509064 64485 Tds Handbook by Traces
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Transcript of 509064 64485 Tds Handbook by Traces
Tax Deduction at Source (TDS) is one of the means of collection of
direct taxes. TDS constitutes nearly 40% of the direct tax collections.
In the legacy system, the deductees claimed TDS credits based on
manual TDS certificates, issued by the deductors. There was no
correlation between tax deductions, tax payments and issuance of
TDS certificates. Verification from the deductor was limited &
restricted. Thus, the conventional practice of giving credit of tax
deductions, based on manual TDS certificates was open ended
leading to tax frauds.
The tax deductors electronically report TDS to the Income Tax
Department through quarterly TDS statements. The deductor is
obliged to report the following details:
PAN & Name of the deductee;
Nature, extent & the date of transaction;
Amount, rate & the date of tax deducted/collected at
Source;
Details of tax payment including the amount & date
thereof
Based on the information submitted by the deductor, the deductee
is given credit of taxes. Therefore, a robust mechanism that ensures
correct, reliable flow of data to the department’s database and its
collation on the basis of taxpayer identifier(s) (PAN) prevents
revenue leakage.
LEGACY
PLUGGING THE GAP
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Centralized Processing Cell for TDS (CPC(TDS)) has been
conceptualized to ensure a seamless flow of data for tax credits. It
leverages technology to provide efficient services. CPC(TDS)
introduces transparency in the processes through online display of
information. Thus, it forms the backbone of overall TDS
administration of the Income Tax Department.
Background
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India is amongst very few countries where Comprehensive
Solution for withholding tax (TDS) has been put in place.
Centralized Processing Cell (TDS) is a technology
driven transformational initiative on ‘Tax Deduction
at Source’ that provides a comprehensive solution
through ‘Tax Deduction, Reconciliation, Analysis and
Correction Enabling System (TRACES)’ - its core
engine.
CPC (TDS) undertakes bulk processing of TDS
statements to generate ‘Annual Tax Credit’
statements for each taxpayer (PAN holder) in Form
26AS, TDS certificates in Form 16 / 16A & identifies
TDS defaults of short payment, short deduction,
interest etc.
CPC (TDS) reconciles and co-relates information from
various sources including banks (tax payment),
deductors (reporting tax deduction), Assessing
Officers ( mapping no tax / low tax deductions) and
tax professionals (reporting international
transactions).
With its inclusive approach, the initiative provides
bouquet of services to its stake holders including
deductors, deductees, Principal Accounts Officers of the
Central and State Governments & the officers of the
Income Tax Department.
The users/ stakeholders interact with the CPC (TDS) system
and with each other through multiple channels of
communication including Call Centre, e-mail, website etc.
Concept
Each Rupee that is collected is
accounted for. Robust reconciliation
of tax collected vis-à-vis tax credits
claimed.
Empowering the taxpayer with
information, knowledge of laws
& procedures and status of
t h e p r o c e e d i n g s . M u l t i p l e
communication channels.
Services at the doorstep of taxpayer
– any time / anywhere & realizing
jurisdiction free tax administration
for bulk processes.
Simplification & standardization of
Backend & Frontend processes.
Redesigning & reduction in number
of Forms.
Uniform interpretation of laws &
procedures through conversion of
laws into set of mathematical
formulae.
Approach & Strategy
Uniformity
Simplification
Accessibility
Good Tax Governance
Empowerment
USAGE- Facilitating easier compliance
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Provide a comprehensive technology platform for
all stakeholders
Enhance TDS processing capabilities
Streamline tax accounting
Address TDS mismatch issues through Online
Generation of TDS certificates
Minimize TDS frauds
Improve filing of Income Tax Returns and reporting
of correct Income
Release of manpower from Bulk Functions
Empower assessing officers using Business
Analytics for risk profiling and enforcement
functions
Provide insights for policy formulation on the basis
of data relating to nature & extent of financial
transactions & demographic profile of persons
involved in such transactions
Objectives
Leverage technology for better governance
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�Primary Data Centre, Noida
