Understanding Year End Processing

Certain legislation requires the annual processing and reporting of relevant payroll data. Global Payroll for India enables you to define the year end report parameters and generate the following reporting forms:

  • Form 3A.

  • Form 5.

  • Form 6.

  • Form 7.

  • Form 12BA.

  • Form 16.

  • Form 24.

  • Form 24Q e-filing.

Year end processing with Global Payroll for India requires that you:

  1. Define the data values of the reporting form.

  2. Run the report.

Note: Form 24 and Form 16 are year end reports that are produced by a unique combination of PAN (permanent account number) and TAN (tax deduction account number) numbers. For a single pay entity, several combinations of PAN/TAN might exist, each being generated separately.

Per the provisions of the Income Tax Act, 1961, specific entities making payments to deductees for salaries and certain services are required to deduct or collect taxes on these payments at the source (TDS – Tax Deducted at Source / TCS – Tax Collected at Source). The taxes can be deposited at any designated branch of an authorized bank.

In an effort to automate the collection and processing of TDS/TCS tax returns and to provide guidance about who must file electronically, the Income Tax Department has issued notifications Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003 and Electronic Filing of Returns of Tax Collected at Source Scheme, 2005. According to these provisions:

  • Beginning June 1, 2003, corporate deductors must file TDS forms electronically, and beginning fiscal year 2004–2005, TCS forms must be filed electronically.

  • Starting fiscal year 2004–2005 and thereafter, government deductors must file all their returns electronically (e-TDS/e-TCS).

  • Deductors, other than corporate or government, can file either electronic or physical returns.

The National Securities Depository Ltd. (NSDL) is authorized to act as intermediary and receive the e-TDS/e-TCS returns on behalf of the Income Tax Department through TIN-Facilitation Centers established by the NSDL or directly uploaded to the NSDL through their website.

Form 24Q Tax Data Files

The following table lists the tax data files generated by Global Payroll for India for Form 24Q and electronic delivery to the NSDL:

File Name

Description

Annexure1.csv

Line item breakdown of the TDS detail, by employee. Includes only column numbers 313 to 326.

Annexure2.csv

Continuation of the breakdown of the TDS detail, by employee. Includes column numbers 327 to 352.

Annexure3.csv

Continuation of the breakdown of the TDS detail, by employee. Includes column numbers 353 to 368.

Form24Q.txt

ASCII text file of the tax data for Form 24Q.

GPINQT01_<process_instance>.PDF

Generated tax form 24Q in PDF format. The system populates the form field entries from information provided in the tax form setup, and from Global Payroll employee tables. Print the form for signature.

GPINQT01_<process_instance>.out

This file is blank if the process runs successfully. It has content only when an error occurred in the process or it is expected to read a message.

SQR_GPINQT01_<process_instance>.log

System log of the tax report generation process. Not required for submission.