TRACES (TDS Reconciliation Analysis and Correction Enabling System) // Question and Answer Of PAO // MONARCH // SUNIL RAJAI

TRACES (TDS Reconciliation Analysis and Correction Enabling System)
Question and Answer Of PAO

Question (1) : What are the activities that a PAO can perform through TRACES?
Answer : PAO can perform the following activities through TRACES:
• Registration on TRACES
• Manage user profile, change password, etc.
• View Dashboard
• View statement status for a particular TAN (DDO) mapped to the PAO


Question (2) : How do I navigate to Landing (welcome) page from any other page?
Answer : Click on 'My Home' in the menu bar to navigate to your landing page..

Question (3) : As a PAO, how will the dashboard information be helpful to me?
Answer : In Dashboard, you can view quarterly PAO-DDO mapping, count of DDOs mapped, Total count of DDOs for each form type, Count of BIN generated, 24G filing compliance, Remitted-Reported Compliance, invalid cases related to AIN-PAO, etc.

Question (4) : How can a PAO view statement status for a TAN?
Answer : Click on 'Statement Status' in menu bar and enter the input details and click on 'Go'. It is mandatory to enter TAN for which statement status is to be viewed. Clicking on value of 'Count of Unmatched BIN(s)' for a particular Quarter and Form Type will display the validation screen, after which, you can view the Default Summary for the TAN for the selected FY, Quarter and Form Type..

Question (5) : What does the Default Summary screen indicate?
Answer : Default Summary screen displays the default details for the particular TAN for the selected FY, Quarter and Form Type. It will display details such as Token Number and Order Passed Date for the regular statement and two latest correction statements, count of correction statements, Count of Total BIN(s) as well as Count of Unmatched BIN(s) and the comparative view of BIN details from the TDS statement filed by the deductor vs. the Form 24G statement filed by the PAO..

Question (6) : What are the details that I need to fill in the validation screen?
Answer :Receipt Number of the latest accepted regular statement for Form 24G must be entered in validation screen. Other details include statement summary as per Section 6 of Form 24G for the specified Receipt Number..

Question (7) : What are the details that I need to fill in the validation screen?
Answer : Receipt Number of the latest accepted regular statement for Form 24G must be entered in validation screen. Other details include statement summary as per Section 6 of Form 24G for the specified Receipt Number..

Question (8) : What is Authentication Code?
Answer : Authentication code is generated when you clear validation details for a statement (KYC) for certain functionalities such as Download Form 16 / 16A, Download NSDL Conso File, Download Justification Report, etc. Authentication code generated for a particular statement will be valid for the calendar day (i.e., an authentication code generated on 10-Jul-2013 can be used only on 10-Jul-2013 to clear validation details for the same statement. It will not be valid the next day)..

Question (9) : Should I enter Authentication Code if I am trying to clear validation details for the first time during a day?
Answer : No. While trying to clear validation details for first time, you will not have the Authentication Code, hence you are not required to enter this value. You can proceed by entering other details for validation on this screen (i.e., Receipt Number and statement summary details). On completion of validation, Authentication Code will be generated and displayed when you proceed to next page. You may copy the code and keep for re-using it during the same day..

Question (10) : Is it mandatory to enter Authentication Code?
Answer :No. If Authentication Code has been generated for the statement for which you are filling up validation details, you can enter it in the field provided for the same. It will facilitate users to avoid filling up validation details repeatedly in case user logs in again at different time of the day. If it has not been generated or if you have not saved it, you can proceed by entering other details on this screen. .

Question (11) : What is the advantage of Authentication Code?
Answer : Authentication Code is generated to facilitate users to avoid filling up of validation details repeatedly in case user logs in again at different time of the day..

Question (12) : How do I update my organisation / communication details in TRACES?
Answer : After clicking on 'Profile' in menu bar, user must clear the validation screen for the Profile screens to be displayed. User can edit details in any of the Profile tabs and click on 'Save'..

Question (13) : How do I change my TRACES login password?
Answer :After clicking on 'Profile' in menu bar, user must clear the validation screen for the Profile screens to be displayed. User can edit password by clicking on 'Change Password' tab and click on 'Save'. Both old and new passwords must be entered to change the password. After changing the password, user must login next time using new password..

SOURCE : TDSCPC
Best Regards,
- SUNIL RAJAI

TRACES (TDS Reconciliation Analysis and Correction Enabling System) // General Question and Answer Of Form 26QB // MONARCH // SUNIL RAJAI

TRACES (TDS Reconciliation Analysis and Correction Enabling System)
General Question and Answer Of Form 26QB

Question (1) : What is TDS on property?
Answer : As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property is equal or exceeds or to 50,00,000 (Rupees Fifty Lakh). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser/buyer of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorized bank branches.

