The importance of TDS software need not be mentioned in specific as any kind of software is a boon today especially with the technology replacing many manual systems. The technology is simply excellent in the sense that it rules out the possibilities of errors that are, but common in manual systems.
The TDS software is more or less like a robot that does everything one asks them to do. In a nutshell, the features are:
- 1. It keeps the data for any number of years
- 2. With the click of a mouse, one can get the details quarter wise, client wise, employee wise and whatever category one requires
- 3. The data can also be uploaded into the website of the Income Tax department without any further manual workings
- 4. The issue of TDS certificates becomes easier
- 5. The e-signatures can also be loaded into the software with limited usage permissions
- 6. There are few chances of errors being done
- The user of the TDS software is advantaged in the following ways:
- 1. Automatic calculation of TDS and TCS
- 2. Generation of e-TDs and e-TCS statements
- 3. Print the Challan and certificates
- 4. Import of data directly from the Tally package or any other accounting software
- 5. Can be used for any size and structure of the company
- 6. Easy calculation of TDS on salaries, payments to contractors, TDS on interest payments/ receipts, Commission, professional fee , rent and the like
- 7. The format of certificate is already available which enables the auto printing of TDS certificates
- 8. The challan for filing to the Income Tax department can be generated with the software
- 9. Statements for quarterly returns of TDS can be generated in prescribed form 24Q, 26Q, etc
- 10. Validation of the statements online with linkage to the NSDL website
- 11. Keeps the backup of TDS data for many years (even though a company is required to maintain data for 8 years only), the software can maintain data for more than that.
- 12. They can restore the data if a physical copy is lost.
The only care one must exercise is that the entry made is accurate. And that is it!! The software calculates the rates of TDS for different service providers, TDS on quarterly basis, reminder for filing returns on time, TDS for employees, TDS receivables, TDS payable and so on.
In a LAN network environment, the software can have multiple users with checks and balances in place which allows data to be fed from different locations and a moderator at the helm of all who authenticates the entries on periodical intervals.
The formula can be pre-fed into the system so that as soon as entry is made, the software recognizes the particular entry from the formula and calculates the TDS and gives the output in the form of
- a) whether TDS is already paid
- b) is there any excess TDS payments done
- c) Any adjustments to TDS
- d) Should advance tax be paid
- e) Is the employer required to follow up for TDS certificates from clients
- f) Any pending TDS calculations
- g) Missing data, if any
Status of Tax assessments and TDS links to that assessments/ scrutiny
