eTDS Quarterly DataPreparation 0910

Important Pre-Requisites &
Instructions for quarterly

eTDS Data Preparation
A.Y. 2009-10
Vikram S. Mathur, FCA, DISA (ICAI)

vsmathur380052@gmail.com
+919998090111
Some Common Abbreviations
VIKRAM S. MATHUR,FCA, DISA (ICAI)
Copyright @ 2009 Rajiv I Ravani & Co.
• NSDL – National Securities Depository Limited.

• TIN – Tax Information Network.
• TIN-FC – TIN Facilitating Centre.
• OLTAS – On Line Tax Accounting System.
• ERACS - Electronic Return Acceptance and
Consolidation System.
• CPLGS - Central PAN Ledger Generation System .
• VB – Visual Basic
• RPU – Return Preparation Utility
• FVU – File Verification Utility
2
& CGPLS
Overview of the OLTAS, ERACS
3
Overview of TIN System
4
TDS Rate Chart
5
Form Numbers, Periodicity & Last
Date of Submission for eTDS
As per the Income Tax Act, 1961 [sections 200(3) and 206C] and the Income Tax
Rules, 1962 [rules 31A/31AA inserted vide notification S.O.455(E) dated March 30,
2005 and amended vide notification S.O.928 (E) dated June 30, 2005], forms for
TDS/TCS statements (F.Y.2005-06 onwards) and periodicity thereof are as follows:
6
What is eTDS?
• eTDS stands for “Electronic Tax Deducted at

Source” introduced by the Income Tax
Department on 26th August 2003 (See below).
7
To Whom does the eTDS Scheme
apply?
• This applies to any person deducting any

sum as per the provisions of Income Tax
Act, 1961 on or after the 1st day of April,
2005. This scheme concerns itself with the
deduction of tax at source and its deposit
to the Income Tax Department.
8
What are the charging sections?
• SECTION 200(3) – reference is made to

the provisions of chapter XVII-B of the
Income Tax Act, 1961 and also to section
192(1A).
• SECTION 206A(1) – reference is made to
proviso to clause (i) of sub-section (3) of
section 194A. (Interest other
than Interest on Securities).
9
Why eTDs is necessary?
• Direct tax is an important source of revenue for the

government. A significant part of direct taxes is
collected at the source of income by mandating the
parties paying the income to deduct tax at source (TDS)
and deposit the same to Government account through a
select list of bank branches.
• The most critical requirement for improving tax-
compliance is to have a tax regime where the compliance
is easy, transparent and painless and non-compliance is
risky and costly. The tax department is inundated with
truckloads of documents that the taxpayers file and
handling this paper mountain can become a breeding
ground for inefficiency.
10
Initiative of the Income Tax
Department (ITD)
• In this background, Income Tax Department (ITD)

embarked on an initiative for the modernization of the
current system for collection, processing, monitoring
and accounting of direct taxes using modern technology.
Such modernization is expected to enhance convenience
in record keeping and return preparation by the
deductors and reduce cost of compliance thus
improving overall tax compliance. This will also reduce
leakage of revenue, increase the tax base, improve
process efficiency & transparency, enable speedy
reconciliation, enable faster transfer of tax collected to
Government coffers and facilitate data mining to
identify trends and making projections.
11
Implementation of eTDS
• ITD engaged National Securities Depository Limited (which

had proven experience in handling a nationwide electronic

transaction processing system) for establishing TIN. TIN is
being established in phases. In Phase I of TIN (three-year
period culminating in F.Y. 2004-05) OLTAS, ERACS
mentioned above have been successfully established.
• In Phase II (commenced in F.Y. 2005-06) all the three

systems (OLTAS, ERACS, CPLGS) are integrated to facilitate
quarterly update of PAN ledger on the basis of the quarterly
TDS/TCS statements.
• Phase II also includes filing of an AIR with respect to

specified high value financial transactions by certain specified
entities.
12
Furnishing of eTDS in Electronic
Format through TIN-FC
• Finance Act, 2003 amended section 206 of Income Tax Act, 1961 to
make it mandatory for corporate deductors to furnish their TDS return
in electronic form (e-TDS returns). The scheme for furnishing
electronic returns was notified by the Central Board of Direct Taxes
(CBDT) vide Notification No. 205/2003 dated August 26, 2003.
• Finance (No. 2) Act, 2004, further amended section 206 of the Income
Tax Act, 1961, making it mandatory for government deductors also to
furnish e-TDS returns from F.Y. 2004-05. e-TDS returns are to be
prepared in accordance with the data structure (file format) specified by
ITD.
• Finance (No. 2) Act, 2004 also amended section 206C of the Income-
tax Act to provide for mandatory filing of returns of tax collection at
source in electronic form (e-TCS). Following the scheme for filing e-
TDS returns notified in 2003, an "Electronic Filing of Returns of Tax
Collected at Source Scheme, 2005" has also been notified. It is
mandatory for corporate and Government collectors of tax at source to
file e-TCS returns. Other entities have the option to do so.
13
Furnishing of quarterly eTDS/eTCS
in Electronic Format through TIN-
FC
• As per section 200(3)/206C, as amended by Finance Act

