The tax landscape is ever-changing, and with the commencement of FY 2023-24, two new versions of the File Validation Utility (FVU) have been released: FVU version 2.178 for quarterly e-TDS/TCS statements up to FY 2009-10, and FVU version 8.2 for quarterly e-TDS/TCS statements from FY 2010-11 onwards. Both versions are applicable with effect from September 01, 2023.
Form 24Q: The key feature of Form 24Q is its comprehensive layout, which not only captures basic information about the employer (deductor) and employees (deductees) but also breaks down the salary components and the corresponding Tax Deducted at Source (TDS) for each quarter. The form also includes an ‘Annexure II’ for the last quarter, which provides a detailed, employee-wise breakup of the entire financial year’s earnings, tax deductions, and exemptions. This annexure serves as the basis for generating Form 16, the annual TDS certificate for salaried employees.
Also Read: New RPU Version 4.7: Updates in e-TDS/TCS Returns for FY 2023-24
Form 26Q: Form 26Q is versatile and caters to multiple types of payments that are subject to TDS, other than salaries. This includes payments to contractors, interest earned on securities, rent income, and more. The key feature is its broad scope, accommodating various sections of the Income Tax Act under which different rates and criteria for TDS apply. This makes it a multipurpose tool for TDS compliance on non-salary payments.
Form 27Q: What distinguishes Form 27Q is its specific focus on capturing TDS details for payments made to non-residents and foreign companies. The form accounts for various types of income such as interest, dividends, and fees for technical services, among others, that are subject to different rates of TDS under the Income Tax Act or any applicable Double Taxation Avoidance Agreements (DTAA). This focus on non-resident transactions makes it a specialized tool for cross-border tax compliance.
Form 27EQ: The standout feature of Form 27EQ is that it deals exclusively with Tax Collected at Source (TCS). Unlike TDS, where the focus is on the payment receiver, TCS is collected by the seller from the buyer at the time of sale. The form accommodates various transactions where TCS is applicable, like sale of scrap, minerals, or alcoholic liquor for human consumption. This form is key for ensuring that sellers are complying with their obligation to collect tax from buyers and remit it to the government.
This article aims to guide you through the key features, new columns, and the significance of these updates for various forms.
I. File Validation Utility (FVU) version 2.178 for quarterly e-TDS/TCS statement up to FY 2009-10
Key Features – File Validation Utility (FVU) version 2.178: This version of FVU is applicable with effect from September 01, 2023 onwards.
Link to Download FUV 2.178: e-TDS/TCS FVU.exe
II. File Validation Utility (FVU) version 8.2 for quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards (applicable with effect from September 01, 2023 onwards
Link to Download FVU 8.2: e-TDS/TCS FVU.exe
Key Features
A. For Form 24Q:
1. Addition of new column (346A) under Annexure II: Other special allowances under section 10(14)
2. Addition of new column (365A) under Annexure II: Deduction in respect of contribution by the employee to Agnipath Scheme under section 80CCH (Gross Amount)
3. Addition of new column (365B) under Annexure II: Deduction in respect of contribution by the employee to Agnipath Scheme under section 80CCH (Deductible Amount)
4. Addition of new column (366A) under Annexure II: Deduction in respect of contribution by the Central Government to Agnipath Scheme under section 80CCH (Gross Amount)
5. Addition of new column (366B) under Annexure II: Deduction in respect of contribution by the Central Government to Agnipath Scheme under section 80CCH (Deductible Amount)
Note:
1) Applicability for quarterly e-TDS/TCS statement of points 1 to 5 pertains to FY 2023-24 onwards.
B. For Form 26Q:
1. Addition of new column (419D) under Annexure I: Amount of cash withdrawal in excess of Rs. 3 crore in case of co-operative societies as covered by third proviso to section 194N (in cases not covered by the first proviso to section 194N)
2. Addition of new column (419E) under Annexure I: Amount of cash withdrawal which is in excess of Rs. 20 lakh but does not exceed Rs. 3 crore for cases covered by sub-clause (a) of clause (ii) of first proviso read with third proviso to section 194N (in case of co-operative societies)
3. Addition of new column (419F) under Annexure I: Amount of cash withdrawal which is in excess of Rs. 3 crore for cases covered by sub-clause (b) of clause (ii) of first proviso read with third proviso to section 194N (in case of co-operative societies)
4. Addition of new section 194BA under section codes list available under Annexure I: Winnings from online games
5. Addition of new section 194BA-P under section codes list available under Annexure I: Net Winnings from online games where the net winnings are made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such net winnings are released
6. Addition of new section 194N-C under section codes list available under Annexure I: Payment of certain amounts in cash to co-operative societies not covered by first proviso
7. Addition of new section 194N-FT under section codes list available under Annexure I: Payment of certain amount in cash to non-filers being co-operative societies
Note:
1) Applicability for quarterly e-TDS/TCS statement of point 4 pertains to FY 2023-24 & Q2
2) Applicability for quarterly e-TDS/TCS statement of points 1, 2, 3, 5, 6 and 7 pertains FY 2023-24 & Q1 onwards.
