Process to generate TDS Return (Salary / Non Salary / Non Resident / TCS)

Process to generate TDS Return (Salary / Non Salary / Non Resident / TCS)

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

TDS is one kind of advance tax. It is a tax that is to be deposited with the government periodically and the onus of doing the same on time lies with the Deductor. For the Deductee, the deducted TDS can be claimed in the form of a tax refund after they file their income tax return.

The company or person that makes the payment after deducting TDS is called a “Deductor” and the company or person receiving the payment is called the “deductee”. It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government.


To start with , below is the flow for TDS software: 

Deductor Master

The Master  creation is the very first step of every software. Master such as Deductor, Deductee, Employee, DDO master etc., Below process explains the master creation starting with Deductor master:

Path : TDS >> Master >> Deductor Information >> Create Deductor


            

• Enter the Code No. (Assign unique code no. to every Deductor)
• Select the title from the list. (Mr., Mrs., M/s., Shri., Smt., Dr.)
• Enter the Deductor’s Name 
• Enter Flat#/block No., Building Name, Road/Street.    Enter Area/Locality, Town/City/District.
• Enter PIN Code, State, STD Code and Telephone No’s.   Enter Fax No., Email ID and Website.
• Enter TDS Circle, where TDS return is to be filed/submitted.
• Enter PAN No. of Deductor.
• Enter TAN No. of Deductor.
• Enter Branch/Division, in case assessee holds branches or division. Like: Patna Branch, Ranchi Branch etc., Or Marketing Division, Support Division etc. 
• Select Type of Deductor as Government or Others along with category of Deductor whether Company, Individual, etc.

Once all the mandatory details are entered, the Next page is for Responsible person details.


            




• Select the Title.
• Enter Responsible person Name & PAN (Person who is authorized by the assessee i.e. assessee himself of the deduct TDS/Collect TDS)
• Enter the Designation. (As Manager, Accountants and Officer Etc.) Of the responsible person.
• Write Father’s Name of the above person.
• Enter Flat No. /Block No., Building Name, Road/Street, Town/City/District and PIN Code of the responsible person.
• Enter State, STD Code, Telephone No., Fax No. and remarks (to put any information/remark relating to Deductor) if any.
• Address change of Deductor since submission of last return (Check if yes).

Click on the “Previous” button to go back to Deductor master and “Next” button to proceed for section selection.


            


• Here the user has to select the Section, Nature of payment for which Deductor is liable for tax deduction or tax collection.
• Check Select All buttons to activate all the sections in the software. Or click on the Inverse button for reverse selection.

To save the Deductor Master, the user has to go back to the Main Deductor window using the Previous button and Save the details. 

The other options available under Deductor information are “Select Deductor” used to change one Deductor to another and “Modify Deductor” to change the master details if any.


Deductee Master (Non-Salary):

Here the master for deductee other than salary is to be created.
For this, Go to Master >> Deductee Master (Non- Salary)

            

Add:
• Click on the Add button to add the details. Enter Identification number.
• Select whether Surcharge applicable. “Yes” or “No”.
• Select Deductee’s Status (Status of deductee as the TDS rates differ according to status) Select Residential Status as Resident or Non-resident.
• Enter Client Name (Deductee Name)
• Enter Certificate No. (assign number to deductee)
• Enter PAN No. of deductee. Or else- 
Write 1--- PAN Applied
Write 2--- PAN Invalid 
Write 3--- PAN Not Available 
• Enter flat/block no.
• Enter Building name, Road/Street and Area locality.
• Enter Town/City and PAN code.
• Enter the State Name.
• Click on the save button to save the entered details.
• Repeat the same procedure to enter the next entry.

Employee Master (Salary):

Here the master for Employee, salaried person is to be created.
For this, Go to Master >> Employee Master (Salary)

            

Steps are similar as given in deductee master (non-salary) except for the following additional fields-
• Check PAN Online- This option will direct you to the department site for the verification of entered PAN No.
• DOB-Here you have to enter the Date of Birth of employee. Sex-enter the Sex of employee.
• Sr. Citizen or Very Sr. Citizen

Challan Entry:

Generally, challan is an official form or other kind of document, piece of paperwork, citation, etc. This is a type of Receipt. 

Path : Challan Entry >> Form Wise Challan Entry.


