FVU 3.1 was launched on March 18,2011 and is applicable for Q4 eTDS Statements for FY 2010-11 and FY 2011-12.
Many deductors are not able to create eTDS statement and are getting the following error:
T-FV-4278 Invalid tax deducted amount. Enter valid tax deducted amount.
New Validation for TDS Amount
The above error is because of a new validation introduced in FVU 3.1
Correct TDS Amount = Amount Paid * TDS Rate
TDS Amount Shown in Statement
Variance Amount = Correct TDS Amount – TDS shown in statement
Variance % = Variance Amount / Correct TDS Amount * 100
If the variance % is 10 or above – the above error is generated
Rounding Off problem leading to T-FV-4278 Error
A common practice among deductors is to round off TDS payable to nearest rupee. This practice has been followed for last several years. Now suddenly because of this new validation , such records are being flagged as erroneous.
Example : Amount Paid : Rs. 140 Rate 1% TDS Deducted Re 1.00
Correct TDS Amount = 140 * 1% = Rs 1.40
TDS Amount Shown in Statement = Re 1
Variance Amount = 1.40 – 1.00 = 0.40
Variance % = 0.40/ 1.40 * 100 = 28.57%
Income-tax department and NSDL have been apprised of this problem. A possible solution could be change in FVU to ignore the validation for rounding off cases.
Let us all wait for a new FVU version.