INCOME TAX

INSTRUCTION NO. 1987/2000

 Dated: October 18, 2000

Subject :- Instructions to the Computer Centers for uploading data on TDS / TCS returns on Computer Media.

Under sub-sections (2) and (3) of section 206 of the Income-tax Act, 1961, read with Rule 37B of the Income-tax Rules, 1962, a person responsible for deduction of tax at source may file his TDS return on Computer Media in lieu of a paper return subject to specified conditions. In pursuance to the above statutory provisions, the Board prescribes the following procedure to maintain uniformity for the purpose of processing of TDS Returns.

1.2 The TDS Return(s) on Computer Media will be received as per the existing arrangements subject to changes, if any, in the respective wards / circles of the concerned Chief Commissioner of Income Tax.

1.3 The Computer Center concerned shall not receive any TDS Return on Computer Media directly from the person responsible for deducting tax at source.

1.4 The Officer in-charge of Computer Centre should ensure that the Computer Media is duly authenticated by the Assessing Officer as prescribed u/s 206(3)(a) of the Income-tax Act, 1961 after ensuring that Form No. 27A , duly filled un, is enclosed

1.5 The Assessing Officer Receiving the return on Computer Media should forward the computer media to the computer center together with Form No. 27A within a specified period i.e. 15 days after completing the item of work as per para 1.4 above.

2. Steps Involved

For processing TDS (Return(s) received on Computer Media, the Computer Centres will perform the following steps :

a. Check the Computer Media against any computer virus;
b. Authenticate the Computer Media;
c. Convert the data to appropriate format;
d. Load the data in TDS database;
e. Checking of control totals;
f. Retain the Computer Media in safe custody.

2.1 Checking the Computer Media against any computer virus

2.1.1 Though a certificate is required to be furnished by the person responsible for deducting tax at source certifying that the Computer Media furnished by them is free from any virus, each Computer Media should be checked to ensure that the Computer Media is free from computer viruses.

2.1.2 The person responsible for checking the computer virus should record the following certificate on the label of the Computer Media after checking the Computer Media for computer viruses :

" Checked Against Computer Virus"

Signature
Name in BLOCK LETTERS
Date

2.1.3 If any Computer Media is found to contain computer virus (es) and / or contains invalid data, the relevant TDS Return should be rejected. Such communication shall be sent to the concerned Assessing Officer for asking person responsible for filing the return, to supply another set of error free data on Computer Media.

2.2 Conversion of Data

2.2.1 The virus free data should be down loaded on the Computer System as per the procedure prescribed in the USER Manual of TDS Information System.

2.2.2 In case of compressed or backed up data, appropriate software / procedure, as provided with the TDS return, should be used to de-compress / restore the data. In case there is a failure in de-compression/restoration of the data, the return will be rejected and clause 2.1.3 will be applicable.

2.3 Loading the Data Into TDS Data base

2.3.1 After making Return Receipt Register (RRR) entry, the Data shall be converted into the desired format/tables using the procedure laid down in the USER Manual of TDS Information System for a given TDS Return Form and its corresponding data structure. The RRR No. should be mentioned on the label of Computer Media. In case there is a failure in uploading the data or if the TAN quoted is found to be invalid, the return will be rejected and clause 2.1. will be applicable.

2.4 Preliminary checking of the return(s)

2.4.1 After uploading the data files into ORACLE data base, the Computer Centre should verify the uploaded return with the control totals furnished by the person responsible for deduction of tax at source in Form No. 27A alongwith the TDS return on Computer Media.

2.4.2 In case the control totals do not match with the totals supplied in Form No. 27A filed alongwith the return, the Computer Center should intimate the fact to the Assessing Officer, and advise him to obtain another return on Computer Media from the person responsible for filing the TDS return.

2.4.3 In case the control totals tally, the Computer Centre should inform the concerned Assessing Officer that data has been uploaded and can be assessed.

2.5 Retention and safe custody of Computer Media

2.5.1 The concerned officials at Computer Centre would be responsible for safe custody of returns received on Computer Media and take due care to preserve the Computer Media without loss of data during its backup and restore operation, whenever necessary.

2.5.2 The concerned officials at the Computer Centre are responsible for safe custody of returns received on Computer Media who should ensure retention of Computer Media returns in accordance with the income Tax rules / procedures /guidelines as are prescribed in this regard.

2.6 Change of name, address etc, of the person responsible for deduction of tax at source

2.6.1 If any request for the change of name, address etc. is received from the Person responsible for deduction of tax at source, at any time, then such a request for change in name, address etc. should be promptly processed and the name, address etc. of the person responsible for deduction of tax at source updated in the TAN Database.

2.7 Instructions for uploading TCS Returns

The aforesaid Instructions will apply mutates mutandis for TCS Returns on computer Media also.

3. It is clarified that role of the Computer Centres is limited to authentication of return for virus check/check of control totals; uploading of data; and retention. All other statutory/administrative functions in respect of these returns shall continue to be the responsibility of the concerned Assessing Officers/Joint Commissioner of the Income-tax, who can access the TDS database of the Computer Centre through their terminals in the network, by following the prescribed procedure. Therefore, these instructions will apply only to those stations where networking of the PCs of Assessing Officers with the Regional Computer Centres/National Computer has been completed.

4. The submission of a Test Return or filing of a TDS Return for any year on Computer Media, does not in any way, prevent the person responsible for deduction of tax at source from filing his TDS Return for the same or any subsequent year on paper media.

5. These instructions may be brought to the notice of the officers working in your region.

F.No.275/60/99 - IT (B)

(Jamna Dass)
Under Secretary to the Govt. of India)