Thursday, April 28, 2011

FVU 3.1-TDS Rounding Off Validation T-FV-4278 Invalid tax deducted amount.


on Thursday, April 28, 2011

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%

Solution

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.

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