Form 16 / TDS returns

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1

We have recently changed out TAN. So in FY 2324 we have 2 TAN’s. First 3 quarters return was processed in old TAN while 4th quarter return will be processed in new TAN. Have few questions in this regards:

  • Under New TAN income of 4th quarter to be reported in Annexure A & Full years income to be reported in Annexure II. This will ensure Part A for income of 4th quarter & Part B for full year
  • Under old TAN, we do not have any income to report in Annexure A. Neither we need to report any details in Annexure B. How do we file the return & generate Part A under old TAN?

Would appreciate to receive the process / guidelines in this regards.

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Hi @sneham95 ,

Handling the change in TAN (Tax Deduction and Collection Account Number) within the same financial year requires careful attention to ensure compliance and accurate reporting. Here’s a step-by-step guide on how to manage the situation for filing returns for both the old and new TANs for FY 2023-24:

1. Understanding Annexures and Parts of Form 24Q

Form 24Q is used for TDS on salaries and includes:

  • Annexure I: Contains details of the TDS deducted for each quarter.
  • Annexure II: Contains details of the salary paid and TDS deducted for the entire financial year.
  • Part A: Contains details related to the deductor and challan details for TDS payment.
  • Part B: Contains details of the employee’s salary, deductions, and net tax liability for the financial year.

2. Filing Under New TAN

For the new TAN, you need to report the income of the fourth quarter and the full year’s income.

Steps:

  • Annexure A: Report the income and TDS details for the fourth quarter.
  • Annexure II: Report the full year’s income and TDS details. This ensures that Part B covers the entire financial year.

3. Filing Under Old TAN

For the old TAN, since there is no income to report for the fourth quarter and no details required in Annexure II, the approach will be different.

Steps:

  • Annexure A: Since there’s no income for the fourth quarter, you do not report anything in Annexure A.
  • Annexure II: No details to report since the new TAN will cover the full year’s details.

However, you need to ensure that the previous three quarters’ returns under the old TAN are correctly filed and there are no pending corrections or defaults.

Detailed Process and Guidelines:

For the New TAN:

  1. Prepare Form 24Q for Q4:
  • Fill Annexure I with the fourth quarter’s TDS details.
  • Fill Annexure II with the entire financial year’s salary and TDS details for each employee.
  • Ensure Part A (quarterly details) and Part B (annual details) are accurately filled.
  1. Filing the Return:
  • Log into the TRACES website or the relevant TDS return filing software.
  • Use the new TAN to prepare and file Form 24Q for the fourth quarter.
  • Validate and upload the return.

For the Old TAN:

  1. Prepare a Nil Return for Q4:
  • Since there’s no income to report for the fourth quarter under the old TAN, prepare a Nil return.
  • Do not fill Annexure I with any new data.
  • No need to fill Annexure II as the full year’s data will be reported under the new TAN.
  1. Filing the Nil Return:
  • Log into the TRACES website or the relevant TDS return filing software.
  • Use the old TAN to prepare and file a Nil return for Form 24Q for the fourth quarter.
  • Validate and upload the return.

Summary:

  • New TAN: Report Q4 income in Annexure A and full year’s income in Annexure II.
  • Old TAN: File a Nil return for Q4 with no entries in Annexure A or Annexure II.

Additional Considerations:

  • Ensure that all previous returns filed under the old TAN are correct and have no defaults.
  • Maintain clear documentation for both TANs to facilitate any future audits or clarifications.
  • If needed, consult with a tax professional or TDS expert to ensure compliance and accuracy in the transition period.

By following these steps, you can ensure proper filing and compliance for both the old and new TANs for FY 2023-24.

Chitra,

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