Presentation on E-FILING OF TDS / TCS RETURNS -Rajeev Khandelwal

1. Presentation on E-FILING OF TDS / TCS RETURNS -Rajeev Khandelwal F.C.A., D.I.S.A.(I.C.A) e-mail : rajeevkhandelwalca@gmail.com Webtel Electrosoft (P) Ltd. www.webtel.in

2. MANUALE-TDS / TCS RETURNS Assessees other than Companies & Government Deductors to file manual TDS/ TCS Returns. Option to file e-TDS/ TCS Returns also. Revised forms to be used for F.Y. 2004-05. Returns of earlier years not submitted till 30th April, 05 also to be filed in revised format. Manual returns also to be accepted by TIN FCs for digitisation. •  •  •  •  •  www.webtel.in

3. E-TDS/ TCS RETURNS Compulsory for all Companies & Government Deductors Returns to be filed in the Revised format.   www.webtel.in

4. FORMAT OF E-TDS RETURNS www.webtel.in

5. Need to understand File Format    We may be submitting incorrect/ incomplete information. File Validation Utility basically checks the file format and not the accuracy of data. By understanding file format, we can test check data to confirm its correctness. www.webtel.in

6. General format of electronic return • Text file • Format • Data type • Numeric Field • Date Field • Character Field • 1 Record / 1 Row • No Blank Row www.webtel.in

7. Specific Format of Electronic Return www.webtel.in

8. Specific Format of Electronic Return www.webtel.in

9. Analysis of a Deductee Detail Record www.webtel.in

10. www.webtel.in

11. PROCEDURE OF PREPARATION & E-FILING OF TDS RETURNS Preparation of e-TDS Return • Manual preparation not practical. • Purchase a good software : Complete Software, Excel based & both. • Punch data or copy from existing data available. • Generate e-TDS return in text format as per instructions in software. www.webtel.in

12. Validation of e-TDS Return • Validate the TDS return with latest FVU. (2.051) • New 10 digit TAN compulsory. TANAPPLIED N.A. • Government deductors can file after applying for TAN. • FVU checks the file for its format • Basic mathematical checks also incorporated now. • FVU has 3 files : Input File, Error/ Response File & Upload File. www.webtel.in

13. ‘ValidFile’ indicates that the file format is as per NSDL. www.webtel.in

14. Validation of e-TDS Return (contd) • ‘Invalid File’ indicates that there are some format or mathematical errors. • The error description in the Error Response File gives the type of error(s). www.webtel.in • File is to be generated again after correction of these errors.

15. Submission of e-TDS Return • Upload File is to be filed with TIN FC in floppy or CD. • Revised Form 27A in paper format duly signed. • Filing fee of Rs. 25 - 500 (plus ST) on basis of no. of records. • No challans or TDS certificates have to be filed. • Copy of certificate for lower/ no deduction to be submitted in case of Form 24. www.webtel.in

16. Submission of e-TDS Return (contd) • If file format is valid as per latest FVU, TIN FC accepts return. • Provisional receipt is issued. • Date of Provisional receipt is the date of furnishing e-TDS return. • No. of missing PAN is given in receipt. • This is an information & does not make file invalid. www.webtel.in

17. Revision/ Correction of e-TDS Return • Facility to revise return is available. • Full return has to be filed & not just correction. • Filing charges have to be paid again. • A copy of provisional receipt of original return has to be filed. • 14 digit acknowledgement no. of provisional receipt of original return to be mentioned in e-TDS return & Form 27A. • On top right hand corner of 27A, “Return revised due to Missing PAN or otherwise” has to be mentioned. • If return revised due to missing PAN, submit in next 7 days. • Revised return can be filed with any TIN FC. www.webtel.in

18. Online Filing of e-TDS Return • E-TDS return can also be filed online from one’s PC. • Facility for F.Y. 2004-05 to start shortly. • Facility for registering entity & its branches only. • No need to send Form 27A or any CD/floppy • An Internet connection is required. • Minimum Class II Digital Signature is necessary. • Facility not popular : • Cost of Digital Signature • Deposit of filing fee in advance (Min. : Rs. 1,000 per TAN) www.webtel.in

19. REVISED ANNUAL e-TDS RETURNS Need for change • More detailed Challan Particulars • Breakup of TDS deposit : TDS, surcharge, education cess, interest and others. • Cheque /DD No. • Whether TDS deposited by book entry? • BSR code now mandatory. • Challan no. still optional. • Address of deductor and responsible person only in case of change. www.webtel.in

20. REVISED ANNUAL e-TDS RETURNS (contd) • Whether payment made by book entry or not. (“B” / “C“) • Form 24 valid even if no challan though tax has been deducted. • State code of deductee now optional • Several fields mentioned optional but are mandatory. • Total TDS deposited and deducted in Batch Header. These should be sum of the challans and deduction entries respectively. But file is validated otherwise also. www.webtel.in

21. Changes in Revised Form 27A • The information “existing/ new assessee” and “assessing officer code” not required. • Particulars of type and number of media omitted. • E-mail address to be given instead of fax. • Tax deducted and deposited to be shown separately. • Provision for writing the no. of annexures like Form 12B. • Any other information. www.webtel.in

22. RETURN OF TAX COLLECTION AT SOURCE • The electronic format notified on 20th May, 05 • e-TCS returns being accepted w.e.f 11th June, 05. • Return to be filed annually instead of half yearly. • Return to be filed by 30th June. • Single return to be furnished for more than one item on which TCS is applicable. • Collection Code to be given in Challan Details and not in Collectee Detail Record. • New items Parking lot, Toll plaza and Mining and Quarrying. www.webtel.in

