One can file TDS / TCS Returns (both Regular & Correction Statements) through the Income Tax e-Filing portal through Aadhaar authentication.
Pre-requisites • TAN has to be registered at TRACES (https://www.tdscpc.gov.in) linking the Aadhaar of
the authorized person • The Aadhaar should be linked with the mobile number. This is for receiving the OTP.
The E-Returns are to be filed online at https://www.incometaxindiaefiling.gov.in/home
Make sure the .FVU is ready that needs to be submitted
Login to https://www.incometaxindiaefiling.gov.in using the TAN, Password, etc.
After successful login for the TAN, one will need to provide the following information:
• FVU Version No. – make sure the Return is validation with the latest version of FVU, otherwise
the Return will not be accepted • FA Year – this is the Financial Accounting Year • Form No. – select the TDS / TCS Form type (24Q, 26Q, 27Q, 27EQ) • Quarter – Select the quarter for which Return is being filed • Upload Type – Regular or Correction (please select) • RRR No. (Original & Previous) – needs to be provided only for Correction Statement • Select the .FVU from its location that needs to be uploaded
Important: Make the sure .FVU file matches all the information as specified, otherwise, the Return will be rejected at the submission.
Once the form is complete, click to generate the OTP No. This will be delivered as a SMS on the registered mobile of the authorized person of the TAN.
Enter the OTP correctly and proceed for completing the submission / filing process.
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 http://incometaxindiaefiling.gov.in 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 softwares 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.
The difference between late payment and late deduction:
Late payment: After the tax is deducted at source it has to be deposited into the government account by 7th of the next month (except March for which it is 30th April). If it is deposited later than the due date, late payment interest is charged. The rate of interest for late payment is 1.5% per month or part of a month of the delay.
Late deduction: If the tax is deducted later than the date on which it was deductible i.e. either at the time of giving credit or at the time of payment of the dues, whichever is earlier, late deduction interest is charged. The interest for late deduction is at the rate of 1% per month or part of a month of the delay.
The section 197 of Income Tax Act, 1961 provides the facility of non-deduction or lower deduction of tax. The assessee whose TDS is to be deducted on certain receipts can make application before Assessing Officer to get this benefit. The deductee can apply for certificate for non-deduction or lower deduction of tax on his receipt in Form 13. The deductor needs to give this certificate details while filing TDS return and needs to validate before filing.
197 Certificate should be of 10 digit & numeric number. Only registered users of TRACES can download 197 Certificate from 2018-19 onwards.
What are the Steps for Downloading 197 Certificate?
The steps for Downloading 197 Certificate are given below:
1. Log in to TRACES site as a Deductor.
2. Click on Inbox under Communication Tab.
3. Select Category of Communication: Certificate u/s 197,206C.
4. Click on Go button. Communication detail will appear under Action Required option.
5. Select the Row of Issuance of Certificate.
6. Click on Download Certificate tab to download it.
7. User can view Communication Category details after clicking on View Details tab.
8. Now log in to TRACES site by entering User ID, Password ,TAN of Deductor and Captcha.
9. Click on Download 197/206 Certificate available under Downloads tab.
10. Mention Financial Year, Deductee PAN or Request No. List of available certificate will appear.
11. Click on hyperlink Download/View Certificate to download and view Certificate.
Some Informations about Validation of 197/195(3) Certificate
The Deductor can validate 197/195(3) Certificate from 2007-08 onwards from TRACES.
If error message showing as No data is available for specified search criteria on TRACES site, reasons can be shown as Certificate is not issued for related PAN/TAN Number.
What are the Steps for Validating 197/195(3) Certificate?
The steps for Validating 197/195(3) Certificate are given below:
1. Log in to TRACES site as Deductor
2. Click on Validate Lower Deduction u/s 197 & 195(3) under Statements/Payments tab to validate 197/195(3) Certificate.
3. Fill required details such as PAN of Deductee and Financial Year.
4. Details of 197 & 195(3) Certificate will appear.
5. Consumption Details will be viewed by clicking on Amount Consumed in Particular row.