction statements through TRACES portal without downloading TDS/TCS Consolidated File.

For this facility, the user needs to register its Digital Signature.

Currently facilities for PAN Correction and Matching of unmatched OLTAS challans are functional and more functionalities are planned to be added in near future

Back

Enhanced Version of Online Corrections

Apart from the currently available facilities for PAN Correction and Challan Correction. Following facilities are to be allowed

• Add challan to statement

• Modify/Add deductee row

• Modify Salary details

• Pay 220I, LP, LD late filing interest

• Update of personal information

Online Correction on TRACES

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Deductor

Tax Payer

Deductor files TDS statement to ITD

26AS generated by ITD is used

at CPC ITR

Deductor issues 16A to the Tax Payer

Tax payer uses 16A for ITR filing

TDS Mismatch at CPC ITR

TDS Matching- Before CPC(TDS)

TIN

Deductor

Tax Payer

Deductor files TDS statement that goes to TDS CPC

26AS generated by ITD is used

at CPC ITR

Tax payer uses 16A for ITR filing

Perfect TDS Match at ITR CPC

TDS Matching- After CPC(TDS)

Form 16A is issed by TDS CPC to the Deductor

Deductor passes Form16A to the Tax Payer