India Localization – ETDS

India Localization
Electronic Tax Deducted at Source

User Manual

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India Localizations (Xe, 8.0, 8.9, 8.10)

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 India Localization – ETDS

Table of Contents
TDS INTRODUCTION ...................................................................................................... 3

INTRODUCTION ............................................................................................................... 3
1.1 TIN – THE CONCEPT ......................................................................................................3
1.2 IMPLEMENTATION...........................................................................................................4
1.3 BENEFITS OF TIN TO THE DEDUCTORS / ETDS MODULE ...........................................4
QUARTERLY TDS STATEMENTS - FORMS................................................................. 5
3.1 TAX DEDUCTED AT SOURCE (TDS) ...................................................................................5
3.2 ETDS RETURNS...........................................................................................................5
PROCEDURE FOR VALIDATION OF E-TDS/E-TCS STATEMENT USING FVU........ 6

FURNISHING OF QUARTERLY E-TDS STATEMENTS ............................................. 11

6.1 QUARTERLY ELECTRONIC STATEMENTS FURNISHED THROUGH TIN-FC.................................... 11
6.2 MANNER OF FURNISHING CORRECTION STATEMENT............................................................. 12
NON-ACCEPTANCE ....................................................................................................... 12

ACCEPTANCE OF QUARTERLY E-TDS THROUGH WEB-BASED UTILITY- ......... 13

BROAD FEATURES IN ETDS MODULE....................................................................... 14

APPLICATION – P75I100Q...................................................................................................... 15
REPORT – R75I122EQ.......................................................................................................... 15
SETUP REQUIREMENTS.............................................................................................. 15
STATE CODES EXPLANATION........................................................................................... 16
UDC 75I/ES STATE CODES ................................................................................................... 17
DEFINE TDS SECTION CODES - UDC 75I/TG .............................................................................. 17
ETDS PROCESS............................................................................................................... 18
APPLICATION – P75I100Q TO ENTER CHEQUE / DD NO. - ..................................... 19

INTEREST / PENALTY FOR DELAY PAYMENT -........................................................ 20

PROCESSING OPTIONS SETUP ................................................................................. 20

PO FOR R75I122EQ - FORM 26Q QUARTERLY RETURN (NEW E- FORMAT) ..................... 20
REPORT - R75I122EQ .................................................................................................... 24

E-TDS FILE VALIDATION UTILITY................................................................................ 30

READ ME - ....................................................................................................................... 31

TEXT FILE - ..................................................................................................................... 31

FVU – TDS RETURN STATISTICS REPORT - ............................................................ 32

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 India Localization – ETDS

TDS Introduction

Introduction

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.

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.

1.1 TIN – the Concept

Tax Information Network (TIN) is a part of this modernization initiative by ITD.

TIN has three key sub-systems.

• Electronic Return Acceptance and Consolidation System (ERACS) which consists of an

infrastructure for interface with the taxpayers [a nation wide network of TIN-Facilitation
Centers (TIN-FC) and a web-based utility for upload of electronic returns of Tax Deduction
at Source (TDS) and Quarterly Information Return (AIR) to the central system of TIN.
• Central PAN Ledger Generation System (CPLGS) which is the central system that
consolidates for each PAN:
− Details of tax deducted on its behalf (TDS) which is obtained by matching the TDS returns
submitted by the deductors with the tax deposit (Challan) information from the banks;
− Details of the tax deposited (advance tax/self assessment tax) directly by the taxpayer
with the bank;

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Figure 1

1.2 Implementation

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.

1.3 Benefits of TIN to the Deductors / ETDS Module

• Elimination of manual preparation, signing and issue of TDS certificates.

• No need to file and store multiple copies of TDS Certificates.
• Instead of filing large number of physical papers (truckloads for large companies) the e-
TDS return is now one floppy/CD.
• Cost saving in preparation of statements.
• Furnishing through service network of TIN-FCs helping them demand better service
quality.

