Saral TDS (Software
for eTDS Return Filing as per NSDL Format) (including Form 24Q, 26Q, 27Q and 27EQ) vide Notification (F.No:385/35/2005-IT(B).
Saral TDS
is specially designed for filling e-Return of TDS according
to NSDL format. This software provides Easy to use Excel sheets
where users can specify their TDS deductions and Challan Details.
For TDS on Salary users have to specify Salary details of Employees
for the financial year. A converter is provided to make Annual
returns in electronic format. Unlimited no. of companies can
be created and managed. Automatic validation of e-file by the
NSDL utilty. Software has very unique and easy
interface, which enables software and user interaction very
comfortable.
Useful
information on eTDS
eTDS
- Overview :
As per the income
tax laws, entities (both corporates and non-corporates - deductors)
making payments to third parties (deductees) are required to
deduct tax at source (Tax Deducted at SourceTDS) from these
payments and deposit the same at any of the designated branches
of authorised banks. They should also furnish TDS returns containing
details of deductee(s) and bank where TDS amount is deposited
with the Income Tax Department (ITD).
ITD has
prescribed three new forms Form No. Particulars Periodicity
Form 24 Annual return of "Salaries" under Section
206 of Income Tax Act, 1961 Annual
Form 26 Annual return of deduction of tax under section 206
of Income Tax Act, 1961 in respect of all payments other than
"Salaries" Annual
Form 27 Statement of deduction of tax from interest, dividend
or any other sum payable to certain persons* Quarterly
* see rule 37A of Income Tax Rules, 1962
ITD has made it mandatory (w.e.f. June 1, 2003) for corporate
deductors to furnish their TDS returns in electronic form (eTDS
return). Non-corporate deductors can furnish their returns in
physical form with their respective Income Tax offices. They
can also furnish their returns in electronic form through TIN
facilitation centres established by NSDL.
ITD has notified
an "Electronic Filing of Returns of Tax Deducted at Source
Scheme, 2003". It is applicable to all deductors furnishing
their TDS return in electronic form.
Deductors furnishing
their TDS return in electronic form (eTDS return) shall furnish
the same to TIN facilitation centres established by NSDL.
Deductors furnishing
returns in electronic form (eTDS return) have to furnish a control
chart - Form27A in physical form along with the eTDS return
CD/floppy. Form 27A is a summary of TDS return (Form 24, 26
or 27), which contains control totals of 'Amount Paid' and 'Income
tax deducted at source'. The control totals mentioned on Form
27A should match with the corresponding control totals in eTDS
return file. Form 27A is required to be furnished separately
for each return (Form 24, 26 or 27).
Procedure
For e-filing Of TDS Returns
1.
Objective:
The basic objectives of computerization of TDS returns is to
cut down the compliance cost for deductors, to correlate deduction
of taxes made by deductors with the deposit of the deducted
tax in the Government account in a designated bank/and correlate
deduction of tax by the deductors with the corresponding credits
claimed by the deductees.
In phase-I of TIN it is proposed to receive the electronic TDS
returns of corporate deductors and to digitise the paper TDS
returns of other deductors. In Phase-II of TIN the work relating
to dematerialization of TDS certificates will be taken up so
that cross verification of deduction by the Deductors with the
claims of deductees can be carried out.
2.
Scheme for Electronic Filing of TDS returns:
The scheme for electronic filing of TDS returns was notified
on 26.8.2003. The Board Circular No.8 dated 19.9.2003 clarifies
the procedure in this regard. The procedure basically envisages
that corporate deductors will prepare their TDS returns in the
new TDS return Forms 24, 26 or 27, according to the data structure
notified by e-Filing Administrator. The eTDS returns in the
prescribed data structure stored on CD ROM and supported by
a duly signed control chart in Form 27A in paper format will
be submitted to an eTDS Intermediary appointed by the Board
.
3.
eTDS Administrator and eTDS Intermediary:
The CBDT has appointed Director General of Income-tax (Systems)
as eTDS Administrator. Separately, M/s National Securities Depository
Limited (NSDL), who are also the agency hosting TIN, have been
appointed as eTDS Intermediary. During the current financial
year, NSDL will be opening their front offices at 41 stations
throughout the country, for receiving eTDS returns of all deductors.
NSDL w.e.f. 19.01.2004 will set up their front offices called
as ‘TIN Facilitation Centre' at 41 stations throughout
the country, for receiving eTDS returns w.e.f. 19.01.2004. NSDL
will set up their front offices at 65 stations more during the
next financial year so that they will have presence at all stations
where administrative CsIT are located.
4.
Procedure for allotment of TAN:
4.1 All deductors required to e-file their TDS returns have
to quote their reformatted Tax Deduction Account Numbers (TAN)
in their respective TDS returns. A large number of deductors
have already obtained these re -formatted TANs which are unique
countrywide. Wherever TAN has not been allotted or old TANs
have not been reformatted, applications in Form 49B can be filed
with NSDL. All old applications for allotment of new TAN/ reformatted
TAN pending in the Department, will be disposed at the earliest
.
4.2 NSDL has also been authorised to receive applications (form
49B)for allotment of TAN at their front offices for fee of Rs.50/-
to be paid by the applicant to them. The data in respect of
such TAN applications will be entered by NSDL and sent to National
Computer Centre (NCC) of Income-tax Department and the respective
computer centres on-line . The allotment of TAN will be done
by the IT department centres and communicated online to NSDL
who will intimate the same to the applicant.
5.
