FAQ / e-TDS / General

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; however, as advised by Income Tax Department, acceptance of e-TDS/TCS statements pertaining to Financial Years prior to 2007-08 has been discontinued at TIN. 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?

CBDT has appointed NSDL e-Governance Infrastructure 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-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:

• Each e-TDS/TCS return file should be in a separate CD/Pen Drive.
• 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.
• Each e-TDS/TCS return file should be in one CD/Pen Drive. It should not span across multiple computer media.
• 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. If there is any, then the same should be ratified by an authorised signatory
• No bank challan or copy of TDS/TCS certificate should be filed alongwith 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 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:

a) There is no overwriting/striking on Form No. 27A. If there is any, then the same should be ratified (signed) by the authorised signatory.
b) 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.
c) All the fields of Form No. 27A are duly filled.

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.

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.

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.

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.

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.

After I prepare my e-TDS/TCS return, is there any way I can check/verify whether it conforms to the prescribed data structure (file format)?

Yes, after you have prepared your e-TDS/TCS return you can check/verify the same by using the File Validation Utility (FVU). This utility is freely downloadable from the NSDL-TIN website.

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.

What is the 'Upload File' in the new File Validation Utility?

'Upload File' that is generated by the FVU when the return is validated using the FVU has to be filed with TIN-FC. This 'upload file' is a file with the same filename as the 'input file' but with extension .fvu. Example 'input file' name is 27EQGov.txt, the upload file generated will be 27EQGov.fvu.

What are the platforms for execution of FVU?

For Quarterly Returns, Java has to be installed to run FVU. Details are given in FVU section of NSDL-TIN website.

What are the Control Totals appearing in the Error/Response File generated by validating the text file through File Validation Utility (FVU) of NSDL?

The Control Totals in Error/Response File are generated only when a valid file is generated. Otherwise, the Error/Response File shows the nature of error. The control totals are as under:

• Number of deductee/party records : In case of Form 24Q, it is equal to the number of employees for which TDS return is being prepared. In case of Form 26Q/27Q, it is equal to the total number of records of tax deduction. 10 payments to 1 party would mean 10 deductee records.
• Amount Paid : This is the Total Amount of all payments made on which tax was deducted. In case of Form 24Q, it is equal to the Total Taxable Income of all the employees. In case of Form 26Q/27Q, this is equal to the total of all the amounts on which tax has been deducted at source.
• Tax Deducted : This is the Total Amount of tax actually deducted at source for all payments.
• Tax Deposited : This is the total of all the deposit challans. This is normally the same as Tax Deducted but at times may be different due to interest or other amount.

Are the control totals appearing in Form 27A same as that of Error/Response File?

Yes, the control totals in Form 27A and in Error/Response File are same.

What if any of the control totals mentioned in Form No. 27A do not match with that in e-TDS/TCS return?

In such a case the e-TDS/TCS return will not be accepted by the TIN-FC. You should ensure that the control totals generated by FVU and that mentioned on Form No. 27A match. In case of any difficulties/queries, you should contact the TIN-FC or TIN Call Centre at NSDL.

Where can I file my TDS/TCS return?

You can file your TDS/TCS return at any of the TIN-FCs managed by NSDL. TIN-FCs are set-up at specified locations across the country. Details are given in the NSDL-TIN website. These can also be furnished directly at NSDL-TIN web-site.

For which Financial Years can I furnish TDS/TCS statements.?

As advised by Income Tax Department, acceptance of TDS/TCS statements pertaining to Financial Years prior to 2007-08 will not be done at TIN.

What are the basic details that should be included in the of e-TDS/TCS return?