Scheme for Furnishing Electronic Returns (e-TDS)

Collecting physical TDS returns, keeping proper checks and balances of TDS deposited
By deductors and credit claimed thereof by deductees have always been matters of concern
for ITD.

Furnishing of Quarterly TDS Statements in Electronic Form

As per section 200(3)/206C, as amended by Finance Act 2005, deductors are required to
furnish quarterly TDS returns from F.Y. 2005-06 onwards. Quarterly TDS ‘returns’ hereinafter
are referred to as ‘statements’.
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Deductors furnishing their quarterly e-TDS statements shall furnish the same to TIN-FCs
managed by NSDL which have been set up across the country to facilitate deductors furnish
their quarterly e-TDS statements. The latest list of TIN-FCs is available at the NSDL-TIN web-
site www.tin-nsdl.com. Deductors may also directly furnish their quarterly e-TDS statements
to NSDL through a web-based facility provided by NSDL at www.tin-nsdl.com

Quarterly TDS statements - Forms

3.1 Tax Deducted at Source (TDS)

As per the provisions of the Income Tax Act, 1961, some specified entities making
Payments (like salary, interest, dividend, professional fees, brokerage, rent) to
third parties (deductees) are required to deduct tax at source (Tax Deducted at Source
-TDS) from these payments and deposit the same at any of the designated branches
have authorized banks.

3.2 ETDS Returns

To ensure proper checks and balances on these deductions (TDS) and subsequent credit
taken thereof by the deductee, the deductors are required to file TDS returns. TDS returns
contain details of deductor (like TAN, name, address,), tax deposited at the bank (like
amount, Challan identification number,) deductee details (like PAN, name, amount paid, tax
deducted at source).

Guidelines for Preparation of Quarterly e-TDS Statement File -

Prescribed Data Structure (File Format)

Example 1:
An original (regular) quarterly non-salary TDS statement (Form 26Q) containing
3 challans/transfer voucher details of which
• Challan 1 has 3 deductee records
• Challan 2 has 1 deductee record
• Challan 3 has 2 deductee records

The sequence of the detail records in the quarterly e-TDS statement (Form 26Q) will be as
follows:
--File header record (FH)
--Batch header record (BH)
--Challan/transfer voucher detail record 1 (CD)
--Deductee detail record 1 (DD)
--Deductee detail record 2 (DD)
--Deductee detail record 3 (DD)
--Challan/transfer voucher detail record 2 (CD)
--Deductee detail record 1 (DD)
--Challan/transfer voucher detail record 3 (CD)
--Deductee detail record 1 (DD)
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--Deductee detail record 2 (DD)

Before validating the electronic statement through the e-TDS FVU read the instructions
provided in ‘Read me’ on the e-TDS FVU.

The ‘TDS FVU Setup.exe’, ‘TDS_FVU.bat’ and ‘TDS_FVU_STANDALONE.jar’ files should

be present in the same folder to run the FVU.

Procedure for validation of e-TDS/e-TCS statement using FVU

To run the TDS FVU double-click on the TDS FVU.bat icon at the path where the three files
mentioned above are saved. As displayed in figure 4 above the input screen of the FVU has
two fields via; ‘Input File Name and Path’ and ‘Error/Upload & Statistics Report File
Path’. It also has a ‘Read me’ button that may be clicked for guidelines for using the FVU.

Input File Name and Path

• Specify the name (with the .txt extension) of the input file (including the path) i.e. the name
of the e-TDS statement prepared as per file format to be validated by the FVU.
• Input filename should not be more than 12 characters (including the .txt extension) and
should not contain any special characters eg. : \ / etc.,
For example file name can be FORM26Q.txt.

Error/Upload & Statistics Report File Path

Specify the path where either an ‘error’ or ‘upload’ & ‘statistics report file’ generated by
the FVU on completion of validation of the statement should be saved. The path can be same
as the input file path or different. Do not specify any file name, only provide the path.