C. For Form 27Q:
1. Addition of new column (720D) under Annexure I: Amount of cash withdrawal in excess of Rs. 3 crore in case of co-operative societies as covered by third proviso to section 194N (in cases not covered by the first proviso to section 194N)
2. Addition of new column (720E) under Annexure I: Amount of cash withdrawal which is in excess of Rs. 20 lakh but does not exceed Rs. 3 crore for cases covered by sub-clause (a) of clause (ii) of first proviso read with third proviso to section 194N (in case of co-operative societies)
3. Addition of new column (720F) under Annexure I: Amount of cash withdrawal which is in excess of Rs. 3 crore for cases covered by sub-clause (b) of clause (ii) of first proviso read with third proviso to section 194N (in case of co-operative societies)
4. Addition of new column (719B) under Annexure I: Whether deductee opting out of taxation regime u/s 115BAC (1A)? (Y/N)
5. Changes in list of deductee codes present under Annexure I:
List of Deductee Codes:
|
Sr No. |
Deductee Code | Description |
| 1 | 01 | Company, other than domestic company |
| 2 | 02 | Individual |
| 3 | 03 | Hindu Undivided Family |
| 4 | 04 | Association of Persons (AOP) except in case of AOP consisting of only companies as its members |
| 5 | 05 | Association of Persons (AOP) consisting of only companies as its members |
| 6 | 06 | Co-operative Society |
| 7 | 07 | Firm |
| 8 | 08 | Body of individuals |
| 9 | 09 | Artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act 1961 |
| 10 | 10 | Others |
6. Addition of new section 194B under section codes list available under Annexure I:
7. Addition of new section 194B-P under section codes list available under Annexure I:
8. Addition of new section 194BA under section codes list available under Annexure I:
9. Addition of new section 194BA-P under section codes list available under Annexure I:
10. Addition of new section 194BB under section codes list available under Annexure I:
11. Existing section code 194LC has been now sub-categorized into 3 new section codes namely ‘194LC (2)(i) and (ia)’, ‘194LC (2)(ib)’ & ‘194LC (2)(ic)’:
12. Addition of new section 194N-C under section codes list available under Annexure I:
13. Addition of new section 194N-FT under section codes list available under Annexure I
|
Reference Point No. |
Section | Nature of Payment |
| 6 | 194B | Winnings from lottery or crossword puzzle, etc |
| 7 | Proviso to section 194B | Winnings from lottery or crossword puzzle, etc where consideration is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released |
| 8 | 194BA | Winnings from online games |
| 9 | Sub-section (2) of section 194BA | Net Winnings from online games where the net winnings are made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such net winnings are released |
| 10 | 194BB | Winnings from horse race |
| 11 | 194LC (2)(i) and (ia) | Income under clause (i) and (ia) of sub-section (2) of section 194LC |
| 11 | 194LC (2)(ib) | Income under clause (ib) of sub-section (2) of section 194LC |
| 11 | 194LC (2)(ic) | Income under clause (ic) of sub-section (2) of section 194LC |
| 12 | 194N Third Proviso | Payment of certain amounts in cash to co-operative societies not covered by first proviso |
| 13 | 194N First Proviso read with Third Proviso | Payment of certain amount in cash to non-filers being co-operative societies |
Note:
1) Applicability for quarterly e-TDS/TCS statement of points 1, 2, 3, 4, 5, 7, 8, 9, 10, 12 and 13 pertains to FY 2023-24 & Q1 onwards.
2) Applicability for quarterly e-TDS/TCS statement of point 6 pertains to FY 2023-24 & Q2
3) Applicability for quarterly e-TDS/TCS statement of point 11 pertains to FY 2023-24 & Q1 and Q2 onwards.
D. For Form 27EQ:
1. Changes in list of Collectee (Party) codes present under Annexure I:
List of Collectee Codes:
|
Sr No. |
Party Code | Description |
| 1 | 01 | Company |
| 2 | 02 | Individual |
| 3 | 03 | Hindu Undivided Family |
| 4 | 04 | Association of Persons (AOP) except in case of AOP consisting of only companies as its members |
| 5 | 05 | Association of Persons (AOP) consisting of only companies as its members |
| 6 | 06 | Co-operative Society |
| 7 | 07 | Firm |
| 8 | 08 | Body of individuals |
| 9 | 09 | Artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act 1961 |
| 10 | 10 | Others |
2. Addition of new column (667B) under Annexure I: Whether collectee opting out of taxation regime u/s 115BAC (1A)?
3. Addition of new collection code 206C-T under collection codes list available under AnnexureI:
Collection Codes List:
|
Reference Point No. |
Section | Nature of Collection |
| 9 | 206C | Collection at source for purchase of overseas tour program package |
| 10 | 206C | Collection at source on remittance under LRS from educational loan taken from financial institution mentioned in section 80E |
| 11 | 206C | Collection at source on remittance under LRS except for the purposes of education or medical treatment |
| 12 | 206C | Collection at source on remittance under LRS is for the purposes of education or medical treatment and not covered under Code P |
Note:
1) Applicability for quarterly e-TDS/TCS statement of points 1 and 2 pertains to FY 2023- 24 & Q1 onwards.
2) Applicability for quarterly e-TDS/TCS statement of point 3 pertains to FY 2023-24 & Q2