Following information must be included in the e-TDS/TCS return for successful acceptance. If any of these essential details is missing, the returns will not be accepted at the TIN-FCs:

• Correct Tax-deduction/collection Account Number (TAN) of the deductor/collector should be clearly mentioned in Form No. 27A as also in the e-TDS/TCS return, as required by sub-section (2) of section 203A of the Income-tax Act.
• The particulars relating to deposit of tax deducted at source in the bank should be correctly and properly filled.
• The data structure of the e-TDS/TCS return should be as per the structure prescribed by the e-Filing Administrator.
• The Control Chart in Form No. 27A (enclosed in paper form with the e-TDS/TCS return on CD/Pen Drive) should be duly filled and signed.

What are the charges for filing e-TDS/TCS return with TIN-FCs?

You have to pay charges as mentioned below:

No. of deductee records in e-TDS/TCS return Upload charges (exclusive of service tax) Service Tax Upload charges (inclusive of service tax) Returns having up to 100 records 31.15 3.85 35.00 Returns having 101 to 1000 records 178.00 22.00 200.00 Returns having more than 1000 records 578.50 71.50 650.00

What are the due dates for filing quarterly TDS Returns?

The due dates for filing quarterly TDS returns, both electronic and paper are as under:

Quarter Due Date for Government Deductors Due Date for Other deductor April to June 31 July 15 July July to September 31 October 15 October October to December 31 January 15 January January to March 15 May 15 May

Is the procedure for filing of e-TCS different from that of filing e-TDS return?

The procedure for filing of e-TCS return is the same as that of e-TDS return except the forms to be used are different. The relevant forms for filing the e-TCS return are:

Quarterly statement : Form No 27EQ, 27A (Control Chart).

The e-TCS returns are also to be filed with NSDL at the various TIN-FCs

Should I file TDS certificates and bank challans along with the e-TDS/TCS return?

No, you need not file TDS certificates and bank challans for tax deposited along with the e-TDS/TCS return.

Can more than one e-TDS/TCS return be filed in a single computer media (CD/Pen Drive)?

Yes, More than one e-TDS/TCS statements can be furnished in same computer media.

Can a single e-TDS/TCS return be filed in two or more CD / Pen Drive?

No, one return cannot be furnished in two computer media.

Can e-TDS/TCS return be filed in compressed form?

Yes, if e-TDS/TCS return file is filed in compressed form, it should be compressed using Winzip 8.1 or ZipItFast 3.0 (or higher version compression utility only), so as to ensure quick and smooth acceptance of the file.

Do I have to affix a label on the e-TDS/TCS return CD/Pen Drive? What do I mention on the label affixed on the e-TDS/TCS return CD/Pen Drive?

No, there is no need to affix a label on computer media.

What if I donot have the PANs of all my deductees?

In case PANs of some of the deductees are not available with you for quoting in the TDS statement, you need to deduct tax at a higher rate as prescribed by ITD and flag such deductee records as ‘C’ in the statement.

In case of TCS statement, PAN quoting compliance of 85 % is mandatorily required for validation, i.e. out of the total collectee records in the TCS statement, the PAN should be presentfor 85% of the records failing which the statement will not be validated through the File Validation Utility. In view of this, it is recommended that the records comprising 85% of valid PAN be reported first and the records for the remaining collectees may be reported as and when PAN details are received.

If a deductor faces any difficulty in filing of e-TDS return where can it approach for help?

The details regarding the help required for filing of e-TDS are available on the Income-Tax Department website and the NSDL-TIN website. The TIN-FCs are also available for all related help in the e-filing of TDS returns.

Will computer media be returned by TIN-FC after acceptance of e-TDS/TCS statement?

Yes, computer media will be returned to deductor after acceptance of the e-TDS/TCS statements.

Form No. 24Q shows a column which requires explanation for lower deduction of tax. How can a DDO assess it? Please clarify.

Certificate for lower deduction or no deduction of tax from salary is given by the Assessing Officer on the basis of an application made by the deductee. In cases where the Assessing Officer has issued such a certificate to an employee, deductor has to only mention whether no tax has been deducted or tax has been deducted at lower rate on the basis of such a certificate.

Can the e-TDS/TCS return be filed online?

Yes e-TDS/TCS return can be filed online under digital signature.