It is mandatory to fill both these fields.

Deductor can enter or select the input file (e-TDS) to be validated by using the ‘Browse’
button on the extreme right of the 'Input File Name and Path' as in figure 7.

Figure 7

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In the example above the path of the ‘Input File Name with Path’ chosen is D:\2005-
06\returns\26QGov.txt (figure 8).

Figure 8

NOTE: The ‘Input File’ needs to be a text file i.e. with extension ‘txt’

Specify either entering or using the browse button on the extreme right of the ‘Error/Upload &
Statistics Report File’ field should save the path where either the ‘Error’ or ‘Upload’ &
‘Statistics Report File’ generated on validation through the FVU. The path can be same as the
input file path or different (figure 9). Do not specify the file name.

Figure 9

In the above example the ‘Error/Upload & Statistics Report File’ will be saved at the same
path as the Input File i.e. D:\2005-06\returns.

In case the input file is invalid, FVU will generate two files:
• 26QGoverr.html
• 26QGov.err (text file)

26QGoverr.html is an ‘Error ’ file generated in html format with the same filename as the
input file with err appended after the file name and html as extension (figure 10). Example, the
input file name is 26QGov.txt; the error filename will be ‘26QGoverr.html’. The error file will
contain details of erroneous records like line number, record type, batch number, Challan
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number, deductee/salary detail number, along with the error code and the corresponding error
description. The line numbers of the records in the error file will be the line number in the
input text file.

26QGov.err is a carat separated text file with .err as extension (filename will be the same as
the input file). This text file will also get generated with the same information as the html file.

Figure 10

26QGov.html is a ‘TDS Return Statistics Report’ (figure 11), which is a summary of the e-
TDS statement successfully validated by the FVU. It also contains list of deductee PAN
deficiencies like invalid PAN, PAN not available, PAN applied.

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Figure 11

The 26EQGov.html is a summary of the e-TDS statement successfully validated by the FVU.

It also contains count of Deductee PAN and its details as below:

Number of valid PANs – count of valid deductee PANs in the statement.
Number of PANs applied - count of PANs that are given as ‘PANAPPLIED’ in the PAN of
deductee record field in the statement.
Number of PAN not available - count of PANs that are given as ‘PANNOTAVBL’ in the PAN
deductee record field in the statement.
Number of structurally invalid PAN – count of PANs that are given as ‘PANINVALID’ in the
deductee record field in the statement.

The details of the above counts is indicated by -

Line number of deductee record.
Deductee detail record number.
PAN mentioned in file.
Error description.

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Deductors are advised to verify details of their TAN at ITD web-site

(www.incometaxindia.gov.in). If ITD data is not updated then submit form for ‘Changes or
Correction in TAN Data for TAN allotted’ along with the quarterly e-TDS statement. Also
match totals and other deductor details (like name, PAN, TAN, F.Y.,) with physical Form 27A.

26QGov.fvu is an ‘upload file’ generated with the same filename as the ‘input file’ but with
extension .fvu. Example ‘input file’ name is 26QGov.txt; the upload file generated will be
26QGov.fvu.

The upload file generated by the FVU (26QGov.fvu) is a valid statement containing a value
generated by the FVU, which indicates that the statement has been successfully validated
through the FVU.

In case the deductor wishes to modify its quarterly statement after successfully validating it
through the FVU, it shall modify the original (regular) statement that it selected as ‘Input File’
and validate it again through the FVU.

No modifications should be made in the upload file.

The upload file (with extension .fvu) is to be submitted to a TIN-FC in a CD/floppy

along with physical Form 27A or directly to NSDL through the online upload facility at
www.tin-nsdl.com

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Furnishing of Quarterly e-TDS Statements

6.1 Quarterly Electronic Statements Furnished Through TIN-FC

NSDL has established a network of TIN-Facilitation Centers that receive Quarterly

electronic statements from deductors. Deductors shall furnish there Quarterly
e-TDS statements at any of these TIN-FCs. NSDL keeps adding TIN-FC locations on a
continuous basis.

