Online Process for Submitting Form 26A or 27BA

Online Process for Submitting Form 26A or 27BA

Online Process for Submitting Form 26A or 27BA: According to the provisions of Section 201(1) for TDS, it provides that if any person fails to subtract any part or whole of the tax in accordance with the provisions of Chapter XVII-B on the amount credited to the account of a resident or on the amount of money paid to a resident shall not be deemed to be an ‘assessee in default’ in respect of such tax

  • has furnished return of income under section 139 of the Act,
  • for computing return of income, such sum has to be considered his/her return of income,
  • has made a complete payment of tax due on the income declared by him/her in such income return and
  • The person or the tax deductor furnishes a certificate from an accountant in Form 26A, which is prescribed under Rule 31ACB of the Income-tax Rules 1962.

There is a similar provision under section 206C (6A) applicable for Tax Collection at Source. In addition, the person (tax collector) is required to furnish a certificate from an accountant in Form 27BA, which is prescribed under Rule 27BA of the Income-tax Rules 1962.

Guide for Online Process

For Deductor/Collector

  • Login to the official Traces website
  • Under the ‘Statement/Payments’ menu, click on the option ‘Request for 26A/27BA’.
  • A brief guideline of the complete process will appear. Click on the ‘Proceed’ button shown at the end of the guideline.
  • Now Select the financial year, form type and transaction type from the dropdown menu and click on the ‘Proceed’ button

Financial year – Any year can be selected from 2007-08 until the last completed financial year.

Form Type – Either Form 24Q & 26Q (for TDS) or Form 27EQ (for TCS) can be selected.

Transaction Type – Either Short Deduction/Collection, Non-Deduction/Collection or Short and Non-Deduction/Collection can be selected.

Others:

  • DSC is compulsory for submitting transaction requests of Short and/or Non-Deduction/Collection. However, if redirected from the bank website, then DSC is not compulsory.
  • If the PAN number for Short and/or Non-Deduction/Collection is more than 20 digits, then it is required to upload the file in the format as suggested by TRACES.
  • Request availability of Non-Deduction/Collection & Short and Non-Deduction/Collection is only from the financial year 2016-17 onwards.
  • After the Request of 26A/27BA, a request number is generated. Then, click on ‘Go to Track Request for 26A/27BA.’
  • The table shows all the requests for Form 26A/27BA.

Others:

  • Only those requests with the status as Available or Upload File can be cancelled.
  • Status of the request is given below:
Status Details
Requested When the user has commenced the request
Available When the Request is accepted, click on the provided hyperlink on the status and it will take the user to a list of PAN screen.
Upload File PANs along with 26A/27BA to be file has to be uploaded by the user.
Submitted The request has been submitted to ITD by the user.
Sent to E-filing The submitted data request has been sent to E-filing.
Pending for Processing at TDS CPC The transactions from E-filing has been received by TDS CPC for further processing.
Processed TDS CPC has processed the transactions.
Processed with Partial Rejection 26A/27BA effect has not been given on those rows on which user has filed correction
Processed with Rejection 26A/27BA effect has not been given because user has filed correction on all rows
Not Available In Remarks column not available reason is to be provided.
Rejected TDS CPC has rejected the request after processing and the reasons for rejection has to be provided in the Remarks column.
Cancelled When the request is cancelled by the user.

If you raised a request for:

  • Non-Deduction/Collection, an option will appear to upload the file.
  • Short Deduction/Collection, an option will appear as follows: –
  • Available – If the unique PAN number is less than 20 digits.
  • Upload File – If the unique PAN number is more than 20 digits.

How To Upload The File for Non-Deduction/Collection?

  • Under the ‘Download’ menu option, click on the ‘Requested Download’.
  • Click on the option “Click here” to download the utility.
  • After entering the ‘Verification Code’ and click on the Submit button.
  • Download the TRACES Sample for Non-Collection or Non-Deduction along with the Utility.
  • The ZIP files are to be extracted and add the records for Non-Collection or Non-Deduction in the extracted CSV files with the important details.

Section Code for Non-Deduction

Section under which tax is deductible Form type Section under which tax is deductible Form type
192 24Q and 26Q 194BB 24Q and 26Q
192A 24Q and 26Q 194EE 24Q and 26Q
194IB 24Q and 26Q 194LA 24Q and 26Q
194 24Q and 26Q 194DA 24Q and 26Q
194A 24Q and 26Q 194LBA 24Q and 26Q
194B 24Q and 26Q 194IC 24Q and 26Q
194C 24Q and 26Q 194IA 24Q and 26Q
194D 24Q and 26Q 194LD 24Q and 26Q
194F 24Q and 26Q 194LBC 24Q and 26Q
194G 24Q and 26Q 194LBB 24Q and 26Q
194H 24Q and 26Q 196 24Q and 26Q
194J 24Q and 26Q 196B 24Q and 26Q
91A 24Q and 26Q 196D 24Q and 26Q
Non-Deduction Transactions under section Form Type Remarks
201(1) 24Q and 26Q Please quote this when non-deduction is only for 201(1)
40(a)(ia) 24Q and 26Q Please quote this when non-deduction is only for 40(a)(ia)
201(1) and 40(a)(ia) 24Q and 26Q Please quote this when non-deduction is only for 201(1) and 40(a)(ia)