�Disaster Recovery Site, Pune
�Deductors
�Deductees
�Principal Accounts Officers
�Inbound
�Outbound
�Awareness of Tax Provisions
�Feedback on compliance
Data Centre :
Document Management Centre, Vaishali
Website – TRACES Portal - for
Portal for Field Assessing Officers
Call Centre :
Bulk email facilities
Online Feedback Module
Ticket Management Systems
Components
Effective & efficient service delivery mechanisms
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Non-intrusive integrated platform that provides
online services related to TDS Statement / Challan
processing, Corrections, Default information, TDS
certificates and real-time support for clarifications
View of Tax Credit Statements in Form 26AS with real-
time support for clarifications
• Consolidation of Demand Registers
• Real time Analytics and MIS for enforcement
• Online Ticket Management System
Deductors:
Taxpayers:
Field TDS Assessing Officers: Comprehensive Portal
that enables :
CPC (TDS) for End Users
CPC for End Users
Integrated platform for stakeholders
CPC (TDS) FrameworkC
PC
(TD
S)
PR
OC
ES
SIN
GO
UT
CO
ME
S
Synchro
niz
ati
on
of
cle
aned
&pro
cess
ed
data
wit
hIT
D
•M
appin
gof
PA
Nw
ith
rele
vant
TA
N•
Genera
tion
of
TD
S/
TA
NLedger
etc
.•
Genera
tion
of
PA
Nle
dgers
TD
S
•Veri
ficati
on
•M
atc
hin
gof
Challans
CPC
-TD
SE-T
DS
Retu
rnD
ata
Inti
mati
on
/Lett
er
/em
ails
Cla
rifi
cati
on
/
Data
base
•,
cert
ific
ate
sIN
PU
TS
NG&
ANING
•D
efa
ult
s(S
hort
Paym
ent,
Late
Paym
ent,
Short
Deducti
on)
PA
NErr
ors
(Invalid
and
Mis
sing
PA
Ns)
•Pro
cess
ing
D ITD
No/
Low
er
Deducti
on
Cert
ific
ate
s
OLT
AS
Data
Subm
issi
on
Deducto
rs&
Oth
er
Sta
kehold
ers
FIR
ST
LE
VE
LP
ER
SU
AS
ION
/
CO
MM
UN
ICA
TIO
NPROCESSIN
DATACLEA
•O
ther
Dis
cre
pancie
s
RS
Pos
Ca
ll
Att
rib
ute
s:
ENABLER
st E-M
ail
Portal
Ca
ll
Ce
ntr
e
TA
NM
an
ag
em
en
tR
ev
ers
eTA
NL
ed
ge
rP
roc
es
sin
go
fT
DS
Sta
tem
en
ts
Pro
ce
ss
ing
of
TD
SS
tate
me
nts
Ma
pp
ing
of
PA
Ns
rep
ort
ed
by
TA
NC
on
tac
tC
en
tre
Bu
lkM
ail
ha
nd
lin
gE
xc
ep
tio
nM
an
ag
em
en
tR
ec
on
cil
iati
on
of
TD
Sd
ata
MIS
Re
po
rtin
gG
rie
va
nc
eR
ed
res
sa
lIs
su
eIn
tim
ati
on
s/
De
ma
nd
no
tic
es
Tools
&A
pplicati
ons
(such
as
DM
S,
BI,
Port
al,
CR
Metc
.)
•
•
•
•
•
•
•
•
•
•
•
•
•
•
– Statement Status and Default payable
– Deductor Compliance Profile
– TDS Certificates Form 16 / 16A
– Transaction Based Report for Non - Residents
– Consolidated Statement File
– Justification Reports on Defaults
TRACES: https://www.tdscpc.gov.in
Dashboard
Online Corrections
Defaults Summary
Online PAN Verification
Online Verification of Certificates u/s 197 of
Income tax Act
Statement and Challan Status
TAN – PAN Consolidated File
Downloads
Aggregated TDS Compliance Report
e-Tutorials and FAQs
Circular and Notifications
CPC (TDS) Communications
Bulk Email Facilities
Online Facilities for Deductors
Non-adversarial tax administration
•
•
•
•
– Upload & updation of manual demand raised by
the Assessing Officer
– Integration of Manual Demands with demands
generated by the CPC (TDS)
– Tagging of Challans against demand entries to
liquidate demands
– TDS/TCS Statement Processing Status
– TAN/ AIN details
– Consolidated Statement files
– Intimations u/s 200A/ 154 of the Income tax Act
– Challan details
– Justification Reports
– Foreign Remittance Reports in Form 15CA
– Change of one TAN/ PAN to other TAN/ PAN
– Change of Assessment Year
– Change of section Code
Consolidation & Update of TDS Demand:
View and Download of:
Challan Corrections:
Generation of customized MIS and Data Analytics
Reports on various features of TDS Compliance.
Online Facilities for TDS Officers
Empowering officers for enforcement & services
•
•
•
•
View and Download
Feedback Module to log issues relating to TDS
credits & other obligations on part of
deductors & other stakeholders.
Comprehensive view of TDS defaults relating
to all TANs associated with a PAN through
'Aggregated TDS Compliance' Utility & 'Part G'
of the 26 AS statement.
Non - Resident Taxpayer Registration
– Annual Tax Credit Statements in Form 26AS
– TDS Certificates in Form 16B
Online Facilities for Taxpayers
Inclusive approach in tax administration
Snapshot of Form 26AS
Key CPC (TDS) Statistics
Processing upto 30th June, 2014
*
@
@
**
* Average Processing time : < 5 days from date of filing.
@ percentage is with respect to the total statements received.
** Intimations also sent to registered emails.
Online facilities
#
##
# percentage of Total Active TANs.
## Facility for registered tax payers at CPC (TDS), Income Tax
India E-filing Website & Banks.