            

• Select the return form for preparation of Challan.
• Press Add button to enter the data.
• Click on the Add button to enter the data in Challan.
• Enter TDS Amount (Challan deposit amount)
• Enter Surcharge amount.
• Enter Health & Education cess.
• Enter Interest amount.
• Enter other amount, if any.
• It will display you the Total Tax Amount.
• Fill Cheque/DD No.
• Enter BSR Code. (Select the BSR code, as saved in the Master menu) Click on Add BSR code to find the BSR code as described in the Master menu item.(Not applicable for Government Deductor) It should be 7 Digit Number.
• Enter the Date of Deposit. (Challan deposit date into Bank)
• Enter Challan/Voucher No./receipt no. 24G (Enter the number as assigned/given by bank: It’s a 5 Digit number)
• Select that Challan Deposited by Book Entry “Yes” or “No”. (Applicable in Government Deductor Only)

Online Payment:

       
            

            

• This facility is provided for online payment of TDS Challan.
• Go to the online payment option.
• Select Section for which you want to deposit challan
• All the required details will be fetched automatically from the master otherwise fill all the mandatory fields.
• Select the bank name in which you want to deposit the payment.
• Click on the Proceed button to go further.
• Now on the second page it will give you one confirmation page and if all the data is correct then click on Submit to the Bank button for the payment.
• After this you will be directed to that particular Bank’s Net Payment Gateway facility.
• Enter User ID and Password to login into the Bank's internet Banking Module.
• Provide the required information to make e-payment.

Process to import the challan directly in the software:



Deductee Entry:

The next menu that comes in line is the Deductee Entry option. The challans that have been entered are to be adjusted with respective Deductee details. Be it for 24Q or 26Q or 27Q or 27EQ.

Form wise Entry:

Path: Deductee entry >> Form wise entry >> Form 24Q (Salary u/s 192)

Section 192:

• TDS is to be deducted on salary by Deductor if in the financial year salary of the employee exceeds the maximum amount on which no tax is payable.
• We have to calculate the annual tax liability of the employee.
• To calculate annual tax liability u/s 192, Use salary details option.
• Other income details of the employee is to be taken in written format duly signed.
• Tax liability to calculate for the employee is to be deducted in 12 monthly installments from his salary or if the period of employment is less than 12 months, then deduct accordingly.
• Tax so deducted every month has to be deposited by stipulated date prescribed by the department.
• Quarterly return in form 24Q has to be submitted by due date.
• In the fourth quarterly return, details relating to annual salary are to be given additionally.

            

            

• Press Add button to enter the details.
• Select Voucher #, Challan amount, challan date from the drop down menu. Select the challan against which you want to adjust the employee.
(Even if no challan has been entered in “challan entry” you can enter data of employee/deductee and can create challan later on through “Mapping” facility).
• Deductee: - Select deductee by click of mouse on the text box.
Deductee’s list will be displayed (Only if you have created a deductee in “Master   Employee Mater”) select the deductee by double click of mouse.
• Date of payment/credit: - enter the date when salary paid or credited to the employee.
• Amount paid/credited: - enter the amount of salary paid/credited.
• Gross amount (TDS):- enter the amount of TDS deducted.
Income Tax
Surcharge
Education Cess
Sec. & Higher Sec. Cess (%)
Total Tax deducted
Total Tax deposited
(These fields will be displayed automatically)
• Date of deduction:- (Default date is “Date of Payment/credited”)
(Salary is paid/credited only after deducting the tax amount. So date of payment and date of deduction is normally same)
• Date of furnishing certificate: - Date, when (form 16) TDS certificate furnished.
• Reason: - enter the selection/form no. for the reason of lower deduction.
• Click on the save button to save the entered data.
• Click on the Cancel button to cancel/modify and to reset the data before savings.

Note:
• You can select salary challan (challan u/s 192) and adjust Deductee's TDS against challan value.
• Alternatively, Map deductee/Deductee's by using the mapping option and select challan (If already created in Challan Entry) or can create a new challan under “Mapping”.
 
Delete: Select the deductee by single click & press “Delete”
Modify: select the deductee entry by double click & make necessary corrections and click on “Update”

Path: Deductee entry >> Form wise entry >> Form 26Q(Non-Salary)

            
            

• Click on the Add button to enter the details.
• Select the section for which TDS has been deposited.
• Select the challan, voucher No. from the drop down menu.
• A screen will appear giving details of challan on right, side of screen. You can see the amount of challan available for adjustment against Deductee’s.
• Deductee’s: Put a click on Text box (Deductee's list will be displayed only when relevant deductee have been added in “Masters”)
Deductee’s list in the form of a table will be displayed. Select the deductee from the list.(If you selected wrong deductee, by click of mouse you can change the deductee)
• Enter Amount paid/credited(enter the amount paid/credited to selected deductee)
• Enter Date of payment. (DD/MM/YY)
• Enter Rate of Tax: (Default rate is given) In case you want to change, overwrite it and enter the desired rate.
• Amount of Tax: (Auto displayed)
• Enter Surcharge %: If applicable (Default rate is given, but you can change it)
• Enter Education cess %: If applicable (Default rate is given, but you can change it)
• Enter sec. and higher education cess: If applicable   Total Tax Deducted: it will be auto displayed.
• Total Tax Deposited: It will be auto displayed.
• Date of deduction: Auto displayed-the date when the tax was deducted from the payment to deductee. Normally same day or day/days after the date of payment.
• Reason for lower deduction- Select option ‘A’ or ‘B’ for lower rate of deduction or there reason as per TDS rules.
• Click on save button to save the entries.
Repeat the same procedure to adjust challan with other entries if challan is deposited for more than one deductee.

