Simplifying process of e-TDS Returns

Understanding the process of e-TDS Return Filing

What is TDS
Tax Deducted at Source (TDS) is a means of collecting Income Tax in India governed under the Indian Income Tax Act of 1961

What is e-TDS Return

e-TDS return is a TDS return prepared in form No.24,26 or 27 in electronic media as per prescribed data structure

The TDS Return prepared should be accompanied by a signed verification in Form No.27A

Who is required to file e-TDS return?

As per Section 206 of Income Tax Act all corporate and government Deductors are compulsorily required to file their TDS return on electronic media (i.e. e-TDS returns) However, for other Deductors, filing of e-TDS return is optional.

Forms to be used for filing annual/quarterly TDS/TCS returns

Form No Form 24 Particulars Annual return of "Salaries" under Section 206 of Income Tax Act, 1961 Annual return of deduction of tax under section 206 of Income Tax Act, 1961 in respect of all payments other than "Salaries" Statement of deduction of tax from interest, dividend or any other sum payable to certain persons Periodicity Annual

Form 26

Annual

Form 27

Quarterly

Form 27E Form 24Q

Annual return of collection of tax under section 206C of Income Tax Act, 1961 Quarterly statement for tax deducted at source from "Salaries" Quarterly statement of tax deducted at source in respect of all payments other than "Salaries" Quarterly statement of deduction of tax from interest, dividend or any other sum payable to non-residents Quarterly statement of collection of tax at source

Annual Quarterly

Form 26Q

Quarterly

Form 27Q Form 27EQ

Quarterly

How is e-TDS return prepared?

e-TDS return has to be prepared in the data format issued by e-Filing Administrator This is available on the websites of Income-tax Department at i.e. www.incometaxindia.gov.in and of NSDL at www.tin-nsdl.com

Form 24Q
Form24Q eTds file structure has been changed for the financial year 2013-14 IT department has introduced a new File Validation Utility "FVU 3.8" which can be downloaded from https://www.tinnsdl.com/etds-etcs/eTDS-file-validation-utility.php Form24Q eTds file for the financial year 2013-14 should be validated only by FVU 3.8 version

Form24Q eTds can be generated in the older format also by disabling the IT option "GENERATE_ETDS_IN_2013_FORMAT"

Changes in 24Q e-TDS for FY13-14

1. Mandatory field "Minor Head Code" introduced in challan details 2. Optional field "Late Payment Fee" introduced in challan details

3. Additional options Introduced: 1. Employer / Deductor's STD code(Alternative) 2. Employer / Deductor 's Tel-Phone No(Alternative) 3. Employer / Deductor Email ID (Alternate) 4. Responsible Person's STD Code (Alternate) 5. Responsible Person's Tel-Phone No. (Alternate) 6. Responsible Person's Email ID (Alternate)

Process of e-TDS Returns

To initiate the process of e-TDS returns go to Reports > Form 24 Q

Select the Quarter for adding Challan Add Challans`

Adding New Challan

Add all details. The total amount must include the interest and late payment fee

As per the new changes, Minor Head code is to be selected

Save file after adding all details

Editing existing Challans

Challans an be edited Challans can also be allocated to employees

Select the quarter and challans to edit

Editing existing challans

Edit the required details and save

Allocate challans to employees after saving

Configure Details
Select the Configure Option to edit details

Fill details of your company and the person responsible for deducting Tax and save

Validate the e-TDS Details

Validate the details. A pop up window shows the status of errors

File Validation Utility 3.8

e-TDS / e-TCS returns prepared for FY 2005-06 and onwards (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility. Open https://www.tin-nsdl.com/ Select Downloads > Quarterly Returns> Regular

Downloading and Saving FVU 3.8

Select e-TDS/TCS FVU.exe (Version 3.8) The FVU 3.8 gets downloaded in Zip File

Downloading and Saving FVU 3.8

Downloaded and save the file. System requirement : Java 6.25 or later

Open FVU Standalone 3.8 Jar. Select the text file generated from the application, CIS file provided by the bank and then the FVU file generation path The file generated gets saved in the path provided. This file is to be validated

Reports
After validating the Text file generated, Form 24 Q and 27 A Reports can be generated from the application. These reports are to be submitted to the Department

The Preview Form 24Q option enables downloading of reports The Reports downloaded include 24 Q Annexure 1 Annexure 2 27 A

Form 27 A

Based on Form 27 A user can validate the amount of Tax deducted and deposited . They can take signature and submit for e-TDS Return filing

e-TDS with Greytip

Thank You

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