Section Code for Non-Collection

Section under which tax was collective Form type Section under which tax was collective Form type
206CA 27EQ 206CH 27EQ
206CB 27EQ 206CI 27EQ
206CC 27EQ 206CJ 27EQ
206CD 27EQ 206CK 27EQ
206CE 27EQ 206CL 27EQ
206CF 27EQ 206CM 27EQ
206CG 27EQ 206CN 27EQ
  • After extracting the file from the Utility then run the Java Application for validating the file.
  • TAN – The TAN number of the Deductor/Collector to be entered.
  • Financial Year – The financial year to be entered as 2019, 2020 etc.
  • Form Type – Select 27EQ for Non-Collection or 24Q/26Q for Non-Deduction.
  • Transaction Type – Select Non-Collection or Non-Deduction as applicable.
  • Source File – The path of the CSV file to be specified with the records.
  • Save to Folder – Specify the path where the output file shall be saved.

If all the records in the CSV file are correct, then the file will generate.

  • Click on the option ‘Upload File’ available under the ‘Status’ for Non-Deduction/Non-Collection request.
  • After entering the ‘Verification Code’, select the output file generated in Step 13 above and click on ‘Upload’.
  • Once the ‘Upload’ button is clicked, the request will be verified using I-PIN or Digital Signature if redirected from the bank website.
  • Confirmation will be received from TRACES once the verification is successful.
  • Click on the option ‘Go to Track Request for 26A/27BA’ button where you get status as ‘Submitted.’
  • When the request will be successfully validated, it will be sent for E-filing and further processing, and the status will be updated to ‘Sent to E-filing.’

How To Record 20 PAN Records For Short Deduction/Collection?

  • Click on the hyperlink ‘Available’ as shown under the Status option for the request.
  • There will be a list of all the unique PAN’s for Short Deduction/Collection. Select the PAN numbers for which is to be removed from the Short Deduction/Collection default and click on ‘Submit Request’.
  • The request will be verified using I-PIN or Digital Signature if redirected from the bank website. Once the request is successfully validated and proceeds, it will be sent to E-filing for further processing, and the status will be updated to ‘Sent to E-filing’.

How To Record More Than 20 PAN Records For Short Deduction/Collection?

  • If the unique PAN records are more than 20, they must upload the file to submit the request. The same steps to be followed as mentioned from Step 8 to Step 10 to open the available utility page of TRACES.
  • Click on ‘TRACES-Sample-26A-27BA’ for downloading the sample format for uploading.
  • The CSV file to be extracted and add all the unique PAN numbers for Short Deduction/Collection. Make sure to save the file in ZIP format for uploading.
  • Follow the steps mentioned in Step 14 to Step 17 to upload the file along with all the unique PAN records.

In the first step, the request is to be filed on TRACES for Form 26A/27BA. Then, TDS CPC will generate a unique +DIN (3) for special Short deduction transactions. Similarly, a unique Alpha-Numeric String, which is a combination of TAN, PAN and financial year, will be generated for Non-deduction transactions. After successful processing by TRACES, both of these unique numbers and strings will be displayed. Finally, the deductor/Collector will communicate these unique Alpha-Numeric Strings and DINs electronically to the E-Filing Portal, and it is available for further Action by the Collector/Deductor.

The second step of the process is to certify these records by assigning a Chartered Accountant.

Guide for Deductor or Collector

  • Login to the official Income Tax Portal as deductor or collector
  • Under the ‘e-file’ menu, click on the option ‘Submit and View Form 26A/ 27BA’ available
  • Now Select the request type, form name and financial year from the dropdown menu and click on the ‘Continue’ button

Request Type – Select ‘submit form’ for assigning a Chartered Accountant or ‘view form’ to view all the details of the request.

Form Name – Select either ‘Form 26A’ or ‘Form 27BA’ for which the request has been generated via the TRACES portal.

Financial Year – Now select the financial year for which the request has already been generated via the TRACES portal.

  • It depends on the number of entries available, and the user can view the details like PAN, financial year, name, and status. Also, the download option for the details is available for Short Deduction/Collection and No Deduction/Collection records.
  • The number of PAN records determine whether to appoint a CA.

While PAN Records Are Less Than 20

  • Click on the option ‘Assign CA’ link that is showing against each record.
  • The ‘Membership Number’ of the CA is to be entered, and the name will get auto-populated by the e-Filing portal.
  • Then, the verification of the auto-populated name of the CA is required and click on ‘Submit’ to allocate.

