India Inc will have to adopt E-TDS

The Government has stated that the filing of tax deduction at source returns on paper form after June 2003 was not acceptable and all corporate houses would have to file it only on electronic format (E-TDS).

According to a press release, any TDS return filed by corporate deductors after June 1,2003 on paper format would not be in conformity with the legal provisions. The release also cited a clarification from the CBDT. The release further added that “therefore, those corporate deductors who have filed their TDS returns on paper format after 1.6.2003 are required to file the E-TDS in accordance with the scheme of electronic filing of TDS returns to obviate any procedural delays or any legal consequences.”

The CBDT was of the view that after coming into effect of the amended provisions, all corporate deductors were mandatorily required to file TDS returns in computer media only, the release said.

The assertion comes in the wake of instances that some of the companies had made their TDS return filing on paper format after June 2003.