2005, deductors/collectors are required to furnish quarterly

TDS/TCS returns from F.Y. 2005-06 onwards. Quarterly
TDS/TCS ‘returns’ hereinafter are referred to as ‘statements’.
• Deductors/collectors furnishing their quarterly e-TDS/TCS
statements shall furnish the same to TIN-FCs managed by
NSDL which have been set up across the country to facilitate
deductors/collectors furnish their quarterly e-TDS/TCS
statements. The latest list of TIN-FCs is available at the
NSDL-TIN web-site www.tin-nsdl.com.
Deductors/collectors may also directly furnish their quarterly
e-TDS/TCS statements to NSDL through a web-based
facility provided by NSDL at www.tin-nsdl.com.
14
Additional coverage under
eTDS/eTCS
• Vide Notification No. 238/2007 dated August 30, 2007 Rules 31A
and 31AA of the Income-tax Rules, 1962 have been amended to

provide that in addition to the existing two categories, i.e.
Government and Company, quarterly statements of TDS/TCS shall
also have to be furnished electronically in the following cases:-
• (i) Where the deductor/collector is a person required to get his

accounts audited under section 44AB of the Income-tax Act in the
immediately preceding financial year.
• (ii) The number of deductees’/collectees’ records in a quarterly
statement for any quarter of the immediately preceding financial
year is equal to or more than fifty.
• The above notification is with effect from September 1, 2007.
15
e-TDS Statements
Modes of Furnishing of Quarterly
16
Brief Particulars of the format of
the Text File / FVU
• File Header Record (FH): This is the first line in the

quarterly e-TDS/TCS statement file and contains details such as
statement type (SL1 for Salary/NS1 for Non-salary for TDS and
TC1 for TCS), TAN of deductor/collector, date of creation of the
e-TDS/e-TCS return.
• Batch Header Record (BH): This contains

particulars of deductor/collector, number of challan detail records,
number of salary detail records (only for salary statement – Form
24Q-Quarter 4).
17
the Text File / FVU Part II
• Challan Detail Record (CD): This contains details

of TDS/TCS deposited in the bank by deductor/collector e.g.
amount of TDS/TCS deposited, date of payment, bank where
TDS/TCS deposited in case of non-government deductors. Details
of transfer voucher like transfer voucher number, date in case of
government deductors making payment through transfer vouchers.
It will also contain the section/collection code under which tax has
been deducted /collected.
• Deductee Detail Record (DD): This contains

details of the transaction on account of which TDS/TCS was
deducted /collected from deductee/party. It includes name, PAN
of deductee/collectee, gross amount paid, TDS deducted/TCS
collected.
18
the Text File / FVU Part III
• Salary Detail Record (SD) : This contains the

details of salary, control total of deductions under Section 16 and
Chapter VI A. This record type is mandatory in case of salary e-
TDS statement (Form 24Q) furnished in quarter 4 in case of non-
nil statements. Form 24Q for the first three quarters will not
contain salary detail records. Salary details for the entire year to be
provided only in the last quarter of the financial year.
– Salary Details – Section 16 Detail* record contains details of standard
deductions from salary (the total of which is provided as part of Salary
Detail record).
– Salary Details – Chapter VI A Detail* record contains details of
deductions under section 80CCE (total deductions under Sections 80C,
80CCC and 80CCD) and OTHERS (other deductions under Chapter
VIA).
* To be provided only if applicable.
19
and what is covered therein?

What are the Sections, their codes
20
Form 26Q
General Notes on File Format
21
Form 26Q)
Format of File Header (Regular
22
Form 26Q)
Format of Batch Header (Regular
23
Form 26Q) Part II

24
Form 26Q) Part III

25
(Form 26Q Regular)

Format of Challan Detail Record
26
(Form 26Q Regular) Part II

27
(Form 26Q Regular) Part III

28
(Form 26Q Regular) Part IV

29
26Q Regular)
Format of Deductee Detail (Form
30
26Q Regular) Part II

31
26Q Regular) Part III

32
Copyright @ 2009 Rajiv I Ravani & Co. Example of Text File to be
generated (Form 26Q Regular)
33
Procedure to be followed for filing
eTDS Returns with TIN-FC
• Generate the ASCII Text file using any competent

software. (e.g. F26RQ3.TXT)
• Submit the Text file through the FVU to generate
the FVU File. (e.g. F26RQ3.FVU)
• Write the FVU file generated onto a CD/Floppy.
• Print a copy of Form 27A relating to submission.
Get it signed by a person authorised under ITD
(e.g. Proprietor / Partner / Director / Trustee etc.).
• Submit the CD along with the Form27A to nearest
TIN-FC.
34
Software Provided by ITD for the
preparation of the FVU
• Earlier, ITD was providing MS Excel

