Chanakya Consultancy Services Pvt. Ltd.

  E-TDS

Assesses (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to their vendors (deductees) are required to deduct tax at source (TDS) from these payments and deposit the same at any of the designated branches of banks authorized to collect taxes on behalf of Government of India. They should also furnish quarterly TDS returns containing details of deductee(s) and challan details relating to deposit of tax to ITD.

As a part of automation of collection, compilation and processing of TDS returns 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. As per this scheme

• It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS returns in electronic form (e-TDS return).
• From F.Y. 2004-2005 onwards furnishing TDS returns in electronic form is also mandatory for government deductors in addition to corporate deductors.
• Deductors (other than government and corporates) may file TDS return in electronic or physical form.
• National Securities Depository Ltd. (NSDL) as the e- TDS Intermediary (appointed by ITD) receives, on behalf of ITD, the e-TDS returns from the deductors.

• Submission of PAN Application
• Submission of TAN Application
• Submission of E-TDS/TCS Returns
• Submission of Income Tax Returns
• TDS View facilities i.e. Form 26AS

The scheme for electronic furnishing of TDS returns was notified on 26.8.2003. The Board Circular No.8 dated 19.9.2003 clarifies the procedure in this regard. It basically envisages that corporate deductors shall prepare their TDS returns in new TDS Return Forms 24, 26 or 27 according to the data structure notified by e-Filing Administrator. The e-TDS returns in prescribed data structure after copying the same into CD ROM / Floppy has to be carried along with a duly signed Declaration in Form 27A in paper format to a TIN Facilitation Centre of the e-TDS Intermediary appointed by the Board.

The CBDT has appointed Director General of Income-tax (Systems) as e-TDS Administrator. National Securities Depository Limited (NSDL), who are also the agency hosting TIN, has in turn been appointed as e-TDS Intermediary. NSDL has set up their front offices as ‘TIN Facilitation Centre’ at more than 200 locations across the country, for receiving e-TDS returns. NSDL has also been authorised to receive applications (Form 49A) for allotment of PAN and (Form 49B) for allotment of TAN at all TIN Facilitation Centres.

As per the current 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 Source -TDS) from such payments and deposit the same at any of the designated branches of authorised banks and furnish TDS returns containing details of deductee(s) and bank where TDS amount is deposited with the Income Tax Department (ITD).