After preparing and validating the quarterly e-TDS statements as described in

Earlier chapters, the deductor shall furnish the same at any TIN-FC managed by NSDL.
Deductor shall ensure that:
i) Each quarterly e-TDS statement (Form 26Q) is in a separate CD/floppy.
ii) Each quarterly e-TDS statement is accompanied by a duly filled and signed (by an
authorized signatory) Form 27A in physical form.
iii) Each quarterly e-TDS statement is in one CD/floppy, it should not span across
multiple floppies.
iv) In case the size of quarterly e-TDS statement exceeds the capacity of one floppy then
it is furnished in a CD.
v) Quarterly e-TDS statement should be compressed, if required, only by using WinZip
8.1 or ZipItFast 3.0 (or higher version) compression utility to ensure quick and smooth
acceptance of the file.
vi) Label mentioning TAN, name of deductor, period to which statement pertains (quarter
and F.Y.) and Form no. (26Q) is affixed on each CD/floppy for the purpose of
identification.
vii) There is no overwriting/striking on Form 27A. If there is any, then the same should be
ratified by an authorized signatory.
viii) No bank Challan or copy of TDS certificate or physical copies of certificates or no/low
deduction of TDS is required to be furnished along with the statements.
ix) TAN and PAN of deductor are mandatory mentioned in the statement. Only in case of
Government deduct or, PAN may not be mentioned. In case deductor does not have a
TAN, it should first obtain the same by applying for one, using the latest Form 49B
(notified by ITD in December 2004) through any TIN-FC or through online web-based
facility provided by NSDL (www.tin-nsdl.com). Statement shall not be accepted if
TAN is not quoted.
x) TAN details (name, address, etc.,) of the deductor as provided in the quarterly e-TDS
statement should be same as in the TAN database maintained by ITD (these details
can be verified with the TIN-FC or the ITD web-site www.incometaxindia.gov.in). If they
are different the deductor shall submit a TAN change request application to update the
ITD TAN database or a copy of the acknowledgment of TAN change request already
submitted. TAN change request is given in Appendix 5.
xi) Each branch or Drawing and Disbursement Officer (DDO) of a deductor furnishing
separate quarterly e-TDS statement should furnish the quarterly e-TDS statement
quoting separate TAN issued to each branch/DDO respectively.
xii) Quarterly e-TDS statements pertain to the period for which they are allowed to furnish.
xiii) The quarterly e-TDS statement has been successfully passed through the latest
version of the FVU.
xiv) Control totals, TAN and name mentioned in the quarterly e-TDS statement match with
those mentioned on Form 27A.
xv) CD/floppy is virus free.
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6.2 Manner of Furnishing Correction Statement

Corrected e-TDS statements can be furnished with any TIN-FC.

Tax Deduction Account Number (TAN)

Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote TAX DEDUCTION
ACCOUNT NUMBER (TAN) allotted by the Income Tax Department (ITD) on all TDS
statements.

Since last few years ITD has revised the format of TAN. It is a countrywide unique 10-digit
alphanumeric code. All new applicants have been issued reformatted TAN. TANs issued in
old format have been reformatted.

To facilitate deductors find their new TAN, ITD has introduced a search facility on its website
(www.incometaxindia.gov.in). Deductors’ s are advised to find the new TAN from this site
before it is incorporated in their e-TDS statement.

