New Format for TDS Returns for Quarter 2

[SureTDS Group]

Dear Users

Income Tax Department and NSDL have yet again made changes in the
process for the preparation of TDS Returns. These changes have been
made effective from 1st October 2010. The summary of the changes
effected are given hereunder, which have also been detailed
thereafter.
a) New format of TDS returns released.
b) Additional Data to be submitted in TDS for payments to Transporters
without deduction of TDS.
c) PAN Number mandatory where TDS has been deducted at Normal or lower
rates. Separate Categorization for Tax Deduction at Higher Rates.
d) Telephone Number with STD Code and E-Mail Id and of Deductor/
Collector and Authorised Person to be given mandatorily.
e) Returns for Financial Year 2010-11 to be henceforth validated only
through “File Validation Utility Version 3.0”.
f) Deduction Entries for Tax Deduction at 20% cannot be deleted while
revising the return.
g) Fifteen Digit Receipt Number to be replaced by a new eight digit
receipt number, which shall be quoted on the TDS Certificates.
h) Acceptance of Form 24G (applicable to Government Deductors).
Income Tax Department (ITD) has released certain changes in the format
of file to be submitted to the Income Tax Department and consequently
certain changes shall be made in the SureTDS Software to incorporate
the changes released by the ITD. Users are hence requested to check
that the SureTDS Software is updated before finalizing the TDS
Returns.
• As per the changed regime for the preparation of TDS Returns in
electronic format, the deductor will have to quote the valid PAN for
all the deductions at the normal rates or where allowed at lower/ Nil
rate. In all cases where valid PAN Number is not available TDS has to
be deducted @ 20% and appropriately incorporated in the TDS return.
Separate indicator has been incorporated to show Tax Deductions at
maximum rate.
• TDS Return shall also incorporate details of payments to
Transporters where TDS has not been deducted since the transporter has
provided his PAN Number to the deductor.
• It is now mandatory to quote the Telephone Number and STD Code of
the Deductor and the Person Responsible for the deduction of tax at
source. It is also mandatory to quote a valid email id in Deductor
Detail.

All the returns shall henceforth be filed after incorporating the
changes in the text file. We shall soon be releasing the update
incorporating the changes in the SureTDS software.

Thanks

Product Support Centre
Cynosure Technologies P Ltd