Statements processed
Corrections : 40.36 lacs (98%)
Total : 141.77 lacs (98.3%)
Default Paper 75.34 lacs
Intimations issued
Online Correction
Requests Processed > 12,500
Challan Correction > 20,000
Requests Processed
Deductors Registered > 12 lacs (88%)
Taxpayers Viewing 26AS > 2.75 Crores
TDS Certificates > 10 Crores
Educational Emails > 1.25 Crores
Original : 101.41 lacs (99%)@
Minimizing physical interface with the department
Attributes of the CPC (TDS) System
1 Processing of more than 1 Crore deductee
records in 24 Hours
2 Processing of nearly 2000 Inbound letters in a
day
3 Processing of nearly 30000 Outbound
intimations in a day
4 Attending to more than 3000 Inbound Calls
per day at the Call Centre
5 Database size - 700 Crore Transactional Data
6 State of Art Data Centre at Noida and Pune
7 250 Plus Operational Resources
�TDS statements are processed within 5 days from the
date of their filing at the TIN-Facilitations Centres.
�More than registered deductors besides
taxpayers use various online facilities.
12 lakh
2.75 crore
Services on anytime anywhere basis
Value Addition through CPC(TDS)
Output
1
4
6
7
5
Significance
Critical for Income tax
return processing.
Ta x C o m p l i a n c e &Revenue Augmentation
Minimiz ing Phys ica l
interface
Non-adversar ia l tax
administration
Risk Profiling
3Addressing TDS
MismatchTDS Certificates
2 Online view of 26AS
TDS Defaults
Online Services
Educational emails,
FAQ, e-tutorials
Analytics
Tax Credits
Facilitates timely recon-ciliation of Tax Credits -Inclusive approach
Towards Robust tax administration
TDS Matching- Post CPC(TDS)2
6A
Sg
en
era
ted
by
ITD
isu
sed
at
CP
CIT
R
Pe
rfe
ctT
DS
Ma
tch
at
ITR
CP
C
De
du
cto
rfi
les
TD
S
sta
tem
en
t
tha
tg
oe
sto
TD
SC
PC
Tax
pa
ye
ru
ses
16
A
for
ITR
fili
ng
Form
16
Ais
Form
16
Ais
do
wn
loa
de
d
by
the
de
du
cto
rfr
om
CP
C(T
DS
)T
ax
Payer
Ded
ucto
rto
Pa
ye
r
De
du
cto
ris
sue
sd
ow
nlo
ad
ed
Form
16
A
the
Tax
Towards minimizing tax credit mismatch & tax frauds
Impact of CPC-TDS
TDS (Amount in Crores)
300,000
TDS Collection (Amount in Crores)
260,052250,000
160,769
201,983
222,014
150,000
200,000
143,496
100,000
-
50,000
2013-20142012-20132011-20122010-20112009-2010
Better Discipline in filing TDS Statements & Payment of taxes
Percentage of
statements
received within
due date
35.80
40.10
52.80
73.10
Financial Year
2010
2011
2012 #
2013
Percentage of
Statements
where TDS
Payment made
within due date
71.70
72.30
74.60
79.40
# Oct 2012 : CPC(TDS) commences operations
0
10
20
30
40
50
60
70
80
90
100
2005-0
62006-0
72007-0
82008-0
92009-1
02010-1
12011-1
22012-1
32013-1
4
9.6
24.5
630.3
637.8
442.8
52.7
1
70.8
8
84
90.9
8
No
.ofT
DS
Sta
tem
en
ts(i
nla
cs)
Impact of CPC-TDS
Increasing trend in filing of TDS Statements
Impact of CPC-TDS
Better discipline in filing TDS statements and payment of taxes
36.2
42.2
49.252.0
-
10.00
20.00
30.00
40.00
50.00
60.00
2010 -11 2011 -12 2012 -13 2013 -14
No
of
Tra
nsacti
on
s(i
nC
rore
s)
Financial Year
Growth in Reporting Transactions by Deductors
Pe
rce
nta
ge
Non-PAN Transactions
Improved reporting of transactions - Quantitative & Qualitative
0
5000000
10000000
15000000
20000000
25000000
30000000
As on 31st March2011
As on 31st March2012
As on 31st March2013
As on 31st March2014
3999049
8433086
15359754
27652958
TaxpayersViewing 26AS
TaxpayersViewing 26AS
Impact of CPC-TDS
Promoting Voluntary Compliance through online service
Count of Unique Deductors Filing at least one TDS statement
during the respective FY
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
658771
931170 9933771118466 1189804
13112301432427
Visitors’ Feedback @ TDS CPC
Message from the Union Finance Minister
Operations @ CPC (TDS)
Operations @ CPC (TDS)
Venue @ CPC (TDS)
Aa
yk
ar
Bh
aw
an
Secto
r-3
Va
ish
ali,G
hazia
bad
,U
P-2
01010
Em
ail:-
co
nta
ctu
s@
tdscp
c.g
ov.in
To
llF
ree
:18
00
10
30
34
4|
Ph
on
e:
01
20
48
14
60
0