TDS/TCS Returns - Common Errors

This is the important part to avoid common mistakes, while TDS Return (Statement).  If the TDS Statements are filed with following common mistakes you may cause the penalty or interest or default notices by Income Tax Department, therefore must read carefully the following common Errors in TDS Returns:

Please refer to the following guidelines for correct reporting of 197 Certificates:

The Certificate Number should be of 10 digits with Alpha-numeric structure. Please refer to the following examples:

• Correct Format 1111AA111A;
• Incorrect Format: 1111AA111A/194C

Certificate Number should be valid during the period for which it is quoted.

The Certificate Number should be for the same PAN, Section Code and Section Rate for which it has been mentioned in the statement

Threshold limit Amount of the Certificate should not be exceeded.

Please ensure that the Certificate is not expired. Please refer to the following illustration:

Lower deduction Certificate under section 197, issued in April 2013 (e.g. Certificate Number – 1) stands cancelled by Assessing Officer on 10/11/2013.

A fresh certificate Under Section 197 (e.g. Certificate Number – 2) is issued with effect from 11/11/2013.

Deductor quotes Certificate Number – 2 against the transactions recorded during the period from 01/11/2013 to 10/11/2013 in Q3 TDS statement.

Deductor should have quoted Certificate Number – 1 for the transactions conducted till 10/11/2013.

Common errors resulting into Short Payment Defaults:

• Typographical errors committed by deductor, in reporting the date ’20032014′    in the “Tax Deducted” column.
• Total of “Amount Paid / Credited” reported in the “Tax Deducted” column of the statement. This results into short payment and Deductors need to ensure that the TDS/TCS Deducted/Collected amount should be equal to TDS/TCS Deposited Amount.

The above mistakes are illustrated below:

Amount Paid/ Credited	TDS Deducted	TDS Deposited	Remarks
1,55,000.00	1,55,000.00	15,500.00	Wrong TDS Deducted Amount
220420.00	20032014.00	22042.00	Date mentioned in the TDS Deducted Column

Actions to be taken:

• CIN Particulars (BSR Code, Date of Deposit and Challan Serial Number) mentioned in the TDS statement should exactly match with the CIN Particulars as available on ‘Challan Status’ at www.tdscpc.gov. in or ‘Challan Status Enquiry’ at www.tin-nsdl.com
• For BIN (Book Identification Number), the particulars (24G receipt number, Date of transfer voucher and DDO Serial Number) mentioned in the TDS statement by the Govt. Deductors should exactly match with the BIN Particulars as available on ‘Challan Status’ at www.tdscpc.gov. in or ‘BIN View’ at www.tin-nsdl.com
• Amount of Tax deposited pertaining to different BIN’s/ CIN’s should not be clubbed together while reporting in the TDS statements.

Few other common mistakes in reporting dates are as follows:

Actual Date of Deposit (As per Challan)	Date of Deposit mentioned in TDS Statement	Observations
07/01/2014 (07th Jan, 2014)	07/01/2013 (07th Jan, 2013)	Wrong Year (2013 instead of 2014)
07/01/2014 (07th Jan, 2014)	01/07/2014 (01st July, 2014)	Wrong Date Format (MM/DD/YYYY)