Path : Deductee entry >> Form wise entry >> Form 27Q(Non-Resident)


            

Here only the difference would be for Section selection for 27Q, the other procedure could be the same as that of Form wise entry Non- Salary- 26Q.
• Select the form 27Q in deductee entry- Form wise.
• Section: Only 27Q return form will be displayed (as 194E, 195, 196A, 196B, etc.) 


Path : Deductee entry >> Form wise entry >> Form 27EQ(TCS)


            

Here only the difference would be for Section selection for 27EQ, the other procedure could be the same as that of Form wise entry Non- Salary- 26Q.
• Section: Only 27EQ return form will be displayed (As 6CA, 6CB, 6CC, 6CD, etc.)


Salary Detail:

Next come in sequence is the Salary detail. This option is used with Form 24Q.

Path: Deductee Entry >> Salary Detail.

            


The details of Employee master will be visible in the list. 
• Using Add/ Modify the Employee master can be created / modified accordingly.
• Delete Salary Details will delete the details for salary for the selected Employee.
• Invalid period - TO check the Salary Period which is entered in Salary Details. 
• Check salary detail - To check the salary details where the entries are blank. 
• Check Senior Citizen - To check senior citizen salary entry. 

By double Clicking on the Employee detail, the Salary data can be entered.

            

            

• Put the Employment date. (Form- To)
• Fill Salary u/s 17(1): To fill Salary click on Details button.

            

1. Basic salary: Import Salary: (To import salary which you have entered in “amount paid credited” in deductee entry).
2. No. of months:- enter the number of months for which salary received.
3. Pension
4. Commission on Sale
5. Gratuity
6. Advance Salary
7. Leave encashment 
8. Contribution by Central Govt.
9. Arrears of salary
10. Bonus
11. Salary u/s 17 (1) 
Click on the Save and Exit button to save the entries.

• Salary perquisites: enter the value of perquisites (Taxable amount of perquisites” Values of perquisites less amount received from employee)
• Profit in lieu of salary: - enter the detail to get the taxable “Profit in lieu of   salary”.
• Allowances:- Enter the details of allowances to get the taxable value of allowances
• Enter Professional tax
• Enter Entertainment allowances
• Income from House Property: - enter the details of house property income   & interest paid on borrowed capital to get the income/loss from house property.
• Enter other income received by the employee.
• Deduction: - Enter the details of deduction under various sections as declared by the employee.
• Total income: - auto display.
• Tax payable, Surcharge, Education Cess, Secondary & Higher Secondary Cess will be auto displayed
• Relief u/s 89 (1):- calculated and entered.
• Tax deducted u/s 192:- Amount of challan adjusted against deductee) I.e.  Tax already deducted from the Deductee's salary.
• Tax deducted u/s 192 (Other Deductor):- In case where assessee has served with other employer and that previous employer has deducted any tax on salary, such TDS has to be entered here to give benefit to employee)


Procedure for Mapping Deductee Entry (Non Salary) and (Salary)
:



Return Generation :

The Quarterly return will help in generating the FVU file.

Quarterly Return 


            

FVU file: File validation utility : e-TDS /TCS returns prepared for FY 2007-08 and onwards (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated using this utility. The e-TDS/TCS FVU is a Java based utility.

The e-TDS/TCS FVU setup file (e-TDS/TCS FVU.exe) comprises of three files namely:
● TDS FVU Readme.rtf: This file contains instructions for setup of the e-TDS FVU.
● e-TDS FVU Setup.exe: This is a setup program for installation of FVU.
● These files are in an executable zip file. These files are required for installing the e-TDS/TCS FVU.

Basically as mentioned above using this menu, the Original file for submission can be prepared.
E-form for 24Q, 26Q, 27Q and 27EQ, etc, can be prepared.
The hard form (Reports) can also be prepared using this menu.

The basic process to generate the FVU file is explained below:

e-Form 24Q Salary:

By using this option, we can prepare FVU file and Form 27A generated through FVU utility. TDS department requires FVU file of form 24Q in CD or other storage device. Click on e-form 24Q (Salary)

            

• Provide file creation date.
• TDS/TCS file name with Path: Provide Location on which you want to save generated FVU file and other files generated through FVU utility.
• Challan input name with file path: Download CSI by click on Download CSI button, there after browse download CSI file to provide Challan input name with file path.
• Now click on the e-filing button to prepare FVU file and 27A generated by FVU utility.
• If there is any error/mistake in deductee entry, challan entry or deductor’s entry detail- an error file will be generated with details of error. Rectify these errors and again click on that button.
• In case there is no error/mistake-then file with an extension of FVU will be generated.

            

The very next message appears as below:

            

The software will then redirect to location where the FVU file along with form 27A is generated like in this case it is “C:\KDK Data\Zen TDS\2020-2021\test\Q4\Form24\Original”

      
            

Similar process is to be followed for Form 26Q, 27Q and 27EQ. The other options available in this menu are for generation of Hard copy of respective forms.


Hope this helps.

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