e-TDS
return has to be prepared in accordance with the file format prescribed
by the Income Tax Department. NSDL has provided free downloadable
utility at http://tin.nsdl.com for the purpose of preparation of e-TDS
return. Alternatively, various softwares are available for preparation
of TDS returns.
Following points should be noted while preparing E-TDS return :
1. Payment of TDS / TCS in Bank and Verification thereof
Challan no. 281 should be used for deposit of TDS/TCS.
Correct
10-digit Tax Deduction Account Number (TAN), name and address of the
deductor/collector should be quoted on each challan used for depositing
tax. TAN details should be verified from the Income Tax Department
web-site.
Separate
challans should be used to deposit tax deducted under different
sections. Correct code for nature of payment should be indicated in the
relevant column in the challan. (For example, 94C for payment to
contractors and sub-contractors, 94I for rent).
Separate challans should be used to deposit tax deducted for different types of deductees, i.e. Corporate or Non Corporate.
It is mandatory for the following types of assessees to pay tax online with effect from April 1,2008.
All the corporate assessees.
All assessees (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
6. Challan Identification Number ( CIN ) :
After
the taxes are paid, the collecting bank branch will give a counter foil
as acknowledgement for the taxes paid. Ensure that the bank has
mentioned the Challan Identification Number (CIN) on the counter foil.
CIN
has three parts : 7 digit BSR code of the bank branch where tax is
deposited, Date of Deposit of tax and Serial Number of Challan
7. The status of the challan deposited can be viewed on the
NSDL-TIN website (www.tin-nsdl.com) under the link “Challan Status
Enquiry”.
8. Challan Amount
Actual
challan amount should be mentioned in the TDS Return. This will enable
matching the challan details provided by the deductor in the TDS return
with the challan details uploaded by banks.
If
TDS for two months (June and July) was paid using one challan, the same
challan details should be repeated for both Q1 and Q2. However, it
should be ensured that the total TDS deposited for the corresponding
deductees given in returns for both quarters should be less than or
equal to the challan amount.
Permanent Account Number of Deductee
In case valid PAN of a deductee is not available, the deductor should mention the details as under :
PANAPPLIED - in case deductee does not have a PAN but has applied and provided proof of application of PAN.
PANNOTAVBL - where deductee has not given any PAN or proof of PAN application. This means PAN is not available.
PANINVALID
- where deductee has provided PAN but it is structurally invalid. The
Deductee PAN field should contain a structurally valid PAN or PANAPPLIED
or PANNOTAVBL or PANINVALID only. If any other value is mentioned in
this field then the FVU will give an error during validation of the TDS
return.
Deductee Type ( Company / Non Company )
Deductee Type should be properly indicated.
Payment by Book Entry or Otherwise
If
tax is deducted on the basis of provision made on the last day of the
accounting year then the option ‘Paid by Book Entry’ has to be selected.
This is necessary to ascertain the correct due date of payment for such tax deduction.
Rate of TDS & Reason Code for non deduction or lower deduction :
The
rate of tds should be correctly mentioned in the e-TDS return. If lower
deduction / no deduction is on account of a certificate under section
197, then this should be indicated by writing ‘A’ in the appropriate
column. If lower deduction / no deduction is on account of declaration
under section 197A, then this should be indicated by writing ‘B’ in the
appropriate column.
VALIDATION OF E TDS RETURN
File
Validation Utility (FVU) has been developed by NSDL to help deductors
ensure that the e-TDS returns prepared by them conform to the prescribed
file format. After preparing e-TDS return in accordance with the file
formats notified by ITD, a text file is generated with ‘txt’ as filename
extension. This *.txt file should be validated using the latest FVU to
ascertain whether the return contains any format level error(s). In case
the errors are found, these errors should be rectified and the file
should be validated once again. This procedure should be repeated till
an error free return is prepared. It should be noted that the FVU
validates only the format level accuracy of the e-TDS return.
After
successful validation of input file, three files are generated : TDS
Statement Statistics Report, PAN statistics report and upload file. Eg.
In case of valid file for Form 26Q, the FVU will generate three files
as follows:
i. Form26Q.html :
‘TDS Return Statistics Report’ This report is a summary of the e-TDS
return successfully validated by the FVU. It should be ensured that the
control totals along with the TAN, assessment year and other details as
reflected in this report match with the actual information.
ii.
Form26Q_PAN_Statistics.html This is a PAN Statistics Report which
contain list of deductee PAN deficiencies like invalid PAN, PAN not
available and PAN applied. If there are no PAN deficiencies, then this
file will not be generated.
iii.
Form26Q.fvu This is an upload file generated with the same file name as
the ‘input file’ but with an extension .fvu. This .fvu file should be
copied on floppy or CD for the purpose of furnishing the same at TIN FC.
FILING OF e-TDS RETURNS
After
preparing and validating the e-TDS returns as abovementioned, the
deductor will have to file the same at any TIN-FC managed by NSDL or
through an online web based facility provided by NSDL. File *.fvu which
is generated after successful validation is the upload file which has to
be submitted to TIN FC for filing of e-TDS return. Before filing, it
should be ensured that :
i) Each quarterly / annual e-TDS statement / return is in a separate
CD/floppy and is accompanied by a duly filled and signed (by an
authorised signatory) Form 27A in physical form.
ii) Each return is in one CD/floppy. It should not span across multiple floppies.
iii)
Return should be compressed, if required, only by using Winzip 8.1 or
ZipItFast 3.0 (or higher version) compression utility to ensure quick
and smooth acceptance of the file.
iv)
Label mentioning TAN, name of deductor/collector, period to which
return pertains (quarter and F.Y.) and Form no. (24Q, 26Q, 27Q or 27EQ)
is affixed on each CD/floppy for the purpose of identification.
v)
There is no overwriting/striking on Form 27A. If there is any, then the
same should be ratified by an authorised signatory.
vi)
TAN details (name, address, etc.,) of the deductor as provided in the
quarterly e-TDS return should be same as in the TAN database maintained
by ITD (these details can be verified on web-site
www.incometaxindia.gov.in). If they are different, the deductor will
have to submit a TAN change request application to update the ITD TAN
database or a copy of the acknowledgment of TAN change request already
submitted.
vii) The e-TDS return has been successfully passed through the latest version of the FVU.
viii) Control totals, TAN and name mentioned in the e-TDS return match with those mentioned on Form 27A.
ix) CD/floppy is virus free.
In
case any of these requirements are not met, the e-TDS return will not
be accepted at TIN- FCs or NSDL website. In that case, Non Acceptance
Memo will be issued by the TIN-FC.
