How should the e-TDS/TCS return be prepared?

e-TDS/TCS return has to be prepared in the data format issued by e-Filing Administrator. This is available on the Income Tax Department website (www.incometaxindia.gov.in) and NSDL-TIN website (www.tin-nsdl.com). There is a validation software (File Validation Utility) available along with the data structure which should be used to validate the data structure of the e-TDS/TCS return prepared. The e-TDS/TCS return should have following features:

  • e-TDS/TCS return file should be furnished in a CD/Pen Drive. It should not span across multiple computer media.
  • Each e-TDS/TCS return file should be accompanied by a duly filled and signed (by an authorised signatory) Form No. 27A in physical form. With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility).
  • If an e-TDS return file is required to be compressed, it should be compressed using Winzip 8.1 or ZipItFast 3.0 compression utility (or higher version thereof) to ensure quick and smooth acceptance of the file.
  • There should not be any overwriting/striking on Form No. 27A.
  • No bank challan or copy of TDS/TCS certificate should be filed along with e-TDS/TCS return file
  • CD/Pen Drive should be virus-free.

In case any of these requirements are not met, the e-TDS/TCS return will not be accepted at TIN-FCs.

What is the current RPU version for preparation of E-TDS/ TCS statement?

Return Preparation Utility (RPU) version 3.3 is to be used for preparation of e-TDS/TCS regular and correction statements pertains to Financial Year 2007-08 onwards.

What is the current file validation utility (FVU) version to validate e-TDS/TCS regular and correction statements?

FVU version 6.8 is to be used to validate e-TDS/TCS statements pertaining to FY 2010-11 onwards.

Is there any software available for preparation of e-TDS/TCS return?

NSDL has made available a freely downloadable return preparation utility for preparation of e-TDS/TCS returns. Additionally, you can develop your own software for this purpose or you may acquire software from various third party vendors. A list of vendors, who have informed NSDL that they have developed software for preparing e-TDS/TCS returns, is available on the NSDL-TIN website.

Are the forms used for e-TDS/TCS return same as for physical returns?

Forms for filing TDS/TCS returns were notified by CBDT. These forms are same for electronic and physical returns. However, e-TDS/TCS return is to be prepared as a clean text ASCII file in accordance with the specified data structure (file format) prescribed by ITD.

What are the forms to be used for filing quarterly TDS/TCS returns?

Following are the forms for TDS/TCS returns and their periodicity:

Form No. Particulars Periodicity
Form No. 24Q Quarterly statement for tax deducted at source from ‘Salaries’ Quarterly
Form No. 26Q Quarterly statement of tax deducted at source in respect of all payments other than ‘Salaries’ Quarterly
Form No. 27Q Quarterly statement of deduction of tax from interest, dividend or any other sum payable to non-residents Quarterly
Form No. 27EQ Quarterly statement of collection of tax at source Quarterly

What is Form No. 27A?

Form No. 27A is a control chart of quarterly e-TDS/TCS statements to be filed in paper form by deductors/collectors alongwith quarterly statements. It is a summary of e-TDS/TCS returns which contains control totals of ‘amount paid’ and ‘income tax deducted at source’. The control totals of ‘amount paid’ and ‘income tax deducted at source’ mentioned on Form No. 27A should match with the corresponding control totals in e-TDS/TCS return. A separate Form No. 27A is to be filed for each e-TDS/TCS return.

What are the precautions to be taken while submitting Form No. 27A?

While submitting Form No. 27A, one should ensure that:

  1. Form 27A is generated by TDS/TCS FVU (File Validation Utility). (With effect from February 1, 2014).
  2. There is no overwriting/striking on Form No. 27A. If there is any, Please make necessary changes in the file, validate and generate new Form 27A from File Validation Utility (FVU).
  3. Name and TAN of deductor and control totals of ‘amount paid’ and ‘income tax deducted at source’ mentioned on Form No. 27A should match with the respective totals in the e-TDS/TCS return.
  4. All the fields of Form No. 27A are duly filled. The Form 27A needs to be signed by the responsible person.

What is the data structure (file format) for preparing e-TDS/TCS return?

e-TDS/TCS return should be prepared in accordance with the data structure (File Format) prescribed by the e-filing administrator.

What is Challan Serial Number given by the Bank?

Bank Challan Number is a receipt number given by the bank branch where TDS is deposited. A separate receipt number is given for each challan deposited. You are required to mention this challan number in the e-TDS/TCS return and not the preprinted numbers on the bank challan form i.e. ITNS 269 or ITNS 271.

What is ‘Bank Branch Code’? Where do I get it from?

Reserve Bank of India has allotted a unique seven-digit code to each bank branch. You are required to mention the code of the bank branch where TDS is deposited in the e-TDS/TCS return. You can get this code from the bank branch where TDS amount is deposited.

Is it mandatory to mention Tax Deduction Account Number (TAN) in e-TDS/TCS return?

Yes, it is mandatory to mention the 10 digit reformatted (new) TAN in your e-TDS/TCS return.

Can I file Form No. 26Q separately for contractors, professionals, interest etc.?

No. A single Form No. 26Q with separate annexures corresponding to each challan payment for each type of payment has to be filed for all payments made to residents.

I do not know the Bank Branch Code of the branch in which I deposited tax. Can I leave this field blank?

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 etc. This number is given in the OLTAS challan or can be obtained from the bank branch or from the search facility at NSDL-TIN website. It is mandatory to quote BSR 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.

What should I mention in the field ‘paid by book entry or otherwise’ in deduction details?

If payment to the parties (on which TDS has been deducted) has been made actually i.e. by cash, cheque, demand draft or any other acceptable mode, then ‘otherwise’ has to be mentioned in the specified field. But if payment has not been actually made and merely a provision has been made on the last date of the accounting year, then the option ‘Paid by Book Entry’ has to be selected.

By whom should the control chart Form 27A be signed?

Form 27A is the summary of the TDS/TCS statement. It has to be signed by the same person who is authorized to sign the TDS/TCS statement in paper format.

What if e-TDS/TCS return does not contain PANs of all deductees?

In case PANs of some of the deductees are not mentioned in the e-TDS/TCS return, the Provisional Receipt will mention the count of missing PANs in the e-TDS/TCS return. The details of missing PANs (to the extent it can be collected from the deductees) may be filed within seven days of the date of Provisional Receipt to TIN-FC. e-TDS/TCS return will be accepted even with missing PANs. However, if PAN of deductees is not given in the TDS return, tax deducted from payment made to him cannot be posted to the statement of TDS to be issued to him u/s 203AA.

Is the Challan Identification Number compulsory?

Yes. Challan Identification Number is necessary for all non-Government deductors.

Is PAN mandatory for deductors and employees/deductees?

PAN of the deductors has to be given by non-Government deductors. It is essential to quote PAN of all deductees failing which credit of tax deducted will not be given.

I am a deductor having more than one office/branch, do I file separate e-TDS/TCS returns for each office/branch or can I file a consolidated return for all offices/branches? Can I quote the same TAN for filing e-TDS/TCS returns for each branch?

If you have more than one office/branch you can file a consolidated e-TDS/TCS return for all offices/branches. In this case you should quote the same TAN. You can also file e-TDS/TCS returns office/branch-wise individually. In such cases you need to have separate TAN for every branch. In case you do not have separate TAN for each branch then you should apply for TAN for each of the branches filing separate e-TDS/TCS return.

Should I file copies of certificate for no deduction or concessional deduction of tax along with the e-TDS/TCS return?

No, you need not file certificates for no deduction or concessional deduction of TDS alongwith the e-TDS/TCS return. This is not required in case of any quarterly statements.

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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