While PAN Records Are More Than 20

  • Click on the ‘Download CSV Template’ option.
  • The .XLS format will be downloaded into the computer.
  • Now add the membership number of the assigned CA in the downloaded records, and the file is to be saved in .CSV format.
  • To upload the downloaded file and the CA’s membership number, click on the ‘Browse’ button.

Note: – For each unique Alpha-Numeric string/DIN, a single CA will be allocated to the Deductor/Collector. However, different CA can be assigned for additional unique records for a single request filed on the TRACES portal for Form 26A/Form 27BA.

The assigned CA will carry out the third step in the process. In this step, the CA will digitally sign the assigned unique DIN/ Alpha-Numeric Strings in Annexure A.

Guide for Assigned CA

  • Login to the official Income Tax Portal as a CA user
  • Under the ‘Worklist’ menu, click on the option ‘For Your Action’ available.
  • Click on the option ‘Annexure-A (Form 26A/27BA/)’ from the given list on the page.
  • From the dropdown, select the form name and financial year and click on ‘Search button

Form Name: Now select ‘Annexure-A of Form 26A’ or ‘Annexure-A of Form 27BA’ for which the Deductor/Collector has done the assignment.

Financial Year: Select the financial year for which the request has been generated via the TRACES portal.

  • All the available requests matching your criteria will be shown. In the Action, column locate and click on the ‘Submit’ option.
  • The file is required to be downloaded and then enter compulsory details for each Alpha-Numeric Strings/DIN for each payee like
  • Income head under which the receipt is accounted for
  • Under the head of income for which gross receipt is accounted for
  • Amount of taxable income under the income head under which the receipt is accounted for
  • To upload the ZIP file and Signature file, click on the ‘Upload ZIP File’ button.
  • Once compulsory details are entered for every DIN/ Alpha-Numeric Strings, it is necessary to upload the ZIP format of the file. Click on the option ‘Attach the Form Annexure (.zip) File’ and the signature file using ‘Attach the Signature file’.
  • After both the files are uploaded successfully, click on the Submit button.
  • The assigned CA can view the uploaded Annexure A at any time.

Guide To View Uploaded Annexure A

  • Login to the official Income Tax Portal as a CA user
  • Under the ‘Worklist’ menu, click on the option ‘For Your Action’ available.
  • Click on the option ‘Annexure-A (Form 26A/27BA/)’ from the given list on the page.
  • Select the name of the form and financial year from the dropdown menu and click on ‘Search button

Form Name: Now Select ‘Annexure-A of Form 26A’ or ‘Annexure-A of Form 27BA’ for which the Deductor/Collector has done the assignment.

Financial Year: Select the financial year for which the request has been generated via the TRACES portal.

  • All the available requests matching your criteria will be shown. Then, in the Action, column locate and click on the ‘View’ option to view the details.
  • Now click on the ‘Transaction No’ to check the details against each Alpha-Numeric Strings/DIN.
  • The final step in the process is required to be carried out by Deductor/Collector. In this step, the Deductor/Collector will digitally sign and approve Annexure A uploaded by the Assigned CA.

Steps for Deductor or Collector

  • Login to the official Income Tax Portal as deductor or collector
  • Under the ‘e-file’ menu, click on the option ‘Submit and View Form 26A/ 27BA’ available.
  • Select the request type, name, form and financial year from the dropdown menu and click on the ‘Continue’ button

Request Type: Select the ‘submit form’ option to approve the form or the ‘view form’ option to view the form details.

Form Name: Select either ‘Form 26A’ or ‘Form 27BA’ for which The Assigned CA has submitted annexure A.

Financial Year: Now select the financial year for which The Assigned CA has submitted annexure A.

  • Under TAN login, click on the Submit button. It will be enabled only when the Assigned CA has submitted Annexure A.
  • Fill in the mandatory details like payee name, total amount and upload the signature file using the ‘Attach the Signature file’ button and click on the Submit button.
  • Deductor/Collector can download the CA Certificate and submit Form 26A/ Form 27BA.

Guide To View Submitted Form 26A or Form 27BA

  • Login to the official Income Tax Portal as a CA user.
  • Under the ‘Worklist’ menu, click on the option ‘For Your Action’ available.
  • Click on the options list ‘Annexure-A (Form 26A/27BA/)’ on the page.
  • Select the request type, name of the form and financial year from the dropdown menu and click on ‘Search button.

Request Type: Select the option ‘view form’ to view/download the submitted form.

Form Name: Select either ‘Annexure-A of Form 26A’ or ‘Annexure-A of Form 27BA’, which is to be viewed or downloaded.

Financial Year: Select the financial year.

All the available requests matching your criteria will be shown. Click on the ‘View’ option located in the Action column to view the details.

Now, you can download Annexure A and Form 26A/Form 27BA in PDF format.

After the request for Form 26A/Form 27BA gets processed, there will be a recalculation of the short deduction. The request for the late deduction interest will be generated, which the deductor can view in the TRACES portal. The status of the statements can be checked by the Deductor/collector using the same steps which are required to be followed for generating statement request for Form 26A/Form 27BA.

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