Deductors s are also advised to bring either of the following to avoid inconvenience at the
time of furnishing e-TDS statement arising due to variation in the way the TAN is quoted:
--Screen print of new TAN from ITD website
--Copy of TAN allotment letter from ITD

Non-acceptance

TIN-FC will not accept the quarterly e-TDS statement furnished by deductor if:
i) Quarterly e-TDS statement (Form 26Q) is not furnished in a separate CD/floppy along
with duly filled and signed Form 27A in physical form;
ii) Separate Form 27A is not furnished for each quarterly e-TDS statement;
iii) Striking and Overwriting, if any, on Form 27A are not duly ratified by the person who
has signed Form 27A;
iv) More than one quarterly e-TDS statement is furnished in one CD/floppy;
v) More than one CD/floppy is used for furnishing one quarterly e-TDS statement;
vi) Deductor has not mentioned its name, TAN, and Form no. And period to which
statement pertains (quarter and F.Y.) on the CD/floppy for identification purpose;
vii) Quarterly e-TDS statement is compressed using a compression utility other than
WinZip 8.1 or Zip It Fast 3.0 (or higher version) compression utility;
viii) Quarterly e-TDS statement is not in conformity with the file formats prescribed by ITD;
ix) TAN stated in quarterly e-TDS statement is not present in SAM1 and deductor does
not submit any proof of TAN stated in the statement;
x) Deductor does not have a TAN;
xi) Name/address of deductor displayed on SAM1 does not match with name/address
stated on Form 27A and deductor does not provide TAN change request;
xii) Mismatch of control totals generated by SAM1 with Form 27A;

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xiii) The quarterly statement has not been successfully passed through the latest version
of FVU;
xiv) Quarterly e-TDS statements do not pertain to the period for which dedicators are
allowed to submit their statements.
xv) CD/floppy is not virus free.

In such cases, TIN-FC shall issue a pre-printed Non - Acceptance Memo to the deductor
to carry out necessary corrections. The Non-Acceptance Memo contains the possible
Reasons for non-acceptance.

In case of non-acceptance, TIN-FC shall return the CD/floppy, any other documents
Furnished and physical Form 27A to the deductor.

Acceptance of Quarterly e-TDS Through Web-based Utility-

(Direct Furnishing)

Deductor will upload a digitally signed quarterly e-TDS statement to the web based
Facility as per the procedure given at the web-site (www.tin-nsdl.com). TIN
Web-site will validate whether the digital certificate provided by the
Deductor at the time of registration is the same as the one being used by it at the
Time of login and at the time of quarterly e-TDS statement upload.

In case certificate verification is successful, direct upload facility will issue a file reference
number for each quarterly e-TDS statement uploaded.

If format level validation fails, the statement will not be accepted. Status of the quarterly e-
TDS statement furnished will be shown as ‘rejected’. If the advance available is not sufficient
to cover upload charges for the statement being uploaded, the statement will not be accepted
and the status of the quarterly e-TDS statement furnished will be shown as ‘rejected due to
insufficient balance’.

In case file format level validations are successful, TIN system would generate a provisional
receipt which will also indicate count of missing PAN(s), if any, which the deductor can
view/print.

Reasons for having separate module for ETDS. -

§ ITD has made it mandatory (i.e. June 1, 2003) for corporate deductors to furnish their
TDS returns in electronic form (e-TDS return). However, it is not mandatory for non-
corporate deductors to furnish their TDS return in electronic form.

§ Deductors furnishing their TDS return in electronic form shall furnish the same to TIN
Facilitation Centers (TIN-FCs) managed by NSDL. Currently TIN-FCs are located in 42
cities across India, which is expected to increase to 107 cities in due course.

§ Deductors furnishing their TDS return in physical form shall furnish the same with their
respective Income Tax Offices. ITD has notified an "Electronic Filing of Returns of Tax
Deducted at Source Scheme, 2003" giving details of furnishing e-TDS returns.

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Deductors furnishing their TDS returns in electronic form shall prepare the same as
per the electronic data structure (File Format) prescribed by ITD.

§ Deductors furnishing returns in electronic form have to furnish a control chart - Form
27A in physical form along with CD/floppy containing the e-TDS return.

