Sumopayroll provides ease in generating the e-TDS file which can be further used in Income Tax e-filing. By, providing general information of a particular company for which e-TDS is required. The e-TDS file can be generated and can be uploaded to the government website to file Income Tax Returns.
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 the Income Tax Department.
e-TDS return in accordance with the file formats is to be prepared in clean text ASCII format with ‘txt’ as the filename extension. e-TDS return can be prepared using Return Preparation Utility provided by NSDL or any other third-party software. Once the file has been prepared as per the file format, it should be verified using the File Validation Utility (FVU) provided by NSDL.
Procedure for generating e-TDS file
- Particular company for which the e-TDS needs to be generated is been considered as ‘Deductor’.
- Can Add Deductor’s information like Account Information, Address Information, Contact Information, Responsible Person Details.
- Flexibility in editing all the details of Deductor Information.
- e-TDS filing can be done by creating the returns in ‘New Return’.
- Options to choose between ‘Return Type’, ‘Form Type’, ‘Financial Year’, ‘Quarter’.
- ‘.txt’ file will be generated once all the details are been specified appropriately.