Processing of E-TDS Returns – CBDT Instructions
IN the present system of processing of e-TDS returns, the returns are processed online and mismatch report showing defaults on various accounts is generated. Based on this mismatch report, the assessing officers issue show-cause-notices to the deductors and take follow up actions.
CBDT has noticed that substantial number of TDS returns are pending where the deductee -wise default on account of short deduction of tax is less than Rs. 10.
CBDT has decided that :-
i. where the default on account of short deduction is less than Rs.10 for each deductee, the demand is rounded off to zero; and
ii. after considering (i) above, deductor -wise demand/default, if any, of Rs.100 or less will also be ignored for further action.
The CBDT further warns the DDOs to be careful in future so as to ensure that they do not become habitual in short deduction of tax.
More problems with electronic processing will arise in the days to come. We are told that the software does not recognize a negative income from House Property.
CBDT Instruction No. 8/2010, Dated: December 8, 2010