NEW ETDS FVU 3.2 RELEASED

[SureTDS - eTDS experts discussion group]

Dear SureTDS Users,

NSDL has released a new version of File Validation Utility version
3.2. The change is pertaining to the validation for threshold
transactions and the same has been incorporated in e-TDS/TCS FVU for
quarterly statement of FY 2010-11 onwards. Revised guidelines for
reporting threshold transaction is below this mail.

The necessary changes are being made in our software to incorporate
the above and the updates for the same will be communicated to all the
user through groups and on the SureTDS website. Please visit the
website regularly to check for the latest updates.

In case you require any further information kindly logon to our
website and use the LIVE CHAT SUPPORT option to CHAT with our Product
Support Center. Alternatively, you can also send us a mail on the
helpline email ID.

http://tin.nsdl.com/downloads/Key_features_FVU_3.2.doc

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Key features of File Validation Utility (FVU) version 3.2

• FVU 3.2 will be applicable for quarterly TDS/TCS statements
pertaining to FY 2010-11 onwards and will be mandatory w.e.f April 01,
2011.
• Mandatory to quote Mobile No. in quarterly TDS/TCS statements for
deductor category other than Central govt. and State Govt.
• Provision to quote the deduction under section 80CCF in salary
details (applicable for 24Q Q4).
• Total deduction under chapter VI A to include:
o Deduction under section 80CCE
o Deduction under section 80CCF
o Deduction under other sections of chapter VI A
• ‘Surcharge’ amount in salary details (provided annually in Annexure
II -- 24Q Q4) should be less than or equal to ‘Total Taxable Income’.
• ‘Education cess’ amount in salary details (provided annually in
Annexure II -- 24Q Q4) should be less than or equal to ‘Total Taxable
Income’.
• ‘Net Income tax payable’ amount in salary details (provided annually
in Annexure II -- 24Q Q4) should be less than or equal to ‘Total
Taxable Income’.
• Guidelines for reporting TDS transactions not exceeding / exceeding
threshold limit in quarterly TDS statements (as issued by Directorate
of Income Tax - Systems).

Below guidelines may be referred, if deductor wishes to report the
transaction in the quarterly TDS statement where no tax is deducted as
threshold limit (as per the provisions of the Income tax Act) of
amount paid/credited to deductee has not exceeded in the initial
quarter (s) but has exceeded in subsequent quarter.

1) Flag “Y” may be selected in the field of ‘Reason for non deduction/
lower deduction/ higher deduction’ to highlight transactions where TDS
is not deducted as the threshold for deducting tax has not exceeded.
2) Threshold flag can be quoted only against the following section
codes in corresponding challan details:
193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I,
194J, 194LA
3) Following approach may be referred for reporting threshold
transactions in quarterly statements:
1. In case there is no deduction of tax in the first two quarters of a
F.Y. where the prescribed rate of deduction as per Income Tax Rules is
10%. In the third quarter the threshold limit exceeds.
Approach 1:
The deductor may report those transactions in the respective quarterly
TDS statements with zero rate of deduction (‘0.0000’), zero tax
deducted/ deposited (‘0.00’) and amount paid in the respective
quarters with threshold flag. The deductor will mention the prescribed
rate of deduction, the amount paid in the third quarter, tax deducted/
deposited (deductee) on the total amount paid till that quarter. The
same is represented as follows:
Pertaining to quarter Reporting Quarter PAN Rate of deduction Date of
payment* Amount paid (Rs.) Date of deduction Amount deducted (Rs.)
Amount deposited (Rs.) Reason for non deduction /lower deduction
Q1 Q1 PAN1 0 Q1 1,00,000 - 0 0 Threshold flag Y present
Q2 Q2 PAN1 0 Q2 1,00,000 - 0 0 Threshold flag Y present
Q3 Q3 PAN1 30 Q3 1,00,000 Q3 30,000.00 30,000.00 No flag present
*The deductor must report the actual date of payment irrespective of
the manner of reporting
Approach 2:

The deductor may report all transactions in the quarter in which the
threshold has exceeded, represented as follows:

Pertaining to quarter Reporting Quarter PAN Rate of deduction Date of
payment* Amount paid (Rs.) Date of deduction Amount deducted (Rs.)
Amount deposited (Rs.) Reason for non deduction /lower deduction
Q1 Q3 PAN1 0.0000 Q1 1,00,000 - 0 0 Threshold flag Y
present
Q2 Q3 PAN1 0.0000 Q2 1,00,000 - 0 0 Threshold flag Y
present
Q3 Q3 PAN1 30.0000 Q3 1,00,000 Q3 30,000.00 30,000.00 No flag
present
*The deductor must report the actual date of payment irrespective of
the manner of reporting

Approach 3:

The deductor may report all transactions in the quarter in which the
threshold has exceeded, represented as follows:

Pertaining to quarter Reporting Quarter PAN Rate of deduction Date of
payment* Amount paid (Rs.) Date of deduction Amount deducted (Rs.)
Amount deposited (Rs.) Reason for non deduction /lower deduction
Q1 Q3 PAN1 10.0000 Q1 1,00,000 Q3 10,000.00 10,000.00 Threshold flag Y
present
Q2 Q3 PAN1 10.0000 Q2 1,00,000 Q3 10,000.00 10,000.00 Threshold flag Y
present
Q3 Q3 PAN1 10.0000 Q3 1,00,000 Q3 10,000.00 10,000.00 No flag present
*The deductor must report the actual date of payment irrespective of
the manner of reporting

• For validating e-TDS/TCS statement (regular and correction) for FY
2010-11 and onwards refer the table below:

FVU version of e-TDS/TCS Regular statement submitted FVU version
applicable for e-TDS/TCS Correction statement
FVU version 2.128 FVU version 3.2
FVU version 3.0 FVU version 3.2
FVU version 3.1 FVU version 3.2
FVU version 3.2 FVU version 3.2