Prepare TDS Return

Learn how to prepare TDS Return on ClearTDS

Guide to prepare TDS Returns using ClearTDS

Step 1: Register

To register with Clear "create an Account” with this link https://app.clear.in/.

Step 2: Create Workspace

Once you login to https://app.clear.in/, Create Workspace by entering company’s legal name, turnover, ERP.

Step 3: Open TDS Software

You can open the TDS Software by 'clicking here '

Step 4: Add Deductor

You can upload the conso file to add deductor details or you can enter manually

Step 5: Fill Details

Each time users work on an entity from the dashboard, You have to select relevant form type (26Q,24Q,27EQ or 27Q), a dashboard will open you will choose Return Period and deductor to start with preparation of return.

Update the required data (challans, deductees and deductions) manually or import excel file

Download the excel template, fill the data and upload the same to start the return

User can fill the details of challans (1) and deductees (2) manually or user can import the same by using excel.

Once all the data is imported onto the platform, you will be able to see the summary of the import. In case of any errors identified during the import, click on ‘Download File’. This will download the error file containing all the errored line items and the reasons for the errors. You can correct all the errors in that file and can upload the same error sheet after correction.

There will be 100+ Validation will be there so that any bad data will not be uploaded.

You can procced with "Finish" after uploading all the data in the system.

Step 5: Verify PAN

You can verify the PAN in batches or in Bulk.

Verify the PAN of Deductees by using "TRACES". Go to "Validate and file".

Click on ‘Run’ against the block titled ‘TRACES’ and than Click on radio button ‘Verify PANs"

You will have to put the TRACES login credentials (user ID & Password) to verify the PAN. It will connect to TRACES website and verify the PANs. For Bulk PAN Verification, traces portal specifies the Form Type and Return period for which verification details (Challan and PAN-TDS Combination) needs to be entered to place Bulk PAN verification request.

Once verification is done you will get a report of the PAN numbers and whether they are active or inactive and Verify the "Name match status with TRACES". You can download this report for future reference

Step 6: Challan Verification with OLTAS & Income Tax Portal

You can verify the challans before generating FVU return. Go to “‘Validate and file". Click on ‘Run’ against the block titled ‘Verify Challans’. All the challans will be verified either through OLTAS or Income Tax Portal which will give "Match and Unmatched status".

If you choose "Income Tax portal", you have to enter income tax login credentials but if you choose "OLTAS", you only have to enter captcha

Step 7: Challan Consumption Check

You can check unconsumed balance in challan. Go to '‘Validate and file". Click on ‘Run’ against the block titled ‘TRACES’ and than Click on radio button ‘Sync Challan"

You will have to enter the TRACES login credentials (user ID & Password) to verify the challan. It will connect to TRACES website and verify the challan's. It will give you the status of all the remaining balance in challans.

Click on ‘Challans’ tab and scroll right to the column titled ‘Remaining Amount’ to check for unutilised amounts

You can download challan report in excel format as well.

Step 8: 206AB Validation

You can check the 206AB status of the deductors and Aadhaar-PAN linking status. Go to "Validate and file". Click on ‘Run’ against the block titled ‘206AB’.

You will have to put the Reporting portal login credentials (PAN & Password) to verify the 206AB Compliance. It will connect to Reporting Portal website and verify the 206AB compliance Check.

The status in the column ‘206AB’ will be ‘Yes’ if deductor is in violation of 206AB compliance else it will be ‘No’

The status in the column ‘AADHAAR Linking Status’ will be ‘Yes’ if the deductor has linked their Aadhaar with their PAN else it will be there ‘No’

Step 9: Lower Deduction Certificates Verification

You can import the certificate details directly from TRACES. Go to "Validate and file". Click on ‘Run’ against the block titled ‘TRACES’ and click on radio button "Syn LDC"

You will have to put the TRACES login credentials (user ID & Password) to verify the LDC's. It will connect to TRACES website and verify the LDC's. It will give you the status of all the All the details related to that corresponding PAN mentioned in that certificate will auto populate - name, certificate no. validity, nature of payment , section code, rate of TDS, amount consumed, amount remaining, date of issue and cancel date..

Step 10: Validate Return

Once validation is done and everything looks fine, you can check whether any potential notices are there i.e. any late filing fee, interest for late deposit & deduction.

Go to "Validate and file". Click on ‘Run’ against the block titled ‘Potential Notices’.

If any validation error is there it will show the errors and you will have to fix them. You can then click on ‘Download all errors’ which will download the error file in excel format with details of only the errored line items. Once you correct these errors, you can ingest the same file back by clicking on ‘Upload corrected file’

Th platform will check if you are at the risk of any potential notices from the government.

Step 11: Aggregate Validation

Once you will validate all the data, proceed with aggregate validation and generation of FVU file. Following types of error ( if any) can occur while validation otherwise FVU will be generated successfully.

1. Challan over consumption

2. Invalid deductees should be less than 15% of total deductees in form 27EQ.

You can fix overconsumption of challan to by click on "Fix Errors". You can download

the error file and after correction upload the same file it will over-ride with existing

ones.

Step 12: Generate FVU

Once all the validations are completed, PRN of the last return is to be entered (if its not the first return) to proceed to Generate FVU which involves below two steps:

1. Download Challan file: There are three ways to download .csi file

a. Income Tax Portal: Requires TAN based Income Tax portal credentials to download the file b. Oltas: Requires captcha to download the file c. Upload file: Already downloaded .csi file from outside ClearTDS can be uploaded here.

You can choose either the Income Tax portal or OLTAS to generate a .CSI file. If you paid the challan through Income Tax portal you will choose Income Tax portal or If you paid the challan through OLTAS you will choose OLTAS

2. FVU Generation: After successful CSI file download/upload, FVU generation will start.

   

Step 13: E-file

Post FVU generation, there are two options to e-file the return

1. E-file via ITR: This requires TAN based IT portal credentials and Aadhar OTP of the responsible person registered with Income tax Portal.

2. E-file via Clear: FVU is filed through TIN-FC.

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