What is TDS?
Tax Deducted at Source (TDS) refers to income tax that is deducted from the payments made to
individuals or organizations.
In the context of Payroll it refers to the income tax that is deducted from the employee’s salary.
The TDS deducted has to be paid to the Income Tax department and reports need to be filed on
the tax calculated, deducted and remitted.
Forms to be used for filing
annual/quarterly TDS/TCS returns
Form No Particulars Periodicity
Form 24 Annual return of "Salaries" under Section 206 of Income Tax Act, 1961 Annual
Annual return of deduction of tax under section 206 of Income Tax Act, 1961 in respect
of all payments other than "Salaries" Annual
Statement of deduction of tax from interest, dividend or any other sum payable to
certain persons Quarterly
Form 27E Annual return of collection of tax under section 206C of Income Tax Act, 1961 Annual
Form 24Q Quarterly statement for tax deducted at source from "Salaries" Quarterly
Quarterly statement of tax deducted at source in respect of all payments other than
Quarterly statement of deduction of tax from interest, dividend or any other sum
payable to non-residents Quarterly
Form 27EQ Quarterly statement of collection of tax at source
Process of FVU validation for etds filing
1. Ensure accurate tax deduction is done for all employees.
2. Remit deducted taxes and update the challan information correctly for all
3. At the end of each quarter:
• Download the latest FVU utility from the TIN/NSDL website (4.4 currently).
• Set up the new utility on a Windows machine. (If you use Linux or Mac, you
are out of luck).
• Ensure Java is installed.
• Download CSI file from the TIN website.
• Prepare the return text file using some payroll software.
• Run the FVU utility to validate the returns.
• If the validation is successful, upload the FVU file to the TIN website or do an
electronic submission along with the signed form 27A PDF at the facilitation
• If the validation fails, see the error report and fix the reported issues. Prepare
a revised return text file and go back to step (f)