Tax Deducted at Source (TDS) is an indirect method of Collecting tax which aims at the collection of revenue at the very source of Income. TDS combines the concept of ‘pay as you earn’ and ‘collect as it is being earned.’ Its importance to the govt lies in the fact that it brings forward the collection of tax, ensures a regular source of revenue, provides a wider base of tax and greater reach. TDS deducted is usually deposited to the govt by submitting an ‘Income Tax Challan’ along with the payment. So everyone has to file TDS Return.
A TDS Return is a quarterly statement that has to be submitted to the IT Department. If you are a Deductor TDS Return is Mandatory. TDS Return includes details of the PAN, TDS Challan, Particulars of tax paid to the government by the deductor and deductees.
Who is Required to File the e-TDS Return?
All Corporate and Government deductors as per Income Tax Act, 1961 are compulsorily required to file their TDS returns on electronic media that is e-TDS return. However, deductors other than Government or Corporate can file either in Electronic Form or in physical Form. For Government Deductors, e-TDS have been made mandatory.
How do you know whether you are a Government deductor or not?
All Drawing and Disbursing Officers of Central Government and State Government come under the category of Government deductors.
TDS Return Forms
These are the different forms applicable based on the type of deductee or Nature of Income on which TDS has been deducted.
|Nature of Income||Forms|
|TDS on Salary||Form 24Q|
|TDS where deductee is a non-resident, foreign company||Form 27Q|
|TDS on payment for transfer of certain immovable property||Form 26QB|
|TDS in any other case||Form 26Q|
Due Date for Submission of TDS Return
|For the quarter ending 30th June||15th July|
|For the quarter ending 30th September||15th October|
|For the quarter ending 31st December||15th January|
|For the quarter ending 31st March||15th May|
What is Quarterly e-TDS Statement?
TDS returns Filed in electronic form as per section 200(3), as amended by Finance Act, 2005 are quarterly TDS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from Financial Year 2005 to 2006 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in Pen Drive/CD should be accompanied by a signed verification in Form No. 27A in the case of both e-TDS statements.
Procedure for Filing e-TDS Return
5 Simple Steps for Filing e- TDS Return:
Step1: Choose the format or data structure for preparing a e-TDS return. IT Department and NSDL have made different format according to nature of payments. So the Assessee should choose any one from following format:
1. (a) Annual e-TDS return:
- File Format for Form 24.
- File Format for Form 26.
- File Format for Form 27.
(b) Annual e-TCS return:
- File Format for Form 27E.
(c) Quarterly return:
- File Format for Form 24Q.
- File Format for Form 26Q.
- File Format for Form 27Q.
- File Format for Form 27EQ .
Data structure for Form 24Q of the quarter ending 31st March.
- E-TDS clean text ASCII format: You can use any software like compu tax or Tally, MS-excel. NSDL’s or ERP software Return Preparation Utility (e-TDS RPU-Light) for making e-TDS return but E-TDS file formats must be in clean text ASCII format with ‘txt’ as filename extension.
- Correct TAN (Tax Deduction Account Number) of the Deductor is clearly mentioned in Form No. 27A as also in the e-TDS return, as required by sub-section (2) of section 203A of the IT Act.
- The Particulars relating to deposit of TDS in the bank are correctly & properly filled in the table of Form No. 24 or Form No. 26 or Form No. 27.
- The data structure of the e-TDS return is as per the structure prescribed by the e-Filing Administrator.
- The Control Chart in Form No. 27A has duly filled in all columns and verified and as enclosed in paper form with the e-TDS return on computer media.
- The Control totals of the amount paid and the tax deducted at source as mentioned in item No. 4 of Form No. 27A tally with the corresponding totals in the e-TDS return in Form No. 24 or Form No. 26 or Form No.27.
- Bank Branch code or BSR code is a 7 digit code allotted to banks by RBI. This is different from the branch code which is used for bank drafts. This number is given in the OLTAS challan or can be obtained from www.tin-nsdl.com or from the bank branch. It is mandatory to quote BST code both in challan details and deductee details. Hence, this field cannot be left blank. Government deductors transfer tax by book entry, in which case the BSR code can be left blank.
- Fill all your details and click on Save for e-Filing of Tabs.
- Then after clicking on save the assessee can see the tab as shown below.
- The accountant should enter the information like how many rows you want, etc.
- Then click on ‘ok’ and next save the file.
Step3: Verify or Validate your prepared e-TDS return. For validating the file use File Validation Utility (FVU) provided by NSDL.
- Fill the details and click on ‘Validate’.
Step4: In case the file has errors rectify the errors and verify the file using FUV.
Step5: e-TDS can also be filed at any of the TIN Facilitation Centers for filing e-TDS. For finding the TIN-FC Address easily click on the link below.
TDS Return Online Payment Procedure
These are the steps to make TDS Return Online. The Assessee can approach easily and make the TDS payment through Online.
- Visit the official website www.tin-nsdl.com
- In that select Challan No. ITNS 281 and download the challan form.
- The payment can be made either through or through Specified bank authorized by Income Tax Department.
- After payment of TDS, the bank gives acknowledgment that contains the following details.
- CIN (Challan Identification number).
- BSR code (Bank statistical return).
- DOP (Date of Payment).
- These details are very important for filing e-TDS Return.
- First, download the latest RPU from the tin-nsdl website.
- Install the file and open the file.
- Fill up deductor details in sheet 1.
- In 2nd sheet fill up challan details.
- In 3rd sheet fill up deductee details.
- Download and conform challan files from OLTAS (CSI file).
- Validate your return file.
- Generate the FVU file and then give to TIN Facilitation Centers for uploading.