How to File TDS Return Step-by-Step with CSI and FUV Files

Understanding TDS Return

Tax Deducted at Source (TDS) is a system introduced by the Indian government to collect income tax at the source of income itself. In simple words, when you earn any income, a portion of that income is directly deducted as tax and paid to the government by the payer. TDS returns are the statements that you file with the Income Tax Department, showing the details of how much tax was deducted and deposited during a specific period.

Filing a TDS return is a crucial task for businesses and individuals who deduct TDS on payments. It keeps you compliant with the tax rules and ensures that all deductions are correctly accounted for.

TDS RETURN FILING PREPARATION

TDS Return Due Dates: Don’t Miss These Deadlines!

It’s important to know the due dates for filing TDS returns to avoid unnecessary late fees and penalties. TDS returns are filed every quarter, and the deadlines are as follows:

Quarter

Period

Due Date

Q1

April to June

31st July

Q2

July to September

31st October

Q3

October to December

31st January

Q4

January to March

31st May


Penalty for Late Filing

Filing the TDS return on time is very important because failing to do so results in a penalty of ₹200 per day until you file the return. The penalty amount is capped at the total amount of TDS deducted, which means that you could be paying a hefty amount if there’s a delay. So, it’s always better to be on the safe side and file your returns on time!

Step-by-Step Guide to Filing TDS Return with CSI and FUV Files

Filing TDS returns might seem complicated, but if you follow these steps carefully, it becomes a lot simpler. We’ll take this process in easy steps.

Step 1: Collect the Necessary Information

Before you start, gather all the required information and documents you’ll need for filing the TDS return. This includes:

  • Details about TAN (Tax Deduction and Collection Account Number)
  • PAN (Permanent Account Number) of both deductors and deductees
  • Details of the amount of TDS deducted from each transaction
  • Payment details for the TDS amount submitted to the government

Step 2: Download the Challan CSI File

The Challan CSI file is crucial for matching the TDS deducted and deposited with the details mentioned in the TDS return. Here’s how you can download it:

  1. Log in to the Income Tax Department portal using your TAN number.
  2. Navigate to the e-Pay Tax section.
  3. Click on the option to view the Challan Status (CSI File).
  4. Download the Challan related to the quarter you’re filing for. Make sure you save it in a secure folder on your computer.

Step 3: Download the TDS/TCS Return Preparation Utility

To file your TDS return, you’ll need a special utility provided by the Income Tax Department. Follow these steps to download it:

  1. Open your browser and search for "Download TDS utility" on Google.
  2. Click on the link that leads to the Protean-TINPAN website (formerly known as NSDL).
  3. Download the TDS/TCS Return Preparation Utility from the website. This software helps you prepare the return file in the required format.

Step 4: Prepare the TDS Return in the Utility Software

Now that you have the utility software, let’s prepare the TDS return step-by-step:

  1. Open the utility software on your computer.
  2. Select the TDS form you need to file. The options typically include:
    • Form 24Q for salary deductions
    • Form 26Q for non-salary deductions
    • Form 27Q for payments to non-residents
    • Form 27EQ for TCS (Tax Collected at Source)
  3. Choose the financial year and enter the basic details like deductee information, deductor information, and the details of the person responsible for filing the return.
  4. Add the challan details, such as the deposit date, BSR code, challan number, and the amount paid.
  5. Fill in the annexure with all the required details, including the PAN, TAN, invoice amounts, and TDS amounts for each transaction.
  6. Once you have entered all the data correctly, click on Create File to generate your TDS file.
  7. Upload the CSI file that you downloaded from the Income Tax portal earlier.
  8. Set the path for saving the error and statistics report.
  9. Click on the Validate button to check if all the details are correct and free of errors.
  10. The software will then create the FUV file, which is a special format file required for TDS returns.
  11. Finally, compress the FUV file into a ZIP file to make it ready for upload.

Step 5: Check Challan and TDS Details with Form 27A

Before submitting the TDS return, it is essential to verify all the challan and TDS details to ensure they match the data you have entered. This step helps in avoiding any errors in your filing and prevents possible rejections.

  1. Form 27A: This form is a summary of your TDS return. It includes the control totals of the amount paid and the TDS amount.
  2. Verify the Details: Carefully check the challan details such as the deposit date, BSR code, challan number, and TDS amount against Form 27A.
  3. Match the Information: Make sure that the figures in Form 27A tally with the information provided in the TDS return file.
  4. If there are any mismatches, correct the errors before proceeding to the final step of submitting the return.

This step is important because any errors in the challan details or mismatch in the data can lead to discrepancies during the TDS filing process, which may result in your return being rejected by the authorities.

Step 6: Submit the TDS Return (Online or Offline)

Now that your TDS return file is ready, it’s time to submit it. You have two options for submission: offline or online.

Offline Submission

  1. Copy the FUV file and Form 27A to a pen drive.
  2. Visit the nearest TDS facilitation center or an authorized agency like Alankit to submit the files. They usually charge around ₹50 for processing the return.
  3. The officials will verify and accept your submission. You will receive an acknowledgment slip for your records.

Online Submission

If you prefer to file online, follow these steps:

  1. Log in to the Income Tax e-filing portal using your TAN number.
  2. Go to the Income Tax Forms section and select the Tax Deducted at Source (TDS Form).
  3. Click on the Let’s Get Started button to begin.
  4. Choose the correct TDS form (24Q, 26Q, 27Q, etc.) for your filing.
  5. Select the financial year and quarter.
  6. Choose the type of filing—Regular or Correction.
  7. Upload the zipped TDS file (the FUV file you created).
  8. Proceed to e-verify the return using your Aadhaar-based OTP or other available options.
  9. After successfully verifying, you’ll receive an Acknowledgment Number confirming your TDS return filing.

Step 7: Check Your Filed TDS Return Status

To ensure everything went smoothly, you can check the status of your TDS return:

  1. Log in to the Income Tax portal.
  2. Go to the e-File section.
  3. Click on View Filed Forms to see the details of your return.

You can download or print the acknowledgment receipt for future reference.

You can use our TDS Calculator to calculate your TDS for various deductions.

My Final View

Filing TDS returns might sound like a lot of work, but when you break it down into small steps, it becomes much more manageable. Staying organized and filing your TDS returns on time not only saves you from penalties but also keeps your financial records in perfect shape. Remember, timely compliance with TDS rules shows your commitment to following tax regulations and contributes to a smoother financial journey.

If you have any doubts or face any issues during the filing process, don’t hesitate to seek help from a tax professional or use the online resources provided by the Income Tax Department.

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Sachin Chopade
I am a Finance and Tax Analyst, Content Creator, sharing valuable articles and calculators related to Finance, Accounting and Banking industry.