Version 2.97 : Changes to implement FVU 3.4 Effective March 2012

NSDL has released File Validation Utility Version 3.4 and it is mandatory w.e.f March 2012. This utility is to be used for making corrections in statement pertaining to FY 2010-11 and onwards. For correction statements pertaining to period upto FY 2009-10 , FVU 2.132 has to be used

To implement above fvu, fast facts has released eTdsCorrection Version 2.97.

Date of Deduction beyond current quarter

The only change in this fvu is about date of deduction

Previously, the date of deduction could not be beyond end of date of the quarter. So if eTDS file pertains to Q1 of 2011-12, the date of deduction could not be beyond 30-06-2-11.

Now it is possible to quote date beyond quarter ending date.

However the date of deduction cannot be future date.

Reason for this change

Section 40(a)(ia) of the Income Tax Act, provides for non-admissibility of certain expenses in computation of total income, if tax is not deducted at source before due date of filing of income-tax return.

This means that tax can be deducted after the end  of quarter but before the due date of filing of income-tax return.

While this was being allowed by the law, the fvu was treating this as invalid deduction entry and was not allowing creation of fvu file.

With fvu 3.4 and 2.132 this anomaly has been removed.