e-TDS return is a TDS return prepared in form No. 24, 26 or 27 in electronic media as per prescribed data structure in either a floppy or a CD ROM. The floppy or CD ROM prepared should be accompanied by a signed verification in Form No.27A
Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties (deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments and deposit the same at any of the designated branches of banks authorised to collect taxes on behalf of Government of India. They should also furnish TDS returns containing details of deductee(s) and challan details relating to deposit of tax to ITD.
Deductors (other than government and corporates) may file TDS return in electronic or physical form.
NSDL e-Governance Infrastructure Limited (NSDL) as the e- TDS Intermediary (appointed by ITD) receives, on behalf of ITD, the e-TDS returns from the deductors.
Revised forms and file formats for e-TDS/e-TCS returns
Deductors furnishing e-TDS/TCS returns are required to furnish a control chart – Form 27A in physical form along with the e-TDS/TCS return furnished in CD/Pen Drive.
Form 27A is a summary of e-TDS/TCS return (Form 24Q, 26Q, 27Q & 27EQ), which contains control totals of ‘Amount Paid’, ‘Income tax deducted at source’& ‘Tax Deposited (Total challan amount)’. The control totals mentioned on Form 27A should match with the corresponding control totals in e-TDS/TCS return file. Form 27A is required to be furnished separately for each e-TDS/TCS return (Form 24Q, 26Q, 27Q & 27EQ).
With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility) duly signed, along with the TDS/TCS statement(s). Any other Form 27A submitted will be treated as invalid submission and the same will be rejected by TIN-FC branches.
Who must apply for e-TDS?
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.
Under what provision the e-TDS return should be filed?
An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated 26.8.03 for electronic filing of TDS return notified by the CBDT for this purpose. CBDT Circular No.8 dated 19.9.03 may also be referred.
Q.1 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.
Q.2 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.
Q.3 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.
Q.4 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.
Q.5 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.
Q.6 Who is an e-TDS/TCS Intermediary?
CBDT 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.
Q.7 What are the forms to be used for filing annual/quarterly TDS/TCS returns?
Following are the forms for TDS/TCS returns and their periodicity:
Form No. 24Q
Quarterly statement for tax deducted at source from ‘Salaries’
Form No. 26Q
Quarterly statement of tax deducted at source in respect of all payments other than ‘Salaries’
Form No. 27Q
Quarterly statement of deduction of tax from interest, dividend or any other sum payable to non-residents
Form No. 2 7EQ
Quarterly statement of collection of tax at source
Q.8 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 along with 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.
Q.9 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.
Q.10 What is File Validation Utility (FVU)?
FVU is a program developed by NSDL, which is used to ascertain whether the e-TDS/TCS return file contains any format level error(s). When you pass e-TDS/TCS return through FVU, it generates an ‘error/response file’. If there are no errors in the e-TDS/TCS return file, error/response file will display the control totals. If there are errors, the error/response file will display the error location and error code along with the error code description. In case you find any error, you can rectify the error and pass the e-TDS/TCS return file again through the FVU till you get an error-free file.