§ The sequence of the detail records must be in the order mentioned below:

• File header record - File Header record is the first line in the e-TDS return file
and contains details such as return type, TAN of deductor, date of creation of
the e-TDS return file, etc.,

• Batch header record - Batch Header record contains particulars of deductor,

number of challan detail records, number of deductee detail records, number
of perquisite detail records etc.,

• Challan detail record - Challan Detail record contains details of TDS

deposited in the bank by deductor e.g. amount of TDS deposited, date of
payment, bank where TDS deposited etc.,

• Deductee detail record - Deductee Detail record contains details of the

transaction on account of which TDS was deducted from deductee. It includes
name, PAN and address of deductee, gross amount paid, TDS deducted etc.,

It is applicable for the assessment year 2006-07 in case of tax deduction at source i.e. for the
financial year 2005-06 (i.e. April1, 2005 to March 31,2006).

Broad Features in ETDS Module

• Data Capture of TDS details from Table F5I100 and F75I101A in a new table
F75I100Q (Temporary Table) for ETDS Purpose.
• Meets the Objective of supporting the Reporting Requirements & issuing
Form – 26Q (Quarterly Return), Challan wise details and Annexure wise break
Up for various TDS Groups.
• Meets the requirements specified by Income Tax Department.
• Flexible to include future changes.
• Display Form 26Q along with Annexure to meet the objective to generate a Text File in
ASCII format as per ITD Requirement for validation purpose.

Statutory Reporting Needs

• Quarterly ETDS Returns Certificate is to be submitted for every TDS group to the
Government by the Company for each quarter of the Financial Year.
• It Provide following Reports.

§ Quarterly Returns (Form 26Q)

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§ To be generated/submitted TDS Group/Type wise at the end of every Quarter to

the Income Tax Department.

Application – P75I100Q

• Applications to enter Cheque / DD No. – P75I100Q

Report – R75I122EQ

• Form 26Q – Quarterly Returns (E-format) - R75I122EQ

TDS Form 26Q work file -- F75I100Q

Setup Requirements

Pre-Requisites

• As per the file format required by the government for filing the Quarterly returns
electronically, the state code must be according to the codes provided by the
government. In order to map the state codes provided by the government with the
existing state codes in the address book master, a new UDC table has been
created.

Please refer the example below:

For example, if a client is using AP for Andhra Pradesh, MH for Maharashtra,

According to the UDC – 00/ST in the address book, then the new UDC must be
setup as follows:

Create a UDC table as per following:

DRSY = 75I (System Code)

DRRT = ES (Code Type)
Where ES stands for State (Electronic)

The UDC table must be setup as follows:

Code Description Special Handling

Code
AN Andaman & Nicobar 1
AP Andhra Pradesh 2
AC Arunachal Pradesh 3
AM Assam 4
MH Maharashtra 19
UP Uttar Pradesh 31

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Etc Etc X

Thus, as a part of the setup, the UDC 75I/ES has to be created.

The code values (for example AN, AP etc) will vary depending on the values used
at the actual client site. But, the special handling codes must be according to the
government format and must be mapped (as per the above UDC table) against
the appropriate state codes (00/ST) under Code (DRKY) as per the above table.

STATE CODES EXPLANATION

Annexure - State Codes –

State Code State Name

01 ANDAMAN AND NICOBAR ISLANDS
02 ANDHRA PRADESH
03 ARUNACHAL PRADESH
04 ASSAM
05 BIHAR
06 CHANDIGARH
07 DADRA & NAGAR HAVELI
08 DAMAN & DIU
09 DELHI
10 GOA
11 GUJARAT
12 HARYANA
13 HIMACHAL PRADESH
14 JAMMU & KASHMIR
15 KARNATAKA
16 KERALA
17 LAKHSWADEEP
18 MADHYA PRADESH
19 MAHARASHTRA
20 MANIPUR
21 MEGHALAYA
22 MIZORAM
23 NAGALAND
24 ORISSA
25 PONDICHERRY
26 PUNJAB
27 RAJASTHAN
28 SIKKIM
29 TAMILNADU