Question (2) : What are the points to be remembered by the Seller of the Property?
Answer : Following are the points to be remembered by the seller of the property:
• Provide a copy of PAN card to the Purchaser of the property for furnishing information regarding TDS to the Income Tax Department.
• Verify taxes deducted by the Purchaser in Part A2 of your Form 26AS Annual Tax Statement.
• Compare it with Form 16B issued by the Purchaser.
• Download form 16B from TRACES only

Question (3) :What are the points to be remembered by the purchaser/buyer of the Property?
Answer : Following are the points to be remembered by the buyer of the property :
• Deduct TDS @ 1% on the total sale consideration.
• Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
• PAN of seller as well as Purchaser/buyer should be mandatorily furnished in the online Form 26QB (statement cum challan form) for furnishing information regarding the sale transaction of valid PANs.
• Do not commit any error in quoting the PAN or other details in the online Form 26QB (statement cum challan form) as there is no online mechanism for rectification of any error.
• Verify tax deducted and deposited from Part F of your Form 26AS Annual Tax Statement.
• Note down 9 digits alphanumeric acknowledgment number generated on filing of 26QB which is required for placing request of form 16B.
• Download form 16B From TRACES portal and issue it to the seller of the property.

Question (4) : What is Form 16B?
Answer : Form 16B is the TDS certificate to be issued by the deductor (purchaser/buyer of immovable property) to the deductee (Seller of immovable property) in respect of the taxes deducted on the sale of immovable property and deposited into the Government Account.

Question (5) : Which challan is used for depositing the amount deducted under section 194IA?
Answer : The deducted amount can be deposited using ITNS-280 under the minor head-800.

Question (6) : I am a purchaser/buyer, whether I should deduct TDS on Property from the amount exceeding the property value of 50 Lakhs or on the whole amount of property sold?
Answer : TDS is to be deducted on the total amount paid or credited to the seller. For example, if an amount of property sold is 70 Lakh, TDS will be deducted on total amount of the property i.e. 70 Lakh and not on 20 Lakh.

SOURCE : TDSCPC
Best Regards,
- SUNIL RAJAI

CBDT notifies ITR 1-Sahaj, ITR 4-Sugam for AY 2020-21 // MONARCH // SUNIL RAJAI

CBDT notifies ITR 1-Sahaj, ITR 4-Sugam for AY 2020-21

The Central Board of Direct Taxes (CBDT) has notified two Income Tax return (ITR) forms for the assessment year of 2020-21. The income earned during the financial year 2019-20 has to be assessed in the assessment year 2020-21.
Taxpayers had demanded that the notification of ITR forms should be well in-advance as it helped them to file the income tax returns smoothly and also Department updating ITR utility soon.
Some of the new disclosures asked in the new ITR forms:
In ITR 1-Sahaj and ITR 4-Sugam
1) Do you have a valid Indian passport? If yes, then passport number has to be provided In ITR 4-Sugam
2) Have you deposited amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year? If yes, then the amount has to be disclosed.
3) Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person? If yes, then the amount has to be disclosed.
4) Have you incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the previous year? If yes, then the amount has to be disclosed.
The ITR 1-Sahaj is for individuals being a resident (other than not ordinarily resident) having total income up to Rs.50 lakh, having Income from Salaries, one house property (single ownership), interest income, Family pension income etc. and agricultural income up to Rs.5,000. However, it is not for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’ or has to furnish return under 7th provison to section 139(1) of the Income Tax Act.
ITR 4-Sugam is for Individuals, HUFs and Firms (other than LLP) being a resident having total income up to Rs.50 lakh, one house property (single ownership), having income from business and profession which is computed under sections 44AD, 44ADA or 44AE or Interest Income, Family pension etc. and agricultural income up to Rs.5,000. However, it is not for an individual who is either Director in a company or has invested in unlisted equity shares or has any brought forward / carry forward loss under the head ‘Income from House Property’.
For every assessment year, the last date for filing tax returns is July 31, unless it is extended. If one misses the deadline, and if there is a tax liability, one will have to file belated returns and pay the taxes along with simple interest of 1 per cent per month on the outstanding due, calculated from the July 31 deadline.
Best Regards,
- SUNIL RAJAI

TRACES (TDS Reconciliation Analysis and Correction Enabling System) // Question and Answer Of Form 26AS // SUNIL RAJAI // MONARCH

TRACES (TDS Reconciliation Analysis and Correction Enabling System)
Question and Answer Of Form 26AS

Question (1) : What is Form 26AS?
Answer : It is a form issued under Rule 31AB, wherein the following information in relation to a PAN is published:
• TDS - Part A & A1 of Form 26AS
• TCS - Part B of Form 26AS
• Details of tax paid other than TDS / TCS - Part C of Form 26AS
• Details of Refund - Part D of Form 26AS
• Details of AIR transactions - Part E of Form 26AS

Question (2) : Can we verify TDS certificate (Form 16A) issued by the deductor from Form 26AS?
Answer : Yes.

Question (3) : From which Assessment Year (AY) can I view my Form 26AS on TRACES?
Answer : You can view your Form 26AS in TRACES from AY 2009-10 onwards.

