Electronic TDS Return (E-TDS)

Electronic TDS Return (E-TDS)

Mandatory Requirement of filing E-TDS Returns

Sec. 206(2) has made it mandatory w.e.f. 1-6-2003 for Corporate deductors and w.e.f. 1-4-2005 for Govt. deductors to furnish their TDS returns in Electronic Form (e-TDS).

As per Income-tax (Sixth Amendment) Rules, 2010 notified vide SO. No.1261(E), dated 31-5-2010, the following persons are mandatority required to file TDS/TCS returns electronically on quarterly basis:

the deductor is an office of Government, or

the deductor is a principal officer of a company; or

the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

the number of deductees’ records in a statement for any quarter of the financial year is equal to more than twenty.

The above amendment has come into force with effect from 1st April, 2010. (Rule 31A)

It is however optional for the non-corporate deductors, other than 3 & 4 above, to file TDS Returns in physical form or in electronic form.

Due dates

As per Section 200(3) read with and Rule 31A require that any person deducting tax on or after April 1, 2005 shall within the prescribed time, prepare and deliver quarterly statements for the period ending 30th June, 30th September, 31st December and 31st March in each financial year. Every person, being a person responsible for deducting tax (i.e., T.D.S.) shall deliver to NSDL or their TIN-facilitation Centres quarterly statements in Form No. 24Q in respect of tax deducted on salary [i.e., u/s.192(1) and u/s. 192(1A)] and in Form No. 26Q in respect of other cases of T.D.S. and in Form No. 27Q in respect of T.D.S. on payments to non-residents. The due dates of submitting the said quarterly statements are as under:—

Due dates of filing various forms for the Financial Year : 1.4.2010 to 31.3.2011

Form No. ->

24Q & 26Q

27Q

27EQ

26QAA

Rule No ->

31A

31A

31AA

31ACA

W.E.F.

1.4.2010

1.4.2010

1.4.2010

17.3.2006

Applicable for ->

Salary – 24Q /
Others – 26Q

Payments to
Non-residents

TCS

Interest > Rs. 5,000/- /
Rs. 10,000/-by Banks, etc.

Quarter

Due date

Due date

Due date

Due date

April to June

15 July

15 July

15 July

31 July

July to Sept.

15 October

15 October

15 October

31 October

Oct. to Dec

15 January

15 January

15 January

31 January

Jan to March

15 May

15 May

30 April

30 June

Note : All the above forms & the due dates are same for the E-TDS as well as for Paper-form TDS.

Quoting TAN / PAN

Person responsible for deducting tax at source shall quote his TAN and PAN and also quote the PAN of all persons in respect of whose income-tax has been deducted, except in cases where deductee furnishes a declaration referred to in Section 197A (i.e., Form No. 15H/15G). As far as NSDL Programme is concerned, deductor can write "PANNOTAVBL", if PAN is not available or write "PANINVALID" for incorrect pan or write "PANAPPLIED" where application for PAN is made. Deductees’ PAN should not be less than 95% for 24Q form and 85% for 26Q/27EQ form of the PAN data for q.e. 31-3-2008 and onwards. Deductors can file a return containing deductee details, who have provided valid PAN. It can subsequently file a correction return with details of remaining deductees.

Form 27A

The only thing to be furnished in physical form along with CD/ Pen-drive is Form No. 27A. Form No. 27A is a summary of TDS statement, which contains control totals of "Amount paid" and "Income tax deducted at source". The control totals mentioned on Form No. 27A should match with the corresponding control totals in e-TDS statement file.

CERTAIN IMPORTANT INFORMATION

Related Websites:

For New TAN: New TAN can be searched on website "incometaxindia.gov.in" by feeding old TAN or Company’s name.

For downloading Form No. 24Q/26Q/27Q and instruction, log on to "tin.nsdl.com.".

If TAN number is not available, taxes cannot be paid and e-TDS statement will not be accepted.

Fees to be paid as under:

Deductee Records	Fees (including Service Tax) :
Up to 100 records	Rs. 30/-
101 to 1000 records	Rs. 182/-
More than 1000 records	Rs. 606/-

For filing e-TDS returns, List of Facilitation Centres can be downloaded from Website: www.tin.nsdl.com
FURNISHING OF e-TDS RETURNS IN PEN DRIVE/CD w.e.f. 18.3.2011

e-TDS/TCS statement should be submitted in Pen Drive or CD.