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30 TRIPURA
31 UTTAR PRADESH
32 WEST BENGAL
33 CHHATISHGARH
34 UTTARANCHAL
35 JHARKHAND
99 For Foreign address (In such case PIN Code should be 999999)

UDC 75I/ES State Codes

The UDC 75I/ES must be set up and mapped as follows: -

PLEASE NOTE THAT THE VALUES APPEARING UNDER CODES ARE FROM THE
UDC 00/S.

Define TDS Section Codes - UDC 75I/TG

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• The UDC 75I/TG is used in TDS to store the section codes i.e. 194. Please note that
the section codes should not contain any spaces. For example, section “194C” is valid
but “19 4C” is an invalid section code.

• The system will take the last three digit stored in UDC in .txt file generated for
File Validation Purpose.

• The address for the deductor and the supplier must be set up in the address book in
such a way that each line represents separately Address Details. State code has to be
defined in Address Master Set Up for requirement of State Code from UDC 75I / ES.

• To Print Bank Branch code where Tax is deposited in Who’s who information screen
populate Mailing Name field with Bank branch Code as defined by RBI with the Type
code as ‘G’

• To Print Supplier PAN details in ETDS Quarterly Return Form 26Q in Who’s who
information screen (Supplier Master) populate Mailing Name field with details of PAN
Number if available with the Type code as ‘Z’ must for getting PAN details or
PANAPPLIED where PAN has been applied by supplier or PANNOTAVBL if not
available for particular Supplier.

ETDS PROCESS

ETDS Program does the following:

• The user will calculate TDS, do the challan updating and generate statement as
per the process defined in TDS Module.

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• At the end of the Every Financial Quarter the user will generate Report in Form
26Q for ETDS purpose as per ITD requirement.

• After the Report will be generated as per ITD requirement, the program will
generate a text file “eform.txt” in the User Defined Folder and Path in Processing
Option for text file to be generated for validation purpose.

• User will validate the text file with File Validation Utility (FVU) Software provided
by NSDL to ascertain as to whether the file contains any format level error. In
case the user finds any error, he shall rectify the error and passed the file again
through FVU till the ETDS return file is error free.

• In case no error is detected the user can copy the error free file in CD/Floppy and
furnish the CD/Floppy to the TIN –FC.

Application – P75I100Q to enter Cheque / DD No. -

The user has to input the mode of payment of Tax in Government account i.e. by Cheque or
DD Number of Bank Challan / Voucher number and for Interest Calculation the delay in
number of months along with Interest Rate fixed by ITD which will be reflected in Quarterly
Return generated by the System for Validation purpose.

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Interest / Penalty for delay payment -

Input Interest Amount and Penalty if any charged by ITD for delay in depositing TDS Amount
beyond due date.

The user will input the number of month delayed in depositing TDS Amount in Government
Account along with Interest rate applicable as per Income Tax Act for that particular Quarter
along with Challan / Voucher Number for automatic calculation of Interest by the system. This
Interest and Penalty if any will be reflected in Quarterly Return submitted to Government
through Computer media.

The System will Store the Interest and Penalty amount in Table F75I101A for each Challan
wise Separately.
PROCESSING OPTIONS SETUP

PO For R75I122EQ - Form 26Q Quarterly Return (New E- Format)

TAB: Defaults –Screen1

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Field Name Description / Purpose

Company Company number as defined in Address Book Master for which
TDS returns will be filed
Document Company Document Company number as defined in Address Book Master
for which TDS returns will be filed
From Date The beginning date of each Quarter of Financial Year i.e. 1st April,
1st July, 1st October, etc.
To Date The end date of each Quarter of Financial Year i.e. 30th June, 30th
September, 31st December, etc.for that the Quarterly Return is
run.
TDS Group The TDS Group for which the Quarterly returns is to be filed. If left
blank, the program will consider all the TDS groups
Type Code The Type code is the code that is defined in the Address book
Master under who’s who for bank branch code in which tax has
been deposited a mandatory field for ETDS.
Book Entry or It is mandatory to mention “C” for Payment deducted other than by
Otherwise government for TDS The user has to input “C” in Processing
Option.

