Validation of TAN number and PAN Number is important for TDS Reconciliation. How companies can automate these processes to avoid notices and penalty from Income Tax Department
Bringing technology into business for core administration tasks has been cited as one of the innovations that has rescued most corporate tax departments over the last two years…
Clause 34 of Tax Audit Report (Form 3CD) requires Tax Auditors to comment on the overall Tax Deducted at Source (TDS/TCS) compliances by the tax payers. In accordance with the guidelines issued by Institute of Chartered Accountants of India on this clause, the auditors ask for a reconciliation of Financial Statements with the TDS/TCS returns.
01 July 2022 marked another important date for the TDS provisions. It marked the introduction of new sections under the TDS chapter of the Income Tax, 1961. It remains in line with the directive of the government to bring more and more accountability and transparency in the economy. This time the government targeted new areas of the TDS application.
The recon of the 34A is probably the most crucial recon of the Form 3CD.
Usually, companies take the data as filled out in the TDS returns filed during the year and submit the same with the details from all the quarters.
TaxReco has been discussing it since Feb 2021 as to how TDS Section 194Q will impact or has already begun impacting the way that tax teams work in companies across industries.
For one thing, the spotlight has been put on Form 26AS reconciliation/ TDS Reconciliation
This Diwali marked the completion of First Quarter of TDS u/s 194Q which was implemented w.e.f. 01 July 2021 and also the completion of First year of TCS u/s 206C 1H which was implemented w.e.f. 01 Oct 2020.
The new provisions have affected the cash flow of many industries by impacting how their transactions are taxed.
With TDS section 194Q being applicable from Jul1, 2021, TDS shall be applicable to transactions in manufacturing sector. Is the sector ready to handle compliances?