format for preparation of the basic data
for eTDS upto July 2007 for Form 24Q,
26Q, 27Q, 27EQ.
• From August 2007, ITD has released
Visual Basic (VB) based Return
Preparation Utility (Currently in version
1.60)
35
Important Websites for eTDS
• http://www.tin- • http://www.mcsinfosolutions
nsdl.com/eTDSRPU.asp .com/
• http://www.akvs.org/ • http://www.mdasoftwares.co
• http://www.charteredinfo.co m/
m/ • http://www.ensolindia.co.in/
• http://www.cnergies.com/ • http://www.indiataxsolution.c
• http://www.fam-is.com/ om/
• http://www.tdspac.com/ • http://www.pervsoft.com/
• http://www.etaxfile.net/ • http://www.computaxonline.
• http://www.kdksoftware.com com/
/ • http://www.tdsmanager.com
• http://www.lakecityweb.com /
/ • Visit http://www.tin-
• http://www.mashbra.com/ nsdl.com/SWProviders.asp
for a more detailed list.
36
Steps for Data Preparation using
RPU
1. Run the RPU Utility

2. Selecting appropriate eTDS Form
3. Select ‘Regular’ or ‘Correction’
4. Click ‘Continue’ to enter
5. Enter the details of the concern
6. Enter Challan Details
7. Enter Deductee Details
8. Click ‘Save’ to save data to Hard Disk /Pendrive
9. Click ‘Create File’ to directly generate FVU file
10. Locate the FVU and write it to appropriate media
(CD/FDD)
37
Running the RPU Utility
38
Selecting appropriate eTDS Form
39
Select ‘Regular’ or ‘Correction’
40
Click to continue
41
Enter details of the concern
42
Enter Challan Details
43
Enter Deductee Details
44
Disk / Pen Drive

Click ‘Save’ to save data to Hard
1
45
generate FVU file (1)

Click ‘Create File’ to directly
46
generate FVU file (2)

Click ‘Create File’ to directly
47
appropriate media (CD/FDD)

Locate the FVU and write it to
48
Introducing
VBA_eTDS_AY_0809.xla
• What is VBA_eTDS_AY_0809.xla ?
• Steps to Manually Generate TXT file & Validate
using FVU 2.116
• Why use VBA_eTDS_AY_0809.xla ?
• What do I do if an error is generated while using
VBA_eTDS_AY_0809.xla ?
• Creating the Form 27A automatically.
• Generating the Form 16A automatically.
• Other Utilities included with
VBA_eTDS_AY_0809.xla.
49
What is VBA_eTDS_AY_0809.xla
?
• VBA_eTDS_AY_0809.xla is an Addin to
Microsoft Excel (2000/2003/2007) which
contains various utilities and procedures
meant to facilitate generation and
maintenance of eTDS data across quarters
and across multiple Assessment Years.
• It has been developed in-house by CA
Vikram S. Mathur.
50
Steps to Manually Generate TXT
file & Validate using FVU 2.116
• Enter the Deductor Information

• Enter the Challan Details
• Enter the Deductee Details
• Optionally, maintain a list of Deductee’s
seperately (for repeated use of same
deductees)
• Generate the TXT file
• Validate using eTdS FVU 2.116
51
Ensure that the

correct quarter,
year and financial
year are selected
Ensure to
enter as many
acknowledge
ment numbers
as are
applicable.
This is used
later in
generating
correction
TAN of the Concern should be
Ensure that these statements.
mentioned in the name of the file, 52
Uniformly refer to Form
should precede the Challan &
26Q
Deductee sheet names

eTDS Quarterly DataPreparation 0910

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

eTDS Quarterly DataPreparation 0910

Uploaded by

Copyright:

Available Formats

Important Pre-Requisites &

Instructions for quarterly

Vikram S. Mathur, FCA, DISA (ICAI)

• NSDL – National Securities Depository Limited.

• eTDS stands for “Electronic Tax Deducted at

• This applies to any person deducting any

• SECTION 200(3) – reference is made to

• Direct tax is an important source of revenue for the

• In this background, Income Tax Department (ITD)

• ITD engaged National Securities Depository Limited (which

had proven experience in handling a nationwide electronic

• In Phase II (commenced in F.Y. 2005-06) all the three

• Phase II also includes filing of an AIR with respect to

• As per section 200(3)/206C, as amended by Finance Act

2005, deductors/collectors are required to furnish quarterly

and 31AA of the Income-tax Rules, 1962 have been amended to

• (i) Where the deductor/collector is a person required to get his

• The above notification is with effect from September 1, 2007.

• File Header Record (FH): This is the first line in the

• Batch Header Record (BH): This contains

• Challan Detail Record (CD): This contains details

• Deductee Detail Record (DD): This contains

• Salary Detail Record (SD) : This contains the

and what is covered therein?

Form 26Q) Part II

Form 26Q) Part III

(Form 26Q Regular)

(Form 26Q Regular) Part II

(Form 26Q Regular) Part III

(Form 26Q Regular) Part IV

26Q Regular) Part II

26Q Regular) Part III

• Generate the ASCII Text file using any competent

• Earlier, ITD was providing MS Excel

1. Run the RPU Utility

Disk / Pen Drive

generate FVU file (1)

generate FVU file (2)

appropriate media (CD/FDD)

• Enter the Deductor Information

Ensure that the

You might also like