etds are now a days mandatory for many persons/deductors ,but its a new to many & for me also ,there are few difficulties in prepration of etds returns but even difficulties we face ,it is more beneficial to us and a very good step towards e governance .Problem difficulties can be sought out with view sharing.We request all to share your view with each other.Each time we have a problem /difficulty in any work we should happy at that time because we know problem will be solved sooner or later and out knowledge will improve.Now come to the point a specific question has been put to me by Mr Rajiv jain again ,I found this question very interesting to me ,I am answering this question with the guidance of CA SHIV JINDAL (FCA) (Mobile:09417055937)
Ques:A deductor has deduct tds @ 5% instead of 10% and submitted etds return 26q accordingly, for 1st quarter.Now if he deduct balance tds amount in IIIrd quarter @ 5% from deductorplease take it serious and reply accordingly.
- whether he should deposit separate challan for balance tds.
- whether it is necessary to amend/revise the return.
- if revision of return is necessary ,then how should it be prepared.
- what should be done if deductor has deposited the balance amount of challan with the amount of q3 deducted amount in a single challan.
point wise answer to above is as under
- yes ,you should deposit separate challan for balance amount .
- yes,revise/correction return should be submitted .detail is given in third point.
- procedure and method of revised return for above problem is given below
- one number challan should be added through your correction software.means in your software select add new challan.In this case deductee detail will automatically opens.
- In deductee detail correct the amount paid of concerned party as shown in earlier etds return to 50% as earlier shown in that case, show date of deduction and date of payment same and date of deposit as shown in earlier deposit and correct the rate of tax deducted as 10%.
- Add new deductee detail ,in which show amount paid 50% as reduced /deducted from above entry and date of payment as as shown in old date of payment, date of deduction as new date of deduction(Q3) and tax deposited as per new tax deposited and rate of deduction as 10%.
- example :xyz ltd deducted tax @ 5% from abc ltd while paying professional fees rs 100000 on 2.6.2007 i.e rs 5000+3% cess =5150 rs and deposited the tax on 2.7.2007 and file the etds return on 12.07.2007 for first quarter .later on xyz ltd realize that tax should have deducted at the rate of 10% and then balance 5 % plus cess 5150 /- rs deducted on 10.10.2007 from other bill and deposited on 11.10.2007 Rs 5150/-.
- In above example add one challan for first quarter revised return for amount 5150/- rs in challan detail and in deductee detail correct the amount paid on 2.6.2007 as 50000 instead of 100000 (column 419) and rate of deduction (cl 427) as 10% and then insert a new deductee detail against new challan number, shown date of payment (418) as 2.6.2007 ,amount paid (419) as 50000, tax deducted (421-424) as 5150 ,tax deposited (425) 5150,date of deduction (426)10.10.2007,rate of deduction (427) as 10%.
In this case enter challan for rs15450 in both the quarter for full amount in challan detail.In deductee detail of q3 give detail corresponding to amount 10300 and in q1 revised /correction return enter challan detail of 15450 with full amount and in deductee detail do as per point 5 given above.