A Step by Step method to ensure 100% reporting accuracy

1. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Ensure
100%
Reporting
Accuracy
on Your
Q-ETDS
Returns.
UPDATED AS ON
07 OCT 2013

2. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
STEP – 1
Lets First Understand the recent Changes
with reference to the Q-ETDS Rules.

3. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
S.No Description of Change Applicable
FVU Version
1
Provision has been given for an alternate contact detail
(email and phone no.) of the Deductor and its Responsible
Person.
3.8
2
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
3.8
3
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.
3.8
4
In Form 24Q (Salary Returns), a new Section 92C has been
added which is for payment made to Union Government
employees.
3.8

4. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
S.No Description of Change Applicable
FVU Version
5
In Form 26Q (Non‐Salary Returns), the existing Section
194I (Rent Payment) has been split into two sections
194I(a) and 194I(b)
3.8
6
For deductees wherein Lower Deduction / No Deduction
are applicable, the Certificate No. now has to be entered in
the Deductee details.
3.8
7
For certain specified payments to Scheduled Banks where
tax is not to be deducted under Section 197A(1F), the
same needs to be specified under Remarks in the
Deductee Details.
3.8
8
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.
3.8

5. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
S.No Description of Change Applicable
FVU Version
9
In the annual salary details (Applicable in Form 24Q – Q4),
records are to be highlighted whether tax has been
deducted at a higher rate owing to the non‐availability of
PAN of the employee.
3.8
10
Nature of remittance to be specified which is to be
selected from a list as provided for 27Q 3.8
11
To specify if the TDS rate is as per Income Tax (IT) Act or as
per Double Taxation Avoidance Agreement (DTAA) For 27Q 3.8
12
To provide details of the unique acknowledgement of the
corresponding Form No. 15CA (if applicable) pertaining to
the foreign remittance for 27Q
3.8
13
Country of Remittance to be selected from the list of
countries as provided for 27Q Transactions 3.8

6. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
S.No Description of Change Applicable
FVU Version
14
FVU (Ver. 2.135) is to be used for validation of Regular
Returns and Correction Statements pertaining to financial
years 2007‐08, 2008‐09 & 2009‐10.
FVU Version 3.9 is applicable for FY 2010-2011 onwards
only
3.9
15
Book entry flag should not be provided in
the challan details for nil challan nil transfer voucher for
all the financial years.
3.9
16
Change of Field in 24Q, Annexure 1 - “Taxable amount of
which tax deducted” has been changed to “Amount
paid/Credited”
3.9
17
In Form 24Q, Annexure 2 - if PAN provided is invalid (i.e.
PANNOTAVBL, PANAPPLIED & PANINVALID), then the flag in
the column “Whether tax deducted at higher rate”
mandatorily needs to be “Yes”
3.9

7. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
S.No Description of Change Applicable
FVU Version
18
DEDUCTOR CAN ADJUST EXCESS TDS IN NEXT FINANCIAL
YEAR
In the FVU version 4.0, we can now Map a challan of the
Immediate previous financial year to adjust Excess TDS
Amounts.
Earlier this relaxation was not available, now due to this
change, excess amount of tax paid, such amount can be
adjust in Immediate next financial year.
Hence, if a Challan is paid by selecting a wrong financial
year, the same can also be validated using FVU 4.00
All Deductee records that have Zero TDS Amount
(Transporter, Amount paid under threshold limit, u/s 197A
etc.) now need to be mapped to a Nil challan and also such
records should have a remark, made mandatory.
4.0
Applicable
from 1st
October
2013

8. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
S.No Description of Change Applicable
FVU Version
19
The said validation is applicable for regular Statements as
well as the following type of correction Statements:
a) C3 – Addition and update of deductor details (excluding
TAN) and/or challan details.
b) C9 – Addition of challan and its underlying deductees.
4.0
Applicable
from 1st
October
2013
20
Last Token Number to be quoted in TDS/TCS Regular
Statement:
A new field has been incorporated in the Quarterly
TDS/TCS Regular Statement for providing the 15 digit Token
Number of the last
regular accepted Statement. This field is mandatory.
4.0
Applicable
from 1st
October
2013

9. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
STEP – 2
Assessment of Expected Bottlenecks

10. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Expected Bottle Necks
• Ensure Software Updation :-
Undertake the necessary updations on the software you use. Most of the
Major software companies have issued an “Update” inline with the
changes for FVU 3.8 & then FVU 3.9 & Now it is 3.40

11. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Expected Bottle Necks
• Have the required Data’s ready :-
New Changes require you to provide the following. This needs to be
available with you (or) needs to be collected from the respective Vendor.
1. Lower Deduction Certificate Number
2. Salary Earned & Tax Deducted from Previous Employment
3. Country of Residence of a Foreign Vendor
4. Unique Acknowledgement No. of Form 15CA, if applicable
5. Specify if the TDS rate is as per Income Tax (IT) Act or as per DTAA
6. Provide Remarks of TDS is Exempted under 197A(IF)

12. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Expected Bottle Necks
• This is a Ongoing Process & hence though some of the data’s are not
required for Q2, the same needs to be collected from now on itself.
• This will avoid last minute problems

13. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
STEP – 3
Validation of Data – A Step by Step Approach
[ This is a Step by Step Validation Process used by us
to process the Q-ETDS Compliance of our clients.
We have derived this process after years of
research & understanding ]

14. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Data Validation -1
• Challan Validation
• Assumptions will not result in 100% Accuracy. Hence ensure you cross-
verify all the challans you report for Q-ETDS Filings are verified using the
OLTAS System.
• Link to OLTAS is here
https://tin.tin.nsdl.com/oltas/ - Click on TAN Based View. Enter the
necessary details.
• Verify the following
Challan Date, Amount, Section, Serial Number, BSR Code.

15. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Data Validation - 1

16. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Data Validation - 2
• PAN Validation
• Verify for Each of the PAN Record,
• Structural Validity of the PAN [ Should be of 10 Digits ]
• Check if it has 5 Alphabets, 4 Numbers & 1 Alphabets
• The 4th Digit of the PAN Should be one of the following
– P – If an Individual / Proprietor
– C – If Company
– F – If Partnership Firm
– T – If Trust
– H – If Hindu Undivided Family
– Etc.

17. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Data Validation - 3
• Data Duplication
• A Very Important parameter for reporting accuracy.
• Check if the Same PAN is provided for Multiple Vendors
• Check if the Same Vendor has Multiple PAN records

18. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
Data Validation - 4
• Challan Match
• An Unbooked Challan will not provide the required Tax Credit to the
vendors or employees. Hence check if
• Challan Amount should always be greater than or equal to the Deduction
Amount
• Section wise Challan Amount matches the Section wise Deduction amount

19. Achieve 100% Reporting Accuracy with Q-ETDS Compliance
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