On 29/06/2013, the Income Tax Department has released the following File Validation Utilities for the purpose of TDS Returns which would become applicable from 1st July 2013:
FVU Ver. 3.8 – Applicable from FY: 2010-11 onwards
FVU Ver 2.134 – Applicable from FY: 2007-08 till FY: 2009-10
For Fy 2006-07 or earlier financial years, eTDS returns (both regular and correction) will not be validated/filed any further.
Major structural changes have announced in FVU Ver. 3.8 that would be applicable for financial year 2013-14. The filing of TDS returns for the first quarter for FY: 13-14 is due on 15th July 2013.
Highlights of some these changes include:
§ Section Code has been removed from Challan and shifted to Deductee / Collectee Details – this implies that one can now deposit TDS against different sections through one Challan instead of separate Challans for each Section.
§ Minor Head Code to be provided in Challan details – This code will differentiate between the payment against self-assessed TDS / TCS and demand raised by Income Tax authorities.
§ Introduction of Late Fee in Challans – As per the recently introduced Section 234E there is now a provision for Late Fee for delay in filing of TDS / TCS returns. Now the Challan will include the additional column for this Late Fee.
§ In Form 24Q (Salary Returns), a new Section 92C has been added which is for payment made to Union Government employees.
§ In Form 26Q (Non-Salary Returns), the existing Section 194I (Rent Payment) has been split into two sections 194I(a) and 194I(b) – Rent on Plant & Machinery and Rent on Land & Building as the rate of TDS is different for these two type of rent payments.
§ In the annual salary details (Applicable in Form 24Q – Q4), now there is a provision for breakup of salary paid and tax deducted by the current employer and previous employers during the current financial year.
§ In Form 27Q (Non-Salary Foreign Remittances), new columns has been added in the Deductee details.
The department should have announced it much earlier and not in the eleventh hour when the TDS returns are due in less than 15 days. I will urge the Income Tax Department to extend the filing date of the first quarter by 30 days to enable all Deductors to synchronize their back office systems with these new changes.