eTDS / eTCS Statements

Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) 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 of banks authorised to collect taxes on behalf of Government of India. They should also furnish TDS returns containing details of deductee(s) and challan details relating to deposit of tax to ITD.

e-TDS

As a part of automation of collection, compilation and processing of TDS returns ITD has notified an "Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003". It is applicable to all deductors furnishing their TDS return in electronic form. As per this scheme:

• It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS returns in electronic form (e-TDS return).
• From F.Y. 2004-2005 onwards furnishing TDS returns in electronic form is also mandatory for Government Deductors in addition to corporate deductors.
• Deductors (other than government and corporates) may file TDS return in electronic or physical form. However, the Physical Form can be submitted only if the deductee records are less than 20.

e-TCS

TCS means collection of Tax at Source by the seller (collector) from the buyer (collectee / payee) of the goods (specified u/s 206C of Income-tax Act, 1961, like timber obtained under forest lease, scrap, any other forest produce not being timber or tendu leaves etc.,). For e.g. if purchase value of goods is Rs.10,000/-, the buyer will pay an amount of Rs.10,000/- + X (X being the value of TCS as prescribed under Income-tax Act, 1961) to the seller. The seller will deposit the tax collected at source (TCS) at any of the designated branches of the authorised banks.

Following the automation of TDS returns in 2003, ITD has now notified an "Electronic Filing of Returns of Tax Collected at Source Scheme, 2005". It is applicable to all deductors furnishing their TDS return in electronic form. As per this scheme:

• It is mandatory for corporate and government deductors to furnish their TCS returns in electronic form (e-TCS return) from F.Y. 2004-2005 onwards.
• Deductors (other than government and corporates) may file TCS return in electronic or physical form. However, the Physical Form can be submitted only if the deductee records are less than 20.

FORM 27A

Deductors furnishing e-TDS/TCS returns are required to furnish a control chart - Form 27A in physical form along with the e-TDS/TCS return furnished in CD/Pen Drive.

Form 27A is a summary of e-TDS/TCS return (Form 24Q, 26Q, 27Q & 27EQ), which contains control totals of 'Amount Paid', 'Income tax deducted at source' & 'Tax Deposited (Total challan amount)'. The control totals mentioned on Form 27A should match with the corresponding control totals in e-TDS/TCS return file. Form 27A is required to be furnished separately for each e-TDS/TCS return (Form 24Q, 26Q, 27Q & 27EQ).