23. RETURN OF TAX COLLECTION AT SOURCE (contd) • “Paid by book entry or otherwise” to be left blank. No provision to write “Y” or “N”. • “Tendu leaves” left out in manual return. In e-TCS format tendu leaves has been clubbed with code of “alcoholic liquor” • The address and information about change in it for the responsible person are not required. • The values “X” and “Y” have to be given in case of lower /no deduction. However, there is no option for normal deduction. www.webtel.in

24. QUARTERLY RETURNS FROM F.Y. 2005-06 • Forms 24, 26 and 27E to be filed quarterly from F.Y. 2005-06 onwards. • This is irrespective of whether returns are to be filed manually or quarterly. The due dates for filing : www.webtel.in

25. QUARTERLY RETURNS FROM F.Y. 2005-06 (contd) • So no more year end marathon adjustment exercises. • The due dates for Form 27, have not been revised specifically and therefore the same have to be filed by 14th July, 14th October, 14th January and 14th April. The format of annual returns has been notified but that for electronic ones is still awaited. The change in electronic format will be on the basis of manual format only. www.webtel.in

26. Major Change in Quarterly Returns • A separate annexure has to be given for each challan. • Challan summary at top. • Detailed statement giving the details of tax deducted & deposited through a particular challan. Details include the date of payment/credit, taxable amount, TDS, surcharge, cess etc. • Information required by the IT Department to issue the Annual Statement of Taxes deducted and collected at source (Form 26AS). www.webtel.in

27. QUARTERLY RETURN OF SALARIES - FORM 24Q • For each challan, the amount of salary and the date of its payment/ credit to be mentioned separately for each employee. • The columns relating to employeewise payment of tax have been omitted. • ‘Specify each’, ‘give details’ etc. in some columns. • Income Tax Rebate under section 88, 88B, 88C & 88D still appear. • No separate column for deduction for LIC, PPF etc. which have now been shifted to Sec. 80C. www.webtel.in

28. QUARTERLY RETURN OF SALARIES - FORM 24Q (contd) • Cost of furniture still includes radio sets which are a rare commodity now. • Form 26 does not have any separate annexure other than the breakup of challan. However, in case of Form 24, the details of salary & perquisites have to be given in separate annexures. • Salary , allowances, perquisites, deductions, exemptions etc. to be furnished on a quarterly basis. www.webtel.in

29. QUARTERLY RETURN OF OTHER PAYMENTS TO RESIDENTS – FORM 26Q • No need to give address of deductee. • Mention whether payment made by book entry or not. • Breakup of TDS in deductee wise breakup of TDS. • Separate column for tax deducted & deposited. • BSR code, date of deposit and challan no. not required to be given separately for each deductee. • The date of furnishing TDS certificate has also been dispensed with. www.webtel.in

30. QUARTERLY RETURN OF TAX COLLECTION AT SOURCE – FORM 27EQ • In the existing form, a separate annexure had to be given for each type of collection at source. • Now a consolidated statement has to be given and the different types are indicated by 8 collection codes A to H. www.webtel.in

31. QUARTERLY RETURN OF OTHER PAYMENTS TO NON- RESIDENTS – FORM 27Q • Return already quarterly. • Format to be changed in line with the changes in other returns. • Wait till it is revised. www.webtel.in

32. ANNUAL TAX STATEMENT – FORM 26AS To be issued by IT Department or specified entity • Consolidated statement for TDS & TCS. • Major details in TDS/ TCS certificate to be provided. e.g. name of deductor, section, amount of payment and TDS deducted and deposited & date of payment/credit. • Other fields in the TDS/ TCS certificate like address and PAN of the deductor/ collector, TDS circle, rate of TDS/TCS and particulars of deposit omitted. • Particulars of other taxes paid have also to be mentioned in this statement www.webtel.in

33. ANNUAL TAX STATEMENT (contd) • In case of other taxes, BSR code & challan serial no. also to be given. Breakup of tax deposited also given separately. • TDS details as per data provided by deductors/ collectors in quarterly returns. • Details of tax deposit on the basis of confirmation from banks. • No Details of penalties paid by the deductor/ collector. www.webtel.in

34. ANNUAL TAX STATEMENT (contd) • Not clear whether this statement would be issued for F.Y. 2005-06 in addition to the manual certificates or it will be issued from F.Y. 2006-07 onwards. • The amount of tax deducted/ collected in words is not mentioned. • Statement for a particular assessment year only. Why A.Y. and F.Y. at 3 places? • No space for name and designation of signatory and place of issue. www.webtel.in

35. DEMAT OF TDS CERTIFICATES • Need for demat. • Why dept. has taken this responsibility? • To avoid frauds & fake refund claims. • Can dept. ensure accuracy? • Will there be penalty for late issue? • Who will the deductee approach in case of non-issue/ mistakes? • What is the process for changes? www.webtel.in

36. INFERENCE • Though there were initial hiccups, the scheme of e-TDS has been quite successful. • Infosys Technologies Ltd was the first company to file an e-TDS return. • Having understood the scheme and filed their returns, deductors and CAs have found it more convenient. • Frequent changes should be avoided : File format, FVU, forms, mandatory information etc. • Changes made should be properly displayed and disclosed. • Notify e-TDS/TCS returns format for Quarterly returns. • Cindrella Story www.webtel.in

37. Thank You. -Rajeev Khandelwal F.C.A., D.I.S.A.(I.C.A) e-mail : rajeevkhandelwalca@gmail.com Webtel Electrosoft (P) Ltd. www.webtel.in