Origin of TDS CPC Background

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
Centralized Processing Cell for TDS (CPC(TDS))

Non-FIling of TDS Returns for NIL TDS Cases

Declaration for Non Filing:

• Declaration for Non-Filing of a statement has been enabled on TRACES
• Deductors can declare a statement for Non-Filing by selecting Declaration for Non-Filing of a statement from Defaults menu

Traces website has started a new facility to update declaration for Non filing of TDS statement for deductor. Deductors can update status of TDS/TCS statement to non-filing online after login at TDSCPC website.The benefit of this facility is that you need not file NIL tds/tcs return for a particular quarter/period.Just update your status to non filing of return and stay relax.After updating of status ,TDS CPC website server will not sent you notice for non filing of tds return.

Delay in Download of TDS Certificate attracts Penalty

Delay in Download of TDS Certificate attracts Penalty

If as per the records of Centralized Processing Cell (TDS), if the TDS Statements have been filed by you for different quarters and if you have not yet downloaded TDS Certificates (Forms 16/ 16A) from the portal; please refer to the following provisions of the Income Tax Act, 1961 which are related to download of TDS certificate in time and consequence of late download of Certificate from the website http://www.tdscpc.gov.in (hereinafter called TRACES Portal).

 

Downloading of TDS Certificates from TRACES made mandatory: 

 

In this regard, your attention is invited to the CBDT circulars 04/2013 dated 17.04.2013, CBDT Circular No. 03/2011 dated 13-5-2011 and CBDT Circular No. 01/2012 dated 9-4-2012 on the Issuance of certificate for Tax Deducted at Source in Form 16/16A as per IT Rules 1962. It is now mandatory for all deductors to issue TDS certificates after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or TRACES Portal.

 

TDS Certificates downloaded only from TRACES hold valid: 

 

In view of above circulars, it may kindly be noted that the TDS Certificates downloaded only from TRACES Portal will be valid. Certificates issued in any other form or manner will not comply to the requirements referred in the Income-tax Act 1961 read with relevant Rules and Circulars issued in this behalf from time to time.

 

Due Date for downloading and Penalty for non-compliance: 

 

Please be advised that under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source. Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.

 

Assistance for downloading TDS Certificates from TRACES: You can logon to portal http://www.tdscpc.gov.in and refer to our e-Tutorial https://www.tdscpc.gov.in/en/download-form16a-etutorial.html to download TDS Certificates. For any further assistance, you can also write to ContactUs@tdscpc.gov.in or call toll-free number 1800 103 0344.