Who is required to file e-TDS/TCS return and what is annual e-TDS/TCS Return and Other FAQ

What is quarterly e-TDS/TCS statement?

TDS/TCS returns filed in electronic form as per section 200(3)/206C, as amended by Finance Act, 2005, are quarterly TDS/TCS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from FY 2005-06 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in case of both e-TDS/TCS statements.

Who is required to file e-TDS/TCS return?

As per Income Tax Act, 1961, all corporate and government deductors/collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.

e-TDS/TCS returns have been made mandatory for Government deductors. How do I know whether I am a Government deductor or not?

All Drawing and Disbursing Officers of Central and State Governments come under the category of Government deductors.

Under what provision should e-TDS/TCS returns be filed?

An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated August 26, 2003 for electronic filing of TDS return notified by the Central Board of Direct Taxes (CBDT) for this purpose. CBDT Circular No. 8 dated September 19, 2003 may also be referred.

An e-TCS return should be filed under Section 206C of the Income Tax Act in accordance with the scheme dated March 30, 2005 for electronic filing of TCS return notified by the CBDT for this purpose.

As per section 200(3)/206C, as amended by Finance Act 2005, deductors/collectors are required to file quarterly TDS/TCS statements from FY 2005-06 onwards.

Who is the e-Filing Administrator?

CBDT has appointed the Director General of Income Tax (Systems) as e-Filing Administrator for the purpose of electronic filing of TDS/TCS returns.

Who is an e-TDS/TCS Intermediary?

BDT has appointed National Securities Depository Limited, (NSDL), Mumbai, as e-TDS/TCS Intermediary. NSDL has established TIN Facilitation Centres (TIN-FCs) across the country to facilitate deductors/collectors file their e-TDS/TCS returns.

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 e-Gov-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.

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

NSDL e-Gov has made available a freely downloadable Return Preparation Utility for preparation of e-TDS/TCS statements. 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 e-Gov that they have developed software for preparing e-TDS/TCS statements, is available on the NSDL e-Gov -TIN website i.e. www.tin-nsdl.com.

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

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:

  • Form 27A is generated by TDS/TCS FVU (File Validation Utility). (With effect from February 1, 2014).
  • 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).
  • 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.
  • 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.

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.

Recommended Post-

Summary/Analysis of recent CBDT amendment of rules relating to TDS/TCS Applicable from 01.04.2010

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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2 Comments

  1. Ratan Kumar says:

    I, as an Individual, have bought a property from builder and have deducted TDS and deposited the same to Govt on 15 Jan 15 (I have the copy of challan and Form 26QB). Am I required to file TDS return/statement on Form 26Q? I do not have any TIN.

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