Deductors /Collectors should check the feasibility of acceptance of statement in pen drive with TIN Facilitation centers before submission.

The Pen Drive/CD may contain multiple e-TDS/TCS statements.

The Pen Drive/CD will be returned after acceptance of statements i.e. TIN centre will copy the data in its record and return the Pen drive/CD.

Procedure FOR PREPARING E-TDS RETURN WITH EFFECT FROM 18th March, 2011

At present (w.e.f. 18th March, 2011) the following versions of utilities are applicable :

For E-TDS Returns up to F.Y. 2009-10

Type of Form

RPU Version

FVU Version

Original

2.3

2.130

Corrected (i.e., Revised)

2.3

2.130

For E-TDS Returns for F.Y. 2010-11

Type of Form

RPU Version

FVU Version

Original

2.2

3.1

Corrected (i.e., Revised)

2.2

3.1

All deductors are required to ensure that quarterly e-TDS/TCS returns filed are as per the latest data structure. Any statement filed as per the old data structure will be rejected at TIN.

Procedure

The RPU can be best viewed under 1024 by 768 pixels (Minimum) resolution.

Download the necessary files (RPU/FVU) :

JRE version SUN JRE: 1.42_03 or 1.4.2_04 or IBM JRE: 1.4.1.0 should be installed in the computer.

Download latest version of VB based files for Forms from the NSDL website –www.tin.nsdl.com

The RPU/FVU will be downloaded in zip format and by default it will be downloaded in C: Drive. But you can download it any folder by giving it the desired path.

Double click and then "RUN" the file so as to make it unzipped.

As a result, a folder named e-TDS RPU 2.2 will be created automatically. In this folder there are 17 files. For E-TDS Return preparation, RPU.exe file is to be utilized.

Double click on RPU and VB file be displayed.

Select the necessary Form (No. 24Q/26Q/27Q/27EQ) using the drop–box.
Select the type of statement (Regular/Correction) to be prepared
Complete all sheets- viz. Form, Challan details and Annexures (i.e., deductee details)

Flags to be selected in the column "Reason for lower or non deduction of tax" as under :

Flag	For
A	Lower / No deduction for certificate u/s. 197
B	No deduction for declaration u/s. 197A
C	Higher deduction where PAN is not available
T	No deduction for Transporters having PAN (sec. 194C(6) )
X	Lower TCS for certificate u/s. 206C(9)
Y	No deduction due to payment below threshold limit.

Any one of the contact details of deductor/collector is mandatory :

Deductor/Collector’s telephone No. along with STD code

Responsible person’s telephone No. along with STD code

Mobile no. of responsible person

E-mail id of deductor/collector/responsible person.

Challan Input File (New feature w.e.f. 1.10.2009)

This file has to be downloaded from the NSDL Website from Challan Status Inquiry for the verification of challan in TDS/TCS statement. Once the challans are matched, the file can be downloaded and saved in the appropriate (same) folder of the relevant form.

Specify the name (with the .csi extension) of the input file (including the path) i.e. the name of the challan file downloaded from Challan Status Inquiry for the verification of challan in TDS/TCS statement.

Warning file is generated by FVU if:

The value in the Bank Branch Code (BSR code) field of challan in the e-TDS/TCS statements is not present in the authorized list of collecting Bank Branch Codes in the FVU and/or

If the PAN of the deductor is same as that of any deductee in the e-TDS/TCS statement.

If the challans details of the statement do not match with the details uploaded by the bank.

After filling up all the data in all the sheets and final saving of the input file, click on "CREATE FILE" option. Once this is done, the screen will display "File Validation Successful". The file will be validated automatically and the validation results will be saved by default in the same folder, where the input file is saved. The valid e-file will be created, which may be copied on a CD or Pen-drive. \
In case of errors, an Error-Response file will be generated giving the error report.
Finally, prepare Form No. 27A (in paper form) with the help of Statistical
Data Report generated by the Validation Result. The deductor should sign Form no.
27A and submit to the TIN-FC alongwith CD/Pen-drive.
The process is over.