FILING e-TDS

Query 1]

Sir, while filing quarterly e-TDS return: If total number of persons from whom TDS is deducted are 10 & if we don’t have PAN for 3 persons, can we still file the TDS return? If yes, does system will accepts the said return? How much non availability of PAN is allowed while filing e-TDS Returns? Is there any percentage for it while filling e-TDS return? [dineshsinghgaharwar@rediffmail.com]

Opinion:

1. You have to compulsorily quote the PAN of
   a) 95% deductees in case of e-TDS return for salaried deductees (Form No. 24Q) &
   b) 85% deductees in case of e-TDS return for non-salaried deductees (Form No. 26Q)
   In your case, PAN of at least 9 persons is required while validly filing e-TDS return if it pertains to TDS other than salary.
2. However, you can file your e-TDS return for the deductees who have valid PANs and subsequently file correction return (or say revised return) for remaining deductees whose PANs were not available with you while furnishing regular return. You are required to file a correction return in a prescribed file format available at tin-nsdl.com.
3. The amount deposited vide that particular challan should be mentioned in the original as well as correction return.
4. For ease of understanding, refer below example:
   a) Suppose a challan payment of Rs.1,00,000/- has been made for non-salary TDS against 100 deductees each with TDS of Rs.1,000/-. Under the existing procedure the deductor will have to quote at least 85% PAN failing which his return will be rejected.
   b) If there are only 50 deductees whose PAN is available and the deductor attempts to file a return with details of 100 deductees with PAN of only 50 deductees, the return will automatically be rejected at present.
   c) However, if the deductor files a return with challan amount of Rs. 1,00,000/- and with details of 50 deductees with PAN (with deductee total of Rs.50,000/-), the return will be accepted. It means the deductor can furnish the details relating to such deductees whose PANs are available.
   d) The deductor can later file correction returns with other details of remaining deductees with the same challan details, i.e., the challan amount should be the amount deposited (in this case Rs. 1,00,000/-).
   e) The return will be accepted so long as the TDS total of incremental deductees is less than or equal to the balance of Rs.50, 000/-.

 

Query 2]

My wife is a private tuition teacher and her income in around Rs. 1.10 Lacs p.a.  She is also an investor and trader in the stock market and her income during the Financial Year 2009-10 from trading of securities is around Rs. 50,000 /-.  Total income from private tuitions and gains from the stock market are around Rs. 1.60 Lacs during the F.Y. 2009-10.  Whether she has to pay any Short Term Capital Gains tax on the income she realized from trading of securities, i.e., Rs. 50,000 /- ? Please clarify.  [SRK Rao]

Opinion:

As her income is below the basic exemption limit, she is not required to pay any income tax, not even on Short term capital gain (STCG) of Rs. 50,000/-.

 

Query 3]

1. I have taken the Loans against Property from HDFC Bank in the F.Y. 2009-10. The amount is used to cover up my old share market loss. I am a salaried income tax payee. Please let me know whether interest and principal repayment would qualify for income tax benefit? It may be noted that I have not taken any income tax benefit when I had purchased this property in the F.Y. 2001-02. My salary during the F.Y. 2010-11 would be around Rs. 8.15 Lacs.
2. Whether School fees of Rs. 45,000/- (approx) to be paid by me in the current F.Y. 2010-11 will be eligible for deduction u/s 80C or there is a max cap of Rs. 12,000/- (or Rs. 6,000/-) on such payment?
3. I read in the earlier issues of TT that Deduction of Rs. 1,500/- is available whenever a minor’s income is clubbed with the income of the parents. Is it restricted to two childs only or can be claimed for the third child as well? Please guide by quoting relevant sections.

Opinion:

1. Deduction towards interest on borrowed capital is available u/s 24(b) in respect of loan taken for purchase/ construction/ renovation/ repairs / reconstruction of the house property whereas deduction towards principal repayment of the loan is available u/s 80C only in respect of loan taken for purchase/ construction of the house property. In your case, the deduction u/s 24(b) or u/s 80C shall not be available as the loan is not taken for the above purposes.
2. Subject to overall maximum cap of Rs. 1 Lacs u/s 80C of the Income Tax Act-1961, entire tuition fees paid for education of children is eligible as deduction.
3. 1,500/- is eligible as deduction u/s 10(32) whenever a minor’s income is clubbed with the income of the parents. The deduction is available from the income of all the minor child and there is no restrictions on the number of child in respect of this deduction of Rs. 1,500/- can be claimed.

FILING e-TDS

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