DOs & DON’Ts for TDS Deductors While Statement Filing, Deposit & Demand Closure

Tax deducted at source (TDS) implies the deduction of money before paying to the payee. There are some Dos and Don’ts for those who deduct the tax slabs such as TDS deductors, demand and statement filling closures, and depositors.

1. One can avoid the late payment fees on interest amount by TDS depositors, as by filing the statement before due dates.
2. Before filing the tax check twice the TAN number and ASSESSMENT YEAR.
3. Carefully check that:
• Mention PAN and AADHAR deductee correctly
• Mention the statements of CIN and BIN correctly
• The receipt number of TDS statement
• Reveal the ANNEXURE II of FORM 24Q
4. Issuing the FORM 16 (TDS CERTIFICATE) to deductee:
• Download FORM 16 AND GENERATE it from the traces portal
• Before the date of 15 June 2024 FORM 16 must be issued
• During the financial year if there are multiple employees of an employer then:
• For the period of employment, the employers will have to issue the separate part A of Form 16
• It is the choice of the employee to issue part B of FORM 16
5. For the preparation of TDS statement download the latest utilities (RPU & FPU) of quarterly TDS statement from the source of TIN- NSDL.

Dos for Demand Closure & Avoiding Demands

1. To avoid the short payment demands mismatch of challan one needs to verify the details at the TRACES website before the time of reporting
2. If the challan is paid against the Form 24Q where there is the demand for the same then the deductor must file correction in ANNEXURE I and ANNEXURE II
3. RAISE the appropriate flag in the rows of deductee for high, low or no deduction of TDS
4. Take action for closing the demand by checking the traces login

Dos While Boarding Help From TRACES

1. For any problems in e-tutorials and faqs published on TRACES contact us at 1800-103-0344 or tdscpc.gov.in or ask a grievance on request for resolution (TICKET)
2. Always mention queries with form type and quarter details with financial year while creating tickets and mails
3. Always provide the information of the person who is developing tickets
4. Please attach a screenshot of the errors for analyzing the problems if there is injustice regarding the errors in an online correction

Some DONTs

• One should not share the username and password with an unknown person
• Don’t report details of the PAN CARD in TDS statements without getting a copy of the same
• Don’t round off the amount of Tax Deducted at Source (TDS) at an individual level as the same is done through TDS-CPC systems at the statement level
• Do not report the savings, rebates, and deductions without any employee credentials