Sumopayroll facilitates the generation of the sample e-TDS file, which users can utilize for Income Tax e-filing. Users provide general information about a specific company requiring e-TDS, generate the e-TDS file, and then upload it to the government website to file Income Tax Returns.
Entities (both corporate and non-corporate deductors) who make payments (specified under the Income Tax Act) to third parties (deductees) must deduct tax at source (TDS) from these payments and deposit it at any designated branch of banks authorized to collect taxes on behalf of the Government of India.
Additionally, they need to submit TDS returns containing details of deductees and challan details related to the tax deposit to the Income Tax Department.
Prepare the e-TDS return in clean text ASCII format with ‘txt’ as the filename extension.
You can prepare the e-TDS return using the Return Preparation Utility offered by NSDL or any other third-party software. Validate the file using the File Validation Utility (FVU) provided by NSDL once you’ve prepared it according to the file format.
Procedure for generating e-TDS file
- A particular company for which the e-TDS needs to be generated is been considered a ‘Deductor’.
- Can Add Deductor’s information like Account Information, Address Information, Contact Information, and Responsible Person Details.
- Flexibility in editing all the details of Deductor Information.
- You can file e-TDS by creating the returns in the ‘New Return’ section.
- Options to choose between ‘Return Type’, ‘Form Type’, ‘Financial Year’, or ‘Quarter’.
- Once you specify all the details appropriately, the system will generate the ‘.txt’ file.
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