TaxTMI 
TaxTMI 
STANDARD OPERATING PROCEDURES (SOP) FOR ADMINISTERING TDS INCORPORATING THE RE-ENGINEERED PROCESSES DEVELOPED BY THE CPC-TDS
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....S ought to be, therefore, a mix of enforcement, capacity building (external and internal) and leveraging of information that is now available with the Department through the CPC-TDS. 3. With the enablement of all functionalities, available to the TDS Assessing Officer through AO Portal, the Standard Operating Procedure (SOP) specifying the role of Officers, who are associated with TDS administration, becomes necessary. The SOPs have been framed to address the various features in the re-engineered processes in TDS administration. The SOPs have been made on following issues :- i. Matching the unconsumed challan. ii. Top deductors paying less/no tax with respect to previous financial years. iii. Resolvable/Collectible TDS Demand. iv. G-OLTAS reconciliation. v. Corporate connect for TDS compliance. I. DRAFT OF STANDARD OPEPRATING PROCEDURE FOR MATCHING THE UNCONSUMED CHALLAN 1. Introduction: A challan may remain unconsumed on the computer system under following circumstances:- a) In case of a deductor where demand has been raised due to short payment or; due to quoting of wrong challan particulars in TDS statement; there might....
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....atching (functionality in TRACES - AO Portal) • To facilitate AO - TDS the view of unmatched challans in the statements filed by TANs under their charge and; to enable them to match these challans with any of the unconsumed challans available in OLTAS database, under the ownership of same TAN for the relevant period. The AO Portal provides the functionality of Forced Matching of challan. • Only unmatched challans in a statement will be shown in the output table. • At present, statements filed for F.Y. 2010-11 and 2011-12 only are available for forced matching. • Only those challans from OLTAS will be displayed whose FY is within +1/-1 year range of F.Y. of the searched statement. • Total of the amount shown in challan quoted in the statement has to be equal to or less than the available balance in a challan. • Force Matching gives credit to the statement without changing the challan details mentioned in the statement. Hence, force-matching should be done only on deductor's request in writing and the application is to be uploaded on the portal while raising the request for such force-matching. â€....
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....be issued for unclaimed challans prior to the cut-off year through refund portal as it may lead to anomalous claims leading to revenue loss. • It is recommended that payments made on account of compounding fee are uploaded using the bulk upload demand functionality. It is suggested to maintain the record in current D & CR, which should be uploaded periodically (say fortnightly). At present no such record is maintained at the AO - TDS level. A cut-off year/date can be decided and the information beyond these years/date can be compiled and uploaded on the system. Henceforth functionality may be enabled in the TRACES for calculating the compounding fees, which will also generate a demand notice. On payment, the demand can be tagged by the challan. • To cater to this need and root-out these possibilities, CPC-TDS has introduced two sets of functionalities as under :- 2.5 Bulk-Upload Demand • User can add/modify/delete a manual demand row by row. Manual demand created by the AO - TDS, has to be uploaded in the System. Utmost care should be taken as to what types of demands are to be uploaded. The deductor making payment on account of "Compoundin....
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.... (i) Identifying TANs with unconsumed challans where no TDS return has been filed. (ii) Identifying TANs with unconsumed challans where short payment has been detected (iii) Monitoring top hundred cases of TANs for tagging of unconsumed challans. (iv) Monitoring uploading of manual demand by the AO - TDS on regular basis. (v) Holding weekly review meeting with all AO - TDS. (vi) Apprising the CIT(TDS) of the outcome of such review meeting. (vii) Sending the progress in this area in the monthly D.O. to the CIT and also to be included in the MIS which is to be sent to DIT (TDS), New Delhi. IV. Role of AO - TDS (i) Uploading manual demand on the System on daily basis. (ii) Identifying TANs with unconsumed challans where no TDS return has been filed and issue letters to the TAN holders. (iii) Tagging the challans against the uploaded demands. (iv) Apprising the Addl. CIT(TDS) of the progress made by the 3rd of following month. V. Role of CIT(CPC-TDS), Ghaziabad:- (i) Disseminating the details of unconsumed challans at the AO - TDS portal under TRACES which shall be availab....
