What is eTDS?

Created by Product Content Team, Modified on Thu, 19 Jun at 5:36 PM by Product Content Team

Electronic Tax Deducted at Source (ETDS) is a system introduced by the Income Tax Department of

India to facilitate the submission of tax deducted at source information in an electronic format.

Companies paying salary should furnish TDS returns containing details of deductee(s) and challan details relating to deposit of tax to IT Department. It is mandatory to furnish TDS returns in electronic form (eTDS return).

Companies 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. Post deduction, the payments must be deposited at any of the designated branches of banks authorized to collect taxes on behalf of the Government of India. If TDS is deposited electronically, it is called eTDS.

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