5 Steps for Filing e-TDS Return with No Trouble

Filling e-TDS return is compulsorily for company and government deductors as per section 206 of Income tax law. So, it is the need of time to learn how to fill e-TDS return, if you are interested to work as accountant in company or government sector. 

Before learning simple steps, you should know, what is e-TDS? E-TDS means electronic tax deducted at source. It is duty of above mentioned deductors to deduct the amount income tax when they pay to others and prepare return in form No.24, 26 or 27 or 24Q, 25Q or 26Q  in electronic media as per prescribed data structure in either a floppy or a CD ROM. The floppy or CD ROM prepared should be accompanied by a signed verification in Form No.27A.




Central Board of Direct Taxes (CBDT) has appointed National Securities Depository Ltd. (NSDL), Mumbai as e-TDS Intermediary.

5 Simple Steps for filling e- TDS Return 

Ist Step

Choose the format or data structure for preparing e-TDS return

Income tax department and NSDL have made different format according to nature of payments. So, accountant should choose any one from following format.

1. (a) Annual e-TDS return:

o File Format for Form 24 
o File Format for Form 26 
o File Format for Form 27 

(b) Annual e-TCS return:

o File Format for Form 27E 

(c) Quarterly return:

o File Format for Form 24Q 
o File Format for Form 26Q 
o File Format for Form 27Q 
o File Format for Form 27EQ 

Data structure for Form 24Q of the quarter ending 31-March

2nd Step 

E-TDS return for successful acceptance

1. E-TDS clean text ASCII format: You can use any software like ms excel, compu tax or Tally.ERP or NSDL’s software Return Preparation Utility (e-TDS RPU-Light) for making e-TDS return but E-TDS file formats must be in clean text ASCII format with 'txt' as filename extension.
2. Correct Tax deduction Account Number (TAN) of the Deductor is clearly mentioned in Form No.27A as also in the e-TDS return, as required by sub-section (2) of section 203A of the Income-tax Act.
3. The particulars relating to deposit of tax deducted at source in the bank are correctly and properly filled in the table at item No.6 of Form No.24 or item No.4 of Form No.26 or item No.4 of Form No.27, as the case may be.
4. The data structure of the e-TDS return is as per the structure prescribed by the e-Filing Administrator. 
5. The Control Chart in Form 27A is duly filled in all columns and verified and as enclosed in paper form with the e-TDS return on computer media.
6. The Control totals of the amount paid and the tax deducted at source as mentioned at item No.4 of Form No.27A tally with the corresponding totals in the e-TDS return in Form No. 24 or Form No. 26 or Form No.27, as the case may be.
7. Bank Branch code or BSR code is a 7 digit code allotted to banks by RBI. This is different from the branch code which is used for bank drafts etc. This no. is given in the OLTAS challan or can be obtained from the bank branch or from www.tin-nsdl.com. It is mandatory to quote BST code both in challan details and deductee details. Hence, this field cannot be left blank. Government deductors transfer tax by book entry, in which case the BSR code can be left blank. 











3rd Step

Validate or verify your prepared e-TDS return

After the file has been set as per the file format, it should be verified using the File Validation Utility(FVU) (download here ) provided by NSDL.





4th Step
Rectify the errors and verify the file

In case file has any errors the FVU will give a report of the errors. Rectify the errors and verify the file again through the FVU.





5th Step 

Filling of e-TDS Return

A ) Go to TIN – FC ( center) near to your office

e-TDS returns can be filed at any of the TIN-FC opened by the e-TDS Intermediary for this purpose. Addresses of these TIN-FCs are available at the website onhttp://www.incometaxindia.gov.in/  or at http://www.tin-nsdl.com/ .


B) Filling of e-TDS Return Online 

Now, you have also facility to file your e-TDS return online for this you have to register to NSDL.

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Requirement of filling Service Tax Returns by Small Service Providers

We all are well familiar with the ever green contest between the Revenue and the Assessee,be it a taxing issue or an issue of relief. The learned officials of the Department are issuing Show Cause Notices to the Small Service Providers of nonfilling of Service Tax Returns. My point of consideration in this discussion is whether Small Service Providers having turnover below the threshold limit Rs. 10 Lacs and also below Rs. 9 Lacs (the limit prescribed for obtaining registration even if the turnover is below the threshold limit) are at all required to file the service tax return?

In my considered opinion, the Service Providers having taxable turnover less than the threshold limit Rs. 10 Lacs,and also less than the prescribed limit Rs. 9 Lacs who otherwise comply with the conditions of exemption notification are not required to file the service tax return.

Only the following four types of persons are required to file the Service Tax Returns

1. ‘Persons liable to pay tax

2. ‘Input Service Distributors

3. ‘Small Service Providers whose aggregate value of taxable service exceeds a prescribed amount, (then Rs. 3 Lacs, now it is Rs. 9 Lacs)

4. ‘the service recipients wherever liable to pay service tax on reverse charge basis.

Who is liable to file service tax return?

Liability to file return is on the persons who are liable to pay tax or who have otherwise been specifically made liable to obtain registration and file service tax returns.

Liability to file Service Tax Return is cast upon the Person Liable to Pay the Service Tax vide Section 70 and Rule 7(1).

Liability to obtain compulsory registration and filling of service tax return is determined by Section 69(2), Section 70(2) and Notification No. 26/2005 as amended up to the date.
For ready reference, relevant provisions of Section 70(1), Rule 7(1), Section 70(2) and Section 69(2) are reproduced here:

Section 70(1) of the Act;

Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency and with such late fee not exceeding twenty thousand rupees, for delayed furnishing of return, as may be prescribed.

Rule 7(1) of the Service Tax Rules, 1994;

Every Assessee shall submit a half yearly return in Form ST-3 or ST-3A, as the case may be, along with a copy of the Form TR-6, in triplicate for the moths covered in the half-yearly return.

Section 70 (2) of the Act

The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.

Section 69(2) , Persons notified for filling of service tax return The Central Government, exercising the powers conferred under Section 69(2), issued a Notification bearing No. 26/ 2005-ST on 7-6-2005 specifying that; any input service distributor and service provider of taxable service whose aggregate value of taxable service in a financial year exceeds Three Lacs Rupees to make an application for Registration.

Turnover limit for obtaining Service Tax Registration was raised from Rs. 3 Lacs to Rs. 7 lacs and Rs. 9 Lacs respectively by subsequent amendment notification to the original 26/2005 by notification nos. 05/2007 dated 01-03-2007 effective from 01-04-2007 and 9/2008 dated 01-03-2008 effective from 01-04-2008.

This Notification made it incumbent upon every input service distributor and every provider of Taxable Service with its turnover of more than Rs. 3 Lacs Rupees (now Rs. 9 Lacs) to obtain registration under the Act, even if he/she is not otherwise liable to pay Service Tax (the Turnover of Taxable Service being less than Rupees 4 Lacs, now Rs. 9 Lacs).

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