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As per the current income tax laws, entities (both corporates and non-corporates - deductors) making payments 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 authorised banks and furnish TDS returns containing details of deductee(s) and bank where TDS amount is deposited with the Income Tax Department (ITD).

ITD has prescribed three new forms; Forms 24, 26 and 27.

Form No. Particulars Periodicity
Form 24 Annual return of "Salaries" under Section 206 of Income Tax Act, 1961 Annual
Form 26 Annual return of deduction of tax under section 206 of Income Tax Act, 1961 in respect of all payments other than "Salaries" Annual
Form 27 Statement of deduction of tax from interest, dividend or any other sum payable to certain persons* Quarterly
* see rule 37A of Income Tax Rules, 1962

ITD has made it mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS returns in electronic form (e-TDS return). Non-corporate deductors can furnish their returns in physical form with their respective Income Tax offices. They can also furnish their returns in electronic form through TIN facilitation centres established by NSDL.

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.

Deductors furnishing their TDS return in electronic form (e-TDS return) shall furnish the same to TIN facilitation centres established by NSDL.

Deductors furnishing returns in electronic form (e-TDS return) have to furnish a control chart - Form27A in physical form alongwith the e-TDS return CD/floppy. Form 27A is a summary of TDS return (Form 24, 26 or 27), which contains control totals of 'Amount Paid' and 'Income tax deducted at source'. The control totals mentioned on Form 27A should match with the corresponding control totals in e-TDS return file. Form 27A is required to be furnished separately for each return (Form 24, 26 or 27).

 

     
   


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