Preparation of eTDS return:
5.1 New forms of TDS return in Form No.24, 26, & 27 (enclosed
herewith), a control chart in Form 27A have been notified by
the Board vide notification dated 31.7.2003 consequent upon
amendment to Rule 30 of IT Rules, 1962. The eTDS returns have
to be prepared in these new forms and according to the data
structure prescribed by eTDS administrator. This is necessary
so that the data structure of eTDS returns is compatible with
the departmental application software for processing the same.
5.2 The
prescribed data structure can be downloaded from this websit
es as also of NSDL (http://tin.nsdl.com) This can also be obtained
from the front offices of NSDL. While preparing the eTDS returns,
the deductor has to ensure that following mandatory requirements
listed in Circular No.8 of CBDT dated 19.9.2003, are complied
with :
(i) Tax deduction Account Number (TAN) of the deductor is clearly
mentioned in the TDS return as also on Form No.27A, as required
by sub-section (2) of section 203A of the Income-tax Act. However,
in cases where TAN is not available the eTDS returns will also
be accepted if the same is accompanied with an application in
Form 49B for allotment or for reformatting.
(ii) Full particulars relating to deposit of tax deducted at
source, in the designated bank are correctly and properly filled
in the table at item No.6 of Form No.24 or item No.5 of Form
No.26 or item No.5 of Form No.27, as the case may be.
(iii) The data in the eTDS return is as per the data structure
prescribed by the e- Filing Administrator.
(iv)The Control Chart in Form 27A is duly filled in all columns,
signed and enclosed in paper form with the return on computer
media.
(v) The Control Totals of the amount paid and the tax deducted
at source as mentioned at item No.3 of Form No. 27A tally with
the corresponding totals in the eTDS return in Form No. 24 or
Form No. 26 or Form No. 27, as the case may be.
In case any of these
mandatory requirements are not fulfilled, the eTDS return will
not be received by the eTDS intermediary.
5.3 The deductors
should prepare their eTDS return as per the above procedure,
store the data on a CD ROM, enclose the control chart (Form
27A in paper format) and submit these at any of the front offices
of NSDL. Although the scheme permits eTDS returns to be prepared
on a floppy, it would be preferable that these are prepared
on a CD ROM to avoid any loss of data, viruses etc.
6.
Filing of eTDS returns:
6.1 The eTDS return can be filed at any of the front offices
being opened by NSDL at 41 cities. At the receipt stage, these
front offices will carryout validation checks on the eTDS returns
to ensure compliance with above five parameters, and a provisional
receiopt will be issued on successful validation.
6.2 Section 139A(5
B) requires that PAN of the deductees should be mentioned in
the TDS returns. Wherever PAN of deductees is not mentioned
by a deductor in his eTDS return, this fact will be recorded
on the provisional receipt as deficiency, to be removed by the
deductor. However, in such cases, NSDL will accept the eTDS
returns. The deficiency can be removed by the deductor within
7 days, failing which the eTDS returns will be sent by NSDL
to the Department indicating the deficiency therein for appropriate
action by the concerned A.O.
7.
Upload Charges:
Since e-filing of TDS returns will reduce the voluminous paper
work involved in filing of paper TDS returns and enclosures
thereby significantly reducing the compliance cost of deductors,
the e -intermediary i.e. NSDL have been authorised to collect
service charges in respect of the various services being rendered
by them to the deductors for upload of eTDS returns at the following
rates:
Category of eTDS
return Upload charges
Returns having records of up to 100 deductees Rs.25/-
Returns having records of 101 to 1000 deductees Rs. 150/-
Returns having records of more than 1000 deductees Rs.500/-
Service tax if any
will be payable by deductors in addition to the above.
8.
Transmission of data pertaining to eTDS returns and Form 27A
to the A.O.
8.1 The computerized data of eTDS returns in the prescribed
data structure will be transmitted by NSDL to the National Computer
Centre of Income Tax Department online and will become available
to the concerned TDS Assessing Officers (A.O) on the network.
This will obviate requirement of data entry for e- TDS returns
by the Assessing Officers (A.O).
8.2 The paper Form
27A, CD/floppies and supporting documents if any, will be arranged
by NSDL A.O.-wise and sent to the Nodal Officers appointed at
each of the 41 cities. The concerned Chief Commissioner of Income
tax should appoint one officer not below the rank of Administrative
Officer/ ITO as TDS Nodal Officer. Each batch of Form 27A, CD/floppies
and supporting documents if any, will be accompanied by a list
(giving TAN, name of Deductor, date of filing and Form No. of
the TDS return) in triplicate. Two copies of the list would
be given to the Nodal Officer, who will send the Forms 27A and
supporting documents and CDs along with one copy of the list
to the concerned TDS A.O. in a timely and proper manner. Thus
one copy of list will be retained by each of the Front Office
and Nodal Office and the third copy goes to the concerned TDS
A.O.
9.
Procedure relating to processing of paper TDS returns:
9.1 The TDS returns for F.Y. 2002-03 already filed in old TDS
return forms on paper will be processed manually by the respective
TDS A.Os., as per the earlier procedure.
9.2 The TDS returns
in new Form 24, 26, 27 filed during the current financial year
in paper format by non corporate deductors will also be sent
to the front offices of NSDL at the respective cities for digitisation
i.e. data entry by NSDL by the department.
10.
Computerised processing of TDS Returns:
10.1 NSDL will computerise the data whether on eTDS returns
or on paper TDS returns sent to them for digitisation. They
will link TAN clubbed with the TDS returns wherever Form 49B
has been filed with the TDS return s. They will also match the
data in respect of deposit of TDS in banks as mentioned in the
TDS returns vis-à-vis the information available from
banks in the Tax Accounting System (TAS). The computerised data
of TDS return s, mis-match report of deposit of TDS, particulars
of missing PANs of deductees etc., will be transmitted by NSDL
online to Income tax Department.
