Saturday, October 30, 2010

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 ( and NSDL-TIN website ( 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:

  1. Each e-TDS/TCS return file should be in a separate CD/floppy.
  2. 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.
  3. Each e-TDS/TCS return file should be in one CD/floppy. It should not span across multiple floppies.
  4. In case the size of an e-TDS/TCS return file exceeds the capacity of one floppy, it should be filed on a CD.
  5. 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.
  6. Label should be affixed on each CD/floppy mentioning name of the deductor, his TAN, Form no. (i.e. 24, 26 or 27) and period to which the return pertains.
  7. 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.
  8. No bank challan or copy of TDS/TCS certificate should be filed alongwith e-TDS/TCS return file.
  9. In case of Form Nos. 26 & 27, deductor need not file physical copies of certificates of no deduction or lower deduction of TDS received from deductees.
  10. In case of Form 24, deductor should file physical copies of certificates of no deduction or deduction of TDS at lower rate, if any, received from deductees. However, there is no such requirement in case of Form 24Q.
  11. e-TDS/TCS return file should contain TAN of the deductor/collector without which, the return will not be accepted.
  12. CD/floppy should be virus-free.

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