Question (4) : How is Form 26AS important to a deductor and tax payer?
Answer The TDS / TCS deducted by a deductor is reflected in Form 26AS of the respective PAN and this helps in identifying any discrepancy / error. Although deductor cannot view Form 26AS for a PAN, they can view the TDS / TCS deducted / collected by them.
The credits available in the tax statement confirm that:
• The tax deducted / collected by the Deductor / Collector has been deposited to the account of the government
• The Deductor / Collector has accurately filed the TDS / TCS return giving details of the tax deducted/collected on your behalf
• Bank has properly furnished the details of the tax deposited by you
• In future, you will be able to use this consolidated tax statement (Form 26AS) as a proof of tax deducted / collected on your behalf and the tax directly paid by you along with your income tax return, after the need for submission of TDS / TCS certificates and tax payment challans along with income tax returns has been dispensed with by the Income Tax Department (ITD)

Question (5) : How can a Tax Payer view Form 26AS?
Answer : Tax Payer must register and login to TRACES to view Form 26AS for a Financial Year.

Question (6) : What is the period for which Form 26AS is generated?
Answer : Form 26AS is generated annually, for a Financial Year.

Question (7) : When is Form 26AS generated?
Answer : Form 26AS will be generated whenever a transaction related to point # 2 in this FAQ happens in relation to the tax payer. It will be updated further with all the transactions reported / processed for the given FY.

Question (8) : Who can view Form 26AS?
Answer : Only a registered PAN holder can view their Form 26AS on TRACES. Form 26AS can be viewed from FY 2008-09 onwards.

Question (9) : Can negative entries appear in Form 26AS?
Answer : If there is any error in TDS / TCS return or in the challan detail uploaded by bank, for rectifying this, original credit entry will be reversed by debit entry in Form 26AS and a new credit entry will be posted (if required). Remarks column will be updated with the appropriate reason.

Question (10) : How can I correct if the name and address details given in Form 26AS are incorrect?
Answer : You can get the Data corrected by applying in TIN for changes or correction in PAN Data. This request can be made either online or through the existing network of TIN-FCs.

Question (11) :Can I download my Form 26AS statement?
Answer : Yes. Form 26AS statement can be downloaded either as PDF / text / excel file. If number of records in Part A / Part B is less than 20,000, Form 26AS can be downloaded as PDF / excel file or viewed as HTML on the screen.
For records greater than 20,000, Form 26AS cannot be viewed as HTML and it also cannot be downloaded as PDF / excel file. You have to download Form 26AS as a text file.

Question (12) : I have paid Securities Transactions Tax and Banking Cash Transaction Tax, but it is not reflecting in my Form 26AS. What should be done?
Answer : Form 26AS does not display the following taxes in Part C:
• Securities Transaction Tax
• Banking Cash Transaction Tax


Question (13) : What should Tax Payer do in case details of tax deducted are not appearing in Form 26AS?
Answer : Details of tax deducted will appear only after submission of TDS statement by the corresponding deductor. In this case, deductor should be approached to ensure filing of TDS statement with correct PAN.

Question (14) : Tax deducted by an employer is not reflecting in Form 26AS. What could be the reason for this?
Answer : Details of tax deducted will appear only after submission of TDS statement by the corresponding employer. In this case, employer should be approached to ensure filing of TDS statement with correct PAN.

Question (15) : What if entries in Form 26AS that do not pertain to the deductee?
Answer : The respective deductor should be approached for filling correction statement. In case of advance tax / regular tax / self-assessment tax, the jurisdictional AO may be approached for necessary correction.

Question (16) : What should I do in case there are entries in my Form 26AS that do not pertain to me?
Answer : If this is on account of 'TDS / TCS' credit, you may intimate your deductor / collector. If this is on account of advance tax / self-assessment tax, you may intimate your assessing officer. Question (17) : What is the source of information like my name and address mentioned on Form 26AS?
Answer : The address reflecting in Annual Tax Statement (Form 26AS) is picked up from Income Tax Department's PAN database with the details of latest PAN card issued to you.

Question (18) : What is the password for opening Form 26AS?
Answer : The password for opening Form 26AS will be your Date of Birth (in DDMMYYYY format), e.g., if your date of birth is 01-Feb-1980, password will be 01021980.

Question (19) : I have received a demand notice for my Income Tax Return, whom should I contact in this regard?
Answer : For demand related to your income tax return (ITR), kindly contact ITRCPC-Bangalore or your Jurisdictional AO.

Question (20) : How is Form 26AS important to a deductor and tax payer?
Answer : The TDS / TCS deducted by a deductor is reflected in Form 26AS of the respective PAN and this helps in identifying any discrepancy / error. Although deductor cannot view Form 26AS for a PAN, they can view the TDS / TCS deducted / collected by them. The credits available in the tax statement confirm that:
• The tax deducted / collected by the Deductor / Collector has been deposited to the account of the government
• The Deductor / Collector has accurately filed the TDS / TCS return giving details of the tax deducted/collected on your behalf
• Bank has properly furnished the details of the tax deposited by you
• This consolidated tax statement (Form 26AS) is a proof of tax deducted / collected on your behalf and the tax directly paid by you

SOURCE : TDSCPC
Best Regards,
- SUNIL RAJAI