LDC_Challan Tagging
LDC/Challan Tagging Guide
As part of TDS monthly compliance, following features have been enabled:
Ingestion of deductions on monthly basis (without challan details).
Multiple validation checks like PAN validity, PAN-206AB check, LDC validity and consumption to determine the accurate TDS liability before monthly challan payments.
Create challan based on deductions and direct tagging of paid challans to deductions.
Tagging of LDCs and Challans to deductions directly on UI.
Ingestion
Specify only the deductee and deduction details such as section code, date of deduction, Gross & TDS amount and reason for lower/higher/no deduction, if any.
During ingestion, data structure validation checks will run for the deductee and deduction details and any discrepancy in the same will be flagged via error report, rectify the mistakes and ingest back the error file.
Data Ingested will be collated under two tabs - Deductions and Deductees
Adding LDCs
If the LDCs were not part of the deduction data, no need to worry Import LDCs directly from TRACES along with the consumption values and tag to the relevant deductions.
LDC tab > Add LDCs to return.
Make LDCs part of the return from the repository.
In Repository, there can be 2 situations LDCs are present and not present.
LDCs are already present in the Repository:
LDCs will be bucketed under two tabs:
Active LDCs - All LDCs with ‘Active’ status present in the Repository will be listed under this tab.
Other LDCs - LDCs with ‘Invalid’ status or with no status (Blank) present in the Repository will be listed under this tab.
Note:
If LDC sync date is not the current date, it will prompt to Sync LDC with TRACES before adding them to the return to determine the ‘Remaining Balance’ of LDC as on current date.
Only LDCs in “Active LDCs” tab are allowed to be added to the return and in turn tagging to the deductions. LDCs in “Other LDCs” tab are either invalid or not verified with TRACES are not allowed to be added to avoid the unnecessary defaults/notices.
LDC not present in the Repository:
A blank screen will appear with the CTA ‘Import LDCs’
Click on ‘Import LDC’ and it will land on the Import LDC screen of Repository in the new tab.
Specify the Traces credentials and Import LDCs from Traces at FY level
Go back to the previous tab and click on ‘Refresh data’.
Imported LDCs will be populated under the ‘Active LDC’ tab.
Select the required LDCs under the Active LDC tab and click on ‘Add LDCs to return’. The required LDCs will be added to the return
Tagging LDC to deductions
Once required LDCs are added to the return, the next step is to tag deductions with LDCs
Under the LDC tab, added LDCs will be visible with the communication message ‘All/Few of the Certificates added to the return are not tagged to any of the deductions. Tag them to deductions or it won’t become part of FVU file.’
On the right side of the LDC table, there is a freezed column containing a link for ‘Tag/untag deductions’.
Click on the link corresponding to the concerned LDC to tag/untag deductions with it.
Tag/untag deductions screen with auto-applied filters based on the various aspects of LDC will be opened.
PAN, Section and Date of credit is pre applied based on certificate values, these filters are not allowed to be removed. Reason - tagging the LDCs to the deductions outside the applied criteria will result inaccurate tagging and shall result in defaults/notices
Amount credited filter, if required can be removed.
Select the required deductions under Untagged deductions tab and click on ‘Tag to LDC’
LDC consumption as per Clear: We have introduced LDC consumption as per Clear to track the consumption of LDCs across the multiple return, no need to track the consumption anymore in excel.
During deductions tagging, overconsumption of LDC limit, if any, either within the current or across multiple returns will be flagged for review.
Recommended step: Click on Cancel to review the tagged and untagged deductions and select and tag deductions to the extent of remaining balance of LDC limit only. This will avoid the defaults/notices on account of short deductions.
Validation Checks:
Run the below checks to determine more accurate TDS liability before challan payments:
Verify PANs and check for 206AB: To determine the invalid PANs, non-Adhaar linked PANs and PAN where 206AB is applicable so that accurate TDS liability is determined.
Sync LDC to check the validity and consumption limit.
Potential Notice Check
Interest on late deposits won’t be calculated unless challans are added to the return and all the deductions are tagged to challans.
Note: Verify challans and Sync challans will be disabled unless challan(s) are added to the return.
Adding Challans
Challan tab > Add Challans to Return.
Make Challans part of the return from the repository.
In Repository, there can be 2 situations: Challans are present and not present.
Challans are already present in the Repository:
Challans will be bucketed based on the Financial Year Level.
Within the FY, challans will be further bifurcated under two tabs:
Recommended Challans:
All Synced Challans where Remaining Balance is more than Rs. 10 will be listed under this tab in the descending order of Remaining balance.
Remaining Challans:
Challans not having a sync date or remaining balance less than Rs.10 shall be listed under this tab.
If none of the challans is synced with TRACES, then all the challans will be part of this tab.
Note:
If Challan sync date is not the current date, it will prompt to Sync Challan with TRACES before adding them to the return to determine the ‘Remaining Balance’ of Challan as on current date.
Challans not present in the Repository:
A blank screen will appear with the CTA ‘Import Challans’
Click on ‘Import Challan’ and it will land on the Import Challan screen of Repository in the new tab.
Two options will be provided to add challans to Repository:
Import Challans from IT Portal: Require IT Portal credentials to Import the paid challans till the current date.
Add Challans Manually: Challans details can be added on UI to make them part of the Repository.
Go back to the previous tab and click on ‘Refresh data’.
Imported challans will be populated at FY level
Click on ‘Sync Challan via Traces’ to get the updated unconsumed balance
Post challan syncing, Challans will be bucketed under Recommended Challans and Remaining Challans.
Tagging Challans to deductions
Once required Challans are added to the return, the next step is to tag deductions with Challans.
On the right side of the Challan table, there is a freezed column containing a link for ‘Tag/untag deductions’.
Click on the link corresponding to the concerned Challan to tag/untag deductions with it.
Tag/untag deductions screen with auto-applied filters based on TDS Amount of Challan will be opened.
Total TDS Amount filter, if required can be removed.
Select the required deductions under Untagged deductions tab and click on ‘Tag to Challan’
Challan Over Consumption: We will track the consumption of challan at two levels to avoid defaults.
Within the current return: If the aggregate TDS of deductions tagged to a challan within the current return exceeds the challan TDS amount, the system will not allow to proceed further.
Required Action: Click on ‘Go Back’ and review the tagged deductions and tag the deductions to the extent of Challan TDS amount.
Across Multiple returns: If the aggregate TDS of deductions tagged to a challan across multiple returns exceeds the challan TDS amount, the error will be flagged for review.
Recommended step: Click on Cancel to review the tagged and untagged deductions and select and tag deductions to the extent of remaining amount of challan. This will avoid the defaults/notices on account of challan overconsumption.
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