PROCESSING OPTIONS SETUP

TAB: Defaults –Screen1 (Continued)

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Field Name Description / Purpose

Has any statement been Whether any Return if filed earlier for the same Quarter is to be
filed earlier for this mentioned in Processing Option, Default Value will be “N”
Quarter
Provisional Receipt If answer to above is “Y”, then Mention the Provisional Receipt
Number Number of the same or Leave Blank if answer is “N”
Status of Deductor This field indicates the status of the deductor. This value should be
“C” = Central Govt ‘C’ for Central government organization and ‘O’ for others.
“O” = Others
Branch / Division of the Mention the Branch or Division if any of the Company who is filing
Deductor the Quarterly Return.

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PROCESSING OPTIONS SETUP

TAB: Defaults –Screen1 (Continued)

Field Name Description / Purpose

Address Number of Mention the Address Number of the person Responsible for the
Person Signing Deduction of Tax and authorized by Company for Signing Return.

Change of Address of Mention “Y”, if Address of employer has been changed from the
the Employer since last last filed Return otherwise “N” in processing Option.
Return
Change of Address of Mention “Y”, if Address of the Responsible Person has been
the Responsible Person changed from the last filed Return otherwise “N” in processing
since last Return Option.

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PROCESSING OPTIONS SETUP

TAB: Defaults –Screen1 (Continued)

Field Name Description / Purpose

Enter version for This will be the version for program R75I122EQ that will be called
R75I122EQ from program R75I122EQ.
(If left blank, ZJDE0001 If left blank, then the default ZJDE0001 will be used.
will be used)
Desired Flat File Path The program will generate a text file in the user defined path in C:
or D: Folder as per the format mentioned in Processing Option
defined by user. The file will be generated in the format
(FileName_HHMMSS_DDMMYYYY_BU) in the desired path. Since
for Validation Purpose the maximum Character allowed including
.txt is 12 Characters only, to pass the file for validation user need to
change the name of file to less than 12 characters before passing
it to validation.

REPORT - R75I122EQ
The Report (R75I122EQ) will be displayed as below –
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File Header and Batch Header Format –

Screen1 -

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Screen 2
Details of Tax deducted and paid to the credit of Central Government will be displayed as
below – i.e. Challan Details -

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Screen 2 -(Continued)

Details of Deductee details as per TDS Group wise will be displayed as below -

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Screen1-

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Screen 2 -(Continued)

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Screen 2 (Continued)-

E-TDS FILE VALIDATION UTILITY

The text file eform26Q.txt generated by the TDS Quarterly return program R75I222EQ must
be validated against the E-file TDS validation utility.

1) Input File Name with Path - This should be the user defined folder with file name
eform26Q.txt generated by the program R75I122EQ
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2) Error/Upload & statistics Report file Path -Specify the same folder only. This file will be
generated at run-time by the utility program along with Statistics Report for Successful
Validation.

3) Before the user Validate, he should read the Read me Document given in TDS
Validation Utility version 2.025 as below -
Read Me -

Text File -
Further, the eform26Q.txt utility program will validate the file after entering the parameters
as specified above in following way from notepad file generated by program–

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FVU – TDS Return Statistics Report -

If the E-file eform26Q.txt has no errors, then the total tax amount will be inserted in the
FVU – TDS Return Statistics Report as below –

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If the file eform26Q.txt has errors, the error codes will be generated in the error/response
file against the appropriate line in the E- file eform26Q.txt.
Following are the Quarterly Reports:

• Form 26Q

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