Procedure of preparing e-Returns for TDS / TCS

E-Returns for TDS / TCS was first introduced in 2002-03 and it has come a long way ever since. Currently, less than 1% are still on manually filed Returns.

The generic procedure of preparing E-Return for fundamental understanding is summarized as below:

Step – I
The Income Tax Department has specified a data format in which the information for the TDS / TCS Return needs to be prepared. This structure is regularly updated as a routine process for incorporating statutory changes and overall system improvement. All software / tools for TDS / TCS need to follow this data structure while providing the TDS / TCS related information for the E-Return.

Step – II
Once the data file is prepared in the specified format as above, the next step is to ensure all possible technical checks / validations before submission of the E-Return to avoid rejections. For this the Income Tax Department has provided a File Validation Utility (FVU). The data file needs to be passed through this FVU. Once it is validated successfully, it provides an encrypted output file with the extension ‘.FVU’, which needs to be submitted as an E-Return. In case validation fails, it points out the errors. One needs to again go back to the software / tool to correct the errors and follow Step I & Step II.

Step – III
The .FVU file which is the E-Return, is now ready for submission. This can be submitted online at as per specified rules or alternatively, can be submitted physically (through CD / Pen Drive / Email) to the TIN Facilitation Centres (TIN-FCs) as appointed by the Department through their designated service provider, NSDL.

Step – IV
Once the E-Return is successfully submitted, a Receipt / Token is generated which is the proof of submission. This needs to be kept on record.

Using a good software simplified the whole process. TDSMAN is one of the popular software since the last 15 years. By a single process, both Step I & II are taken care of. Anyone can prepare their E-Returns and submit without any professional assistance. Download the Trial Version for evaluation.

Procedure to submit TDS Returns online

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