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....): (i) Interacting with the CIT(TDS) on a regular basis monitoring the fluctuation in the TDS/TCS collection. (ii) Apprising the Zonal Member/Member(R) of the fluctuations and reasons thereof alongwith Action Taken or proposed through monthly D.O. by 10th of the following month and a copy of the D.O. shall also be sent to Principal DGIT(Admn.) (II) Role of CIT (TDS): (i) Discussing top cases with substantial fall compared to previous years with the Range Head. (ii) Analysing the reasons for fall in the TDS/TCS collection in the top cases and also examining the same section-wise. (iii) Suggesting follow-up action like spot verification/survey etc. (iv) Incorporating the action taken, in monthly DO. (III) Role of Addl. CIT(TDS): (i) Examining the cases with substantial fall compared to previous years and also suggesting action on potential cases. (ii) Analysing the overall reasons for lower deduction or collection and also TDS/TCS section-wise analysis of negative trend. (iii)Taking follow-up action like spot verification/survey etc. (iv) Incorporating the action taken in monthly DO.....
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....sent to Principal DGIT(Admn.). (II) Role of CIT(TDS):- (i) Monitoring the progress on collectible/resolvable demand fortnightly and review TDS Range Heads under him. (ii) Devising a strategy for follow-up action and to increase the pace of recovery, if any, required. (iii) Conducting monthly meeting with deductors and their representatives in order to make them aware of the TDS defaults and help in collection / resolution of demand. (iv) Ensuring that the CAP-I statement of TDS charges should be filled up on the basis of the information of total demand rolled out by the CPC-TDS. (v) Apprising the result of the recovery process to the CCIT/DGIT by the 7th of the following month. (vi) Apprising the progress on resolvable demand to the DIT(TDS), New Delhi alongwith MIS report. (III) Role of Addl.CIT(TDS):- (i) Identifying resolvable demand to be recovered immediately after discussion with all the Assessing Officers. (ii) Holding weekly review meeting with Assessing Officers. (iii) Apprising the CIT(TDS) of the outcome of such review meeting. (iv) Preparing the CAP-I of TDS taking the total ....
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....ion. (vi) Making available the functionality of seeing the break-up of resolvable demand at all administrative levels. (vii) Updating the resolvable demands after filing of correction statements should be made fast-track. (viii) Enabling, the AO - TDS and Addl. CIT(TDS) to see refund on TRACES, if any, of assessee deductor under different TAN or PAN, so that the same may be considered for adjustment after due verification of nature of resolvable/collectible demand. IV. DRAFT STANDARD OPERATING PROCEDURE (SOP) FOR G-OLTAS RECONCILIATION Introduction: Reconciliation of TDS reported by AINs with payments through OLTAS by State AGs is an important task for the field formation. Existing Scheme: • In the Government Accounting System each deductor is associated with a specific Accounts Officer (AO) who processes the bills prepared by the deductor. • The Pay and Accounts Office (PAO)/District Treasury Office (DTO)/Cheque Drawing and Disbursing Office (CDDO) are required to file Form 24G as per Income-tax Department Notification no. 41/2010 dated May 31, 2010. In case of an office of the Government, where tax has been paid to ....
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....ew the guidelines prescribed in CGA's O.M. No. S. 11024/1/80/TA/2457 dated 24th June, 1980. Issues for consideration It is seen that there are following lacunae in the functioning of the scheme: a) List of active AIN holders is less than total no of AINs allotted. b) Amount reported by state Government AINs in Form 24G is less/more than the amount reported by the State AGs as consolidated deduction during the year. c) Due to such a reporting, inference is drawn that whether any TDS collection was left to be accounted for or there was any incorrect reporting in Form 24G d) It is also seen that there are substantial delays in deposit of TDS collections by AGs, some times more than months. e) TDS claimed by deductees of State Government departments in their individual returns of income, is more than the figure reported by State AGs/Form 24G Standard Operating Procedure (SOP) defining the roles of different TDS Authorities in addressing the issue of GOLTAS reconciliation (I) Role of Pr. CCIT(CCA)/CCIT(TDS): (i) Interacting with Chief Secretary of State and Principal A.G. to highlight the issue (ii) Taking up the issue of belated remittan....
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....nd reports to identify inactive TANs/AINs and remove them from the data base in coordination with CITs(TDS). ii. Updating AIN-TAN mapping frequently and intimate field formations. iii. Running reports to identify cases where TDS reported by State AGs does not tally with that reported in Form 24G. iv. Identifying AINs/TANs responsible for this and intimate field formations. v. Running Back end queries and reports to identify inactive TANs/AINs and remove them from the data base in coordination with CsIT(TDS) and generate and disseminate such reports periodically. vi. Updating AIN-TAN mapping frequently and intimate field formations. vii. Running reports to identify cases where TDS reported by State AGs does not tally with that reported in form 24G. viii. Identifying AINs/TANs responsible for this and intimate field formations ix. Identifying AINs not issuing BIN and communicate the same to AO - TDS and Addl. CIT(TDS). x. Identifying the incorrect details filed in AIN directory and generate such reports periodically. xi. Making accessible report about AINs /TAN in other CsIT(TDS) charges in the ....